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Press release from CNW Group


Thursday, June 09, 2011

TRINIDAD DRILLING LTD. ANNOUNCES THE PURCHASE OF FOUR US-BASED DRILLING RIGS08:30 EDT Thursday, June 09, 2011/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/TSX SYMBOL: TDGCALGARY, June 9, 2011 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the "Company") today announced the acquisition of four drilling rigs that, following enhancements, will be added to its US drilling operations."We were able to purchase these rigs at a very attractive price and following their upgrades, they will be a good fit with our fleet of deep, technically advanced equipment," said Lyle Whitmarsh, Trinidad's President and Chief Executive Officer. "The design and style of these rigs will work well in today's drilling environment, and by applying our drilling automation and electrical expertise to the rigs, we will be able to add efficient, high performing equipment to our fleet at a relatively inexpensive cost."The total cost of the rigs is expected to be US$44 million, including the initial purchase price and subsequent upgrades. Following their enhancement, the rigs will be highly automated, 1,500 horsepower, AC triple rigs with a depth capacity of 20,000 feet (6,096 metres). The first rig is expected to be operational by the end of the third quarter of 2011 and the remainder will be ready by the end of the year.The forecast annual EBITDA for these four rigs is expected to more than offset any EBITDA associated with the service rigs recently sold. In addition, the land rigs generate a stronger return on capital and align with the Company's strategy to narrow its focus towards contract drilling.Following the completion of the 2011 and 2012 rig build program, Trinidad will have a total of 129 drilling rigs with 56 rigs in Canada, 70 rigs in the US and 3 rigs in Mexico.Trinidad is a growth-oriented corporation that trades on the Toronto Stock Exchange under the symbol TDG. Trinidad's divisions operate in the drilling, coring and barge-drilling sectors of the North American oil and natural gas industry with operations in Canada, the United States and Mexico. Trinidad is focused on providing modern, reliable, expertly designed equipment operated by well-trained and experienced personnel. Trinidad's drilling fleet is one of the most adaptable, technologically advanced and competitive in the industry.FORWARD-LOOKING STATEMENTSThe document contains certain forward-looking statements relating to Trinidad's plans, strategies, objectives, expectations and intentions. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this document. The forward-looking information and statements included in this document are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements. In particular, but without limiting the foregoing, this document may contain forward-looking information and statements pertaining to the completion of announced rig construction programs on a timely basis and on economical terms; the assumption that Trinidad's customers will honour their take-or-pay contracts; fluctuations in the demand for Trinidad's services; the ability for Trinidad to attract and retain qualified personnel, in particular field staff to crew the Company's rigs; the existence of competitors, technological changes and developments in the oilfield services industry; the existence of operating risks inherent in the oilfield services industry; assumptions respecting capital expenditure programs and other expenditures by oil and gas exploration and production companies; assumptions regarding commodity prices, in particular oil and natural gas; assumptions respecting supply and demand for commodities, in particular oil and natural gas; assumptions regarding foreign currency exchange rates and interest rates; the existence of regulatory and legislative uncertainties; the possibility of changes in tax laws; and general economic conditions including the capital and credit markets. Trinidad cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this document speak only as of the date of this document and Trinidad assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.This news release shall not constitute an offer to sell or the solicitation of an offer to buy the shares in any jurisdiction. The shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States or to a United States person, absent registration, or an applicable exemption therefrom.For further information: Lyle Whitmarsh, President and Chief Executive Officer, (403) 265-6525; Brent Conway, Executive Vice President and Chief Financial Officer, (403) 265-6525; Lisa Ciulka, Director of Investor Relations, (403) 294-4401, email: