/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
TSX SYMBOL: TDG
CALGARY, July 10 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the
"Corporation") is pleased to announce that it has entered into an agreement to
sell the barge drilling rig it has been constructing in Indonesia to an
international third party.
The parties have agreed to a purchase price of US$53.5 million plus a
handling fee for any additional modifications made. In total, Trinidad expects
to receive proceeds of approximately US$54 million. The barge rig is an
internationally classed, posted drilling rig with 3,000 horse power and AC
Trinidad has received a US$5.35 million non-refundable deposit and
expects to receive the balance of the purchase price within 90 days.
"This transaction is a good business decision for Trinidad", said Lyle
Whitmarsh, President and Chief Executive Officer of Trinidad. "We have
generated a strong return on the original investment we made in the barge rig
and we can now redeploy those funds towards new opportunities in the land
drilling and barge markets that will create additional value for our
The proceeds from the sale of the Indonesian barge are expected to be
used for general business purposes, to fund future expansion opportunities and
to reduce current debt levels. We continue to see strong opportunities in both
the U.S. land drilling market and the U.S. Gulf Coast barge drilling market.
The newer, more efficient equipment we can provide gives a competitive
advantage for Trinidad and is reflected in the high utilization rates and
solid profit margins we maintain. We will continue to evaluate these
opportunities, looking for those that meet our stringent criteria and add
value for our shareholders.
Trinidad is a growth oriented corporation that trades on the TSX under
the symbol TDG. Trinidad's divisions operate in the drilling, well servicing
and barge drilling sectors of the North American oil and gas industry. With
the completion of the recently announced rig construction programs, Trinidad
will have 119 drilling rigs ranging in depths from 1,000 - 6,500 metres. In
addition to its drilling rigs, Trinidad will have 26 service rigs, 20 pre-set
and coring rigs and 4 barge rigs currently operating in the Gulf of 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
This news release may contain forward-looking statements concerning the
anticipated performance of the Corporation. Forward-looking statements are
based on the estimates and opinions of management at the date the statements
are made, and the Corporation undertakes no obligation to update
forward-looking statements if conditions or opinions should change.
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 U.S. person, absent registration, or an applicable exemption therefrom.
For further information:
For further information: Lyle Whitmarsh, President & Chief Executive
Officer, (403) 265-6525; Brent Conway, Chief Financial Officer, (403)
265-6525; Lisa Ciulka, Director of Investor Relations, (403) 294-4401, email: