Trinidad Drilling Ltd. announces closing of bought deal equity financing including exercise in full of over-allotment option



CALGARY, Dec. 16, 2013 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the "Corporation") is pleased to announce the closing of its previously announced bought deal equity financing (the "Offering"). At closing, a total of 17,250,000 common shares were issued at a price of $10.00 per common share for gross proceeds of $172.5 million. This amount included the full exercise by the underwriters of their over-allotment option to purchase up to an additional 2,250,000 common shares. The Offering was underwritten by a syndicate of underwriters led by Raymond James Ltd. and including RBC Dominion Securities Inc., FirstEnergy Capital Corp., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., CIBC World Markets Inc., Cormark Securities Inc., Paradigm Capital Inc. and Peters & Co. Limited (the "Underwriters").

The net proceeds raised from the Offering are expected to be used to fund upcoming capital expenditures on new and existing assets, as well as for potential growth initiatives and general corporate purposes. These capital expenditures are expected to primarily include: (i) the construction and upgrade of drilling rigs and related assets for sale to Trinidad Drilling International Luxembourg S.à.r.l., Trinidad's international joint venture with an affiliate of Halliburton Company (the "Joint Venture"); (ii) the construction of a 3,000 horsepower, 1.25 million pound hookload AC rig destined for the Liard Basin in northern Canada where it is anticipated to be drilling liquefied natural gas ("LNG")-related wells under a take-or-pay arrangement with a large North American oil and gas company; and (iii) upgrades to existing rigs to improve their efficiency and marketability.

Trinidad is a corporation focused on sustainable growth that trades on the Toronto Stock Exchange (TSX) under the symbol TDG. Trinidad's divisions operate in the drilling and barge-drilling sectors of the North American oil and natural gas industry with operations in Canada, the United States and Mexico. In addition, through the Joint Venture, Trinidad has the opportunity to operate drilling rigs in other international markets such as Saudi Arabia. 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.

Advisory Respecting Forward-Looking Information

Certain statements contained in this news release constitute forward-looking information and statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking information").  The use of any of the words "expect", "anticipate", "may", "will", "intends" and similar expressions are intended to identify forward-looking information.  In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following: (i) the Corporation's intended use of the net proceeds of the Offering; (ii) anticipated growth opportunities in the North American and international markets, including Saudi Arabia; and (iii) other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. 

Various material factors, expectations and assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information throughout this news release including, without limitation, expectations and assumptions relating to: (i) oil and gas industry conditions and production levels; (ii) future industry and economic conditions and areas for growth and development; (iii) commodity prices, foreign currency exchange rates and interest rates; (iv) capital expenditure programs and other expenditures; (v) supply and demand for oil and gas; (vi) schedules and timing of certain projects and Trinidad's and the Joint Venture's strategy for growth; (vii) Trinidad's and the Joint Venture's future operating and financial results; and (viii) treatment under governmental regulatory regimes and tax, environmental and other laws.

The forward-looking information included in this news release is not a guarantee of future performance and should not be unduly relied upon.  Such information involves 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 including, without limitation: (i) volatility in market prices for oil, natural gas and LNG; (ii) volatility in exchange rates for the Canadian dollar relative to other world currencies; (iii) liabilities and risks inherent in the drilling and manufacturing industries, including technical problems; (iv) competition for, among other things, capital, the ability to secure manufacturers (other than Trinidad Design and Manufacturing, if necessary) for rig construction and skilled personnel; (v) the ability and desire of Trinidad's customers to honour their take-or-pay contracts with Trinidad; (vi) changes in general economic, market and business conditions in Canada, the United States, Mexico, Saudi Arabia and worldwide; (vii) actions by governmental or regulatory authorities (both domestic and foreign), including changes in tax laws and the risk of nationalization and expropriation of assets; (viii) the ability for the customers of Trinidad, its subsidiaries and the Joint Venture to raise capital and to continue with their drilling programs; (ix) the impact of adverse weather on the operations of Trinidad, its subsidiaries and the Joint Venture; and * increases and overruns in construction costs. While Trinidad intends to use the net proceeds from the Offering in the manner stated above, there may be circumstances that are not known at this time where a reallocation of the net proceeds may be advisable for business reasons that management believes are in Trinidad's best interests.

Trinidad cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive.  Additional information on these and other factors which could affect operations or financial results are included under the heading "Risk Factors" in the Corporation's annual information form for the year ended December 31, 2012.  Additional information may also be found in Trinidad's other reports on file with the Canadian securities regulatory authorities.  The forward-looking information contained in this news release is expressly qualified by this cautionary statement.  Neither Trinidad nor any of the Underwriters undertake any obligation to publicly update or revise any forward-looking information except as expressly required by 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.

SOURCE: Trinidad Drilling Ltd.

For further information:

Lyle Whitmarsh
Chief Executive Officer

Brent Conway

Lisa Ciulka
Vice President, Investor Relations
(403) 294-4401


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