CanElson Drilling Inc. (TO: CDI) closed its bought deal financing of some 6 million common shares sold at C $4.85 per share.

The over-allotment option of 780,000 shares was exercised in full. The company received aggregate gross proceeds of C $29 million. FirstEnergy Capital Corp. and Peters & Co. Ltd. co-led the underwriters that included AltaCorp Capital Inc. , Paradigm Capital Inc. , and National Bank Financial Inc.

Net proceeds will be used to reduce bank debt, for its capital program, and anticipated incremental capital investment opportunities. Incremental opportunities are based on inquiries from potentially new and existing customers and involve demand for rig additions beyond the current capital expenditure budget.

Such new opportunities could involve regional expansion in West Texas and the deep basin of Alberta and British Colombia, and incremental investment into Mexico. In West Texas and Mexico, producers are primarily focused on developing oil reserves. In the deep basin of Alberta and British Colombia, producers are primarily focused on developing natural gas reserves, according to the release.

CanElson Drilling Inc. focuses operations on land-based contract drilling rigs in Canada, the US, and Mexico for oil and natural gas exploration and development companies. The company is headquartered in Calgary.