Trinidad Drilling Ltd. announces the redeployment of five Canadian rigs to higher dayrate and utilization areas in the U.S. and Mexico.



    CALGARY, Sept. 4 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the
"Corporation") is pleased to announce that it has agreed to move five existing
rigs into higher dayrate and utilization areas in the United States and
    Trinidad recently agreed to move two rigs from Canada into the United
States under long-term, take-or-pay contracts for periods of three and five
years, with guaranteed utilization rates of 100% during their respective
contract terms. These rigs are expected to operate in the Haynesville Shale,
Louisiana and the Bakken Shale, North Dakota. Trinidad has a growing presence
in the emerging Haynesville Shale play and following the completion of its rig
building program, the Corporation expects to have 21 rigs operating in the
area. The Bakken Shale is a relatively new area for Trinidad and this move
will deploy the Corporation's initial rig into the U.S. side of the play,
creating a first toehold in an area of expected growth moving forward. Both
rigs are expected to be operating in their new areas in September 2008.
    In addition, Trinidad has agreed to move three existing rigs from Canada
into the southern edge of the Chicontepec field in central eastern Mexico.
These rigs represent Trinidad's initial entry into Mexico and are expected to
be in place and operational by the end of the third quarter of this year. The
rigs are contracted to work at a utilization rate of 100% for an initial term
of six months, with a further six month extension option. The operator has
agreed to pay the costs associated with relocating the rigs into Mexico and
returning the rigs to Canada at the end of the contracted period, if required.
It is anticipated that these rigs will remain in Mexico for the foreseeable
    "Trinidad's business model is based on growing our fleet in the areas
where there is strong demand for our high-quality equipment and where we can
generate the best returns for our shareholders. By moving these five rigs into
an area of high utilization with strong dayrates, we will improve their
contribution to Trinidad's performance," said Lyle Whitmarsh, Trinidad's
President and Chief Executive Officer.
    This move into Mexico follows Trinidad's overall strategy of initially
moving a small number of rigs into new areas of opportunity, developing a
strong reputation locally through high performance and a customer-focused
approach, and then expanding its operations. Trinidad's expansion into Mexico
is in response to the strong demand for quality drilling equipment and growing
drilling programs planned for the area.

    A summary of the rigs being redeployed follows:

                          Depth   Horsepower
    Rig Type           Capacity       Rating                     Destination
    Triple               4,200m        1,000      Bakken Shale, North Dakota
    Triple               4,500m        1,500    Haynesville Shale, Louisiana
    Telescopic Double    3,200m          700             Chicontepec, Mexico
    Telescopic Double    3,200m          750             Chicontepec, Mexico
    Telescopic Double    3,000m          700             Chicontepec, Mexico

    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 its current rig construction program, 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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