Shares of Precision Drilling (TSE:PD) (NYSE:PDS) climbed after it announced that the Supreme Court of Canada denied an application for leave to appeal an earlier Ontario court ruling in favour of the company's Inter-Leasing unit.
The company said the ruling was related to reassessments for Ontario income tax for Inter-Leasing's 2001 through 2004 taxation years.
The Ontario Minister of Revenue had filed to appeal the ruling. Precision said it will reflect the $55 million paid to the Ontario tax authorities in 2008, which was tied to the reassessed taxation years, as a current receivable until this amount, plus interest, is received from the Ontario Minister of Revenue.
Shares of Precision rose almost 2 percent in early deals Friday, to C$7.77 in Toronto, stretching year-to-date gains to over 10 percent.
Calgary, Alberta-based Precision has an extensive fleet of contract drilling rigs, and provides drilling services, well service, coil tubing services, camps, rental equipment and water treatment units to the oil and gas industry.