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TSX SYMBOL: TDG
CALGARY, Nov. 25, 2014 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the "Corporation") announced today that it has received approval from the Toronto Stock Exchange (the "TSX") to acquire for cancellation, by way of normal course issuer bid (the "Bid"), up to 12,299,009 common shares of the Corporation, which represent approximately 10 percent of the Corporation's public float. The Corporation had 138,195,784 common shares issued and outstanding on November 18, 2014, of which, to the knowledge of the Corporation, directors, senior officers and principal shareholders (as such term is defined in the policies of the TSX) of the Corporation held 15,205,699 (approximately 11 percent) of the issued and outstanding common shares.
The Bid will commence on November 27, 2014 and terminate on the earlier of November 26, 2015 or the date upon which the Corporation acquires the maximum number of common shares to be purchased pursuant to the Bid. Pursuant to TSX policies, daily purchases made by Trinidad may not exceed 151,180 common shares, representing 25 percent of the six month average daily trading volume of 604,721 common shares on the TSX, subject to certain exceptions prescribed by the TSX including the "block purchase exemption".
The board of directors of Trinidad believes the underlying value of the Corporation's common shares may not be reflected in the current or future market price of the common shares and has therefore decided to undertake the Bid.
Purchases pursuant to the Bid will be effected through the facilities of the TSX or other Canadian marketplaces, purchases and payment for the common shares will be made by the Corporation in accordance with TSX requirements and the price which Trinidad will pay for any common shares acquired under the Bid will be the market price for the common shares at the time of acquisition.
In addition, Trinidad announces the retirement of Brain Bentz from its Board of Directors as of November 10, 2014. "Brian has been a member of Trinidad's Board of Directors since 2011 and we value the contributions he has made during that time," said Michael Heier, Trindad's Chairman of the Board. "Brian leaves the Board for personal reasons and we thank him for his guidance and direction and wish him well in the future."
Trinidad is a corporation focused on sustainable growth that trades on the 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 and the United States. In addition, through a joint venture agreement signed in the previous year, Trinidad began operating drilling rigs in Saudi Arabia, expects to begin operations in Mexico by the end of 2014, and is currently looking into operations in other international markets. 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.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in any jurisdiction.
This news release contains certain forward-looking information relating to Trinidad's plans, strategies, objectives, expectations and intentions. The use of any of the words "expect", may", "will", "believe", and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information respecting Trinidad's intentions respecting the Bid and the effects of purchases of shares thereunder, the underlying value of the Corporation's common shares and Trinidad's expectations respecting the commencement of operations in Mexico by the end of 2014. The forward-looking information included in this document is not a guarantee of future performance and should not be unduly relied upon.
Forward-looking information is 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 information. 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. In addition, various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. In particular, such risks and assumptions include, but are not limited to: assumptions pertaining to the completion of announced rig construction programs on a timely basis and 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 of Trinidad to attract and retain qualified personnel, in particular field staff to crew the Corporation's rigs; the existence of competitors, technological changes and developments in the oilfield services industry; operating risks inherent in the oilfield services industry; assumptions respecting capital expenditure programs and other expenditures by oil and gas exploration and production companies; risks and assumptions regarding commodity prices, in particular oil and natural gas prices; risks and assumptions respecting supply and demand for commodities, in particular oil and natural gas; risks and assumptions regarding foreign currency exchange rates and interest rates; the existence of regulatory and legislative uncertainties; the possibility of changes in tax laws; risks and assumptions relating to general economic conditions including the capital and credit markets; and assumptions made about future performance and operations of the joint venture arrangement. Certain events may cause Trinidad's board of directors and management to stop purchases under the Bid and there can be no guarantee that Trinidad will purchase any amount of the common shares under the Bid. Trinidad cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. Accordingly, readers should not place undue reliance on the forward-looking information contained herein. Further information on potential factors that could affect Trinidad are included in the risks detailed from time to time in Trinidad's annual information form and annual and quarterly management's discussion and analysis. These documents are available under Trinidad's profile on SEDAR at www.sedar.com. The forward-looking information contained in this news release is expressly qualified in their entirety by this cautionary statement.
The forward-looking information contained in this news release speaks only as of the date of this news release and Trinidad assumes no obligation to publicly update or revise such information to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.
SOURCE: Trinidad Drilling Ltd.
For further information: Lyle Whitmarsh, Chief Executive Officer; Brent Conway, President; Lisa Ottmann, Vice President, Investor Relations; (403) 294-4401; [email protected]