Profile: Precision Drilling Corp (PDS.N)
17 May 2013
Precision Drilling Corporation (Precision), incorporated on March 25, 1985, is a provider of contract drilling and completion and production services primarily to oil and natural gas exploration and production companies in Canada and the United States. The Company operates in two segments: Contract Drilling Services, and Completion and Production Services. In Canada, the Contract Drilling Services segment includes land drilling services, directional drilling services, procurement and distribution of oilfield supplies and the manufacture and refurbishment of drilling and service rig equipment, and the Completion and Production Services segment includes service rigs for well completion and workover services, snubbing services, camp and catering services, wastewater treatment services and the rental of oilfield surface equipment, tubulars, well control equipment and wellsite accommodations. In the United States, the Contract Drilling Services segment includes land drilling services, directional drilling services, turnkey drilling services, procurement and distribution of oilfield supplies and trucking services for the movement of Precision rigs and the Completion and Production Services segment includes snubbing services and rental of wellsite accommodations and drilling camps. Internationally, Precision is focused on land drilling services.
On March 29, 2011, Precision acquired Drake Directional Drilling, LLC and Drake MWD Services, LLC. On September 12, 2011, Precision acquired Axis Energy Services Holdings Inc. During the year ended December 31, 2011, Grey Wolf International opened offices in Dubai, United Arab Emirates and Bogota, Colombia, and contracted three rigs for operations in Saudi Arabia to work on multi-year contracts.
Contract Drilling Services Segment
The Contract Drilling Services segment consists of a range of vertically integrated subsidiaries operating in the United States, Canada and internationally. These subsidiaries are engaged primarily in providing onshore well drilling services to exploration and production companies in the oil and natural gas industry. In Canada, the United States and internationally as at December 31, 2011, the Contract Drilling Services segment consisted of 188 land drilling rigs in Canada; 143 land drilling rigs in the United States; three land drilling rigs in or being deployed to Saudi Arabia; two land drilling rigs in Mexico; one land drilling rig in Colombia; approximately 65 directional drilling job capacity in Canada and United States; engineering, manufacturing and repair services primarily for Precision’s operations, and centralized procurement, inventory and distribution of consumable supplies primarily for Precision’s Canadian, United States and Mexico operations.
During 2011, Precision operated a fleet of 337 land rigs in Canada, the United States and internationally. During 2011, Precision opened regional offices in Dubai, United Arab Emirates and Bogota, Colombia. Rostel Industries manufactures custom drilling rigs and manufactures and refurbishes drilling rig and service rig components. Columbia Oilfield Supply in Canada and Grey Wolf Supply in the United States are general supply stores that procure, package and distribute volumes of consumable oilfield supplies.
Completion and Production Services Segment
The Completion and Production Services segment consists of a number of subsidiaries providing completion and workover services and ancillary services and equipment rentals to oil and natural gas exploration and production companies primarily in Canada. At December 31, 2011, Precision’s Completion and Production Services segment consisted of 189 well completion and workover service rigs in Canada; 17 snubbing units in Canada and one snubbing unit in the United States; approximately 11,100 oilfield rental items, including well control equipment, surface equipment and specialty tubulars in Canada; 232 wellsite accommodation units in Canada and 28 in the United States; 86 small-flow and four large-flow wastewater treatment units and three potable water production units in Canada, and 56 drilling camps and two base camps in Canada and four drilling camps in the United States.
Precision Well Servicing provides customers with well servicing rigs for a range of oil and natural gas well services, including completion, workover, abandonment, well maintenance, well re-entry preparation, snubbing and coil-tubing service rigs. The Precision Well Servicing rig fleet is deployed throughout western Canada. Well servicing jobs are typically short and preferably during daylight hours. As of December 31, 2011, Precision Well Servicing marketed 12 portable hydraulic rig-assist snubbing units and five self-contained snubbing units in western Canada and one self-contained snubbing unit in the United States. As of December 31, 2011, Precision Rentals provided approximately 11,100 pieces of oilfield rental equipment from five operating centers and 11 stocking points located throughout western Canada, supported by a technical center in central Alberta. LRG Catering provides food and accommodation to personnel working at the wellsite, typically in remote locations in western Canada. LRG Catering has 56 drill camps and two base camps in western Canada and four drill camps in the United States. Terra Water Systems provides portable wastewater handling, treatment, and disposal facilities at remote sites.
Precision Drilling Corp
800, 525-8th Avenue S.W.
CALGARY AB T2P 1G1
Company Web Links
- UPDATE 2-Precision Drilling expects US rig demand to stabilize
- Precision Drilling profit falls due to lower N American demand
- Precision Drilling profit falls on lower North American drilling
- UPDATE 1-Precision Drilling posts first loss in two years on charges
- Precision Drilling posts loss on rig decommissioning charges