Establishments Maurel & Prom SA announced it has completed the acquisition of all of the shares of Caroil SAS (excluding the South American business of Caroil) from Tuscany International Drilling Inc. (TSX : TID) and has sold all of its 109,000,000 common shares of Tuscany to an entity incorporated in the Cayman Islands.
Through the deal Maurel & Prom has indirectly acquired Tuscany's business operations in Africa which was primarily comprised of 9 drilling and workover rigs, associated inventory and related drilling contracts and obligations in respect of the French branch office of Caroil. Caroil's business operations in Colombia, including 6 drilling and workover rigs, associated inventory and related drilling contracts, have been transferred to a wholly-owned subsidiary of Tuscany.
In addition, Maurel & Prom has assumed US$50 million of debt from Tuscany pursuant to a credit agreement with Credit Suisse. As part of the transaction, Maurel & Prom expects to purchase two drilling rigs from Tuscany for aggregate consideration of US$23 million, of which US$15 million has already been paid.
Tuscany said the closing of the transaction and the restructuring of its senior secured loans will allows the company to refocus on its existing operations in Colombia, Brazil and Ecuador. Tuscany's fleet is now comprised of 14 rigs in Colombia, 9 rigs in Brazil and 5 rigs in Ecuador.