AKITA closes Fox Drilling deal, adds six rigs

AKITA Drilling completed its acquisition of Fox Drilling from Paramount Resources. Fox operates six triple drilling rigs in the Western Canadian Sedimentary Basin, five of which are high-specification AC walking rigs. AKITA issued 19,264,270 common shares to Paramount as consideration for the deal.

Paramount will distribute the shares pro rata to its shareholders on July 16, leaving Paramount shareholders holding approximately 33% of AKITA’s outstanding shares. Concurrent with closing, AKITA and Paramount entered a three-year rig utilization agreement under which Paramount committed to 2,700 rig days.

AKITA also completed a share reorganization eliminating its dual-class structure, converting its Class A shares into Class B shares and redesignating them as common shares. The shares begin trading under the single ticker AKT on the TSX on July 6, replacing the AKT.A and AKT.B symbols.