Trinidad Drilling Ltd. signs contract to build new rig for Northern Canada LNG project

Trinidad Drilling Ltd. signs contract to build new rig for Northern Canada LNG 
CALGARY, July 30, 2013 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or "the 
Company") is pleased to announce that it has signed a contract to build one of 
Canada's largest and most technically-advanced land rigs. The rig is being 
constructed to drill natural gas in the Liard Basin, an area that is being 
developed to supply gas for the future liquefied natural gas (LNG) plants 
proposed for the west coast of British Columbia. 
The new rig will be constructed at Trinidad's in-house manufacturing facility 
in Nisku, Alberta and will be equipped with the Company's latest advancements 
in high-performance drilling technology, including an automated rig moving 
system. The rig will be a 1.25 million pound hook load, 3,000 horsepower AC 
rig with a depth capacity of 8,000 metres (26,250 feet). The rig will be 
operating under a five-year, take-or-pay contract with a minimum of 350 days 
per year and is expected to be delivered in to operations in the second half 
of 2014. 
"Trinidad's reputation for designing, building and operating high-performance 
drilling equipment, along with its strong safety culture and well-trained 
crews are the reasons we were successful in being awarded this contract," said 
Lyle Whitmarsh, Trinidad's Chief Executive Officer. "We have made a name for 
ourselves drilling deep, technically-challenging wells throughout North 
America and this is exactly the type of experience needed to be successful in 
the growing LNG development opportunity in Canada. We look forward to further 
developing our partnership with this customer who has shown long-term 
commitment to the advancement of LNG in Canada." 
"We have shown continued focus and discipline over the past few years by 
lowering our debt levels significantly and we are now emerging with high 
levels of free cash flow and strong growth opportunities to add value for our 
shareholders", continued Mr. Whitmarsh. "As we near our leverage targets, we 
are in the enviable position of evaluating a number of exciting opportunities 
and selecting those that provide the strongest returns and best fit our future 
strategic direction." 
There are several current proposals to build LNG plants along the British 
Columbian coastline with anticipated start up time lines from 2015 and beyond. 
These plants are expected to produce LNG for export to Asian markets where 
natural gas is sold at a premium to North American prices. While all of these 
proposals may not be completed, those participants further along in the 
process are looking to prove their supply of natural gas by developing a 
number of plays in north-western Canada including the Montney, Duvernay, Horn 
River and Liard Basin. This added interest is driving increased demand for 
deep, modern drilling equipment in Canada. 
In addition to this new build opportunity, Trinidad has also received numerous 
requests from customers for upgraded equipment. In response to these requests 
and its new rig construction program, Trinidad is expanding its 2013 capital 
expenditure program to approximately $140 million which the Company expects to 
fund from cash flow from operations. 
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 forward-looking statements and forward-looking 
information (collectively, "forward-looking information") within the meaning 
of applicable Canadian securities laws. The use of any of the words 
"expect", "anticipate", "will", "future" and similar expressions are intended 
to identify forward-looking information. In particular, this document 
contains forward-looking information pertaining to Trinidad's plans, 
strategies, objectives, expectations and intentions including, without 
limitation: the manufacturing and specifications of a new high-spec rig; the 
operating agreement and timing of the delivery of the rig in to operations; 
Trinidad's growth opportunities; Trinidad's 2013 capital expenditure program; 
and Trinidad's expectation that it will fund its 2013 capital expenditure 
program through cash flow from operations. 
The forward-looking information included in this document reflects several 
factors, expectations and assumptions including, without limitation: LNG 
industry conditions and LNG production levels; commodity prices; supply and 
demand for commodities; scheduling and timing of certain projects and 
Trinidad's strategy for growth; capital expenditure programs and other 
expenditures by oil and gas exploration and production companies; Trinidad's 
future operating and financial results; that Trinidad will continue to conduct 
its operations, including with respect to rig design and manufacturing, in a 
manner consistent with its past performance. 
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 including, without limitation: volatility in 
market prices for oil, natural gas and LNG; liabilities inherent in the 
drilling and manufacturing industries, including technical problems; 
competition for skilled personnel; changes in general economic, market and 
business conditions; actions by governmental or regulatory authorities 
including changes to tax or environmental laws; the ability of Trinidad's 
customers to raise capital and to continue with their drilling programs; 
increases and overruns in construction costs; supply and demand for 
commodities; and the risks inherent in Trinidad's ability to generate 
sufficient cash flow from operations to meet its current and future 
obligations. Although the current capital expenditure program is based upon 
the current expectations of the management of Trinidad, there may be 
circumstances in which, for unforeseen reasons, a reallocation of funds may be 
necessary as may be determined at the discretion of Trinidad and there can be 
no assurance as at the date of this document as to how those funds may be 
reallocated. Should any one of a number of issues arise, Trinidad may find it 
necessary to alter its current business strategy and/or capital expenditure 
program. Additional risks that could impact the business and operations of 
Trinidad are detailed under the heading "Risk Factors" in Trinidad's annual 
information form for the year ended December 31, 2012. Trinidad cautions that 
the foregoing list of risks and uncertainties is not exhaustive. The 
forward-looking information contained in this document speaks only as of the 
date of this document and Trinidad assumes no obligation to publicly update or 
revise such forward-looking information to reflect new events or 
circumstances, except as may be required pursuant to applicable securities 
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. 
Lyle Whitmarsh Chief Executive Officer 
Brent Conway President 
Lisa Ciulka Vice President, Investor Relations (403) 294-4401 
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CO: Trinidad Drilling Ltd.
ST: Alberta
-0- Jul/30/2013 15:48 GMT
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