Trinidad Drilling Ltd. announces the acquisition of Victory Rig Equipment Corporation and the creation of a full service design and manufacturing division



    CALGARY, Sept. 3 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the
"Corporation") is pleased to announce that it has purchased Victory Rig
Equipment Corporation ("Victory"), a privately-held oilfield equipment
fabrication company based in Red Deer, Alberta.
    Trinidad plans to combine all its oilfield equipment manufacturing and
construction businesses into one business that will retain the name Victory
Rig Equipment. This business will include Victory's current operations and
Trinidad's existing operations at Mastco Derrick Service Ltd. and Automation
Controls and Electric Ltd. ("ACE"). The new combined business will be led by
Richard Ariss, currently employed by Trinidad as President of ACE. Mr. Ariss
brings extensive experience from the oilfield equipment manufacturing industry
and his strong leadership and respected management style is expected to
provide clear strategy and direction for the division.
    The combined Victory division will offer an extensive range of drilling
solutions including innovative and technically-advanced rigs capable of
meeting the growing challenges in the oil and gas industry. The integration of
the businesses into one division will provide a unique and seamless ability to
deliver the complete cycle of drilling solutions from design, manufacturing
and installation through to after-market services. Victory's comprehensive
product line is aimed at providing exceptional results for our customer's and
enhanced safety for our crews.
    Victory will provide an unmatched selection of patented and
highly-effective drilling equipment including:

    -   The exclusive rights to sell and distribute the Candrill
        1,000 - 3,000 horsepower diesel electric rigs and the Candrill Walk
    -   The newly developed Victory 200-535 Ton top drive;
    -   Progressive Drive drilling system, which effectively eliminates the
        need for drawworks and drilling lines, significantly reducing
        maintenance requirements;
    -   Victory AC drawworks and the all new SR (switch reluctance)
        1,800 horsepower drawworks;
    -   Victory's auto driller - AC Master Drill system;
    -   AC direct drive pumps;
    -   Automated cat walks; and
    -   Trinidad's proprietary control system.

    "Trinidad has a reputation for providing top quality, new and
technically-advanced equipment," said Lyle Whitmarsh, Trinidad's President and
Chief Executive Officer. "Victory has designed and created some of the
industry's most progressive oilfield equipment and this acquisition will allow
us to bring these innovative and effective designs into our control. The
incorporation of this type of equipment into our fleet continues our focus on
first-class performance and results for our customers," Whitmarsh said.
    The transaction closed effective August 15, 2008 with a total purchase
price of approximately $16.3 million, including specific holdback amounts
relating to ongoing business activities and remains subject to final
adjustments. Trinidad expects to retain the vast majority of the talented and
experienced team at Victory.

    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 current rig construction programs, Trinidad will have
126 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 industry.

    Advisory Respecting Forward-Looking Statements

    This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws. 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. In particular, but without limiting
the foregoing, this news release contains forward-looking information and
statements pertaining to the following: (i) the completion of the rig
construction programs on a timely basis and on economical terms; (ii) the
assumption that Trinidad's customers will honour their take or pay contracts;
(iii) the ability for Trinidad to attract and retain qualified crews to crew
their rigs; (iv) assumptions respecting capital expenditure programs and other
expenditures by oil and gas exploration and production companies; (v)
assumptions respecting commodity prices, foreign currency exchange rates and
interest rates; (vi) assumptions respecting supply and demand for commodities;
and (vii) other expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events, conditions, results
of operations or performance. Various assumptions were used in drawing the
conclusions or making the projections contained in the forward-looking
statements throughout this news release.
    The forward-looking information and statements included in this news
release 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.
    Trinidad cautions that the foregoing list of assumptions, risks and
uncertainties is not exhaustive. The forward-looking information and
statements contained in this news release speak only as of the date of this
news release, 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

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:

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Trinidad Drilling Ltd.

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