Cathedral Energy Services signs deal to buy U.S. company Altitude Energy Partners

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Under the deal, Cathedral Energy Services says it will pay nearly US$62.7-million in cash and issue about 67 million shares

has signed a deal to buy the directional drilling services business of Altitude Energy Partners LLC in an agreement it valued at about US$100-million in cash and shares in a bid to grow its U.S. business.

Altitude, a portfolio company of Black Bay Energy Capital LLC, has significant operations in Texas, most prominently in the Permian Basin. Under the deal, Cathedral says it will pay nearly US$62.7-million in cash and issue about 67 million shares. The Calgary-based company says it plans to operate under the Altitude name in the U.S. with the Altitude management team also leading Cathedral’s existing U.S. directional drilling business.The deal will also see J.R. Boyles, a director and founder of Altitude, appointed to Cathedral’s board of directors.

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