Ningxia TLH Group Co., Ltd.

April 20 (Bloomberg) -- Precision Drilling Trust, Canada’s largest oil and gas well driller, agreed to sell about C$380 million ($307.2 million) of securities to the Government of Alberta to pay for the acquisition of Grey Wolf Inc. The provincial government will buy C$175 million in senior unsecured notes, 35 million trust units at C$3 apiece and warrants to acquire an additional 15 million, Calgary-based Precision said in a statement. The unit price is a 64 percent discount to the close April 17. The financing will allow Precision to repay a C$296 million loan at 17 percent that it used for its $1.16 billion purchase of U.S. driller Grey Wolf in December. The number of oil and natural-gas drilling rigs operating in the U.S. fell to a six- year low last week, according to data published by Baker Hughes Inc. Canada’s rig count has tumbled 83 percent since February to the lowest since the week ended May 21, 1999. “We closed under the most challenging credit market in the last several years,” Chief Executive Officer Kevin Neveu said of the Grey Wolf deal in a conference call. “The financing package was less than ideal.” The government was the only investor that was willing to provide the C$300 million in comprehensive financing the company needed, Neveu said. Alberta’s government, which pulled in C$12.3 billion in natural-resource revenue last year, will make the investment through the Alberta Investment Management Corp. The province is trying to boost drilling in the province amid predictions resource income will slump to about C$5.9 billion this year. Government Stake The sale of the trust units makes the government the biggest holder in Precision, Tetrem Capital Management Ltd. of Winnipeg, Manitoba, said. If the government exercises its warrants, it could hold a 24 percent stake in the company. Precision said it will raise C$103 million in a rights offering to allow unitholders to bolster their stake in the company at $3 a share, The senior notes will pay 10 percent over eight years, Precision said. Calgary-based Precision dropped 40 cents to C$4.52 in Toronto Stock Exchange trading. April 20 (Bloomberg) -- Precision Drilling Trust, Canada’s largest oil and gas well driller, agreed to sell about C$380 million ($307.2 million) of securities to the Government of Alberta to pay for the acquisition of Grey Wolf Inc. The provincial government will buy C$175 million in senior unsecured notes, 35 million trust units at C$3 apiece and warrants to acquire an additional 15 million, Calgary-based Precision said in a statement. The unit price is a 64 percent discount to the close April 17. The financing will allow Precision to repay a C$296 million loan at 17 percent that it used for its $1.16 billion purchase of U.S. driller Grey Wolf in December. The number of oil and natural-gas drilling rigs operating in the U.S. fell to a six- year low last week, according to data published by Baker Hughes Inc. Canada’s rig count has tumbled 83 percent since February to the lowest since the week ended May 21, 1999. “We closed under the most challenging credit market in the last several years,” Chief Executive Officer Kevin Neveu said of the Grey Wolf deal in a conference call. “The financing package was less than ideal.” The government was the only investor that was willing to provide the C$300 million in comprehensive financing the company needed, Neveu said. Alberta’s government, which pulled in C$12.3 billion in natural-resource revenue last year, will make the investment through the Alberta Investment Management Corp. The province is trying to boost drilling in the province amid predictions resource income will slump to about C$5.9 billion this year. Government Stake The sale of the trust units makes the government the biggest holder in Precision, Tetrem Capital Management Ltd. of Winnipeg, Manitoba, said. If the government exercises its warrants, it could hold a 24 percent stake in the company. Precision said it will raise C$103 million in a rights offering to allow unitholders to bolster their stake in the company at $3 a share, The senior notes will pay 10 percent over eight years, Precision said. Calgary-based Precision dropped 40 cents to C$4.52 in Toronto Stock Exchange trading.