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Trinidad Drilling Ltd. reports second quarter and year-to-date 2013 results; records stable dayrates and industry-leading


Trinidad Drilling Ltd. reports second quarter and year-to-date 2013 results; records stable dayrates and industry-leading utilization

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TSX SYMBOL:  TDG

CALGARY, Aug. 7, 2013 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or "the Company") today reported results from its second quarter and first six months of 2013. "Trinidad has continued to perform well throughout 2013, despite weaker industry conditions," said Lyle Whitmarsh, Trinidad's Chief Executive Officer.  "The industry movement we saw in 2012 towards more efficient, high performance equipment has intensified to date in 2013 and while we have seen strong competition for work across North America, Trinidad's modern, technically advanced fleet has driven stable dayrates and industry-leading activity levels. During this time, Trinidad has remained focused on following its strategic plan. We have grown our fleet by adding selective new builds while also lowering our leverage significantly. We are now well positioned to add value for our shareholders with expansion opportunities and a growing level of free cash flow."

Additional information is available on Trinidad's website (www.trinidaddrilling.com) and all previous public filings, including a full copy of the second quarter 2013 report, the most recently filed Annual Report and Annual Information Form, are available through SEDAR (www.sedar.com).

All amounts are denominated in Canadian dollars (CDN$) unless otherwise identified.  All amounts are stated in thousands unless otherwise identified.

FINANCIAL HIGHLIGHTS

Three months ended June 30, Six months ended June 30,

($ thousands 2013 except share 2012 % 2013 2012 % and per Change Change share data)

Revenue 165,447 174,273 (5.1) 412,633 434,667 (5.1)

Revenue, net 156,171 of third 165,871 (5.8) 383,548 405,741 (5.5) party costs

Operating 55,651 66,372 (16.2) 154,010 170,794 (9.8) income (1)

Operating 33.6% income 38.1% (11.8) 37.3% 39.3% (5.1) percentage (1)

Operating 35.6% income - net 40.0% (11.0) 40.2% 42.1% (4.5) percentage (1)

EBITDA (1) 37,788 53,081 (28.8) 119,838 144,321 (17.0)

Per share (diluted) 0.31 0.44 (29.5) 0.99 1.19 (16.8) (2)

Adjusted 39,941 53,344 (25.1) 124,777 145,295 (14.1) EBITDA (1)

Per share (diluted) 0.33 0.44 (25.0) 1.03 1.20 (14.2) (2)

Cash 89,852 provided by 96,134 (6.5) 130,347 163,601 (20.3) operations

Per share (basic / 0.74 0.80 (7.5) 1.08 1.35 (20.0) diluted) (2)

Funds 39,124 provided by 51,209 (23.6) 104,067 122,665 (15.2) operations (1)

Per share (basic / 0.32 0.42 (23.8) 0.86 1.01 (14.9) diluted) (2)

Net earnings 347 12,866 (97.3) 33,095 47,334 (30.1)

Per share (basic / 0.00 0.11 - 0.27 0.39 (30.8) diluted) (2)

Adjusted net 2,631 13,129 (80.0) 38,165 55,827 (31.6) earnings (1)

Per share (basic / 0.02 0.11 (81.8) 0.32 0.46 (30.4) diluted) (2)

Capital 15,089 expenditures 46,357 (67.5) 31,965 107,008 (70.1) - net of dispositions

Dividends 6,043 6,043 - 12,086 12,086 - declared

Shares outstanding - diluted

(weighted average) 120,859,476 120,859,476 - 120,859,476 120,859,476 - (2)

As at June 30, December


                                                                                      31,

($ thousands                  
except                                                               2013            2012          %
percentage                                                                                    Change
data)

Total assets                                                    1,551,206       1,541,294        0.6

Total                         
long-term                                                         554,335         585,629      (5.3)
liabilities

(1)    Readers are cautioned that Operating income, Operating income
       percentage, Operating income - net percentage, EBITDA, Adjusted
       EBITDA, Funds provided by operations, Adjusted net earnings and
       the related per share information do not have standardized
       meanings
       prescribed by IFRS - see "Non-GAAP Measures" and "Additional
       GAAP Measures".

(2)    Basic shares include the weighted average number of shares
       outstanding over the period. Diluted shares include the weighted
       average
       number of shares outstanding over the period and the dilutive
       impact, if any, of the number of shares issuable pursuant to the
       Incentive
       Option Plan.

OPERATING HIGHLIGHTS 
                                                                                       
                        Three months ended June 30,         Six months ended June 30,
                        2013         2012          %       2013         2012          %
                                              Change                             Change

Land Drilling                                                                          
Market 

Operating days                                                                         
(1)
    Canada              1,434        1,288       11.3      5,632        5,395        4.4

United States and 4,578 5,289 (13.4) 9,031 10,551 (14.4) International

Rate per operating day (2, 3)

Canada 25,511 25,343 0.7 25,429 24,478 3.9 (CDN$)

United States and 22,908 22,586 1.4 22,665 22,261 1.8 International (CDN$)

United States and 22,436 22,616 (0.8) 22,461 22,158 1.4 International (US$)

Utilization rate - operating day (1, 4)

Canada 26% 26% - 52% 54% (3.7)

United States and 73% 86% (15.1) 73% 88% (17.0) International

Number of drilling rigs at period end

Canada 60 55 9.1 60 55 9.1

United States and 68 68 - 68 68 - International

Coring and surface 15 20 (25.0) 15 20 (25.0) casing rigs

Barge Drilling Market

Operating 445 429 3.7 860 793 8.6 days (1)

Rate per operating day 31,731 29,072 9.1 30,460 27,408 11.1 (CDN$) (2, 3)

Rate per operating day 31,077 29,106 6.8 30,151 27,314 10.4 (US$) (2, 3)

Utilization rate - 98% 94% 4.3 95% 87% 9.2 operating day (4)

Number of barge 2 2 - 2 2 - drilling rigs at period end

Number of barge drilling rigs under Bareboat

Charter Agreements at 3 3 - 3 3 - period end

(1) Operating days include drill days and move days.

(2) Rate per operating day is based on operating revenue divided by

operating days.

(3) Operating revenue is presented net of third party costs.

(4) Utilization rate - operating day is based on operating days


       divided by total days available.

OVERVIEW

In the second quarter and year-to-date 2013, Trinidad recorded stable dayrates 
across its land drilling operations despite a strongly competitive market and 
weaker industry demand when compared to the same period last year. Adjusted 
EBITDA lowered from the prior periods largely due to lower activity in the US 
and international operations over the past six months and timing of Canadian 
repairs and maintenance expenses in the current quarter.

In Canada, Trinidad recorded more operating days in both the second quarter 
and the first six months of the year compared to the same periods last year, 
despite prolonged wet weather in late spring. The addition of five new, high 
specification rigs over the past year drove additional operating days and also 
led to higher dayrates when compared to the first six months of 2012.  
Trinidad continued to outperform the industry with utilization six percentage 
points higher than the Canadian industry average for the quarter and ten 
percentage points higher, year to date. In the US, the industry active rig 
count stabilized at just under 1,700 rigs over the first six months of 2013, 
216 rigs lower than the same period last year. Trinidad's US and international 
operations showed a similar trend, remaining stable at 50 active rigs in the 
first six months compared to 58 active rigs in the same period last year.

Operating income lowered in the Canadian operations for the current quarter as 
a result of repairs and maintenance costs delayed from the first quarter of 
2013 incurred during the second quarter. For the six months ended June 30, 
2013, these expenses were completed, showing consistent profitability year 
over year. On a consolidated basis, lower activity in the US and international 
segment drove lower revenue and lower operating income when compared to the 
previous comparable periods.

Strengthening natural gas prices in the second quarter and first six months of 
the year positively impacted producers' cash flows but have not yet reached a 
level that drives a significant increase in drilling for natural gas. During 
the same period, relatively stable crude oil prices and narrower Canadian 
differentials have continued to favor oil drilling over dry gas.

INDUSTRY STATISTICS
                                                                                                                        
    

2013 Full 2012 Full 2011


                                        Year                                                       Year
                    Q2          Q1      2012          Q4          Q3          Q2           Q1      2011          Q4     
     Q3

Commodity                                                                                                               

Prices

Aeco natural gas price (CDN$ 3.36 3.03 2.26 3.03 2.18 1.81 2.01 3.45 3.03

3.48 per gigajoule)

Henry Hub natural gas 4.04 3.47 2.75 3.40 2.88 2.29 2.43 4.00 3.33

4.12 price (US$ per mmBtu)

Western Canada Select

crude oil price

(CDN$ 79.25 67.64 71.70 60.73 76.29 74.10 75.91 77.53 83.38

73.52 per barrel)

WTI crude oil price 94.14 94.30 94.09 88.17 92.15 93.30 102.99 94.88 94.02

89.49 (US$ per barrel)

US Industry

Activity

Average US industry active land 1,686 1,687 1,852 1,741 1,837 1,902 1,929 1,825 1,954

1,893 rig count (1)

Average Trinidad active land 50 49 57 56 55 58 58 59 60

61 rig count (2)

Canadian Industry

Activity

Average Canadian industry 18% 58% 39% 36% 42% 18% 65% 49% 54%

54% utilization (3)

Average Trinidad 24% 73% 52% 51% 58% 24% 77% 62% 69%

69% utilization (4)

(1) Baker Hughes rig counts (information obtained from Tudor

Pickering Holt & Company weekly rig roundup report).

(2) Includes US and international rigs, excludes rigs that are idle

but contracted.

(3) Canadian Association of Oilwell Drilling Contractors (CAODC)

utilization.

(4) Based on drilling days (spud to rig release dates), excludes


       rigs that are idle but contracted.

Second quarter 2013 and year-to-date highlights
    --  Trinidad generated revenue of $165.4 million in the second
        quarter and $412.6 million year to date in 2013, a decrease of
        5.1% from both the same quarter and first six months of 2012.
        Revenue lowered year over year due to lower activity levels in
        the US and international division. This impact was partially
        offset by an increase in operating days and higher dayrates in
        Canada as a result of new equipment added in the past year.
        When compared to the first quarter of 2013, revenue lowered
        from $247.2 million largely as a result of seasonality in
        Canada which restricts drilling activity during the second
        quarter.
    --  Operating income - net percentage was 35.6% in the current
        quarter and 40.2% year to date in 2013, compared to 40.0% and
        42.1%, respectively, in 2012. Lower profitability in the
        current quarter and year to date was largely driven by lower
        activity levels in the US and international division which led
        to reduced revenue generation. In addition, in the current
        quarter, repairs and maintenance costs delayed from the first
        quarter in the Canadian division were incurred and negatively
        impacted operating profitability. Operating income - net
        percentage lowered from 43.3% in the first quarter of 2013
        largely as a result of the timing of repairs and maintenance
        expenses and seasonality of the Canadian operations.
    --  Adjusted EBITDA was $39.9 million in the second quarter and
        $124.8 million year to date in 2013, down 25.1% and 14.1%,
        respectively, from the same periods of the prior year. Adjusted
        EBITDA decreased year over year largely as a result of lower
        operating income and higher general and administrative (G&A)
        expenses. Adjusted EBITDA lowered from $84.8 million in the
        first quarter of 2013 as a result of seasonality in the
        Canadian operations and higher G&A expenses. G&A expenses in
        the current quarter included a non-cash charge for bad debt
        expenses.
    --  Net earnings were $0.3 million ($0.00 per share (diluted)) in
        the second quarter and $33.1 million ($0.27 per share
        (diluted)) year to date in 2013, down 97.3% and 30.1%,
        respectively, from the same periods last year. Net earnings
        decreased largely due to lower adjusted EBITDA, higher
        depreciation and amortization costs, partially offset by a
        lower impairment charge than the charge recorded in the first
        quarter of 2012, decreased finance costs and lower income
        taxes.
    --  During the current quarter and first six months of 2013,
        Trinidad continued to lower its leverage ratio. At June 30,
        2013, Trinidad had completely repaid its revolving credit
        facility and reduced its Total Debt to EBITDA ratio to 1.89
        times, bringing the Company well within reach of its long-term
        leverage goal of Total Debt to EBIDTA of approximately 1.50
        times.

RESULTS FROM OPERATIONS

Canadian Operations
                                                                               
                Three months ended June 30,         Six months ended June 30,

($
thousands
except                                     %                                  %
percentage        2013       2012     Change        2013        2012     Change
and
operating
data)

Operating
revenue (1,     37,110     33,802        9.8     152,449     148,767        2.5
2)

Other               13        116     (88.8)          57         242     (76.4)
revenue
                37,123     33,918        9.4     152,506     149,009        2.3

Operating
costs (1,       29,096     23,140       25.7      88,645      86,527        2.4
2)

Operating        8,027     10,778     (25.5)      63,861      62,482        2.2
income (8)

Operating
income -
net              21.6%      31.8%                  41.9%       41.9%           
percentage
(8)
                                                                               

Operating        1,434      1,288       11.3       5,632       5,395        4.4
days (3)

Drilling         1,323      1,182       11.9       5,187       4,966        4.5
days

Rate per
operating       25,511     25,343        0.7      25,429      24,478        3.9
day (CDN$)
(4)

Utilization
rate -             26%        26%          -         52%         54%      (3.7)
operating
day (5)

Utilization
rate -             24%        24%          -         48%         50%      (4.0)
drilling
day (6)

CAODC
industry           18%        18%          -         38%         42%      (9.5)
average (7)
                                                                               

Number of
drilling            60         55        9.1          60          55        9.1
rigs at
period end

 Number of
coring and                                                                     
surface
rigs

  at period         15         20     (25.0)          15          20     (25.0)
end 

(1)    Inter-segment revenue and operating costs for the three months
       ended June 30, 2013 and 2012 have been excluded of
       $1.7 million and ($2.4) million, respectively. Inter-segment
       revenue and operating costs for the six months ended June 30,
       2013 and 2012 have been excluded of $1.9 million and $4.9
       million, respectively. Each of these inter-segment revenue
       and operating costs relates to expenses incurred in the
       manufacturing division related to the US operations.

(2)    Operating revenue and operating costs for the three months ended
       June 30, 2013 and 2012 exclude third party recovery
       and third party costs of $4.1 million and $3.8 million,
       respectively. Operating revenue and operating costs for the six
       months
       ended June 30, 2013 and 2012 exclude third party recovery and
       third party costs of $17.8 million and $19.0 million,
       respectively.

(3)    Operating days include drill days and move days.

(4)    Rate per operating day is based on operating revenue divided by
       operating days.

(5)    Utilization rate - operating day is based on operating days
       divided by total days available.

(6)    Utilization rate - drilling day is based on drilling days
       divided by total days available.

(7)    CAODC industry average is based on drilling days divided by
       total days available.

(8)    See Non-GAAP Measures Definition and Additional GAAP Measures
       Definition section of this document for further details.

Canadian operations performed strongly in the current quarter and year to 
date, recording increased revenue levels and increased dayrates when compared 
to the prior year periods. However, increased operating costs in the current 
quarter lowered Canadian operating income - net percentage as repairs and 
maintenance expenses delayed from the first quarter of 2013 were incurred in 
the second quarter of the current year. For the six months ended June 30, 
2013, these expenses were completed, showing consistent profitability year 
over year.

Typically, the second quarter is a less active period in Canada, as weather 
conditions and road bans restrict the movement of heavy equipment. Over the 
past year, Trinidad has added five new, high specification rigs to its 
Canadian fleet, allowing the Company to increase the number of operating days 
by 146 days quarter over quarter, and 237 days year over year. Trinidad's high 
performance, modern fleet continued to outperform industry activity levels, 
recording utilization levels that exceeded the industry average for the three 
and six months ended June 30, 2013, by six percentage points and ten 
percentage points, respectively. This is a reflection of the Company's 
strategic focus towards in-demand, high performance equipment backed by a 
strong contract base.

Dayrates improved for the three and six months ended June 30, 2013 by $168 per 
day and $951 per day, respectively. For each of these periods, Trinidad 
experienced a higher concentration of operating days related to the Company's 
more modern equipment. These rigs demand a higher dayrate and drove an 
increase in the overall average dayrate in the period. As well, a crew wage 
increase came into effect at the end of 2012, which is passed onto the 
operator causing the overall dayrate to increase in the current period.

Trinidad's operating income - net percentage within the Canadian division 
decreased quarter over quarter, but remained consistent year over year. In the 
first quarter of 2013, the Company elected to delay rig recertification and 
maintenance work until after spring break-up. This work was performed in the 
second quarter resulting in higher expenses and lower operating income - net 
percentage when compared to the same quarter of the prior year. On a year to 
date basis, operating income - net percentage has remained consistent at 41.9%.

In the current quarter, Trinidad's active rig fleet increased by five rigs 
when compared to the second quarter of 2012. All five rigs were constructed at 
the Company's in-house manufacturing division and were put into service under 
long-term, take-or-pay contracts.

During the first half of 2013, Trinidad's manufacturing division continued 
progress on the remaining two rigs in its construction program. In the first 
quarter of 2013, one of these rigs was completed and delivered into the 
Canadian operations. The second rig was delivered into service in the Canadian 
operations in the early part of the third quarter of 2013. By comparison, in 
the first half of 2012, Trinidad's manufacturing division had completed work 
on two new builds and continued work on the five rigs included in the 2012 new 
build program.

Subsequent to June 30, 2013, Trinidad signed a contract to build a new rig for 
a northern Canada liquefied natural gas (LNG) project. The rig will be 
constructed to drill natural gas in the Liard Basin, and is expected to be one 
of Canada's largest and most technically-advanced land rigs. The rig is 
expected to be completed in the second half of 2014 and will be operating 
under a five-year, take-or-pay contract. Additionally, the manufacturing 
division will continue to work on upgrading the Company's existing fleet with 
the addition of moving systems, top drives and upgraded mud systems to ensure 
that these assets remain competitive in the current market.

At the end of the second quarter of 2013, Trinidad announced the sale of its 
coring and pre-set rigs, including all related inventory, for $12 million in 
cash. The decision to sell these assets was in line with the Company's 
strategy to divest assets that no longer fit the Company's future core 
strategy. The sale officially closed subsequent to quarter end, and as of June 
30, 2013, all of the related property and equipment included in the sale had 
been re-classified to assets held for sale.

Second quarter 2013 versus first quarter 2013

Revenue and operating income decreased by $78.3 million and $47.8 million, 
respectively, in the second quarter of 2013 when compared to the first 
quarter, largely driven by seasonality in the Canadian industry. Operating 
days declined by 2,764 days and utilization fell to 26%, from 79% in the 
previous quarter. The second quarter is typically affected by spring break-up, 
as weather conditions and road bans restrict the movement of heavy equipment 
which results in lower drilling activity. This impact was partially offset by 
an increase of $110 per day in dayrates over the first quarter.

United States and International Operations
                                                                                 
                  Three months ended June 30,         Six months ended June 30,

($
thousands
except                                       %                                  %
percentage         2013        2012     Change        2013        2012     Change
and
operating
data)

Operating       119,024     131,943      (9.8)     230,996     256,718     (10.0)
revenue (1)

Other                24          10      140.0          46          14      228.6
revenue
                119,048     131,953      (9.8)     231,042     256,732     (10.0)

Operating        71,424      76,359      (6.5)     140,893     148,420      (5.1)
costs (1)

Operating        47,624      55,594     (14.3)      90,149     108,312     (16.8)
income (6)

Operating
income -
net               40.0%       42.1%                  39.0%       42.2%           
percentage
(6)
                                                                                 

 Land
Drilling                                                                         
Rigs 

Operating         4,578       5,289     (13.4)       9,031      10,551     (14.4)
days (2)

Drilling          4,050       4,560     (11.2)       7,873       9,140     (13.9)
days

Rate per
operating        22,908      22,586        1.4      22,665      22,261        1.8
day (CDN$)
(3)

Rate per
operating        22,436      22,616      (0.8)      22,461      22,158        1.4
day (US$)
(3)

Utilization
rate -              73%         86%     (15.1)         73%         88%     (17.0)
operating
day (4)

Utilization
rate -              65%         74%     (12.2)         64%         76%     (15.8)
drilling
day (5)

Number of
drilling             68          68          -          68          68          -
rigs at
period end
                                                                                 

 Barge
Drilling                                                                         
Rigs 

Operating           445         429        3.7         860         793        8.4
days (2)

 Rate per
operating        31,731      29,072        9.1      30,460      27,408       11.1
day (CDN$)
(3)

 Rate per
operating        31,077      29,106        6.8      30,151      27,314       10.4
day (US$)
(3)

Utilization
rate -              98%         94%        4.3         95%         87%        9.2
operating
day (4)

 Number of
barge
drilling              2           2          -           2           2          -
rigs at
period end 

 Number of
barge                                                                            
drilling
rigs under 

  Bareboat
Charter
Agreements            3           3          -           3           3          -
at period
end 

(1)    Operating revenue and operating costs for the three months ended
       June 30, 2013 and 2012 exclude third party recovery
       and third party costs of $5.2 million and $4.6 million,
       respectively. Operating revenue and operating costs for the six
       months
       ended June 30, 2013 and 2012 exclude third party recovery and
       third party costs of $11.3 million and $9.9 million,
       respectively.

(2)    Operating days include drill days and move days.

(3)    Rate per operating day is based on operating revenue divided by
       operating days.

(4)    Utilization rate - operating day is based on operating days
       divided by total days available.

(5)    Utilization rate - drilling day is based on drilling days
       divided by total days available.

(6)    See Non-GAAP Measures Definition and Additional GAAP Measures
       Definition section of this document for further details.

The softening US market conditions that began in the second half of 2012 
carried forward into 2013, resulting in reduced revenues and operating income 
year over year. The reduction in activity was largely driven by reduced 
customer demand for a portion of the Company's less modern equipment. While 
year over year there has been a reduction in activity levels, operations 
remained relatively consistent in the second quarter when compared to the 
first quarter, with slightly higher operating days and utilization recorded in 
the second quarter. Dayrates for the Company's less modern equipment have 
experienced downward pressure; however, the shift in the active rig mix 
towards more modern equipment has resulted in overall stable average dayrates 
over the past year.

A year over year decline in total operating days and utilization has caused an 
overall decrease in revenue in the current three and six month periods when 
compared to the prior year. Total operating days decreased by 711 days quarter 
over quarter, and 1,520 days year over year. US industry active rig counts in 
the first half of 2013 were approximately 12% lower than in the same period 
last year. This reduction in drilling activity has largely affected the 
Company's lower specification equipment, as operators high grade their 
equipment as newer rigs become available across the industry. Utilization of 
Trinidad's less modern equipment has lowered and the Company has experienced a 
shift in its active rig mix towards its higher specification equipment. 
Trinidad's fleet is largely composed of these higher specification rigs, which 
has mitigated the impact of this decline. Additionally, as Trinidad's fleet 
has a high percentage of long-term contracts, the Company has been able to 
limit the exposure to this weaker market.

Operating income - net percentage declined for each of the three month and six 
month periods of 2013 when compared to the prior year. The decline in 
profitability is mainly due to lower revenue generation combined with a 
smaller relative reduction in operating costs. During 2013, Trinidad has taken 
advantage of the slowdown to complete necessary upgrades and repairs on rigs 
that have been working consistently since their initial construction. Trinidad 
has focused these repairs and upgrade initiatives on rigs that will be 
redeployed in the near term.

The Company's barge drilling operations continued to perform well with quarter 
over quarter and year over year dayrate increases of US$1,971 per day and 
US$2,837 per day, respectively. As well, operating days showed improvement 
increasing in each period respectively. Strong operations reflect the solid 
demand and limited supply of high quality equipment in this sector.

Second quarter 2013 versus first quarter 2013

In the second quarter of 2013, revenue and operating income increased by $7.1 
million and $5.1 million, respectively, when compared to the first quarter of 
2013 largely as a result of an increase of 125 operating days and one 
percentage point in utilization.  Operating income - net percentage also 
increased to 40.0% from 38.0% in the prior quarter. In the first quarter, the 
Company took advantage of the slowdown to perform repairs and maintenance work 
on rigs that had been working consistently for a number of years. This work 
remained consistent into the second quarter; however, increased revenue 
generation in the quarter led to an increase in overall operating income - net 
percentage. Dayrates were relatively stable quarter over quarter, showing a 
reduction of US$51 per operating day in the current quarter.

Activity levels in the Barge market increased to 98%, up from 92% in the prior 
quarter as demand for Trinidad's high quality equipment remained strong. As 
well, dayrates increased by US$1,919 per operating day as a result of improved 
pricing on Trinidad's high quality equipment within this sector.

QUARTERLY ANALYSIS
FINANCIAL HIGHLIGHTS - QUARTERLY ANALYSIS
                                                                                               
                             2013                                 2012                       2011

 ($ millions          Q2         Q1         Q4         Q3        Q2         Q1        Q4         Q3
 except per
 share data                                                                                  
and operating
    data)

Revenue             165.4      247.2      209.6      215.1     174.3      260.4     231.1      202.8

Operating            55.7       98.4       77.8       80.6      66.4      104.4      89.0       81.7
income (1)

Operating
income              33.6%      39.8%      37.1%      37.5%     38.1%      40.1%     38.5%      40.3%
percentage
(1)

Operating
income - net        35.6%      43.3%      39.7%      40.0%     40.0%      43.5%     41.6%      43.0%
percentage
(1)

Net earnings
(loss) for            0.3       32.7     (12.4)       20.0      12.9       34.5      25.3       30.2
the year

Adjustments                                                                                         
for:

 Depreciation
and                  27.6       29.9       29.2       30.4      25.8       28.1      29.1       28.6
amortization 

 Foreign                -          -      (1.4)        0.8     (0.7)        0.5       2.4      (6.1)
exchange 

 Gain (loss)
on sale of            1.3          -     (11.5)          -     (0.5)        0.2     (0.6)      (0.1)
property and
equipment 

 Impairment
of property           0.1          -       70.1        1.3         -        7.5         -          -
and
equipment 

 Finance             10.0       10.0       10.1       10.3      10.5       10.8      10.9       10.9
costs 

 Income             (1.6)        9.4     (22.2)        2.7       4.4       10.2       4.8        6.4
taxes 

 Other                2.2        2.8        1.4        2.9       1.0        0.1       2.5      (0.5)

 Income taxes       (0.8)      (1.3)      (2.0)      (1.1)     (0.7)      (0.7)         -      (4.5)
paid 

 Income taxes         0.7          -        0.7        3.9         -          -       0.8        1.5
recovered 

 Interest           (0.7)     (18.6)      (1.1)     (19.5)     (1.5)     (19.8)     (1.6)     (21.4)
paid 

Funds
provided by          39.1       64.9       60.9       51.7      51.2       71.4      73.6       45.0
operations
(1)

Net earnings
(loss) per           0.00       0.27     (0.10)       0.17      0.11       0.29      0.21       0.25
share
(diluted)

Funds
provided by
operations           0.32       0.54       0.50       0.43      0.42       0.59      0.61       0.37
per share
(diluted)

See the Non-GAAP Measures Definitions and Additional GAAP (1) Measures Definitions section of this document for further


       details.

NON-GAAP MEASURES HIGHLIGHTS - QUARTERLY ANALYSIS
                                                                                                         
                         2013                                      2012                          2011

($ Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 millions except per share data and operating data)

EBITDA 37,788 63,323 64,715 53,081 91,240 69,545 76,016 (1) 82,050

Per share (diluted) 0.31 0.68 0.52 0.54 0.44 0.75 0.58 0.63 (2)

Adjusted EBITDA 39,941 84,836 63,332 68,388 53,344 91,951 74,401 69,382 (1)

Per share (diluted) 0.33 0.70 0.52 0.57 0.44 0.76 0.62 0.57 (2)

Adjusted net 2,631 57,807 24,913 13,129 42,698 30,174 23,535 earnings 35,534 (1)

Per share (diluted) 0.02 0.29 0.48 0.21 0.11 0.35 0.25 0.19 (2)

(1) See the Non-GAAP Measures Definitions and Additional GAAP

Measures Definitions section of this document for further


       details.

(2)    Diluted shares include the weighted average number of shares
       outstanding over the period and the dilutive impact, if any, of
       the number
       of shares issuable pursuant to the Incentive Option Plan.

OPERATING HIGHLIGHTS - QUARTERLY ANALYSIS
                                                                                                    
                               2013                                   2012                       2011
                         Q2         Q1         Q4         Q3         Q2         Q1         Q4         Q3

Land Drilling                                                                                            
Market 

Operating days                                                                                           
(1)
    Canada              1,434      4,198      2,915      3,233      1,288      4,107      3,665      3,675

United States and 4,578 4,453 4,789 5,038 5,289 5,262 5,547 5,579 International

Rate per operating day (2,3)

Canada 25,511 25,401 26,190 23,501 25,343 24,206 23,652 20,315 (CDN$)

United States and 22,908 22,416 22,305 22,518 22,586 21,935 20,710 18,600 International (CDN$)

United States and 22,436 22,487 22,589 22,263 22,616 21,698 20,387 19,143 International (US$)

Utilization rate - operating day (4)

Canada 26% 79% 56% 62% 26% 84% 74% 74%

United States and 73% 72% 77% 81% 86% 90% 92% 92% International

Number of drilling rigs at period end

Canada 60 60 59 57 55 54 54 54

United States and 68 68 68 68 68 66 64 66 International

Coring and surface 15 15 15 20 20 20 20 20 casing rigs

Barge Drilling Market

Operating 445 415 386 376 429 364 373 454 days (1)

Rate per operating day 31,731 29,097 29,954 30,008 29,072 25,448 25,835 24,833 (CDN$) (2,3)

Rate per operating day 31,077 29,158 30,330 29,583 29,106 25,204 25,455 25,547 (US$) (2,3)

Utilization rate - 98% 92% 84% 82% 94% 80% 81% 99% operating day (4)

Number of barge drilling rigs 2 2 2 2 2 2 2 2 at period end

Number of barge drilling rigs under

Bareboat Charter at 3 3 3 3 3 3 3 3 period end

(1) Operating days include drill days and move days.

(2) Rate per operating day is based on operating revenue divided by

operating days.

(3) Operating revenue is presented net of third party costs.

(4) Utilization rate - operating day is based on operating days

divided by total days available.

FINANCIAL SUMMARY

As at June 30, December 31,

($ thousands) 2013 2012 $ Change

Working 105,563 109,412 (3,849) capital (1)

Senior Notes 470,631 444,994 25,637

Credit - 69,898 (69,898) facility

Building 5,448 5,754 (306) loans


                            476,079            520,646         (44,567)

Less:
unamortized                 (9,826)           (10,814)              988
debt issue
costs

Total
long-term                   466,253            509,832         (43,579)
debt

Total
long-term
debt as a                     30.1%              33.1%                 
percentage of
assets
                                                                       
                                                                       

Total assets              1,551,206          1,541,294            9,912

Total
long-term                   554,335            585,629         (31,294)
liabilities

Total
long-term
liabilities                   35.7%              38.0%                 
as a
percentage of
assets
                                                                
                           June 30,           June 30,                 
                               2013               2012         $ Change

Cash provided               130,347            163,601         (33,254)
by operations

Cash used by               (26,533)           (98,126)           71,593
investing

Cash used by               (82,699)           (46,682)         (36,017)
financing

(1)    See Non-GAAP Measures Definition section of this document for
       further details.

For the six months ended June 30, 2013, working capital lowered by $3.8 
million when compared to December 31, 2012, due to a decrease in current 
assets of $0.6 million and an increase in current liabilities of $3.2 million. 
The decrease in current assets was mainly a result of lower receivables driven 
by a reduction in operations in the second quarter within the Canadian 
operations, typical within the drilling industry, as well as a slight decrease 
in prepaid expenses. This was slightly offset by an increase of cash in the 
current period as a result of lower capital additions and an increase in 
assets held for sale due to the pending sale of the coring and pre-set rigs.

Current liabilities increased during the period mainly as a result of an 
increase in deferred revenue in the current period due to amounts received for 
future commitments as well as the increase in the current portion of long-term 
debt due to a building mortgage becoming current. These increases were 
slightly offset by a decrease in accounts payable and accrued liabilities due 
to the general slow-down within Canadian drilling due to seasonal factors.

Trinidad's total long-term debt balance declined by $43.6 million during the 
current period when compared to the year ended December 31, 2012. The 
reduction in debt was due to a decrease in the revolving debt balances in the 
current period which were partially offset by an increase in the foreign 
exchange impact on Senior Notes at quarter end. The decline in debt is in line 
with the Company's core objective of sustainable growth, in conjunction with 
leverage reduction.

Trinidad's revolving debt facilities decreased by $69.9 million in the current 
period as a result of payments made during the period. As of June 30, 2013, 
Trinidad had no amounts outstanding on either of its Canadian revolving credit 
facility or the US revolving credit facility, leaving $200.0 million and 
US$100.0 million unutilized in the facilities, respectively.

Although Trinidad had paid off the revolving credit balances as of June 30, 
2013, the Company is still considering future capital commitments, and as 
such, it is expected that these balances will be used into the future in the 
general course of business. The Canadian and US revolving facility requires 
quarterly interest payments that are based on Bankers Acceptance and LIBOR 
rates and incorporate a tiered interest rate, which varies depending on the 
results of the Consolidated Total Debt to Consolidated EBITDA ratio (see table 
below). The facility matures on December 16, 2016, and is subject to annual 
extensions of an additional year on each anniversary.

The value of the Senior Notes increased by $25.6 million as a result of the 
change in the US dollar foreign exchange rate at June 30, 2013 versus December 
31, 2012. The Senior Notes are translated at each quarter end, as such their 
value will fluctuate quarterly with variations in exchange rates.  The Senior 
Notes are due January 2019 and interest is payable semi-annually in arrears on 
January 15 and July 15.

A total of $32.8 million of capital expenditures were spent during the six 
months ended June 30, 2013, compared to $108.9 million for the same period in 
the prior year. Capital expenditures were substantially related to the 
Company's rig build program as the Company delivered one new rig into service 
in the Canadian operations in the first quarter of 2013, with the second rig 
completed and delivered into the Canadian operations in the early part of the 
third quarter of 2013. In addition, the Company continued to work on upgrading 
existing equipment including moving systems, top drives and mud systems, to 
ensure these rigs remain competitive in the current market.

Trinidad expects cash provided by operations and the Company's various sources 
of financing to be sufficient to meet its debt repayments, future obligations 
and to fund planned capital expenditures. Trinidad's 2013 capital program is 
expected to be approximately $140 million. The capital program includes the 
building of one new rig included in the 2013 capital program, this rig is 
expected to be one of Canada's largest and most technically-advanced land 
rigs; as well as the completion of two contracted rigs for the Canadian 
operations carried over from the 2012 capital program, maintenance capital and 
select upgrade capital to improve the efficiency and marketability of existing 
equipment.

Current financial performance is well in excess of the financial ratio 
covenants under the revolving credit facility as reflected in the table below 
under IFRS:
                                                            

RATIO                    June 30,       December 31,       THRESHOLD
                             2013               2012                
                                                            

Consolidated
Senior Debt to             0.02:1             0.27:1       3.00:1
Consolidated                                               maximum 
EBITDA (1)

Consolidated
Total Debt to              1.89:1             1.91:1       4.00:1
Consolidated                                               maximum 
EBITDA (1)

Consolidated
EBITDA to                                                  2.75:1
Consolidated               6.46:1             6.76:1       minimum 
Cash Interest
Expense (1)
                                                            

(1)    Please see the Non-GAAP Measures Definition section of this
       document for further details.

Readers are cautioned that the ratios noted above do not have standardized 
meanings prescribed in IFRS.

OUTLOOK

Activity levels in Canada have begun to increase as ground conditions improve 
and equipment goes back to work. To date in the third quarter, activity is in 
line with expectations and Trinidad anticipates the second half of the year to 
be steady for its Canadian operations. The Company's larger, deep drilling 
capacity equipment is in high demand as producers are focused on booking 
reserves for LNG related projects.  While this development is in early stages 
in Canada, the level of activity related to LNG development is expected to 
ramp up over the next 12 to 18 months. Trinidad has a deep, technically 
advanced fleet and currently works for the majority of the key LNG players, 
positioning the Company well to take advantage of this coming growth 
opportunity. In clear recognition of Trinidad's strong reputation as a deep, 
technical driller, the Company was recently awarded a contract to build a rig 
that will operate in the Liard Basin, in northern Canada, drilling natural gas 
for the proposed Kitimat LNG plant. This rig is expected to be delivered in 
the second half of 2014 and will be operating under a five-year, take-or-pay 
contract.

In the US, the market remains competitive with industry activity levels 
staying relatively unchanged and producers continuing to demand more modern 
and efficient equipment. Trinidad has maintained stable activity levels and 
dayrates throughout 2013 despite these conditions and expects that its 
operations will continue at this level for the remainder of the year, assuming 
no major commodity price or economic change.

The contracts on Trinidad's three rigs working in Mexico were not extended by 
the customer following a recent reduction in activity by Petróleos Mexicanos 
(Pemex). Initial discussions with Pemex and other interested parties indicate 
that activity should resume in Mexico in late 2013 or early 2014, with 
anticipation that additional equipment may also be required. Trinidad expects 
its rigs will remain in Mexico in the near term as these opportunities 
solidify and the Company may add to its Mexican fleet if suitable contracts 
can be negotiated.

At the end of the second quarter, Trinidad had fully paid off its revolving 
credit facility and brought its Total debt to EBITDA down to 1.89 times, its 
lowest level in several years and approaching the Company's long term target 
of around 1.5 times. As Trinidad nears the end of its debt reduction phase, it 
is entering into a renewed era of opportunity and growth at a time when the 
market is demanding more of the style of drilling that Trinidad has built its 
reputation on. Trinidad expects that it will be able to fund these expansion 
opportunities with cash flow from operations while also maintaining a 
conservative capital structure.

Trinidad expects that industry conditions will remain relatively stable in 
2013 and is seeing early indications of increased activity levels in 2014. The 
Company expects that its modern, high performance equipment will continue to 
be in demand; however, unless commodity prices increase there will be limited 
demand for less modern equipment. Approximately three-quarters of Trinidad's 
fleet are considered high performance; these rigs have demonstrated their 
ability to continue to meet customers' needs by achieving high activity levels 
and stable dayrates. Trinidad currently has approximately 50% of its fleet 
under long-term, take-or-pay contracts with an average term remaining of 
approximately 1.5 years, providing the Company with significant revenue 
stability.

CONFERENCE CALL

A conference call and webcast to discuss the results will be held for the 
investment community on Thursday August 8(th), 2013 beginning at 9:00 a.m. MT 
(11:00 a.m. ET).  To participate, please dial (888) 231-8191 (toll-free in 
North America) or (647) 427-7450 approximately 10 minutes prior to the 
conference call. An archived recording of the call will be available from 
approximately 2:00 p.m. ET on August 8(th), 2013 until midnight August 15(th), 
2013 by dialing (855) 859 2056 or (416) 849-0833 and entering replay access 
code 17956741.

A live audio webcast of the conference call will also be available via the 
Investor Relations page of Trinidad's website.

TRINIDAD DRILLING LTD.

Trinidad is a corporation focused on sustainable growth that trades on the 
Toronto Stock Exchange under the symbol TDG. Trinidad's divisions operate in 
the drilling, coring 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.
                                                           

CONSOLIDATED STATEMENTS OF                                            
FINANCIAL POSITION

As at                                      June 30,       December 31,

($ thousands) - unaudited                      2013               2012
                                                                      

Assets                                                                

Current Assets                                                        

Cash and cash equivalents                    27,157              4,933

Accounts receivable                         150,056            182,071

Inventory                                     8,385              8,600

Prepaid expenses                              3,014              4,808

Assets held for sale                         12,000                816
                                            200,612            201,228
                                                                      

Property and equipment                    1,259,738          1,253,921

Intangible assets and goodwill               90,856             86,145
                                          1,551,206          1,541,294
                                                                      

Liabilities                                                           

Current Liabilities                                                   

Accounts payable and accrued                 77,601             82,265
liabilities 

Dividends payable                             6,043              6,043

Deferred revenue                              5,957              2,891

Current portion of long-term                  5,448                617
debt
                                             95,049             91,816
                                                                      

Long-term debt                              460,805            509,215

Deferred income taxes                        93,530             76,414
                                            649,384            677,445
                                                                      

Shareholders' Equity                                                  

Common shares                               952,043            952,043

Contributed surplus                          50,504             50,245

Accumulated other comprehensive            (17,698)           (34,403)
loss

Deficit                                    (83,027)          (104,036)
                                            901,822            863,849
                                          1,551,206          1,541,294
                                                           
                                                                        

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                         Three months ended           Six months ended
                                June 30,                    June 30,

($ thousands
except per                2013          2012          2013          2012
share data) -
unaudited
                                                                        

Revenue                                                                 

Oilfield
service                165,410       174,147       412,530       434,411
revenue

Other revenue               37           126           103           256
                       165,447       174,273       412,633       434,667

Expenses                                                                

Operating              109,796       107,901       258,623       263,873
expense

General and             17,884        14,002        34,198        26,568
administrative

Depreciation
and                     27,602        25,817        57,461        53,947
amortization

Foreign                   (21)         (711)          (26)          (95)
exchange 

Loss (gain) on
sale of                  1,331         (491)         1,367         (321)
property and
equipment

Impairment of
property and               131             -           131         7,519
equipment
                       156,723       146,518       351,754       351,491

Finance costs            9,989        10,496        19,959        21,298

(Loss)
earnings               (1,265)        17,259        40,920        61,878
before income
taxes

Income taxes                                                            

Current                    192            19         1,263          (36)

Deferred               (1,804)         4,374         6,562        14,580
                       (1,612)         4,393         7,825        14,544

Net earnings               347        12,866        33,095        47,334
                                                                        

Other
comprehensive                                                           
income 

  Foreign
currency
translation             10,022         7,288        16,705           507
adjustment,
net of income
tax
                        10,022         7,288        16,705           507

Total
comprehensive           10,369        20,154        49,800        47,841
income 
                                                                        

Earnings per                                                            
share

Net earnings                                                            

  Basic /                 0.00          0.11          0.27          0.39
Diluted
                                                                
                                                                                             

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For six months ended June 30, 2013 and 2012
                                                         Accumulated                                
                                                              other                                 
                        Common        Contributed       comprehensive                         Total

($ thousands)           shares           surplus          (loss) (1)        (Deficit)        equity
- unaudited
                                                                                                    

Balance at
December 31,            952,043            50,245            (34,403)       (104,036)        863,849
2012

Share-based                   -               259                   -               -            259
payments

Total
comprehensive                 -                 -              16,705          33,095         49,800
income 

Dividends                     -                 -                   -        (12,086)       (12,086)

Balance at              952,043            50,504            (17,698)        (83,027)        901,822
June 30, 2013
                                                                                                    

Balance at
January 1,              952,043            49,462            (25,377)       (134,902)        841,226
2012

Share-based                   -               332                   -               -            332
payments

Total
comprehensive                 -                 -                 507          47,334         47,841
income 

Dividends                     -                 -                   -        (12,086)       (12,086)

Balance at              952,043            49,794            (24,870)        (99,654)        877,313
June 30, 2012

(1)   Accumulated other comprehensive income (loss) includes the
      foreign currency translation adjustment.
       
                                                               

CONSOLIDATED STATEMENTS OF CASH                                        
FLOWS

For six months ended June 30,                                          

($ thousands) - unaudited                          2013            2012
                                                                       

Cash provided by (used in)                                             

Operating activities                                                   

Net earnings                                     33,095          47,334

Adjustments for:                                                       

 Depreciation and amortization                   57,461          53,947

 Foreign exchange                                  (26)            (95)

 Loss (gain) on sale of property and              1,367           (321)
equipment 

 Impairment of property and                         131           7,519
equipment 

 Finance costs                                   19,959          21,298

 Income taxes                                     7,825          14,544

 Interest income                                   (19)             (5)

 Other (1)                                        4,965           1,069

 Income taxes paid                              (2,121)         (1,353)

 Income taxes recovered                             663              30

 Interest paid                                 (19,252)        (21,307)

 Interest received                                   19               5

Funds provided by operations                    104,067         122,665

Change in non-cash operating working             26,280          40,936
capital

Cash provided by operations                     130,347         163,601
                                                                       

Investing activities                                                   

Purchase of property and equipment             (32,828)       (108,877)

Proceeds from disposition of                        863           1,869
property and equipment

Change in non-cash working capital                5,432           8,882

Cash used by investing                         (26,533)        (98,126)
                                                                       

Financing activities                                                   

Proceeds from long-term debt                     26,257          30,964

Repayments of long-term debt                   (96,870)        (65,560)

Dividends paid                                 (12,086)        (12,086)

Cash used by financing                         (82,699)        (46,682)
                                                                       

Cash flow from operating, investing              21,115          18,793
and financing activities

Effect of translation of foreign                  1,109             403
currency cash

Increase in cash for the period                  22,224          19,196
                                                                       

Cash and cash equivalents (bank                   4,933         (4,600)
indebtedness) - beginning of period

Cash and cash equivalents (bank                  27,157          14,596
indebtedness) - end of period

(1)   Other includes share-based payment expense.

 

SEGMENTED INFORMATION
                                                                                                 

Three months                         United States         Inter-                                
ended                                      /

June 30, 2013          Canadian      International        segment                              

 ($ thousands)        Operations       Operations      Eliminations     Corporate          Total

 Operating                37,110           119,024                -             -         156,134
revenue 

 Other revenue                13                24                -             -              37

 Third party               4,087             5,189                -             -           9,276
recovery 

 Inter-segment             1,736                 -          (1,736)             -               -
revenue 
                          42,946           124,237          (1,736)             -         165,447

 Operating                29,096            71,424                -             -         100,520
costs 

 Third party               4,087             5,189                -             -           9,276
costs 

 Inter-segment             1,736                 -          (1,736)             -               -
operating 

 Operating                 8,027            47,624                -             -          55,651
income 

 Depreciation
and                        8,133            19,469                -             -          27,602
amortization 

 Loss (gain) on
sale of                       90             1,241                -             -           1,331
property and
equipment 

 Impairment of
property and                 131                 -                -             -             131
equipment 
                           8,354            20,710                -             -          29,064

 Segmented                 (327)            26,914                -             -          26,587
income 

 General and                   -                 -                -        17,884          17,884
administrative 

 Foreign                       -                 -                -          (21)            (21)
exchange 

 Finance costs                 -                 -                -         9,989           9,989

 Income taxes                  -                 -                -       (1,612)         (1,612)

 Net earnings              (327)            26,914                -      (26,240)             347
(loss)
                                                                                                 

 Purchase of
property and              10,348             5,143                -             -          15,491
equipment 
                                                                                                 

Three months                         United States         Inter-                                
ended                                            /

June 30, 2012          Canadian      International        segment                              

 ($ thousands)        Operations       Operations      Eliminations     Corporate          Total

 Operating                33,802           131,943                -             -         165,745
revenue 

 Other revenue               116                10                -             -             126

 Third party               3,757             4,645                -             -           8,402
recovery 

 Inter-segment           (2,382)                 -            2,382             -               -
revenue 
                          35,293           136,598            2,382             -         174,273

 Operating                23,140            76,359                -             -          99,499

 Third party               3,757             4,645                -             -           8,402
costs 

 Inter-segment           (2,382)                 -            2,382             -               -
operating 

 Operating                10,778            55,594                -             -          66,372
income 

 Depreciation
and                        6,005            19,812                -             -          25,817
amortization 

 Loss (gain) on
sale of                       17             (508)                -             -           (491)
property and
equipment 

 Impairment of
property and                   -                 -                -             -               -
equipment 
                           6,022            19,304                -             -          25,326

 Segmented                 4,756            36,290                -             -          41,046
income 

 General and                   -                 -                -        14,002          14,002
administrative 

 Foreign                       -                 -                -         (711)           (711)
exchange 

 Finance costs                 -                 -                -        10,496          10,496

 Income taxes                  -                 -                -         4,393           4,393

 Net earnings              4,756            36,290                -      (28,180)          12,866
(loss)
                                                                                                 

 Purchase of
property and              36,006            11,066                -             -          47,072
equipment 
                                                                                                 

Six months                           United States         Inter-                                
ended                                            /

June 30, 2013          Canadian      International        segment                              

 ($ thousands)        Operations       Operations      Eliminations     Corporate          Total

 Operating               152,449           230,996                -             -         383,445
revenue 

 Other revenue                57                46                -             -             103

 Third party              17,788            11,297                -             -          29,085
recovery 

 Inter-segment             1,910                 -          (1,910)             -               -
revenue 
                         172,204           242,339          (1,910)             -         412,633

 Operating                88,645           140,893                -             -         229,538
costs 

 Third party              17,788            11,297                -             -          29,085
costs 

 Inter-segment             1,910                 -          (1,910)             -               -
operating 

 Operating                63,861            90,149                -             -         154,010
income 

 Depreciation
and                       20,015            37,446                -             -          57,461
amortization 

 Loss (gain) on
sale of                      231             1,136                -             -           1,367
property and
equipment 

 Impairment of
property and                 131                 -                -             -             131
equipment 
                          20,377            38,582                -             -          58,959

 Segmented                43,484            51,567                -             -          95,051
income 

 General and                   -                 -                -        34,198          34,198
administrative 

 Foreign                       -                 -                -          (26)            (26)
exchange 

 Finance costs                 -                 -                -        19,959          19,959

 Income taxes                  -                 -                -         7,825           7,825

 Net earnings             43,484            51,567                -      (61,956)          33,095
(loss) 
                                                                                                 

 Purchase of
property and              27,258             5,570                -             -          32,828
equipment 
                                                                                                 

Six months                           United States         Inter-                                
ended                                            /

June 30, 2012          Canadian      International        segment                              

 ($ thousands)        Operations       Operations      Eliminations     Corporate          Total

 Operating               148,767           256,718                -             -         405,485
revenue 

 Other revenue               242                14                -             -             256

 Third party              18,994             9,932                -             -          28,926
recovery 

 Inter-segment             4,914                 -          (4,914)             -               -
revenue 
                         172,917           266,664          (4,914)             -         434,667

 Operating                86,527           148,420                -             -         234,947
costs 

 Third party              18,994             9,932                -             -          28,926
costs 

 Inter-segment             4,914                 -          (4,914)             -               -
operating 

 Operating                62,482           108,312                -             -         170,794
income 

 Depreciation
and                       15,367            38,580                -             -          53,947
amortization 

 Loss (gain) on
sale of                       47             (368)                -             -           (321)
property and
equipment 

 Impairment of
property and               5,957             1,562                -             -           7,519
equipment 
                          21,371            39,774                -             -          61,145

 Segmented                41,111            68,538                -             -         109,649
income 

 General and                   -                 -                -        26,568          26,568
administrative 

 Foreign                       -                 -                -          (95)            (95)
exchange 

 Finance costs                 -                 -                -        21,298          21,298

 Income taxes                  -                 -                -        14,544          14,544

 Net earnings             41,111            68,538                -      (62,315)          47,334
(loss) 
                                                                                                 

 Purchase of
property and              61,238            47,639                -             -         108,877
equipment 

ADVISORY

NON-GAAP MEASURES DEFINITIONS

This document contains references to certain financial measures and associated 
per share data that do not have any standardized meaning prescribed by IFRS 
and may not be comparable to similar measures presented by other companies.  
These financial measures are computed on a consistent basis for each reporting 
period and include EBITDA, Adjusted EBITDA, Adjusted net earnings, working 
capital, Senior Debt to EBITDA, Total Debt to EBITDA, EBITDA to Cash Interest 
Expense, drilling days, operating days, utilization rate - drilling day, 
utilization rate - operating day, and rate per operating day.  These non-GAAP 
measures are identified and defined as follows:

"EBITDA" is a measure of the Company's operating profitability.  EBITDA 
provides an indication of the results generated by the Company's principal 
business activities prior to how these activities are financed, assets are 
depreciated, amortized and impaired, or how the results are taxed in various 
jurisdictions.

"Adjusted EBITDA" is used by management and investors to analyze EBITDA (as 
defined above) prior to the effect of foreign exchange and share-based payment 
expense, and is not intended to represent net earnings as calculated in 
accordance with IFRS.

"Adjusted net earnings" is used by management and the investment community to 
analyze net earnings prior to the effect of foreign exchange, share-based 
payment expense and impairment charges and is not intended to represent net 
earnings as calculated in accordance with IFRS.

"Working capital" is used by management and the investment community to 
analyze the operating liquidity available to the Company.

"Senior Debt to EBITDA" is defined as the consolidated balance of the 
revolving facility and other debt secured by a lien at quarter end to 
consolidated EBITDA for the trailing 12 months (TTM).  Consolidated EBITDA 
used in this financial ratio is calculated as EBITDA plus share-based payment 
expense and unrealized foreign exchange.

"Total Debt to EBITDA" is defined as the consolidated balance of long-term 
debt, which includes the Senior Debt, Senior Notes Payable and dividends 
payable at quarter end, to consolidated EBITDA for the TTM.  Consolidated 
EBITDA used in this financial ratio is calculated as EBITDA plus share-based 
payment expense and unrealized foreign exchange.

"EBITDA to Cash Interest Expense" is defined as the consolidated EBITDA for 
TTM to the cash interest expense on all debt balances for TTM.  Consolidated 
EBITDA used in this financial ratio is calculated as EBITDA plus share-based 
payment expense and unrealized foreign exchange.

"Drilling days" is defined as rig days between spud to rig release.

"Operating days" is defined as moving days (move in, rig up and tear out) plus 
drilling days (spud to rig release).

"Utilization rate - drilling day" is defined as drilling days divided by total 
available rig days.

"Utilization rate - operating day" is defined as operating days (drilling days 
plus moving days) divided by total available rig days.

"Rate per operating day" is defined as operating revenue (net of third party 
costs) divided by operating days (drilling days plus moving days).

ADDITIONAL GAAP MEASURES DEFINITIONS

The Company uses certain additional GAAP financial measures within the 
financial statements and document that are not defined terms under IFRS to 
assess performance. Management believes that these measures provide useful 
supplemental information to investors. These financial measures are computed 
on a consistent basis for each reporting period and include Funds provided by 
operations, Operating income, Operating income percentage and Operating income 
- net percentage. These additional GAAP measures are identified and defined as 
follows:

"Funds provided by operations" is used by management and investors to analyze 
the funds generated by Trinidad's principal business activities prior to 
consideration of working capital. This balance is reported in the Consolidated 
Statements of Cash Flows included in the cash provided by operating activities 
section.

"Operating income" is used by management and investors to analyze overall and 
segmented operating performance.  Operating income is not intended to 
represent an alternative to net earnings or other measures of financial 
performance calculated in accordance with IFRS.  Operating income is 
calculated from the consolidated statements of operations and comprehensive 
income (loss) and from the segmented information contained in the notes to the 
consolidated financial statements. Operating income is defined as revenue less 
operating expenses.

"Operating income percentage" is used by management and investors to analyze 
overall and segmented operating performance.  Operating income percentage is 
calculated from the consolidated statements of operations and comprehensive 
income (loss) and from the segmented information in the notes to the 
consolidated financial statements. Operating income percentage is defined as 
operating income divided by revenue.

"Operating income - net percentage" is used by management and investors to 
analyze overall and segmented operating performance.  Operating income - net 
percentage is calculated from the consolidated statements of operations and 
comprehensive income (loss) and from the segmented information in the notes to 
the consolidated financial statements. Operating income - net percentage is 
defined as operating income divided by revenue net of third party costs.

FORWARD-LOOKING STATEMENTS

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 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 for Trinidad to attract and retain qualified 
personnel, in particular field staff to crew the Company's rigs; the existence 
of competitors, technological changes and developments in the oilfield 
services industry; the existence of operating risks inherent in the oilfield 
services industry; 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; assumptions regarding foreign currency exchange rates and 
interest rates; the existence of regulatory and legislative uncertainties; the 
possibility of changes in tax laws; and general economic conditions including 
the capital and credit markets. 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.

 

SOURCE Trinidad Drilling Ltd.

Lyle Whitmarsh, Chief Executive Officer

Brent Conway, President

Lisa Ciulka, Vice President, Investor Relations (403) 294-4401 email: lciulka@trinidaddrilling.com

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2013/07/c2804.html

CO: Trinidad Drilling Ltd. ST: Alberta NI: OIL ERN CONF

-0- Aug/07/2013 21:05 GMT

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