Essential Energy Services Ltd. has sold its five hybrid drilling rigs and associated support equipment and inventory to Superior Coring Systems Inc. for cash proceeds of $16.75 million. The sale closed effective November 15, 2012.

One of the Rigs was recently damaged while in transit by a third party trucking company and as a result, the proceeds will be received in two stages. Four of the Rigs and all inventory and support equipment were transferred at Closing for cash proceeds of $14.75 million. All Rig employees are expected to transfer with the assets at this time. Upon repair of the fifth Rig, it will be delivered to Superior in exchange for the remaining proceeds of $2 million. The cost to repair the fifth Rig is expected to be fully funded by insurance proceeds.

Tags: Essential Energy Services