Cathedral Energy Services shares rise after drilling veteran named CEO

Cathedral Energy Services Ltd. says industry veteran Tom Connors has been tapped to replace president and CEO Scott MacFarlane next month as he retires from the Calgarybased directional and horizontal drilling company.

Connors has worked in various leadership roles at much larger Ensign Energy Services Inc. over the past 18 years, including helping expand Ensign’s directional services in Canada and with buying and integrating of two directional drilling businesses.

Cathedral says it is issuing 500,000 units to Connors at 20 cents per unit or $100,000, with each unit consisting of a common share and a halfshare warrant that allows the holder to buy a share for 24 cents in the next three years.

It says it will issue an additional 650,000 units to Connors paid for through a loan of $130,000.

Cathedral shares rose by as much as seven cents or 38 per cent to 25.5 cents in Toronto on Monday morning.