Trinidad Drilling considers sale as Canadian E&P activity slumps
CALGARY (Bloomberg) -- Trinidad Drilling Ltd., which provides contract drilling services in North America and the Middle East, is considering selling itself as years of slumping drilling activity in Canada weighs on revenue.
A potential sale is one option the Calgary-based company is considering as it undertakes a strategic review, which also may result in a the divestiture of some assets or a strategic partnership.
Drilling activity has been sluggish in Canada, where Trinidad has almost half of its rigs, with the number of wells completed rising just 1.8% to 6,138 last year, according to the Canadian Association of Oilwell Drilling Contractors. That’s still below the 6,199 wells drilled in 2015. Trinidad’s revenue has fallen by more than half since 2014.
Trinidad’s review is being led by a special committee of independent directors, with advice from Toronto-Dominion Bank and Blake, Cassels & Graydon LLP, the company said Tuesday.
The shares rose 5.7% to C$1.87 at 10:22 a.m. in Toronto. Trinidad had gained 4.1% this year through Friday, after sliding 49% in 2017.
