(SCP : TSX : $3.04), Net Change: 0.05, % Change: 1.67%, Volume: 205,132
WHAT’S IT WORTH AS A PUBCO?
Texas-based Independence Contract Drilling (IDC) has filed a registration statement with the U.S. Securities and Exchange Commission for a possible initial public offering. Several big name Wall Street bankers have been tasked with underwriting the deal. IDC is an investee company of Sprott Resource. Sprott owns 31.7% of IDC and made their $49.4 million investment in IDC in Q1/12.
IDC was formed in 2011 as a vertically integrated premium land drilling services provider. From its wholly owned API certified manufacturing facility in Houston, Texas, IDC provides E&P operators the ShaleDriller series rigs. The ShaleDriller is designed to target longer-reach horizontal wells that are technically demanding and more efficiently drilled by high-specification, programmable AC rigs, which precisely control key drilling parameters. In
addition, the ShaleDriller series have “walking” capability to allow the rig to be quickly moved to a new drilling location on a pad without disassembling and reassembling the rig.
As of Q1/14, ICD had six rigs fully contracted two additional rigs under construction, and one rig in the manufacturing facility for upgrades. The oil & gas drilling industry has entered a land rig replacement cycle because much of the current U.S. land drilling rig fleet is old and technologically inefficient. Some 40% of the fleet was built before 2000, and more than 50%are mechanical and below 1,000 HP.