Trinidad Drilling Ltd. reports third quarter and year-to-date 2013 results; Strategic milestones achieved with LNG-related new

Trinidad Drilling Ltd. reports third quarter and year-to-date 2013 results; 
Strategic milestones achieved with LNG-related new build and international 
joint venture agreement signed 
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION 
IN THE UNITED STATES/ 
TSX SYMBOL: TDG 
CALGARY, Nov. 6, 2013 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or "the 
Company") today reported results from its third quarter and first nine months 
of 2013. "This quarter marked a key point in Trinidad's strategic development; 
we were able to crystalize on several important opportunities that we had been 
working on for many months," said Lyle Whitmarsh, Trinidad's Chief Executive 
Officer. "The most important of these opportunities were our new rig build 
contract for LNG-related drilling in Canada and our international joint 
venture agreement with Halliburton. These important milestones demonstrate our 
strong future growth opportunities and will help to define the future for 
Trinidad. While we were focused on finalizing these deals, we also continued 
to monitor our existing operations closely in the quarter. Our operations have 
performed well throughout 2013, despite weaker industry conditions. Our third 
quarter results reflect our ongoing focus on maximizing our activity levels 
and maintaining strong dayrates across our operations." 
Additional information is available on Trinidad's website 
(www.trinidaddrilling.com) and all previous public filings, including 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 September  Nine months ended September 30,
                            30,

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

Revenue           208,692     215,103  (3.0)     621,325     649,770   (4.4)

Revenue, net
of third          197,742     201,702  (2.0)     581,290     607,443   (4.3)
party costs

Operating          76,190      80,598  (5.5)     230,200     251,392   (8.4)
income (1)

Operating
income              36.5%       37.5%  (2.7)       37.0%       38.7%   (4.4)
percentage
(1)

Operating
income - net        38.5%       40.0%  (3.8)       39.6%       41.4%   (4.3)
percentage
(1)

EBITDA (1)         55,556      64,714 (14.2)     175,394     209,035  (16.1)

  Per share
  (diluted)          0.46        0.54 (14.8)        1.45        1.73  (16.2)
  (2)

Adjusted           61,838      68,387  (9.6)     186,615     213,682  (12.7)
EBITDA (1)

  Per share
  (diluted)          0.51        0.57 (10.5)        1.54        1.77  (13.0)
  (2)

Cash
provided by        65,761      19,743  233.1     196,108     183,344     7.0
operations

  Per share
  (basic /           0.54        0.16  237.5        1.62        1.52     6.6
  diluted)
  (2)

Funds
provided by        43,740      51,659 (15.3)     147,807     174,324  (15.2)
operations
(1)

  Per share
  (basic /           0.36        0.43 (16.3)        1.22        1.44  (15.3)
  diluted)
  (2)

Net earnings        9,167      19,950 (54.1)      42,262      67,284  (37.2)

  Per share
  (basic /           0.08        0.17 (52.9)        0.35        0.56  (37.5)
  diluted)
  (2)

Adjusted net       15,449      24,913 (38.0)      53,614      80,740  (33.6)
earnings (1)

  Per share
  (basic /           0.13        0.21 (38.1)        0.44        0.67  (34.3)
  diluted)
  (2)

Capital
expenditures        5,037      39,428 (87.2)      37,002     146,436  (74.7)
- net of
dispositions

Dividends           6,043       6,043             18,129      18,129
declared                                   -                               -

Shares
outstanding                                                                 
- diluted

  (weighted                          
  average)    121,495,980 120,859,476    0.5 121,373,198 120,859,476     0.4
  (2)
                                                                      

As at                                          September    December        
                                                     30,         31,

($ thousands
except                                              2013        2012       %
percentage                                                           Change 
data)

Total assets                                   1,573,615   1,541,294     2.1

Total
long-term                                        540,792     585,629   (6.0)
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 Nine months ended September
                           September 30,                         30,
                    2013   2012 % Change   2013   2012      % Change

Land Drilling                                  
Market                                                              

Operating days                                 
(1)                                                                 
    Canada          3,018  3,233    (6.7)  8,650  8,628           0.3


United States                   (6.1)
  and
  International    4,733  5,038          13,764 15,589        (11.7) 
Rate per                                       
operating day (2,  
3)                                                                   
Canada (CDN$)  23,686 23,501      0.8 24,821 24,112           2.9 
United States                     3.5
  and
  International
  (CDN$)          23,297 22,518          22,882 22,344           2.4 
United States                     0.9
  and
  International
  (US$)           22,460 22,263          22,461 22,192           1.2 
Utilization rate                               
- operating day    
(1, 4)                                                               
Canada            54%    62%   (12.9)    53%    57%         (7.0) 
United States                   (6.2)
  and
  International      76%    81%             75%    85%        (11.8) 
Number of                                      
drilling rigs at   
period end                                                           
Canada             61     57      7.0     61     57           7.0 
United States                       -
  and
  International       68     68              68     68             - 
Coring and                          -
  surface casing
  rigs                 -     20               -     20             - 
Barge Drilling                                 
Market                                                               
Operating days                   19.4
  (1)                449    376           1,309  1,169          12.0 
Rate per                         13.2
  operating day
  (CDN$) (2, 3)   33,962 30,008          31,659 28,244          12.1 
Rate per                         10.7
  operating day
  (US$) (2, 3)    32,740 29,583          31,037 28,044          10.7 
Utilization                      18.3
  rate -
  operating day
  (4)                97%    82%             96%    85%          12.9 
Number of                           -
  barge drilling
  rigs at period
  end                  2      2               2      2             - 
Number of                            
  barge drilling
  rigs under
  Bareboat                                                           


    Charter                            -
    Agreements at
    period end         3      3               3      3             -
                                                                    

(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 third 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 both 
the Canadian and US and international operations.

In Canada, operating days were lower in the third quarter due largely to 
weaker customer demand. The addition of four new, high specification rigs over 
the past year provided additional operating days year to date in 2013; 
however, this impact was largely offset by slower activity in the third 
quarter. Operating days remained relatively unchanged compared to the first 
nine months of 2012. Trinidad continued to outperform the industry with 
utilization thirteen percentage points higher than the Canadian industry 
average for the quarter and eleven percentage points higher, year to date. In 
the US, the industry active rig count stabilized at just under 1,700 rigs over 
the first nine months of 2013, 202 rigs lower than the same period last year. 
Activity levels for Trinidad's US and international operations were lower in 
the current quarter and year to date in 2013 when compared to 2012. Despite 
the lower activity levels year over year, the Company's US fleet began to show 
signs of improvement in the third quarter, as rigs were reactivated and 
utilization levels increased from the second quarter of 2013.

Operating income - net percentage in the quarter lowered from the same quarter 
last year largely due to less contribution from the Canadian operations. 
Profitability in the Canadian operations lowered as a result of reduced 
revenue generation from less operating days and higher repairs and maintenance 
costs incurred in the third quarter. US and international operations operating 
income - net percentage in the third quarter was largely unchanged from the 
same quarter in 2012. Year to date, operating income - net percentage was 
lower than for the same period last year due to lower operating days in the US 
and international division and higher repairs and maintenance costs in the 
Canadian operations.

Trinidad's reputation in the industry for designing, building and operating 
high-performance equipment was further recognized when the Company was awarded 
a five-year contract for a new rig to work in the Liard Basin, drilling 
liquefied natural gas (LNG) - related wells. The rig will be one of Canada's 
largest and most technically advanced rigs and is expected to be completed in 
the second half of 2014. Trinidad currently works for a number of the key LNG 
players in the industry and is well positioned to take advantage of future 
growth opportunities that the LNG development is expected to provide over the 
coming years.

During the third quarter, Trinidad signed a joint venture agreement with a 
wholly-owned subsidiary of Halliburton Company (Halliburton) to provide and 
operate drilling rigs for Halliburton's international integrated projects. The 
joint venture is expected to concentrate initially on Saudi Arabia and Mexico, 
with future growth opportunities in other international markets. The joint 
venture will have a right of first look to provide drilling rigs for all of 
Halliburton's managed onshore projects outside of Canada and the US. This 
joint venture opens new doors in international growth for Trinidad, while also 
lowering risk for its shareholders by partnering with a company with extensive 
international experience and infrastructure. Initially, the joint venture has 
agreed to move four rigs into Saudi Arabia, where they are expected to be 
operational by mid-2014. Of the four rigs added to the joint venture, three 
will be taken from Trinidad's existing US fleet and upgraded to meet the 
specifications required and one will be built by Trinidad's manufacturing 
division.

After strengthening earlier in 2013 natural gas prices lowered in the third 
quarter of the year. The change in natural gas prices had a limited impact on 
Trinidad and the industry in North America as a whole, as approximately 80% to 
90% of rigs are currently drilling oil or natural gas liquids-rich targets. 
While the lower natural gas price does not change the targets being drilled, 
it does lower cash flow from associated natural gas production for oil and gas 
companies, and a persistently low natural gas price could negatively impact 
future capital programs. Crude oil prices strengthened during the quarter 
largely as a result of unrest in the Middle East causing oil and gas companies 
to continue to favor oil drilling over dry gas.

INDUSTRY STATISTICS
                                                                                       
                                      Full                                     Full
                         2013         Year                      2012           Year    2011
               Q3      Q2      Q1    2012      Q4      Q3      Q2       Q1    2011      Q4

Commodity
Prices                                                                                     

Aeco
natural gas
price (CDN$
per
gigajoule)    2.32    3.36    3.03    2.26    3.03    2.18    1.81     2.01    3.45    3.03

Henry Hub
natural gas
price (US$
per mmBtu)    3.55    4.01    3.47    2.75    3.40    2.88    2.29     2.43    4.00    3.33

Western
Canada
Select
crude oil
price                                                                                      

  (CDN$ per
  barrel)    86.31   79.25   67.64   71.70   60.73   76.29   74.10    75.91   77.53   83.38

WTI crude
oil price
(US$ per
barrel)     105.82   94.14   94.30   94.09   88.17   92.15   93.30   102.99   94.88   94.02
                                                                                           

US Industry
Activity                                                                                   

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

Average
Trinidad
active land
rig count
(2)             51      50      49      57      56      55      58       58      59      60
                                                                                           

Canadian
Industry
Activity                                                                                   

Average
Canadian
industry
utilization
(3)            37%     18%     58%     39%     36%     42%     18%      65%     49%     54%

Average
Trinidad
utilization
(4)            50%     24%     73%     52%     51%     58%     24%      77%     62%     69%
          

(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.
    THIRD QUARTER 2013 AND YEAR-TO-DATE HIGHLIGHTS
    --  Trinidad generated revenue of $208.7 million in the third
        quarter and $621.3 million year to date in 2013, a decrease of
        3.0% and 4.4% from the same periods of 2012, respectively.
        Revenue lowered year over year due to lower activity levels
        across the Company's operations. When compared to the second
        quarter of 2013, revenue increased from $165.4 million largely
        as a result of seasonality in Canada which restricts drilling
        activity during the second quarter.
    --  Operating income - net percentage was 38.5% in the current
        quarter and 39.6% year to date in 2013, compared to 40.0% and
        41.4%, respectively, in 2012. Lower profitability in the
        current quarter and year to date was largely driven by lower
        activity levels, as dayrates remained relatively stable.
        Additional repairs and maintenance costs were also incurred in
        the quarter and negatively impacted operating profitability as
        Trinidad took advantage of the downtime to upgrade rigs.
        Operating income - net percentage increased from 35.6% in the
        second quarter of 2013 largely as a result of the timing of
        repairs and maintenance expenses and seasonality of the
        Canadian operations.
    --  Adjusted EBITDA was $61.8 million in the third quarter and
        $186.6 million year to date in 2013, down 9.6% and 12.7%,
        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 increased from $39.9 million in the
        second quarter of 2013 as a result of seasonality in the
        Canadian operations.
    --  Net earnings were $9.2 million ($0.08 per share (diluted)) in
        the third quarter and $42.3 million ($0.35 per share (diluted))
        year to date in 2013, down 54.1% and 37.2%, respectively, from
        the same periods last year. Net earnings in the quarter
        decreased largely due to lower adjusted EBITDA, higher
        stock-based payment expenses and higher deferred income taxes.
    --  During the current quarter and first nine months of 2013,
        Trinidad remained focused on maintaining lower leverage. At
        September 30, 2013, Trinidad's revolving credit facility was
        virtually unutilized and the Total Debt to EBITDA ratio was
        1.92 times, bringing the Company well within reach of its
        long-term leverage goal of Total Debt to EBITDA of
        approximately 1.50 times.

RESULTS FROM OPERATIONS

Canadian Operations
                                                          
                    Three months ended   Nine months ended September
                         September 30,                           30,

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

Operating                               
revenue (1, 2)  72,205 77,155    (6.4)   224,654 225,923       (0.6)

Other revenue        4     51   (92.2)        61     293      (79.2)
                72,209 77,206    (6.5)   224,715 226,216       (0.7)

Operating costs                         
(1, 2)          42,962 43,276    (0.7)   131,607 129,802         1.4

Operating                               
income (8)      29,247 33,930   (13.8)    93,108  96,414       (3.4)

Operating
income - net                            
percentage (8)   40.5%  43.9%              41.4%   42.6%            
                                                                    

Operating days                          
(3)              3,018  3,233    (6.7)     8,650   8,628         0.3

Drilling days    2,798  3,004    (6.9)     7,985   7,969         0.2

Rate per
operating day                           
(CDN$) (4)      23,686 23,501      0.8    24,821  24,112         2.9

Utilization
rate -                                  
operating day
(5)                54%    62%   (12.9)       53%     57%       (7.0)

Utilization
rate - drilling                         
day (6)            50%    58%   (13.8)       49%     53%       (7.5)

CAODC industry                          
average (7)        37%    42%   (11.9)       38%     41%       (7.3)
                                                                    

Number of
drilling rigs                           
at period end       61     57      7.0        61      57         7.0

Number of
coring and                              
surface rigs                                                        

  at period                             
  end                -     20        -         -      20           -
          

(1)      Inter-segment revenue and operating costs for the three months
         ended September 30, 2013 and 2012 have been
         excluded of $1.2 million and $4.6 million, respectively.
         Inter-segment revenue and operating costs for the nine months
         ended September 30, 2013 and 2012 have been excluded of $3.1
         million and $9.5 million, respectively. Each of these
         inter-segment revenue and operating costs relates to expenses
         incurred in the manufacturing division.

(2)      Operating revenue and operating costs for the three months
         ended September 30, 2013 and 2012 exclude third party
         recovery and third party costs of $6.0 million and $8.7
         million, respectively. Operating revenue and operating costs
         for
         the nine months ended September 30, 2013 and 2012 exclude
         third party recovery and third party costs of $23.8 million
         and $27.7 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.
          

A slower than expected start to summer drilling caused by softening customer 
demand resulted in lower activity levels in the current quarter when compared 
to the prior year. This slower start resulted in 215 fewer operating days 
which reduced utilization by eight percentage points in the current quarter 
when compared to 2012. On a year-to-date basis, operating days were up 
marginally, driven by strong performance in the first half of 2013 as a result 
of a higher rig count but slightly offset by reduced third quarter activity 
levels.

For each of the three and nine month periods ended September 30, 2013, 
dayrates improved from the same periods last year by $185 per day and $709 per 
day, respectively. Dayrates increased due to a change in rig mix in 2013 
caused by the addition of four new, high specification rigs and reduced 
activity levels on the Company's less modern equipment. Higher dayrates on the 
Company's more modern equipment more than offset weaker dayrates on the 
Company's older style equipment in the current period.

Although utilization decreased by eight percentage points quarter over quarter 
and four percentage points year over year, Trinidad's high performance, modern 
fleet continued to outperform industry activity levels, recording utilization 
levels that exceeded the industry average for each of the three and nine 
months ended September 30, 2013, by thirteen and eleven percentage points, 
respectively. This is a reflection of the Company's strategic focus towards 
in-demand, high performance equipment backed by a strong customer base.

Revenue decreased in the third quarter by 6.5%, compared to the same quarter 
last year driven by lower operating days. Year to date in 2013, revenue was 
consistent with 2012 revenue generation as activity levels and dayrates 
remained largely in line with those recorded in the same period last year.

Operating income - net percentage decreased quarter over quarter and year over 
year by 3.4 percentage points and 1.2 percentage points, respectively. Lower 
revenue in the third quarter, combined with higher repairs and maintenance 
costs and increased wage expenses caused overall operating income - net 
percentage to decline. Wage expenses increased versus the same periods of the 
prior year due to the annual crew wage increase that occurred in the fourth 
quarter of 2012.

In the current quarter, Trinidad's active rig fleet increased by four rigs 
when compared to the third quarter of 2012. All four 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 completed 
construction on the remaining two rigs carried over from its 2012 construction 
program, with one delivered in each of the first and third quarters of the 
current year. Trinidad signed a contract to build a new rig to drill wells for 
a northern Canada 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, Trinidad has signed a contract to build a new rig to 
operate in Saudi Arabia through a joint venture arrangement. This rig is 
expected to be completed and delivered by the manufacturing division towards 
the middle of 2014. Lastly, 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.

By comparison, in the first three quarters of 2012, Trinidad's manufacturing 
division had completed work on three new builds, including a natural-gas 
powered rig for the Horn River, a steam-assisted gravity drainage (SAGD) rig 
and a rig destined for the Cardium. In addition, the division continued to 
work on four more new build rigs, one destined for the Cardium and three for 
the Duvernay.

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 Trinidad's future core strategy. 
The sale officially closed July 31, 2013, and as of September 30, 2013, 
Trinidad no longer has these rigs included in the Canadian fleet.

Third quarter 2013 versus second quarter 2013

Revenue and operating income increased by $35.1 million and $21.2 million, 
respectively, in the third quarter of 2013 when compared to the second 
quarter, largely driven by seasonality in the Canadian industry. Operating 
days increased by 1,584 days in the third quarter with utilization of 54% 
versus 26% 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. The third quarter 
is generally a more active period in the Canadian drilling market due to 
better weather conditions.

Dayrates decreased in the third quarter by $1,825 per operating day compared 
to the second quarter. Dayrates lowered in the current quarter as a result of 
a change in rig mix. As activity levels increased, the Company re-activated 
its smaller and older style rigs, which tend to generate lower dayrates.

United States and International Operations
                                                            
                      Three months ended   Nine months ended September
                           September 30,                           30,

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

Operating
revenue (1)     125,506 124,737      0.6   356,502 381,454       (6.5)

Other revenue        27   (241)    111.2        73   (227)       132.2
                125,533 124,496      0.8   356,575 381,227       (6.5)

Operating costs
(1)              78,590  77,828      1.0   219,483 226,249       (3.0)

Operating
income (6)       46,943  46,668      0.6   137,092 154,978      (11.5)

Operating
income - net
percentage (6)    37.4%   37.5%              38.4%   40.7%            
                                                                      

Land Drilling
Rigs                                                                  

Operating days
(2)               4,733   5,038    (6.1)    13,764  15,589      (11.7)

Drilling days     4,116   4,355    (5.5)    11,989  13,495      (11.2)

Rate per
operating day
(CDN$) (3)       23,297  22,518      3.5    22,882  22,344         2.4

Rate per
operating day
(US$) (3)        22,460  22,263      0.9    22,461  22,192         1.2

Utilization
rate -
operating day
(4)                 76%     81%    (6.2)       75%     85%      (11.8)

Utilization
rate - drilling
day (5)             66%     70%    (5.7)       65%     74%      (12.2)

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

Barge Drilling
Rigs                                                                  

Operating days
(2)                 449     376     19.4     1,309   1,169        12.0

  Rate per
  operating day                           
  (CDN$) (3)     33,962  30,008     13.2    31,659  28,244        12.1

  Rate per
  operating day                           
  (US$) (3)      32,740  29,583     10.7    31,037  28,044        10.7

Utilization
rate -
operating day
(4)                 97%     82%     18.3       96%     85%        12.9

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

  Number of
  barge                                   
  drilling rigs
  under                                                               
    Bareboat
    Charter
    Agreements                            
    at period
    end               3       3        -         3       3           -
          

(1)      Operating revenue and operating costs for the three months
         ended September 30, 2013 and 2012 exclude third party
         recovery and third party costs of $5.0 million and $4.7
         million, respectively. Operating revenue and operating costs
         for
         the nine months ended September 30, 2013 and 2012 exclude
         third party recovery and third party costs of $16.3
         million and $14.6 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.
          

For the three and nine months ended September 30, 2013, total operating days 
and utilization for the US and international operations' land drilling rigs 
lowered compared to the same periods last year. Strong competition and growing 
demand for more efficient equipment impacted activity levels in the quarter. 
Lower activity was slightly offset by an increase in dayrates quarter over 
quarter and year over year of US$197 per day and US$269 per day. This increase 
is due to Trinidad's continued focus on high grading equipment, resulting in a 
shift in the active rig mix towards the Company's higher specification 
equipment. Trinidad's fleet is largely composed of higher specification rigs, 
which has mitigated the impact of the decline in the US drilling market. 
Additionally, as Trinidad has a significant proportion of its fleet operating 
under long-term contracts, the Company has been able to limit its exposure to 
this weaker market.

US and international operations generated revenue of $125.5 million in the 
third quarter, up 0.6% from the same quarter last year. Revenue increased as a 
result of slightly higher dayrates and stronger performance from the barge 
operations, partly offset by lower operating days. Year to date in 2013, 
revenue was $356.6 million, down 6.5% from the first nine months of 2012. 
Revenue declined year to date largely due to lower activity levels in the 
current year.

The three rigs Trinidad has located in Mexico completed their contracts at the 
end of the second quarter and were idle during most of the third quarter, 
negatively impacting utilization levels in the current quarter. Trinidad is 
currently pursuing future opportunities for these rigs and anticipates that 
these assets may return to work in 2014.

Operating income - net percentage stayed relatively stable for the three 
months ended September 30, 2013, and declined for the nine months ended 
September 30, 2013. This decline in profitability was mainly due to lower 
revenue generation combined with a smaller reduction in repairs and 
maintenance 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 performed well with 
quarter-over-quarter and year-over-year dayrate increases of US$3,157 per day 
and US$2,993 per day, respectively. As well, operating days and utilization 
showed improvement increasing in each of the three and nine month periods 
respectively. Strong operations reflect the solid demand and limited supply of 
high quality equipment in this sector, which Trinidad is able to supply.

Third quarter 2013 versus second quarter 2013

In the third quarter of 2013, revenue increased by $6.5 million when compared 
to the second quarter of 2013 largely as a result of higher operating days in 
the current period. Improving customer demand allowed Trinidad to reactivate a 
number of rigs during the third quarter allowing the segment to record an 
additional 155 operating days. Dayrates remained relatively stable quarter 
over quarter, showing an increase of US$24 per operating day in the current 
quarter.

Operating income - net percentage decreased to 37.4% from 40.0% in the prior 
quarter, due to a lower contribution from the Company's Mexican operations 
combined with costs incurred to reactivate idle rigs.

Activity levels in the Barge market stayed relatively consistent quarter over 
quarter at 97% in the third quarter of 2013. However, dayrates continued to 
increase into the third quarter as demand for Trinidad's high quality 
equipment remained strong. Dayrates increased to US$32,740 per day in the 
third quarter from US$31,077 in the second quarter, improving revenue 
generation in this segment.

QUARTERLY ANALYSIS
FINANCIAL HIGHLIGHTS - QUARTERLY ANALYSIS
                                                                                                     
                                    2013                                     2012               2011 

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

Revenue              208.7     165.4      247.2      209.6      215.1     174.3      260.4      231.1

Operating                                                                                     
income (1)            76.2      55.7       98.4       77.8       80.6      66.4      104.4       89.0

Operating
income                                                                                        
percentage (1)       36.5%     33.6%      39.8%      37.1%      37.5%     38.1%      40.1%      38.5%

Operating
income - net                                                                                  
percentage (1)       38.5%     35.6%      43.3%      39.7%      40.0%     40.0%      43.5%      41.6%
                                                                                              

Net earnings
(loss) for the                                                                                
year                   9.2       0.3       32.7     (12.4)       20.0      12.9       34.5       25.3

Adjustments                                                                                   
for:                                                                                                 

  Depreciation
  and                                                                                         
  amortization        30.1      27.6       29.9       29.2       30.4      25.8       28.1       29.1

  Foreign                                                                                     
  exchange             0.4         -          -      (1.4)        0.8     (0.7)        0.5        2.4

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

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

  Finance                                                                                     
  costs               10.4      10.0       10.0       10.1       10.3      10.5       10.8       10.9

  Income taxes         5.9     (1.6)        9.4     (22.2)        2.7       4.4       10.2        4.8

  Other                5.9       2.2        2.8        1.4        2.9       1.0        0.1        2.5

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

  Income taxes                                                                                
  recovered            0.4       0.7          -        0.7        3.9         -          -        0.8

  Interest                                                                                    
  paid              (18.4)     (0.7)     (18.6)      (1.1)     (19.5)     (1.5)     (19.8)      (1.6)

Funds provided
by operations                                                                                 
(1)                   43.8      39.1       64.9       60.9       51.7      51.2       71.4       73.6

Net earnings
(loss) per                                                                                    
share (diluted)       0.08      0.00       0.27     (0.10)       0.17      0.11       0.29       0.21

Funds provided
by operations                                                                                 
per share
(diluted)             0.36      0.32       0.54       0.50       0.43      0.42       0.59       0.61

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

NON-GAAP MEASURES HIGHLIGHTS - QUARTERLY ANALYSIS
                                                                                
                           2013                                2012             2011 

($ millions
except per
share data


and
 operating
  data)        Q3      Q2        Q1        Q4       Q3        Q2        Q1        Q4  
EBITDA (1)                                               
        55,556   37,788    82,050    63,323   64,714    53,081    91,240    69,545 
Per share
  (diluted)
  (2)         0.46     0.31      0.68      0.52     0.54      0.44      0.75      0.58 
Adjusted                                                
EBITDA (1)  61,838   39,941    84,836    63,332   68,387    53,344    91,951    74,401 
Per share
  (diluted)
  (2)         0.51     0.33      0.70      0.52     0.57      0.44      0.76      0.62 
Adjusted
net
earnings                                                
(1)         15,449    2,631    35,534    57,807   24,913    13,129    42,698    30,174 
Per share
  (diluted)
  (2)         0.13     0.02      0.29      0.48     0.21      0.11      0.35      0.25 


          

(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 
                   Q3       Q2       Q1       Q4       Q3       Q2       Q1       Q4 

Land Drilling    
Market                                                                               

Operating days   
(1)                                                                                  
    Canada        3,018    1,434    4,198    2,915    3,233    1,288    4,107    3,665


United
  States and
  International  4,733    4,578    4,453    4,789    5,038    5,289    5,262    5,547 
Rate per
operating day    
(2,3)                                                                                 
Canada
  (CDN$)        23,686   25,511   25,401   26,190   23,501   25,343   24,206   23,652 
United
  States and
  International
  (CDN$)        23,297   22,908   22,416   22,305   22,518   22,586   21,935   20,710 
United
  States and
  International
  (US$)         22,460   22,436   22,487   22,589   22,263   22,616   21,698   20,387 
Utilization
rate -           
operating day
(4)                                                                                   
Canada          54%      26%      79%      56%      62%      26%      84%      74% 
United
  States and
  International    76%      73%      72%      77%      81%      86%      90%      92% 
Number of
drilling rigs    
at period end                                                                         
Canada           61       60       60       59       57       55       54       54 
United
  States and
  International     68       68       68       68       68       68       66       64 
Coring and
  surface
  casing rigs        -       15       15       15       20       20       20       20 
                                                                                  
Barge Drilling   
Market                                                                                
Operating
  days (1)         449      445      415      386      376      429      364      373 
Rate per
  operating day
  (CDN$) (2,3)  33,962   31,731   29,097   29,954   30,008   29,072   25,448   25,835 
Rate per
  operating day
  (US$) (2,3)   32,740   31,077   29,158   30,330   29,583   29,106   25,204   25,455 
Utilization
  rate -
  operating day
  (4)              97%      98%      92%      84%      82%      94%      80%      81% 
Number of
  barge
  drilling rigs
  at period
  end                2        2        2        2        2        2        2        2 
Number of
  barge
  drilling rigs
  under                                                                               


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

(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                         September 30,    December 31,           

($ thousands)                          2013            2012  $ Change 

Working capital (1)                 134,384         109,412     24,972
                                                                      

Senior Notes                        461,105         444,994     16,111

Credit facility                       4,000          69,898   (65,898)

Building loans                        5,293           5,754      (461)
                                    470,398         520,646   (50,248)

Less: unamortized debt issue
costs                               (9,226)        (10,814)      1,588

Total long-term debt                461,172         509,832   (48,660)

Total long-term debt as a
percentage of assets                  29.3%           33.1%           
                                                                      
                                                                      

Total assets                      1,573,615       1,541,294     32,321

Total long-term liabilities         540,792         585,629   (44,837)

Total long-term liabilities
as a percentage of assets             34.4%           38.0%           
                                                             
                                                             
                              September 30,  September 30,            
                                       2013           2012   $ Change 

Cash provided by operations         196,108         183,344     12,764

Cash used by investing             (37,811)       (136,732)     98,921

Cash used by financing             (84,812)        (46,619)   (38,193)
          

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

For the nine months ended September 30, 2013, working capital increased by 
$25.0 million when compared to December 31, 2012, due to an increase in 
current assets of $57.0 million offset by an increase in current liabilities 
of $32.1 million. The increase in current assets was mainly a result of an 
increase in cash in the current period as a result of lower capital additions 
in 2013, an increase in prepaid expenses due to insurance renewals in the 
quarter and an increase in assets held for sale due to the re-classification 
of property assets held in the Canadian operations. This is offset by lower 
receivables in the current period due to timing of collections as well as a 
slight decrease in inventory levels in Trinidad's manufacturing division.

Current liabilities increased during the period mainly as a result of an 
increase in accounts payable and accrued liabilities related to an increase in 
capital upgrade initiatives mainly in the US operations. This was in addition 
to 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.

Trinidad's total long-term debt balance declined by $48.7 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 was 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 $65.9 million as a result of 
payments made during the year. As of September 30, 2013, Trinidad had $4.0 
million outstanding on its Canadian revolving credit facility and no amounts 
outstanding on the US revolving credit facility, leaving $196.0 million and 
US$100.0 million unutilized in the facilities, respectively.

Although Trinidad had paid off the US revolving debt facility and the majority 
of the Canadian facility, the Company is still considering future capital 
commitments, and as such, it is expected that these facilities will be 
utilized in the future in the general course of business. The Canadian and US 
revolving facilities require 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 $16.1 million as a result of the 
change in the US dollar foreign exchange rate at September 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 $50.3 million of capital expenditures were spent during the nine 
months ended September 30, 2013, compared to $149.1 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 two new rigs into 
service in the Canadian operations, one in each of the first and third 
quarters 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. Earlier in 2013, Trinidad forecasted 
a capital program of approximately $175 million for the year. Trinidad has 
chosen to delay certain rig upgrades and other capital projects included in 
the 2013 forecast due to weaker-than-anticipated industry conditions. In 
addition, capital costs associated with the LNG-related rig have been incurred 
at a slower rate than expected. The delay in rig construction is a timing 
issue only and the Company does not expect it to impact the delivery date of 
the completed rig. Trinidad now expects that $40 to $50 million of capital 
projects included in the 2013 forecast may be carried over to 2014 and 
included in next year's capital program. The current 2013 capital program 
includes the following:
    --  Beginning construction on one rig to be delivered to Trinidad's
        Canadian operations for LNG-related drilling;
    --  Beginning construction on one rig and the upgrading of three
        existing rigs to be delivered to Saudi Arabia for the joint
        venture arrangement;
    --  The completion of two contracted rigs for the Canadian
        operations carried over from the 2012 capital program, one rig
        was delivered in each of the first and third quarters of 2013;
    --  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                      September 30, December 31,   THRESHOLD
                                    2013         2012                  
                                                         

Consolidated Senior Debt                       0.27:1
to Consolidated EBITDA (1)        0.04:1                 3.00:1 maximum

Consolidated Total Debt to                     1.91:1
Consolidated EBITDA (1)           1.92:1                 4.00:1 maximum

Consolidated EBITDA to
Consolidated Cash Interest                     6.76:1
Expense (1)                       6.36:1                 2.75:1 minimum
                                                                       

(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

The winter drilling season in Canada is shaping up well with firm demand, in 
particular for deeper, high performance equipment. In the US, activity levels 
have been increasing over the past few months and Trinidad expects to see 
stable conditions for the remainder of 2013 and into 2014.

As the Company finalizes its capital spending plans for 2014, it is carefully 
evaluating new growth opportunities and upgrades to existing equipment. 
Competition remains high in North America and customers are increasingly 
looking for high performance equipment to improve the efficiency of their 
drilling programs. Trinidad expects that its 2014 capital budget will reflect 
a focus on upgrading existing equipment to ensure it remains competitive and 
new growth initiatives backed by customer contracts.

Looking forward into 2014, conditions in North America are expected to remain 
stable. Trinidad's deeper, high-performance rigs are the style of equipment 
that its customers need, and the Company's experience in drilling 
technically-challenging wells continues to position it as an industry leader.

Interest in plays such as the Montney, Duvernay, Horn River and Liard Basin in 
western Canada is increasing as customers understand the drilling requirements 
needed to supply natural gas to their proposed LNG plants in British Columbia. 
Trinidad believes that this interest will turn into increased rig demand as 
these projects become more certain, with higher drilling activity and requests 
for new equipment over the coming years. Trinidad's reputation as an 
experienced rig manufacturer and deep technical driller was clearly 
acknowledged in a recent award to build one of the few LNG-related new builds 
awarded in Canada.

In addition to LNG-related growth in Canada, Trinidad's newly signed joint 
venture with Halliburton offers the Company a strong growth initiative going 
forward. Currently, the Company has agreed to move three existing upgraded 
rigs and one new build into the joint venture, with all four rigs expected to 
begin operations in Saudi Arabia in the second half of 2014. Trinidad 
anticipates that additional opportunities to add either existing or new 
equipment into the joint venture will occur as the joint venture progresses. 
The initial areas of focus will be in Saudi Arabia and Mexico, with additional 
countries being considered for expansion at a later date.

Trinidad's focus over the past few years on lowering its leverage has 
positioned the company well to take advantage of the growth opportunities it 
is now seeing. The Company expects to grow its international operations at a 
measured pace, while also maintaining close attention to its existing North 
American operations. Trinidad's improved financial flexibility, strong growth 
initiatives and available cash flow, provide the Company with a variety of 
ways to grow the Company and to add value for its shareholders.

CONFERENCE CALL

A conference call and webcast to discuss the results will be held for the 
investment community on Thursday November 7(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 2:30 p.m. ET on November 7(th), 2013 until midnight November 
14(th), 2013 by dialing (855) 859 2056 or (416) 849-0833 and entering replay 
access code 77203749.

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 and barge-drilling sectors of the North American oil and natural 
gas industry with operations in Canada, the United States and Mexico. In 
addition, through a joint venture, Trinidad has the opportunity to operate 
drilling rigs in other international markets such as Saudi Arabia. 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                                  September 30,       December 31,

($ thousands) - unaudited                       2013               2012
                                                                       

Assets                                                                 

Current Assets                                                         

Cash and cash equivalents                     78,546              4,933

Accounts receivable                          161,972            182,071

Inventory                                      8,005              8,600

Prepaid expenses                               6,064              4,808

Assets held for sale                           3,685                816
                                             258,272            201,228
                                                                       

Property and equipment                     1,226,377          1,253,921

Intangible assets and                         88,960             86,145
goodwill

Investment in joint venture                        6                  -
                                           1,573,615          1,541,294
                                                                       

Liabilities                                                            

Current Liabilities                                                    

Accounts payable and accrued                  91,953             82,265
liabilities 

Dividends payable                              6,043              6,043

Deferred revenue                              20,599              2,891

Current portion of long-term                   5,293                617
debt
                                             123,888             91,816
                                                                       

Long-term debt                               455,879            509,215

Deferred income taxes                         84,913             76,414
                                             664,680            677,445
                                                                       

Shareholders' Equity                                                   

Common shares                                952,154            952,043

Contributed surplus                           50,556             50,245

Accumulated other                           (13,872)           (34,403)
comprehensive loss

Deficit                                     (79,903)          (104,036)
                                             908,935            863,849
                                           1,573,615          1,541,294
                                                                       

  
                                                                      

CONSOLIDATED STATEMENTS OF OPERATIONS AND                             
COMPREHENSIVE INCOME  
                           Three months ended        Nine months ended
                              September 30,             September 30,

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

Revenue                                                               

Oilfield service         208,661      215,293     621,191      649,704
revenue

Other revenue                 31        (190)         134           66
                         208,692      215,103     621,325      649,770
                                                                      

Expenses                                                              

Operating                132,502      134,505     391,125      398,378
expense

General and               20,219       15,074      54,417       41,642
administrative

Depreciation and          30,094       30,436      87,555       84,383
amortization

Foreign                      409          810         383          715
exchange 

(Gain) loss on              (79)           26                    (295)
sale of property                                    1,288    
and equipment

Impairment of                  -        1,290                    8,809
property and                                          131    
equipment
                         183,145      182,141     534,899      533,632

Loss from                      6            -                        -
investment in                                           6    
joint venture

Finance costs             10,434       10,288      30,393       31,586

Earnings before           15,107       22,674      56,027       84,552
income taxes

Income taxes                                                          

Current                      703          102       1,966           66

Deferred                   5,237        2,622      11,799       17,202
                           5,940        2,724      13,765       17,268

Net earnings               9,167       19,950      42,262       67,284
                                                                      

Other                                                                 
comprehensive                                                
income 

  Foreign                                                    
  currency
  translation              3,826     (12,247)      20,531     (11,740)
  adjustment,
  net of income
  tax
                           3,826     (12,247)      20,531     (11,740)

Total                     12,993        7,703                   55,544
comprehensive                                      62,793    
income 
                                                                      

Earnings per                                                          
share

Net earnings                                                          

  Basic /                   0.08         0.17        0.35         0.56
  Diluted
     
                                                                                          

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For nine months ended September 30, 2013 and 2012
                                                                                          
                                                  Accumulated                             
                                                       other                              
                      Common      Contributed     comprehensive                     Total

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

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

Exercise of               111            (26)                 -             -           85
stock options

Share-based                 -             337                 -             -          337
payments

Total                       -               -            20,531        42,262
comprehensive                                                                       62,793
income 

Dividends                   -               -                 -      (18,129)     (18,129)

Balance at            952,154          50,556          (13,872)      (79,903)
September 30,                                                                      908,935
2013
                                                                                          

Balance at            952,043          49,462          (25,377)     (134,902)
December 31,                                                                       841,226
2011

Share-based                 -             570                 -             -          570
payments

Total                       -               -          (11,740)        67,284
comprehensive                                                                       55,544
income 

Dividends                   -               -                 -      (18,129)     (18,129)

Balance at            952,043          50,032          (37,117)      (85,747)
September 30,                                                                      879,211
2012

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

CONSOLIDATED STATEMENTS OF CASH FLOWS                                  

For nine months ended September 30,                                    

($ thousands) - unaudited                            2013          2012
                                                                       

Cash provided by (used in)                                             

Operating activities                                                   

Net earnings                                       42,262        67,284

Adjustments for:                                                       

  Depreciation and amortization                    87,555        84,383

  Foreign exchange                                    383           715

  Loss (gain) on sale of property and               1,288         (295)
  equipment                                                  

  Impairment of property and equipment                131         8,809

  Loss from investment in joint                         6             -
  venture                                                    

  Finance costs                                    30,393        31,586

  Income taxes                                     13,765        17,268

  Interest income                                    (25)           (8)

  Other (1)                                        10,838         3,932

  Income taxes paid                               (2,152)       (2,542)

  Income taxes recovered                            1,083         3,953

  Interest paid                                  (37,745)      (40,769)

  Interest received                                    25             8

Funds provided by operations                      147,807       174,324

Change in non-cash operating working               48,301    
capital                                                           9,020

Cash provided by operations                       196,108       183,344
                                                                       

Investing activities                                                   

Purchase of property and equipment               (50,349)     (149,114)

Proceeds from disposition of property              13,347    
and equipment                                                     2,678

Investment in joint venture                          (12)             -

Change in non-cash working capital                  (797)         9,704

Cash used by investing                           (37,811)     (136,732)
                                                                       

Financing activities                                                   

Proceeds from long-term debt                       36,257        77,239

Repayments of long-term debt                    (103,025)     (105,729)

Proceeds from exercise of options                      85             -

Dividends paid                                   (18,129)      (18,129)

Cash used by financing                           (84,812)      (46,619)
                                                                       

Cash flow from operating, investing and            73,485    
financing activities                                                (7)

Effect of translation of foreign                      128    
currency cash                                                     (120)

Increase (decrease) in cash for the                73,613    
period                                                            (127)
                                                                       

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

Cash and cash equivalents (bank                    78,546    
indebtedness) - end of period                                   (4,727)

((1)) Other includes share-based payment expense.  

  

SEGMENTED INFORMATION
                                                                                                  
                                                                                                  

Three months                                United           Inter-                               
ended                                     States /

September 30,           Canadian                             segment                              
2013                                  International 

 ($ thousands)                           Operations                        Corporate        Total 
                      Operations                         Eliminations

 Operating                 72,205            125,506                -              -       197,711
revenue 

 Other revenue                  4                 27                -              -            31

 Third party                5,978              4,972                -              -        10,950
recovery 

 Inter-segment              1,209                  -          (1,209)              -             -
revenue 
                           79,396            130,505          (1,209)              -       208,692

 Operating                 42,962             78,590                -              -       121,552

 Third party                5,978              4,972                -              -        10,950
costs 

 Inter-segment              1,209                  -          (1,209)              -             -
operating 

 Operating                 29,247             46,943                -              -        76,190
income 

 Depreciation
and                        10,078             20,016                -              -        30,094
amortization 

 Loss (gain) on                72              (151)                -              -          (79)
sale of assets 
                           10,150             19,864                -              -        30,014

 Segmented                 19,097             27,079                -              -        46,176
income (loss) 

 Loss from
investment in                   -                  6                -              -             6
joint venture 

 General and                    -                  -                -         20,219        20,219
administrative 

 Foreign                        -                  -                -            409           409
exchange 

 Finance costs                  -                  -                -         10,434        10,434

 Income taxes                   -                  -                -          5,940         5,940

 Net earnings              19,097             27,073                -       (37,003)         9,167
(loss) 
                                                                                                  

 Purchase of
property and                7,944              9,577                -              -        17,521
equipment 


                                                                                                  
                                                                                                  

Three months                                United           Inter-                               
ended                                     States /

September 30,           Canadian                             segment                              
2012                                  International 

 ($ thousands)                          Operations                        Corporate         Total 
                      Operations                         Eliminations

 Operating                 77,155            124,737                -              -       201,892
revenue 

 Other revenue                 51              (241)                -              -         (190)

 Third party                8,705              4,696                -              -        13,401
recovery 

 Inter-segment              4,584                  -          (4,584)              -             -
revenue 
                           90,495            129,192          (4,584)              -       215,103

 Operating                 43,276             77,828                -              -       121,104

 Third party                8,705              4,696                -              -        13,401
costs 

 Inter-segment              4,584                  -          (4,584)              -             -
operating 

 Operating                 33,930             46,668                -              -        80,598
income 

 Depreciation
and                        10,004             20,432                -              -        30,436
amortization 

 Loss (gain) on               177              (151)                -              -            26
sale of assets 

 Impairment of              1,290                  -                -              -         1,290
capital assets 
                           11,471             20,281                -              -        31,752

 Segmented                 22,459             26,387                -              -        48,846
income (loss) 

 Loss from
investment in                   -                  -                -              -             -
joint venture 

 General and                    -                  -                -         15,074        15,074
administrative 

 Foreign                        -                  -                -            810           810
exchange 

 Finance costs                  -                  -                -         10,288        10,288

 Income taxes                   -                  -                -          2,724         2,724

 Net earnings              22,459             26,387                -       (28,896)        19,950
(loss) 
                                                                                                  

 Purchase of
property and               27,145             13,092                -              -        40,237
equipment 


                                                                                                  
                                                                                                  

Nine months                                 United           Inter-                               
ended                                     States /

September 30,           Canadian                             segment                              
2013                                  International 

 ($ thousands)                          Operations                         Corporate        Total 
                      Operations                         Eliminations

 Operating                224,654            356,502                -              -       581,156
revenue 

 Other revenue                 61                 73                -              -           134

 Third party               23,766             16,269                -              -        40,035
recovery 

 Inter-segment              3,119                  -          (3,119)              -             -
revenue 
                          251,600            372,844          (3,119)              -       621,325

 Operating                131,607            219,483                -              -       351,090

 Third party               23,766             16,269                -              -        40,035
costs 

 Inter-segment              3,119                  -          (3,119)              -             -
operating 

 Operating                 93,108            137,092                -              -       230,200
income 

 Depreciation
and                        30,094             57,461                -              -        87,555
amortization 

 Loss (gain) on               303                985                -              -         1,288
sale of assets 

 Impairment of                131                  -                -              -           131
capital assets 
                           30,527             58,446                -              -        88,973

 Segmented                 62,581             78,646                -              -       141,227
income (loss) 

 Loss from
investment in                   -                  6                -              -             6
joint venture 

 General and                    -                  -                -         54,417        54,417
administrative 

 Foreign                        -                  -                -            383           383
exchange 

 Finance costs                  -                  -                -         30,393        30,393

 Income taxes                   -                  -                -         13,765        13,765

 Net earnings              62,581             78,640                -       (98,959)        42,262
(loss) 
                                                                                                  

 Purchase of
property and               35,202             15,147                -              -        50,349
equipment 
                                                                                                 
                                                                                                 

Nine months                                 United           Inter-                              
ended                                     States /

September 30,           Canadian                             segment                             
2012                                  International 

 ($ thousands)                          Operations                        Corporate        Total 
                      Operations                         Eliminations

 Operating                225,923            381,454                -             -       607,377
revenue 

 Other revenue                293              (227)                -             -            66

 Third party               27,699             14,628                -             -        42,327
recovery 

 Inter-segment              9,499                  -          (9,499)             -             -
revenue 
                          263,414            395,855          (9,499)             -       649,770

 Operating                129,802            226,249                -             -       356,051

 Third party               27,699             14,628                -             -        42,327
costs 

 Inter-segment              9,499                  -          (9,499)             -             -
operating 

 Operating                 96,414            154,978                -             -       251,392
income 

 Depreciation
and                        25,371             59,012                -             -        84,383
amortization 

 Loss (gain) on               224              (519)                -             -         (295)
sale of assets 

 Impairment of              7,247              1,562                -             -         8,809
capital assets 
                           32,842             60,055                -             -        92,897

 Segmented                 63,572             94,923                -             -       158,495
income (loss) 

 Loss from
investment in                   -                  -                -             -             -
joint venture 

 General and                    -                  -                -        41,642        41,642
administrative 

 Foreign                        -                  -                -           715           715
exchange 

 Finance costs                  -                  -                -        31,586        31,586

 Income taxes                   -                  -                -        17,268        17,268

 Net earnings              63,572             94,923                -      (91,211)        67,284
(loss) 
                                                                                                 

 Purchase of
property and               88,383             60,731                -             -       149,114
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 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, the 
impact of foreign exchange, how the results are taxed in various jurisdictions 
and effects of share-based payment expenses.

"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. Adjusted net earnings is a 
useful measure because it provides an indication of results of the Company's 
principal business activities before consideration of fluctuations in foreign 
exchange gains and losses, impairment and share-based payment expenses, which 
are not consistently incurred period over period.

"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, which is primarily made up of highly liquid 
balances. 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, including third party recovery 
and third party costs, as well as inter-segment revenue and inter-segment 
operating costs. 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 excluding third party 
recovery and third party costs, as well as inter-segment revenue and 
inter-segment operating costs, as these revenues and expenses do not have an 
effect on consolidated net earnings. 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; assumptions made about future performance and 
operations of the joint venture arrangement. 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/November2013/06/c8763.html 
CO: Trinidad Drilling Ltd.
ST: Alberta
NI: OIL ERN CONF  
-0- Nov/06/2013 22:08 GMT
 
 
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