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Western Energy Services Corp. said Monday it has agreed to buy Pantera Drilling Income Trust for about $64.1-million.

The Calgary-based contract drilling and production services company said Panera unit holders would receive about 21.9 common shares of Western for each unit.

The transaction is a 35.7 per cent premium to Pantera's average trading price of $3.39 for the five days ended Oct. 15, Western Energy said.

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The company noted that Pantera's trustees and officers have entered into lock up agreements in favour of the transaction, representing about 67 per cent of outstanding shares.

Under the agreement, Western Energy will also assume $16.6-million in debt, severance and transaction costs.

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