CanElson Drilling Inc. announces completion of $35 million bought deal financing including exercise in full of over-allotment option

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

CALGARY, Oct. 10, 2013 /CNW/ - CanElson Drilling Inc. ("CanElson" or the "Company") (TSX: CDI) today announced that it has closed its bought deal financing of 5,635,000 common shares ("Common Shares") of the Company, which includes 735,000 Common Shares issued pursuant to the exercise in full of the over-allotment option, at a price of $6.20 per Common Share for aggregate gross proceeds of $34,937,000 (the "Financing"). The Financing was underwritten by a syndicate of underwriters led by Peters & Co. Limited and included FirstEnergy Capital Corp., National Bank Financial Inc., AltaCorp Capital Inc. and Lightyear Capital Inc.

The net proceeds from the Financing will be used initially to temporarily reduce bank debt outstanding under the Company's credit facilities and subsequently to partially fund the Company's 2013 and 2014 capital programs which may include, but not limited to, the construction of three additional drilling rigs, subject to finalizing customer contracts, at an aggregate cost that may be more than the amount of the net proceeds of the Financing. To the extent the net proceeds are not used for rig construction, they will be used for other oil and gas services related business opportunities and for general corporate purposes.

About CanElson

The primary business of CanElson is operating land‐based contract drilling rigs in Canada, the US and Mexico for oil and natural gas exploration and development companies. The Company also operates a compressed natural and raw gas transportation related services business through our wholly owned subsidiary, CanGas Solutions Inc.

More information on CanElson can be found on its website: www.canelsondrilling.com

Forward Looking Information

This press release contains certain statements or disclosures relating to CanElson that are based on the expectations of CanElson as well as assumptions made by and information currently available to CanElson which may constitute forward‐looking information under applicable securities laws. In particular, this press release contains forward‐looking information related to: the anticipated use of net proceeds and the construction of additional drilling rigs. Such forward looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond CanElson's control. Many factors could cause the performance or achievement by CanElson to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information.

CanElson's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. CanElson disclaims any intention or obligation to publicly update or revise any forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. This news release is not an offer for sale within the United States of any Common Shares or other securities of CanElson. Any offering of securities of CanElson will not be registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration under U.S. securities laws or an applicable exemption from registration under such laws. These securities may not be sold in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

SOURCE: CanElson Drilling Inc.

For further information:

Randy Hawkings
President and Chief Executive Officer
CanElson Drilling Inc.
700, 808 - 4th Avenue SW
Calgary, Alberta T2P 3E8
Tel: 403‐266‐3922

Robert Skilnick
Chief Financial Officer
CanElson Drilling Inc.
700, 808 - 4th Avenue SW
Calgary, Alberta T2P 3E8
Tel: 403‐266‐3922

Profil de l'entreprise

CanElson Drilling Inc.

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