Collicutt Energy Services Ltd. wanted to consolidate; High Arctic Well Control Inc. needed to expand. The two companies have struck a deal that accommodates both objectives. Collicutt Energy has agreed to sell its former headquarters at 8133 Edgar Industrial Close to High Arctic for $4.8 million.

Collicutt Energy, which fabricates and services natural gas compression, power generation and oilfield production equipment, moved its fabrication division to new facilities at 7550 Edgar Industrial Dr. several years ago. Earlier this year it relocated its service division as well.

Tom Lewis, Collicutt Energy's vice-president of finance and chief financial officer, said the sale of the 62,000-square-foot building will net his company about $4.6 million. That money will be applied toward Collicutt Energy's long-term debt, which currently stands at about $17.1 million. He pointed out that the sale will also relieve it of costs like property taxes and operating expenses, which he estimated total between $250,000 and $500,000 a year. "It just gives us a little more flexibility," said Lewis.

High Arctic has occupied a 22,000-square-foot building at 8014 Edgar Industrial Cr. since 2000. President and CEO Jed Wood said the company has expanded into new operations and was feeling cramped. "We'd grown out of the space we're in," said Wood, pointing out that High Arctic was even leasing property off-site. He said Tuesday that he expects to complete the move Dec. 1, with renovations already underway.

Among the changes will be the addition of warehouse space. Wood said High Arctic's existing facilities will likely be leased out. Lewis said the consolidation of Collicutt Energy's operations into one building has gone well. The process should lead to operational efficiencies and savings, he said. Space has not been a problem, he added. "We seem to be able to accommodate everything." If the company does need to expand its work area in the future, Lewis said it could utilize more of the 30-acre parcel it now operates from, or look elsewhere for building space. Collicutt Energy is expected to release its third quarter financial results next Tuesday.