Trican Well Service is buying rival Canyon Services Group in the latest round of consolidation in the oil patch.

It’s an all-stock transaction, with Trican offering 1.7 of its shares for each Canyon share, for a total value of $637 million, including $40 million in assumed debt.

"This combination with Canyon will create a Western Canadian based leading energy services firm that has the asset base, efficient cost structure and financial capacity to create value for all of our combined stakeholders," said Trican CEO Dale Dusterhoft in a statement.

Trican says it’s aiming to close the deal, which would see its shareholders own 56 per cent of the combined entity, this year. Canyon CEO Brad Fedora will join Trican’s board when the transaction is completed.