Trinidad Drilling Ltd. announces the sale of its coring and pre-set rigs

Trinidad Drilling Ltd. announces the sale of its coring and pre-set rigs 
CALGARY, June 19, 2013 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or "the 
Company") is pleased to announce that it has entered in to an agreement to 
sell its coring and pre-set rigs to Alken Basin Drilling Ltd. (Alken) for $12 
million in cash, excluding working capital and land and buildings. 
Trinidad has operated coring and pre-set rigs since 2005 in the oilsands of 
northern Canada in the winter and in southern Alberta in the summer. The 
reduction in pre-set work over the summer months and the growth in the 
Company's land drilling fleet since 2005 has reduced the impact of the coring 
operations on the overall Company's results. Trinidad has a track record of 
selling assets that do not fit its future core strategy and the Company's 
decision to sell its coring assets fits with this rationale. 
"As coring and pre-set work has become a less significant part of our overall 
business, we needed to invest capital to grow this division or to narrow our 
focus more tightly towards contract drilling," said Lyle Whitmarsh, Trinidad's 
Chief Executive Officer. "Our growth over the past few years has largely been 
through adding deep, technically advanced drilling rigs and we have developed 
a reputation as an industry leader in this area. Our decision to sell our 
coring and pre-set rigs reflects our strategy to focus on the deep, modern 
contract drilling market where returns are generally stronger and where we see 
opportunities for future growth." 
Trinidad's coring and pre-set division includes the following assets: 

    --  13 range III rigs with top drives and ranging in depth capacity
        from 400 metres to 1,100 metres
    --  2 range I rigs with top drives and a depth capacity of 400
    --  Inventory associated with the coring operations

Alken (President, Kevin Baumann) has agreed to purchase all 15 of Trinidad's 
coring and pre-set rigs and anticipates that they will retain the majority of 
employees currently working in this division. The sale is expected to close on 
June 28, 2013.

Demand for modern, technically advanced drilling equipment remains strong and 
Trinidad has a number of expansion opportunities that it is currently 
pursuing. The Company expects to use the proceeds from the sale of its coring 
and pre-set rigs to help fund this growth or alternatively, to reduce overall 
corporate indebtedness.

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. 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.


The document contains certain forward-looking statements relating to 
Trinidad's plans, strategies, objectives, expectations and intentions. 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. Various assumptions 
were used in drawing the conclusions or making the projections contained in 
the forward-looking statements throughout this document. The forward-looking 
information and statements included in this document 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. In particular, but without 
limiting the foregoing, this document may contain forward-looking information 
and statements pertaining to the proposed sale of Trinidad's coring and 
pre-set rigs to Alken, including timing thereof; the expected retention of the 
majority of employees currently working in the coring division of Trinidad; 
and the expected use of proceeds from the proposed sale; fluctuations in the 
demand for Trinidad's services; assumptions respecting capital expenditure 
programs and other expenditures by oil and gas exploration and production 
companies; assumptions regarding commodity prices, in particular oil and 
natural gas; assumptions respecting supply and demand for commodities, in 
particular oil and natural gas. Trinidad cautions that the foregoing list of 
assumptions, risks and uncertainties is not exhaustive. The forward-looking 
information and statements contained in this document speak only as of the 
date of this document 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 therefrom.

Lyle Whitmarsh Chief Executive Officer  Brent Conway President  Lisa Ciulka 
Vice President, Investor Relations (403) 294-4401

SOURCE: Trinidad Drilling Ltd.

To view this news release in HTML formatting, please use the following URL:

CO: Trinidad Drilling Ltd.
ST: Alberta

-0- Jun/19/2013 20:30 GMT

Press spacebar to pause and continue. Press esc to stop.