Trinidad Drilling Ltd. reports second quarter and year-to-date 2014 results; transitional second quarter as activity levels and

Trinidad Drilling Ltd. reports second quarter and year-to-date 2014 results; 
transitional second quarter as activity levels and dayrates trend up in second 
half of 2014 
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION 
IN THE UNITED STATES/ 
TSX SYMBOL:  TDG 
CALGARY, Aug. 6, 2014 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the 
"Company") reported second quarter and year to date 2014 results. The 
Company's results were impacted as rigs were re-activated to meet increasing 
demand, incurring additional costs and leading to lower adjusted EBITDA ((1)) 
in the current quarter. 
"The second quarter was a transitional quarter for Trinidad," said Lyle 
Whitmarsh, Trinidad's Chief Executive Officer. "We are seeing growing demand 
across all areas of our operations and incurred higher costs in the quarter as 
we prepared the fleet for these improved industry conditions. During the 
quarter, our US and international division moved rigs to new customers and 
locations, and had higher than usual repairs and maintenance costs as rigs 
were re-activated. Although these costs negatively affected the second 
quarter, we are already seeing the benefit as all of our US rigs are currently 
operating. We anticipate that Trinidad will perform well in the second half of 
2014 as customers increasingly lock up existing rigs and demand for new 
equipment grows." 
(1)    See Non-GAAP Measures Definition and Additional GAAP Measures 


           Definition section of this document for further details.

FINANCIAL HIGHLIGHTS
                                                                                                          
                                Three months ended June 30,                  Six months ended June 30,
    ($ thousands
    except share             2014          2013        % Change            2014          2013            %
    and per share                                                                                   Change
    data)
    Revenue               168,945       165,447             2.1         420,450       412,633          1.9
    Revenue, net
    of third              159,644       156,171             2.2         390,662       383,548          1.9
    party costs
    Operating              45,605        55,651          (18.1)         140,797       154,010        (8.6)
    income (1)
    Operating
    income                  27.0%         33.6%          (19.6)           33.5%         37.3%       (10.2)
    percentage
    (1)
    Operating
    income - net            28.3%         35.6%          (20.5)           35.9%         40.2%       (10.7)
    percentage
    (1)
    EBITDA (1)              5,445        36,326          (85.0)          86,700       118,340       (26.7)
      Per share
      (diluted)              0.04          0.30          (86.7)            0.62          0.98       (36.7)
      (2)
    Adjusted               30,644        39,941          (23.3)         110,086       124,777       (11.8)
    EBITDA (1)
      Per share
      (diluted)              0.22          0.33          (33.3)            0.79          1.03       (23.3)
      (2)
    Cash provided          71,086        89,852          (20.9)          90,519       130,347       (30.6)
    by operations
      Per share
      (basic /               0.51          0.74          (31.1)            0.65          1.08       (39.8)
      diluted)
      (2)
    Funds
    provided by            30,285        39,124          (22.6)          91,142       104,067       (12.4)
    operations
    (1)
      Per share
      (basic /               0.22          0.32          (31.3)            0.66          0.86       (23.3)
      diluted)
      (2)
    Net (loss)           (24,815)           347       (7,251.3)             947        33,095       (97.1)
    earnings
      Per share
      (basic /             (0.18)          0.00               -            0.01          0.27       (96.3)
      diluted)
      (2)
    Adjusted net
    (loss)                (5,557)         3,460         (260.6)          22,189        39,033       (43.2)
    earnings (1)
      Per share
      (basic /             (0.04)          0.03         (233.3)            0.16          0.32       (50.0)
      diluted)
      (2)
    Capital                71,587        15,089           374.4         102,793        32,828        213.1
    expenditures 
    Dividends               6,910         6,043            14.3          13,818        12,086         14.3
    declared
    Shares
    outstanding -                                                                                         
    diluted
      (weighted
      average)        138,873,120   120,859,476            14.9     138,848,922   120,859,476         14.9
      (2)
                                                                                                     
    As at                                                              June 30,      December             
                                                                                          31,
    ($ thousands
    except                                                                 2014          2013            %
    percentage                                                                                      Change
    data)
    Total assets                                                      1,876,403     1,827,496          2.7
    Total
    long-term                                                           570,449       564,095          1.1
    liabilities
    (1)      Readers are cautioned that Operating income, Operating income
             percentage, Operating income - net percentage, EBITDA,
             Adjusted
             EBITDA, Funds provided by operations, Adjusted net (loss)
             earnings and the related per share information do not have
             standardized
             meanings prescribed by IFRS - see "Non-GAAP Measures" and
             "Additional GAAP Measures".
    (2)      Basic shares include the weighted average number of shares
             outstanding over the period. Diluted shares include the
             weighted
             average number of shares outstanding over the period and the
             dilutive impact, if any, of the number of shares issuable
             pursuant
             to the Incentive Option Plan.

OPERATING HIGHLIGHTS
                                                                                                   
                                  Three months ended June 30,                 Six months ended June 30,
                                2014           2013           %           2014           2013           %
                                                         Change                                    Change
    Land Drilling                                                                                        
    Market 
    Operating days                                                                                       
    (1)
      Canada                   1,430          1,434       (0.3)          5,507          5,632       (2.2)
      United States
      and                      4,441          4,578       (3.0)          8,752          9,031       (3.1)
      International
    Rate per
    operating day                                                                                        
    (1)
      Canada (CDN$)           26,338         25,511         3.2         25,655         25,429         0.9
      United States
      and                     22,890         22,908       (0.1)         23,747         22,665         4.8
      International
      (CDN$)
      United States
      and                     20,819         22,436       (7.2)         21,716         22,461       (3.3)
      International
      (US$)
    Utilization
    rate -                                                                                               
    operating day
    (1)
      Canada                     26%            26%           -            50%            52%       (3.8)
      United States
      and                        80%            73%         9.6            78%            73%         6.8
      International
    Number of
    drilling rigs                                                                                        
    at period end
    (4)
      Canada                      59             60       (1.7)             59             60       (1.7)
      United States
      and                         56             68      (17.6)             56             68      (17.6)
      International
      Coring and
      surface                      -             15     (100.0)              -             15     (100.0)
      casing rigs
      (2)
    Joint Venture                                                                                  
    Operations (3)
      Number of
      drilling rigs                4              -       100.0              4              -       100.0
      at period end
    Barge Drilling                                                                                       
    Market 
      Operating                  259            445      (41.8)            503            860      (41.5)
      days (1)
      Rate per
      operating day           37,953         31,731        19.6         37,886         30,460        24.4
      (CDN$) (1)
      Rate per
      operating day           34,599         31,077        11.3         34,680         30,151        15.0
      (US$) (1)
      Utilization
      rate -                     57%            98%      (41.8)            56%            95%      (41.1)
      operating day
      (1)
      Number of
      barge                        2              2           -              2              2           -
      drilling rigs
      at period end
      Number of
      barge
      drilling rigs                                                                                      
      under
      Bareboat
        Charter
        Agreements                 3              3           -              3              3           -
        at period
        end
    (1)      See Non-GAAP Measures Definition and Additional GAAP Measures
             Definition section of this document for further details.
    (2)      In the third quarter of 2013, Trinidad disposed of its 15
             remaining coring rigs and all related equipment.
             Trinidad is party to a joint venture with a wholly-owned
    (3)      subsidiary of Halliburton. These rigs are owned by the joint
             venture.
    (4)      Refer to the Results from Operations section for details on
             changes to the rig count.

OVERVIEW

The second quarter of 2014 was a transitional period for Trinidad. Each of the 
following factors had a significant impact on the Company:
        --  Increased demand in the US operations caused the Company to
            re-activate existing rigs, incurring increased costs, changing
            rig mix and lowering overall margins in this segment;
        --  The Company continued to gear up for international growth with
            the joint venture. With this growth period, Trinidad incurred
            additional general and administrative expenses;
        --  Trinidad transitioned their three rigs out of Mexico and moved
            them to Canada where their specifications are more in demand.
            The Company expects to recommence operations in Mexico through
            the joint venture with four rigs by the end of 2014 and early
            2015.

As Trinidad transitioned to meet the growing demand in the US, the Company 
incurred higher repairs and maintenance and rig moving expenses as the Company 
readied equipment to go back to work. In addition, a number of lower 
specification rigs were reactivated in the current quarter due to improving 
customer demand for this type of equipment. Trinidad typically times larger 
repairs and maintenance costs with increasing market demand. This was combined 
with the temporary impact of lower utilization on several high performance 
rigs that received early termination revenue in previous quarters, causing a 
decline in profitability in the US and international segment when compared to 
the same quarter last year. As at June 30, 2014, Trinidad also reviewed its 
rig fleet based on the marketability of existing assets, resulting in a number 
of rigs being decommissioned and an impairment expense of $20.6 million 
recorded in the period.

Trinidad is currently seeing improved industry conditions across all of its 
operations. The Company anticipates that the factors negatively impacting the 
results in the second quarter are due to reactivating previously idle rigs, 
which will not persist into the second half of 2014. As Trinidad continues to 
review its rig fleet and ensure all assets remain highly competitive, the 
retrofit and redeployment of current higher specification rigs will continue 
into the second half of 2014.

During the second quarter and first six months of 2014, commodity prices 
increased from the same periods in 2013. Crude oil prices improved for both 
the US-based WTI benchmark and the Western Canadian Select benchmark prices, 
driving an ongoing focus towards crude oil and natural gas liquids targets. 
Oil prices continued to strengthen and increased in the current quarter from 
the first quarter of 2014 mostly due to increased geopolitical unrest in the 
Middle East and Eastern Europe and lowering US storage levels. Natural gas 
prices were also higher in the current periods compared to the same periods 
last year, but lowered in the second quarter from the first quarter of 2014. 
Growing storage levels in North America were the main driver behind lowering 
natural gas prices in the current quarter.

In the second quarter and first six months of 2014, Canadian industry activity 
levels averaged 28% and 42%, respectively, up from 18% and 38% in the same 
periods last year, reflecting the improving industry conditions in Canada. 
Trinidad's Canadian utilization rate - drilling days remained stable at 24% 
quarter over quarter and at 46% year to date in 2014 compared to 48% for the 
same period last year. Trinidad's activity levels in the current quarter were 
impacted by the timing of rig re-certifications and customer specific delays 
and year to date from weaker demand in oil sands related drilling.

In the US, industry activity increased in the second quarter and first six 
months of 2014, averaging 1,781 and 1,743 active rigs, respectively, up from 
1,686 active rigs for the same periods last year. Trinidad's US and 
international division  averaged approximately 47 active rigs in the second 
quarter and first six months of 2014 down slightly from approximately 49 
active rigs during the same periods in 2013. Trinidad's lower active rig count 
was driven by three Mexican rigs that were idled after the second quarter of 
2013, due to the completion of their contracts.

During the second quarter and year-to-date 2014, the US dollar was stronger 
against the Canadian dollar than during the same periods last year. Trinidad 
has a significant portion of its business that operates in US dollars and the 
change in foreign exchange rates in the quarter had a noticeable, and largely 
positive impact on the Company's results. USD/CDN dollar exchange rates 
averaged 1.0997 in the current quarter compared to 1.0211 in the same quarter 
last year. On a year to date basis, US dollar exchange rates averaged 1.0940 
in 2014 compared to 1.0091 for the same period last year. The stronger US 
dollar positively impacted EBITDA generated by Trinidad's US and international 
division but also drove increased depreciation and interest expenses in the 
quarter and year to date.

INDUSTRY STATISTICS
                                                                                                           
                               2014       Full                           2013            Full           2012
                                          Year                                           Year
                         Q2        Q1    2013      Q4         Q3        Q2        Q1    2012      Q4        Q3
    Commodity                                                                                                  
    Prices
    Aeco
    natural gas
    price (CDN$         4.45      5.34    3.01    3.33       2.32      3.36      3.03    2.26    3.03      2.18
    per
    gigajoule)
    Henry Hub
    natural gas         4.59      5.15    3.72    3.84       3.55      4.01      3.47    2.75    3.40      2.88
    price (US$
    per mmBtu)
    Western
    Canada
    Select                                                                                                     
    crude oil
    price
      (CDN$ per        91.34     85.81   75.84   69.62      86.31     79.25     67.64   71.70   60.73     76.29
      barrel)
    WTI crude
    oil price         103.06     98.72   98.01   97.56     105.82     94.14     94.30   94.09   88.17     92.15
    (US$ per
    barrel)
                                                                                                               
    US Activity                                                                                                
    Average
    industry
    active land        1,781     1,705   1,685   1,679      1,687     1,686     1,687   1,852   1,741     1,837
    rig count
    (1)
    Average
    Trinidad
    active land           47        48      50      49         51        50        49      57      56        55
    rig count
    (2)
                                                                                                               
    Canadian                                                                                                   
    Activity
    Average
    industry             28%       58%     40%     43%        37%       18%       58%     39%     36%       42%
    utilization
    (3)
    Average
    Trinidad             24%       68%     48%     48%        50%       24%       73%     52%     51%       58%
    utilization
    (4)
    (1)      Baker Hughes rig counts (information obtained from Tudor
             Pickering Holt & Company weekly rig roundup report).
    (2)      Includes US and international rigs.
    (3)      Canadian Association of Oilwell Drilling Contractors (CAODC)
             utilization.
    (4)      Based on drilling days (spud to rig release dates).

SECOND QUARTER AND YEAR-TO-DATE 2014 HIGHLIGHTS
        --  Trinidad generated revenue of $168.9 million in the second
            quarter and $420.5 million year to date in 2014, up 2.1% and
            1.9% from the same periods last year. Revenue was positively
            impacted in 2014 by increased dayrates in the Company's
            Canadian operations, as well as a positive foreign currency
            translation on Trinidad's US division. Revenue was negatively
            impacted in the current periods by the absence of the Company's
            coring rigs, which were sold in 2013, lower activity from the
            Mexican rigs and a weaker contribution from the barge
            operations. Additionally, Trinidad's manufacturing division had
            increased revenues due to external new build revenue in 2014.
        --  Overall operating income - net percentage was 28.3% in the
            second quarter and 35.9% year to date in 2014 compared to 35.6%
            and 40.2% respectively, in 2013. Profitability lowered in the
            quarter and year to date largely as a result of higher
            manufacturing activity in the current year. The manufacturing
            division typically generates lower margins than Trinidad's
            drilling operations as the external new builds are constructed
            for Trinidad's joint venture company and joint venture partner
            at cost plus a small margin. In addition in the second quarter
            of 2014, increased operating costs and lower dayrates, mainly
            due to rig re-activations of lower specification rigs, led to
            lower profitability in the US and international division. This
            was partially offset by a favorable foreign exchange
            translation on Trinidad's US and international operations in
            2014 as the US dollar exchange rate averaged above the Canadian
            dollar in the current year.
        --  Adjusted EBITDA was $30.6 million in the quarter and $110.1
            million year to date in 2014, down 23.3% and 11.8% from the
            same periods last year. Adjusted EBITDA decreased in the
            quarter and year to date largely as a result of a decrease in
            operating income due to the factors discussed above.
        --  Net (loss) earnings were a loss of $24.8 million or $0.18 per
            share (diluted) in the quarter and earnings of $0.9 million or
            $0.01 per share (diluted) year to date in 2014, down $25.2
            million and $32.1 million, respectively from the same periods
            last year. Net (loss) earnings decreased largely as a result of
            lower operating income, higher share-based payment expenses, a
            foreign exchange loss and an impairment of property and
            equipment recorded in the second quarter. This was offset by
            lower income taxes in the current period and a gain on the sale
            of property in both the second quarter and year to date 2014.
        --  Adjusted net (loss) earnings decreased by $9.0 million in the
            quarter compared to the same quarter last year, with adjusted
            net (loss) earnings per share (diluted) decreasing $0.07 per
            share. Adjusted net (loss) earnings decreased in the current
            year due to lower adjusted EBITDA in the current period.

RESULTS FROM OPERATIONS

Canadian Operations
                                                                                                 
                             Three months ended June 30,              Six months ended June 30,
    ($
    thousands
    except                              2013            %                       2013            %
    percentage              2014          (4)      Change          2014           (4)      Change
    and
    operating
    data)
    Operating             37,681       37,110         1.5       141,288       152,552       (7.4)
    revenue (1)
    Other                    358           13     2,653.8         1,080            57     1,794.7
    revenue
                          38,039       37,123         2.5       142,368       152,609       (6.7)
    Operating             28,724       28,783       (0.2)        83,024        88,374       (6.1)
    costs (1)
    Operating              9,315        8,340        11.7        59,344        64,235       (7.6)
    income (3)
    Operating
    income -
    net                    24.5%        22.5%                     41.7%         42.1%            
    percentage
    (3)
                                                                                                 
    Operating              1,430        1,434       (0.3)         5,507         5,632       (2.2)
    days (3)
    Drilling               1,318        1,323       (0.4)         5,031         5,187       (3.0)
    days (3)
    Rate per
    operating             26,338       25,511         3.2        25,655        25,429         0.9
    day (CDN$)
    (3)
    Utilization
    rate -                   26%          26%           -           50%           52%       (3.8)
    operating
    day (3)
    Utilization
    rate -                   24%          24%           -           46%           48%       (4.2)
    drilling
    day (3)
    CAODC
    industry                 28%          18%        55.6           42%           38%        10.5
    average (2)
                                                                                                 
    Number of
    drilling                  59           60       (1.7)            59            60       (1.7)
    rigs at
    period end
     Number of
    coring and                                                                                   
    surface
    rigs
      at period                -           15     (100.0)             -            15     (100.0)
    end 
    (1)      Operating revenue and operating costs for the three months
             ended June 30, 2014 and 2013 exclude third party recovery and
             third party costs of $4.9 million and $4.1 million,
             respectively. Operating revenue and operating costs for the
             six months ended
             June 30, 2014 and 2013 exclude third party recovery and third
             party costs of $19.5 million and $17.8 million, respectively.
    (2)      CAODC industry average is based on drilling days divided by
             total days available.
    (3)      See Non-GAAP Measures Definition and Additional GAAP Measures
             Definition section of this document for further details.
    (4)      During the prior year, Trinidad's Canadian operations included
             the Canadian manufacturing division. Effective January 1,
             2014,
             Trinidad has re-evaluated operating segments. Management has
             determined that the Manufacturing operations is considered
             a separate operating segment. All prior period segmented
             information has been reclassified to conform to this new
             presentation.

Trinidad's Canadian operations performed well in the second quarter of 2014, 
recording higher levels of operating revenue and operating income when 
compared to the same quarter of 2013. Higher dayrates were the main driver 
behind the improved performance, reflecting strengthening industry conditions 
in the Canadian market.

For the six months ended June 30, 2014, operating revenue and operating income 
lowered from the same period in the prior year due to the absence of the 
preset and coring rigs, which were sold in the third quarter of 2013. These 
rigs generated $9.3 million in operating revenue in the first half of 2013 
compared to nil in the current year.

Operating days were in line with the same quarter last year despite wet 
weather and flooding towards the end of the second quarter that impacted a 
number of Trinidad's rigs operating in Manitoba. For the six months ended June 
30, 2014, operating days lowered slightly year over year mainly driven by 
weaker customer demand in the oilsands sector in the first quarter of 2014.

Operating income - net percentage increased in the quarter reflecting improved 
dayrates in the Canadian drilling division. This was slightly offset by an 
increase in repairs and maintenance costs in 2014 due to re-certifications 
performed on rigs in the current year. However, the increase in costs in the 
drilling operations was offset by a reduction of costs due to the absence of 
the preset and coring rigs in 2014. On a year-to-date basis, operating income 
- net percentage declined slightly year over year mainly due to weaker 
customer demand in the oil sands sector in the first quarter of 2014.

As part of the Company's ongoing review of its fleet, Trinidad identified five 
rigs that it deemed were no longer competitive and were not economical to 
upgrade. Therefore, these rigs were removed from Trinidad's rig fleet at the 
end of the second quarter. In addition, during the quarter Trinidad relocated 
three rigs from its Mexican operations to Canada. These rigs are currently 
being upgraded with top drives and other upgrades and are expected to begin 
drilling in the second half of 2014.

As of June 30, 2014, Trinidad's active rig fleet decreased by net one rig when 
compared to June 30, 2013. The change in the rig count reflects the five rigs 
removed from the fleet in the current quarter, offset by three rigs added from 
Mexico in the current quarter and one new build delivered to the Canadian 
operations in the third quarter of 2013.  The Mexico rigs were moved to Canada 
as the size and specifications of these rigs no longer met requirements in the 
Mexican market.

Second quarter 2014 versus first quarter 2014

The second quarter is typically affected by spring break-up, as weather 
conditions and road bans restrict the movement of heavy equipment, resulting 
in lower activity. This seasonality led to a reduction in operating days and 
lower revenue and operating income in the second quarter compared to the first 
quarter of 2014. The impact of lower activity levels was partly offset by an 
increase of $923 per day in dayrates over the first quarter. Dayrates 
increased largely as a result of rig mix; in the second quarter, a higher 
percentage of the active fleet is made up of high specification rigs, 
resulting in a higher average dayrate.

United States and International Operations
                                                                                                  
                              Three months ended June 30,              Six months ended June 30,
    ($ thousands
    except
    percentage                2014         2013           %          2014         2013           %
    and                                      (3)     Change                         (3)     Change
    operating
    data)
    Operating              110,414       118,834      (7.1)       225,195       230,409      (2.3)
    revenue (1)
    Other                       67            24      179.2           113            46      145.7
    revenue
                           110,481       118,858      (7.0)       225,308       230,455      (2.2)
    Operating               75,732        71,086        6.5       146,704       140,100        4.7
    costs (1)
    Operating               34,749        47,772     (27.3)        78,604        90,355     (13.0)
    income (1)
    Operating
    income - net             31.5%         40.2%                    34.9%         39.2%           
    percentage
    (2)
                                                                                                  
     Land
    Drilling                                                                                      
    Rigs 
    Operating                4,441         4,578      (3.0)         8,752         9,031      (3.1)
    days (2)
    Drilling                 3,851         4,050      (4.9)         7,578         7,873      (3.7)
    days (2)
    Rate per
    operating               22,890        22,908      (0.1)        23,747        22,665        4.8
    day (CDN$)
    (2)
    Rate per
    operating               20,819        22,436      (7.2)        21,716        22,461      (3.3)
    day (US$)
    (2)
    Utilization
    rate -                     80%           73%        9.6           78%           73%        6.8
    operating
    day (2)
    Utilization
    rate -                     70%           65%        7.7           68%           64%        6.3
    drilling day
    (2)
    Number of
    drilling                    56            68     (17.6)            56            68     (17.6)
    rigs at
    period end
                                                                                                  
     Barge
    Drilling                                                                                      
    Rigs 
    Operating                  259           445     (41.8)           503           860     (41.5)
    days (2)
     Rate per
    operating               37,953        31,731       19.6        37,886        30,460       24.4
    day (CDN$)
    (2)
     Rate per
    operating               34,599        31,077       11.3        34,680        30,151       15.0
    day (US$)
    (2)
    Utilization
    rate -                     57%           98%     (41.8)           56%           95%     (41.1)
    operating
    day (2)
     Number of
    barge
    drilling                     2             2          -             2             2          -
    rigs at
    period end 
     Number of
    barge                                                                                         
    drilling
    rigs under 
      Bareboat
      Charter
      Agreements                 3             3          -             3             3          -
      at period
      end 
                                                                                             
    (1)     Operating revenue and operating costs for the three months
            ended June 30, 2014 and 2013 exclude third party recovery and
            third
            party costs of $4.0 million and $5.2 million, respectively.
            Operating revenue and operating costs for the six months ended
            June 30,
            2014 and 2013 exclude third party recovery and third party
            costs of $9.7 million and $11.3 million, respectively.
    (2)     See Non-GAAP Measures Definition and Additional GAAP Measures
            Definition section of this document for further details.
    (3)     During the prior year, Trinidad's US and international
            operations included the US manufacturing division. Effective
            January 1, 2014,
            Trinidad has re-evaluated operating segments. Management has
            determined that the Manufacturing operations is considered a
            separate operating segment. All prior period segmented
            information has been reclassified to conform to this new
            presentation.

Demand for drilling equipment in the US land drilling market increased in the 
quarter allowing Trinidad to re-activate a number of existing rigs. While this 
reflected the improving industry conditions in the US, the Company incurred 
higher repairs and maintenance costs and moving costs as rigs were mobilized 
to new locations. In addition, several lower specification rigs were 
re-activated during the quarter, lowering the average dayrate when compared to 
the previous periods. As well, this segment was negatively impacted by 
Trinidad's three Mexico rigs which remained idle during the first six months 
of 2014, lowering operating days and operating revenue for this segment on a 
total basis. Effective June 30, 2014, the three Mexico rigs were moved to the 
Canadian drilling division.

Operating revenue decreased in the second quarter and year to date in 2014 by 
$8.4 million and $5.2 million, respectively when compared to the same periods 
last year. Lower activity levels in the barge operations, three idle rigs in 
Mexico and lower average dayrates all contributed to lower revenue in the 
current periods. This impact was partly offset by termination revenue received 
in the first quarter of 2014 and a favorable foreign currency exchange year 
over year.

Operating days decreased by 137 days quarter over quarter and 279 days on a 
year-to-date basis in Trinidad's US and international land drilling division. 
The decrease in operating days was entirely a result of Trinidad's three 
Mexican rigs being idle for the first six months of 2014. Effective June 30, 
2014, these rigs have been moved to Canada. Excluding the impact of these 
rigs, the US land drilling division recorded an increase in operating days in 
each of the three and six months ended June 30, 2014, despite having fewer 
rigs.

For the three and six months ended June 30, 2014, dayrates decreased by 
US$1,617 per day and US$745 per day, respectively, compared to the same 
periods of the prior year. Trinidad's US dollar dayrates lowered in 2014, 
mainly due to a change in the active rig mix as increasing demand for 
Trinidad's lower specification rigs allowed the company to re-activate this 
equipment. Additionally, several high dayrate rigs that received termination 
revenue in late 2013 and early 2014 were not fully utilized, lowering the 
overall average dayrate. On a year-to-date basis, this was slightly offset by 
early termination revenues received for two rigs in the first quarter of 2014.

Operating income and operating income - net percentage declined in each of the 
three and six months ended June 30, 2014. The decline in revenue, discussed 
above, was further impacted by increased operating expenses in each period. 
During 2014, Trinidad re-activated a number of rigs in the US land drilling 
division, which had significant repairs and maintenance costs for the Company. 
In addition, Trinidad incurred costs related to the re-deployment of its 
Mexican rigs to Canada in the current period. Trinidad expects that operating 
income - net percentage will improve over the coming quarters as re-activation 
costs lower and the impact of rig mix is offset by improving industry 
conditions and increasing dayrates.

At June 30, 2014 Trinidad's US and international rig count totaled 56 rigs, 
twelve fewer than at the same time last year. The rig count lowered in the 
second quarter as a result of three Mexican rigs moved to the Company's 
Canadian drilling operations and two rigs that were no longer considered 
competitive removed from the marketed fleet at June 30, 2014. In addition, the 
rig count lowered year over year as three rigs were sold to the joint venture 
in the first quarter of 2014, and four lower specification rigs were 
decommissioned at the end of 2013.

Trinidad's barge drilling rigs continued to generate strong dayrates in the 
current year, showing an increase of US$3,522 per day and US$4,529, 
respectively, in each of the three and six months ended June 30, 2014. 
However, a decline in operating days in the current periods caused overall 
revenue generation and profitability to decline. Drilling projects that were 
expected to take place in the first half of 2014 were pushed back to later 
periods due to customer and permit delays, causing downtime on these rigs in 
2014. Utilization began to pick up towards the end of the second quarter, and 
Trinidad anticipates that activity levels will improve in the coming periods.

Second quarter 2014 versus first quarter 2014

Revenue and operating income decreased by $4.3 million and $9.1 million, 
respectively, in the second quarter of 2014 when compared to the first quarter 
of 2014. Strengthening industry conditions in the current quarter led to an 
increase in operating days; however, this was offset by lower dayrates.  Lower 
early termination revenues and a change in the active rig mix in the current 
quarter were the main factors causing lower dayrates quarter over quarter. In 
addition, higher operating costs as a result of the re-activation and moving 
of rigs in the current quarter led to higher operating expenses and lower 
operating income - net percentage.

Joint Venture Operations

Amounts are presented at 100% of the value included in the statement of 
operations and comprehensive income for Trinidad Drilling International (TDI); 
Trinidad owns 60% of the shares of TDI:
                                                                                            
                           Three months ended June 30,           Six months ended June 30,
    ($
    thousands
    except                                            %                                    %
    percentage             2014         2013     Change         2014         2013     Change
    and
    operating
    data)
    Operating            10,137            -          -       13,453            -          -
    revenue 
    Other                     -            -          -            -            -          -
    revenue
                         10,137            -          -       13,453            -          -
    Operating             5,248            -          -        7,322            -          -
    costs 
    Operating             4,889            -          -        6,131            -          -
    income (1)
    Operating
    income -
    net                   48.2%            -                   45.6%            -           
    percentage
    (1)
                                                                                            
    Number of
    drilling                  4            -          -            4            -          -
    rigs at
    period end
    Number of
    active
    drilling                  2            -          -            2            -          -
    rigs at
    period end
    (1)     See Non-GAAP Measures Definition and Additional GAAP Measures
            Definition section of this document for further details.

During 2013, Trinidad signed a joint venture agreement with Halliburton with a 
right of first look at all drilling projects outside of Canada and the United 
States. The joint venture currently has operations in Saudi Arabia, with plans 
to expand to Mexico by the end of 2014. Additionally, the joint venture 
continues to look into future growth opportunities in other international 
markets. The joint venture conducts business under the name Trinidad Drilling 
International (TDI) through separately incorporated entities.

Trinidad owns 60% of the shares of TDI, and each of Trinidad and Halliburton 
have equal voting rights with respect to the operations of the company. TDI is 
accounted for using the equity method of accounting, whereby Trinidad takes 
60% of the net income recorded as loss (income) from investment in joint 
venture.

During the six months ended June 30, 2014, TDI took ownership of three 
upgraded rigs purchased from Trinidad's US land drilling division and one new 
build rig purchased from Trinidad's manufacturing division. Two of these rigs 
were drilling by the end of the period, with the remaining two rigs expected 
to begin working in the second half of 2014.

For the three months ended June 30, 2014, TDI recorded operating income and 
operating income - net percentage of $4.9 million and 48.2%, respectively. 
Additionally, for the first six months of 2014, TDI recorded operating income 
and operating income - net percentage of $6.1 million and 45.6%, respectively. 
In the second quarter of 2014, TDI began drilling operations with two rigs 
recording operating days in the quarter and also collected standby revenue.

Rig Purchase Commitments

During 2013, TDI agreed to purchase four rigs from Trinidad for operations in 
Saudi Arabia, three upgraded rigs from Trinidad's US drilling division and one 
new build rig constructed by Trinidad's manufacturing division. As of June 30, 
2014, TDI has taken ownership of all three upgraded rigs and the new build rig.

Additionally, early in 2014, TDI agreed to purchase four rigs from Trinidad's 
manufacturing division for operations in Mexico. Each of these rigs will be 
high performance, 3,600 horsepower, AC, walking rigs, operating under 
three-year, take-or-pay contracts with an optional one year extension. These 
rigs are expected to be delivered towards the end of 2014 and early 2015.

Manufacturing Operations
                                                                                              
                            Three months ended June 30,            Six months ended June 30,
    ($
    thousands
    except                                             %                                     %
    percentage             2014         2013      Change         2014         2013      Change
    and
    operating
    data)
    Operating
    revenue              11,119          190     5,752.1       22,973          484     4,646.5
    (1)
    Other                     5            -           -           13            -           -
    revenue
                         11,124          190     5,754.7       22,986          484     4,649.2
    Operating             9,952          651     1,428.7       20,788        1,064     1,853.8
    costs (1)
    Operating             1,172        (461)       354.2        2,198        (580)       479.0
    income (2)
    Operating
    income -
    net                   10.5%     (242.6%)                     9.6%     (119.8%)            
    percentage
    (2)
                                                                                              
    (1)     For the three months ended June 30, 2014, included in operating
            revenue and operating costs are downstream elimination
            entries of $9.1 million and $8.3 million, respectively (2013,
            nil and nil, respectively). For the six months ended June 30,
            2014,
            included in operating revenue and operating costs are
            downstream elimination entries of $16.8 million and $15.2
            million,
            respectively (2013, nil and nil, respectively). These entries
            remove Trinidad's percentage of profits related to
            manufacturing
            of rigs for the joint venture.
    (2)     See Non-GAAP Measures Definition and Additional GAAP Measures
            Definition section of this document for further details

Effective January 1, 2014, Trinidad reviewed all existing operating segments 
in order to better present the Company's operations based on geographic 
location, services provided and any material changes to operations. In the 
prior year, Trinidad's manufacturing operations mainly performed work 
internally; therefore, the prior year operating income includes a loss based 
on costs incurred by the manufacturing division mainly related to raw 
materials consumed during construction of rigs for internal use. Towards the 
end of 2013 and early 2014, Trinidad's manufacturing division signed contracts 
to build rigs for external parties, including the Company's joint venture 
partner and the joint venture company.

As the manufacturing operations begins to record operating revenues and costs, 
management believes that presenting this division as a separate operating 
segment from the Company's drilling operations is more useful to users of the 
financial statements, as it will provide a more accurate representation of the 
margins recorded on Trinidad's drilling operations. Prior period segmented 
information has been reclassified to conform to the current period's 
presentation.

The purpose of the manufacturing operations is to support rig builds, rig 
maintenance and re-certifications for all of Trinidad's divisions, including 
all associates and joint ventures. Therefore, management does not commit to 
building a rig with the intention to earn significant profits from this 
business. All contracts are based on a cost plus formula which is calculated 
in order for Trinidad to break even on rig builds when all costs, including 
general and administrative expenses, are factored in. Contracts are negotiated 
depending on the Company's varying involvement, which can range from full 
scale design and manufacturing to project management with a large degree of 
outsourcing.

Towards the end of 2013 and into 2014, Trinidad signed five new build 
contracts; one rig for the joint venture to operate in Saudi Arabia and four 
rigs for the joint venture to operate in Mexico. Additionally, Trinidad has 
agreed to build a training rig for its joint venture partner. For the period 
ended June 30, 2014, Trinidad recognized revenues and expenses related to the 
Saudi rig build and the training rig, compared to no external new build 
revenues or expenses recognized in 2013.

Additionally, as of June 30, 2014, Trinidad is still early in the construction 
phase of the four Mexico rigs. Long-lead items have been ordered and some 
inventory has arrived, but assembly has not occurred as yet. Therefore, there 
is no related revenue or expenses included in Trinidad's operating income 
related to the construction of these rigs.

During the second quarter of 2014, Trinidad's manufacturing operations 
delivered the new Saudi rig to the joint venture. The training rig is expected 
to be delivered towards the end of 2014 and delivery of the four Mexico rigs 
are expected towards the end of 2014 and early 2015.

FINANCIAL HIGHLIGHTS - QUARTERLY ANALYSIS
                                                                                                           
                                   2014                                 2013                       2012
    ($ millions              Q2         Q1        Q4         Q3        Q2         Q1         Q4         Q3
    except per
    share data
    and operating
    data)
    Revenue                168.9      251.5     224.6      208.7     165.4      247.2      209.6      215.1
    Operating               45.6       95.2      99.6       76.2      55.7       98.4       77.8       80.6
    income (1)
    Operating
    income                 27.0%      37.8%     44.4%      36.5%     33.6%      39.8%      37.1%      37.5%
    percentage
    (1)
    Operating
    income - net           28.3%      41.1%     47.0%      38.5%     35.6%      43.3%      39.7%      40.0%
    percentage
    (1)
    Net (loss)            (24.8)       25.8      28.8        9.2       0.3       32.7     (12.4)       20.0
    earnings
    Adjustments                                                                                            
    for:
     Depreciation
    and                     27.4       30.2      29.5       30.1      27.6       29.9       29.2       30.4
    amortization 
     Foreign                 1.6        3.1       0.9        0.4         -          -      (1.4)        0.8
    exchange 
     (Gain) loss
    on sale of             (1.3)     (10.5)       0.1      (0.1)       1.3          -     (11.5)          -
    property and
    equipment 
     Impairment
    of property             20.6          -         -          -       0.1          -       70.1        1.3
    and
    equipment 
     (Income)
    loss from
    investment in          (0.4)        0.1       0.8          -         -          -          -          -
    Joint
    Venture 
     Finance                10.0       10.0      12.0       10.4      10.0       10.0       10.1       10.3
    costs 
     Income                (7.2)       15.3      11.1        5.9     (1.6)        9.4     (22.2)        2.7
    taxes 
     Interest              (0.1)      (0.2)     (0.1)          -         -          -          -          -
    Income 
     Other                   5.3        5.6       1.5        5.9       2.2        2.8        1.4        2.9
     Income taxes          (0.7)      (0.4)     (1.8)          -     (0.8)      (1.3)      (2.0)      (1.1)
    paid 
     Income taxes            0.2        0.3       1.5        0.4       0.7          -        0.7        3.9
    recovered 
     Interest              (0.5)     (18.6)     (1.1)     (18.4)     (0.7)     (18.6)      (1.1)     (19.5)
    paid 
     Interest                0.1        0.2       0.1          -         -          -          -          -
    received 
    Funds
    provided by             30.2       60.9      83.3       43.8      39.1       64.9       60.9       51.7
    operations
    (1)
    Net (loss)
    earnings per          (0.18)       0.19      0.23       0.08      0.00       0.27     (0.10)       0.17
    share
    (diluted)
    Funds
    provided by
    operations              0.22       0.44      0.67       0.36      0.32       0.54       0.50       0.43
    per share
    (diluted)
             See the Non-GAAP Measures Definitions and Additional GAAP
    (1)      Measures Definitions section of this document for further
             details.

NON-GAAP MEASURES HIGHLIGHTS - QUARTERLY ANALYSIS
                                                                                                          
                                2014                                   2013                       2012 
    ($                    Q2         Q1         Q4         Q3         Q2         Q1         Q4         Q3
    thousands
    except
    per share
    data and
    operating
    data)
    EBITDA              5,445     81,255     81,246     55,635     36,326     82,014      4,825     63,398
    (1)
       Per
    share                0.04       0.58       0.65       0.46       0.30       0.68       0.04       0.52
    (diluted)
    (2)
    Adjusted
    EBITDA             30,644     79,441     83,830     61,838     39,941     84,836     63,332     68,387
    (1)
       Per
    share                0.22       0.57       0.68       0.51       0.33       0.70       0.52       0.57
    (diluted)
    (2)
    Adjusted
    net
    (loss)            (5,557)     27,746     31,266     15,406      3,460     35,573     23,112     24,626
    earnings
    (1)
       Per
    share              (0.04)       0.20       0.25       0.13       0.03       0.29       0.19       0.20
    (diluted)
    (2)
    (1)     See the Non-GAAP Measures Definitions and Additional GAAP
            Measures Definitions section of this document for further
            details.
    (2)     Diluted shares include the weighted average number of shares
            outstanding over the period and the dilutive impact, if any, of
            the number
            of shares issuable pursuant to the Incentive Option Plan.

OPERATING HIGHLIGHTS - QUARTERLY ANALYSIS
                                                                                                        
                                   2014                                   2013                       2012
                             Q2         Q1         Q4         Q3         Q2         Q1         Q4         Q3
    Land Drilling                                                                                            
    Market 
    Operating days                                                                                           
    (1)
      Canada               1,430      4,077      2,935      3,018      1,434      4,198      2,915      3,233
      United States
      and                  4,441      4,311      4,470      4,733      4,578      4,453      4,789      5,038
      International
    Rate per
    operating day                                                                                            
    (1)
      Canada (CDN$)       26,338     25,415     25,102     23,686     25,511     25,401     26,190     23,501
      United States
      and                 22,890     24,630     27,243     23,297     22,908     22,416     22,305     22,518
      International
      (CDN$)
      United States
      and                 20,819     22,641     26,213     22,460     22,436     22,487     22,589     22,263
      International
      (US$)
    Utilization
    rate -                                                                                                   
    operating day
    (1)
      Canada                 26%        74%        52%        54%        26%        79%        56%        62%
      United States
      and                    80%        76%        71%        76%        73%        72%        77%        81%
      International
    Number of
    drilling rigs                                                                                            
    at period end
    (3)
      Canada                  59         61         61         61         60         60         59         57
      United States
      and                     56         61         64         68         68         68         68         68
      International
      Coring and
      surface                  -          -          -          -         15         15         15         20
      casing rigs
    Joint Venture                                                                                            
    Operations (2)
      Number of
      drilling rigs            4          3          -          -          -          -          -          -
      at period end
    Barge Drilling                                                                                           
    Market 
      Operating              259        244        394        449        445        415        386        376
      days (1)
      Rate per
      operating day       37,953     37,815     34,810     33,962     31,731     29,097     29,954     30,008
      (CDN$) (1)
      Rate per
      operating day       34,599     34,767     33,490     32,740     31,077     29,158     30,330     29,583
      (US$) (1)
      Utilization
      rate -                 57%        54%        86%        97%        98%        92%        84%        82%
      operating day
      (1)
      Number of
      barge
      drilling rigs            2          2          2          2          2          2          2          2
      at period
      end 
      Number of
      barge                                                                                                  
      drilling rigs
      under 
       Bareboat
      Charter at               3          3          3          3          3          3          3          3
      period end 
                                                                                                      
    (1)     See Non-GAAP Measures Definition and Additional GAAP Measures
            Definition section of this document for further details
    (2)     Trinidad is party to a joint venture with a wholly-owned
            subsidiary of Halliburton. During the first quarter of 2014, 3
            rigs were
            sold to the joint venture by Trinidad's US and international
            operations. During the second quarter of 2014, 1 rig was sold
            to
            the joint venture by Trinidad's manufacturing division.
            Effective June 30, 2014, these rigs are owned by the joint
            venture.
    (3)     Refer to the Results from Operations section for details on
            changes to the rig count.

FINANCIAL SUMMARY

Trinidad's total long-term debt balance increased by $2.5 million during the 
current year when compared to December 31, 2013. This slight increase was due 
to the increase in the Senior Notes at June 30, 2014, and is entirely a result 
of the increase in the US to Canadian dollar exchange rate in 2014 versus the 
prior year as these notes are held in US funds. The Senior Notes are 
translated at each period end, as such their value will fluctuate 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.

As at June 30, 2014 and December 31, 2013, Trinidad's revolving debt 
facilities were completely paid off, leaving $200.0 million and US$100.0 
million unutilized in these facilities, respectively. The Company continues to 
consider future capital commitments, and as such, the unutilized facilities 
are expected to be used in the future 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 EBITDA 
ratio. The facility matures on December 16, 2017, and is subject to annual 
extensions of an additional year on each anniversary.

Capital expenditures
                                                                          
    For the six months ended June                       2014         2013
    30,
    New Builds                                         55,988       16,890
    Capital Upgrades &                                 24,397        8,569
    Enhancements
    Maintenance & Infrastructure                       22,408        7,369
    Total                                             102,793       32,828

During the six months ended June 30, 2014, a total of $102.8 million was spent 
on capital expenditures, compared to $32.8 million at June 30, 2013. These 
capital expenditures were substantially related to work on upgrading existing 
equipment including moving systems, top drives and mud systems, to ensure the 
Company's rigs remain competitive in the current market. Additionally, these 
costs would include work performed to upgrade the three US land drilling rigs 
that were sold to Trinidad's joint venture for operations in Saudi Arabia. 
Lastly, costs were incurred as progress was made on the Company's internal rig 
build to be delivered to the Canadian operations.

In 2014, Trinidad expects to spend a total of approximately $315.0 million on 
capital projects. This total includes Trinidad's internal capital projects, 
Trinidad's portion of the joint venture capital projects, and takes into 
account proceeds received for existing rigs sold into the joint venture. 
Trinidad's capital budget is further broken down as follows:

------------------------------
        --  Completion of one new rig to be delivered to Trinidad's
            Canadian operations for LNG-related drilling;
        --  Completion of  one new rig and the upgrading of three existing
            rigs to be delivered to Saudi Arabia for the joint venture
            arrangement;
        --  Construction of four new rigs to be delivered to Mexico for the
            joint venture arrangement in late 2014 or early 2015;
        --  Upgrades to improve the efficiency and marketability of more
            than 30 existing rigs; and
        --  Maintenance and infrastructure capital.

------------------------------

Excluding proceeds received from the sale of rigs into the joint venture, in 
the second quarter and year-to-date 2014, Trinidad spent $79.9 million and 
$118.0 million, respectively, on internal capital projects and its portion of 
the joint venture projects. Costs related to the joint venture rig build 
projects are accounted for as operating expenses in Trinidad's manufacturing 
operations.

As of June 30, 2014, the three upgraded rigs and the new build rig were 
delivered to the joint venture for operations in Saudi Arabia. Two of the 
upgraded rigs began operations in the current quarter, with the remaining 
upgraded rig and new build rig expected to begin in the second half of 2014.

OUTLOOK

Conditions in the North American drilling industry have been steadily 
improving throughout 2014. Stable commodity prices have led to strong demand 
with activity continuing to be largely focused on oil or liquids-rich targets. 
Increasing demand for high performance equipment, such as Trinidad's, is 
driving higher activity levels and improved dayrates for this style of rig.

Industry activity levels have increased over the previous year in both the 
Canadian and US markets and Trinidad anticipates that these conditions will 
continue through the remainder of 2014 and into 2015. The number of rigs under 
long-term, take-or-pay contracts has increased to represent approximately 
45.0% of the Company's fleet with an average term remaining of approximately 
1.6 years.

Operations in the Company's international joint venture are progressing as 
expected, with all eight rigs expected to be operational in late 2014 or early 
2015. Halliburton continues to present opportunities to the joint venture as 
they arise and Trinidad anticipates growing its international presence in the 
coming quarters.

Trinidad's capital program for 2014 remains at $315.0 million, including the 
Company's portion of capital for the joint venture. Increasing demand for high 
performance equipment, particularly in the US and international markets, is 
driving a growing number of requests for additional equipment from Trinidad's 
customers. The Company is reviewing these growth opportunities, carefully 
evaluating contract terms, capital returns, cash flow requirements and areas 
of strategic growth before selecting those, if any, to pursue.

The Company expects that re-activation costs are largely complete in the US 
division. Although Trinidad will continue to review its active rig fleet and 
upgrade rigs to remain competitive, strong industry conditions across its 
operations should continue throughout 2014, and Trinidad expects to perform 
well for the remainder of the year.

CONFERENCE CALL

A conference call and webcast to discuss the results will be held for the 
investment community on Thursday August 7(th), 2014 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 12:30 p.m. MT on August 7(th), 2014 until 10:00 p.m. MT August 
14(th), 2014 by dialing (855) 859-2056 or (416) 849-0833 and entering replay 
access code 70477681.

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 and the United States. In addition, 
through a joint venture agreement signed in the previous year, Trinidad began 
operating drilling rigs in Saudi Arabia, expects to begin operations in Mexico 
by the end of 2014, and is currently looking into operations in other 
international markets. Trinidad is focused on providing modern, reliable, 
expertly designed equipment operated by well-trained and experienced 
personnel. Trinidad's drilling fleet is one of the most adaptable, 
technologically advanced and competitive in the industry.
                                                             
    CONSOLIDATED STATEMENTS OF                                          
    FINANCIAL POSITION
                                                                        
    As at                                      June 30,     December 31,
    ($ thousands) - unaudited                      2014             2013
                                                                        
    Assets                                                              
    Current Assets                                                      
    Cash and cash equivalents                   263,952          268,160
    Accounts receivable                         144,558          166,557
    Inventory                                    37,251            8,474
    Prepaid expenses                             30,893            5,557
    Assets held for sale                          5,870            3,685
                                                482,524          452,433
                                                                        
    Property and equipment                    1,196,860        1,275,465
    Intangible assets and goodwill               91,887           91,729
    Investment in joint venture                 105,132            7,869
                                              1,876,403        1,827,496
                                                                        
    Liabilities                                                         
    Current Liabilities                                                 
    Accounts payable and accrued                121,424          110,455
    liabilities 
    Dividends payable                             6,910            6,906
    Deferred revenue and customer                74,254           31,952
    deposits
                                                202,588          149,313
                                                                        
    Long-term debt                              471,123          468,670
    Deferred income taxes                        99,326           95,425
                                                773,037          713,408
                                                                        
    Shareholders' Equity                                                
    Common shares                             1,118,004        1,117,197
    Contributed surplus                          50,693           50,607
    Accumulated other comprehensive               5,660            4,404
    income
    Deficit                                    (70,991)         (58,120)
                                              1,103,366        1,114,088
                                              1,876,403        1,827,496
                                                                        
                                                             
                                                                                
    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                                Three months ended           Six months ended 
                                       June 30,                    June 30, 
    ($ thousands)               2014         2013            2014         2013 
    - unaudited
                                                                                
    Revenue                                                                     
    Oilfield
    service                   168,146       165,410        418,593       412,530
    revenue
    Other revenue                 799            37          1,857           103
                              168,945       165,447        420,450       412,633
                                                                                
    Expenses                                                                    
    Operating                 123,340       109,796        279,653       258,623
    expense
    General and                19,584        17,884         40,775        34,198
    administrative
    Depreciation
    and                        27,430        27,602         57,685        57,461
    amortization
    Foreign                     1,635          (21)          4,789          (26)
    exchange 
    (Gain) loss on
    sale of                   (1,270)         1,331       (11,809)         1,367
    property and
    equipment
    Impairment of
    property and               20,630           131         20,630           131
    equipment
                              191,349       156,723        391,723       351,754
                                                                                
    Income from
    investment in               (419)             -          (288)             -
    joint venture
    Finance costs              10,049         9,989         20,008        19,959
    Earnings
    before income            (32,034)       (1,265)          9,007        40,920
    taxes
                                                                                
    Income taxes                                                                
    Current                     3,605           192          3,895         1,263
    Deferred                 (10,824)       (1,804)          4,165         6,562
                              (7,219)       (1,612)          8,060         7,825
    Net (loss)               (24,815)           347            947        33,095
    earnings
                                                                                
    Other
    comprehensive                                                               
    income 
    Foreign
    currency                                                                    
    translation
    adjustment,
      net of                 (23,587)        10,022          1,256        16,705
      income tax
                             (23,587)        10,022          1,256        16,705
    Total
    comprehensive            (48,402)        10,369          2,203        49,800
    (loss) income
    Earnings per                                                                
    share
    Net (loss)                                                                  
    earnings
      Basic /                  (0.18)          0.00           0.01          0.27
      Diluted
                                                                          
                                                                                             
    CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
    For six
    months ended                                                                             
    June 30, 2014
    and 2013
                                                     Accumulated                             
                                                          other                              
                        Common      Contributed     comprehensive                      Total
    ($ thousands)       shares         surplus        income (1)      (Deficit)       equity
    - unaudited
     Balance at
    December 31,      1,117,197          50,607             4,404      (58,120)     1,114,088
    2013 
     Exercise of
    stock                   807           (215)                 -             -           592
    options 
     Share-based
    payment                   -             301                 -             -           301
    expense 
     Total
    comprehensive             -               -             1,256           947         2,203
    income
     Dividends                -               -                 -      (13,818)      (13,818)
     Balance at
    June 30,          1,118,004          50,693             5,660      (70,991)     1,103,366
    2014 
                                                                                             
     Balance at
    December 31,        952,043          50,245          (34,403)     (104,036)       863,849
    2012 
     Share-based
    payment                   -             259                 -             -           259
    expense 
     Total
    comprehensive             -               -            16,705        33,095        49,800
    income
     Dividends                -               -                 -      (12,086)      (12,086)
     Balance at
    June 30,            952,043          50,504          (17,698)      (83,027)       901,822
    2013 
    (1) Accumulated other comprehensive income (loss) consisted of the
        foreign currency translation adjustment.
        All amounts will be reclassified to profit or loss when specific
        conditions are met.
                                                                   
    CONSOLIDATED STATEMENTS OF                                            
    CASH FLOWS
                                                                          
    For six months ended June 30,                                         
    ($ thousands) - unaudited                          2014           2013
                                                                          
    Cash provided by (used in)                                            
    Operating activities                                                  
    Net earnings                                        947         33,095
    Adjustments for:                                                      
      Depreciation and                               57,685         57,461
      amortization
      Foreign exchange                                4,789           (26)
      (Gain) loss on sale of                       (11,809)          1,367
      property and equipment
      Impairment of property and                     20,630            131
      equipment
      Income from investment in                       (288)              -
      joint venture
      Finance costs                                  20,008         19,959
      Income taxes                                    8,060          7,825
      Interest income                                 (326)           (19)
      Other (1)                                      10,854          4,965
      Income taxes paid                             (1,105)        (2,121)
      Income taxes recovered                            490            663
      Interest paid                                (19,119)       (19,252)
      Interest received                                 326             19
    Funds provided by operations                     91,142        104,067
    Change in non-cash operating                      (623)         26,280
    working capital
    Cash provided by operations                      90,519        130,347
                                                                          
    Investing activities                                                  
    Purchase of property and                      (102,793)       (32,828)
    equipment
    Proceeds from disposition of                    128,782            863
    property and equipment
    Investment in joint venture                   (119,691)              -
    Change in non-cash working                       13,473          5,432
    capital
    Cash used by investing                         (80,229)       (26,533)
                                                                          
    Financing activities                                                  
    Proceeds from long-term debt                          -         26,257
    Repayments of long-term debt                          -       (96,870)
    Proceeds from exercise of                           592              -
    options
    Dividends paid                                 (13,814)       (12,086)
    Cash used by financing                         (13,222)       (82,699)
                                                                          
    Cash flow from operating,                       (2,932)         21,115
    investing and financing                                      
    activities
    Effect of translation of                        (1,276)          1,109
    foreign currency cash
    (Decrease) increase in cash                     (4,208)         22,224
    for the period
                                                                          
    Cash and cash equivalents -                     268,160          4,933
    beginning of period
    Cash and cash equivalents -                     263,952         27,157
    end of period
    (1) Other includes share-based payment expense and the elimination of
        downstream
        transactions included in net earnings in the Manufacturing
        Operations.

SEGMENTED INFORMATION

The following presents the result of Trinidad's operating segments:
    For three                           United States                                                                   
           
    months ended                              /
    June 30, 2014         Canadian      International     Manufacturing        Joint       Inter-segment                
           
                                                                              Venture
    ($ thousands)        Operations       Operations        Operations      Operations     Eliminations      Corporate  
     Total
                                                                               (1)
                                                                                                                        
           
    Operating                37,681           110,414            20,248              -                 -             -  
    168,343
    revenue
    Other revenue               358                67                 5              -                 -             -  
        430
    Third party               4,930             4,002                 -              -                 -             -  
      8,932
    recovery
    General and
    administrative                -                 -                 -              -                 -           369  
        369
    - third party
    recovery
    Inter-segment                 -                 -            11,759              -          (11,759)             -  
          -
    revenue
    Elimination of
    downstream                    -                 -           (9,129)              -                 -             -  
    (9,129)
    transactions
                             42,969           114,483            22,883              -          (11,759)           369  
    168,945
    Operating                28,724            75,732            18,252              -                 -             -  
    122,708
    costs
    Third party               4,930             4,002                 -              -                 -             -  
      8,932
    costs
    Inter-segment                 -                 -            11,759              -          (11,759)             -  
          -
    operating
    Elimination of
    downstream                    -                 -           (8,300)              -                 -             -  
    (8,300)
    transactions
    Operating                 9,315            34,749             1,172              -                 -           369  
     45,605
    income
    Depreciation
    and                       8,101            18,947               382              -                 -             -  
     27,430
    amortization
    Loss (gain) on               55           (4,073)                 -              -                 -             -  
    (4,018)
    sale of assets
    Elimination of
    downstream                    -             2,748                 -              -                 -             -  
      2,748
    transactions
    Impairment of            13,367             7,263                 -              -                 -             -  
     20,630
    capital assets
                             21,523            24,885               382              -                 -             -  
     46,790
    Segmented              (12,208)             9,864               790              -                 -           369  
    (1,185)
    income (loss)
    Income from
    investment in                 -                 -                 -          (419)                 -             -  
      (419)
    joint venture
    General and                   -                 -                 -              -                 -        19,215  
     19,215
    administrative
    General and
    administrative                -                 -                 -              -                 -           369  
        369
    - third party
    costs
    Foreign                       -                 -                 -              -                 -         1,635  
      1,635
    exchange
    Finance costs                 -                 -                 -              -                 -        10,049  
     10,049
    Income taxes                  -                 -                 -              -                 -       (7,219)  
    (7,219)


Net earnings           (12,208)             9,864               790            419                 -      (23,680)   
(24,815) 


    (loss)
    Purchase of
    property and             19,992            51,496               100              -                 -             -  
     71,588
    equipment
                                                                                                                        
    
    For three months                      United States                                                                 
            
    ended                                       /
    June 30, 2013           Canadian      International     Manufacturing        Joint       Inter-segment              
            
                                                                                Venture


($ thousands)          Operations       Operations        Operations      Operations     Eliminations      
Corporate      Total 


                                                                                 (1)
                                                                                                                        
            
     Operating                 37,110           118,834               190              -                 -             -
     156,134
    revenue 
     Other revenue                 13                24                 -              -                 -             -
          37
     Third party                4,087             5,189                 -              -                 -             -
       9,276
    recovery 
     General and
    administrative -                -                 -                 -              -                 -             -
           -
    third party
    recovery 
     Inter-segment                  -                 -             9,012              -           (9,012)             -
           -
    revenue 
     Elimination of
    downstream                      -                 -                 -              -                 -             -
           -
    transactions 
                               41,210           124,047             9,202              -           (9,012)             -
     165,447
     Operating costs           28,783            71,086               651              -                 -             -
     100,520
     Third party                4,087             5,189                 -              -                 -             -
       9,276
    costs 
     Inter-segment                  -                 -           (9,012)              -             9,012             -
           -
    operating 
     Elimination of
    downstream                      -                 -                 -              -                 -             -
           -
    transactions 
     Operating                  8,340            47,772             (461)              -                 -             -
      55,651
    income 
     Depreciation
    and                         7,710            19,405               487              -                 -             -
      27,602
    amortization 
     Loss (gain) on                94             1,241               (4)              -                 -             -
       1,331
    sale of assets 
     Elimination of
    downstream                      -                 -                 -              -                 -             -
           -
    transactions 
     Impairment of                131                 -                 -              -                 -             -
         131
    capital assets 
                                7,935            20,646               483              -                 -             -
      29,064
     Segmented                    405            27,126             (944)              -                 -             -
      26,587
    income (loss) 
    Income from
    investment in                   -                 -                 -              -                 -             -
           -
    joint venture


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


    administrative 
     General and
    administrative -                -                 -                 -              -                 -             -
           -
    third party
    costs 


 Foreign                        -                 -                 -              -                 -          
(21)        (21) 
exchange  
 Finance costs                  -                 -                 -              -                 -         
9,989       9,989 
 Income taxes                   -                 -                 -              -                 -       
(1,612)     (1,612) 
 Net earnings                 405            27,126             (944)              -                 -      
(26,240)         347 


    (loss) 
     Purchase of
    property and               10,209             5,152               130              -                 -             -
      15,491
    equipment 
    (1) The joint venture is recorded using the equity method of
        accounting. The Company's share of individual assets and
        liabilities are recognized as an investment on the consolidated
        statements of financial position, and revenues and expenses are
        recognized with net earnings as income from investment in joint
        venture on the consolidated statements of operations and
        comprehensive income. The joint venture was effective September 3,
        2013.
                                                                                                                        
    
                                                                                                                        
    
    For six months                      United States                                                                   
           
    ended                                     /
    June 30, 2014         Canadian      International     Manufacturing        Joint       Inter-segment                
           
                                                                              Venture
    ($ thousands)        Operations       Operations        Operations      Operations     Eliminations      Corporate  
     Total
                                                                               (1)
                                                                                                                        
           
    Operating               141,288           225,195            39,726              -                 -             -  
    406,209
    revenue
    Other revenue             1,080               113                13              -                 -             -  
      1,206
    Third party              19,452             9,685                 -              -                 -             -  
     29,137
    recovery
    General and
    administrative                -                 -                 -              -                 -           651  
        651
    - third party
    recovery
    Inter-segment                 -                 -            21,672              -          (21,672)             -  
          -
    revenue
    Elimination of


downstream                    -                 -          (16,753)              -                 -             -   
(16,753) 


    transactions
                            161,820           234,993            44,658              -          (21,672)           651  
    420,450
    Operating                83,024           146,704            36,018              -                 -             -  
    265,746
    costs
    Third party              19,452             9,685                 -              -                 -             -  
     29,137
    costs
    Inter-segment                 -                 -            21,672              -          (21,672)             -  
          -
    operating
    Elimination of


downstream                    -                 -          (15,230)              -                 -             -   
(15,230) 


    transactions
    Operating                59,344            78,604             2,198              -                 -           651  
    140,797
    income
    Depreciation
    and                      19,961            36,927               797              -                 -             -  
     57,685
    amortization


Gain on sale              (206)          (29,729)                 -              -                 -             -   
(29,935) 


    of assets
    Elimination of
    downstream                    -            18,126                 -              -                 -             -  
     18,126
    transactions
    Impairment of            13,367             7,263                 -              -                 -             -  
     20,630
    capital assets
                             33,122            32,587               797              -                 -             -  
     66,506
    Segmented                26,222            46,017             1,401              -                 -           651  
     74,291
    income (loss)
    Income from
    investment in                 -                 -                 -          (288)                 -             -  
      (288)
    joint venture
    General and                   -                 -                 -              -                 -        40,124  
     40,124
    administrative
    General and
    administrative                -                 -                 -              -                 -           651  
        651
    - third party
    costs
    Foreign                       -                 -                 -              -                 -         4,789  
      4,789
    exchange
    Finance costs                 -                 -                 -              -                 -        20,008  
     20,008
    Income taxes                  -                 -                 -              -                 -         8,060  
      8,060
    Net earnings             26,222            46,017             1,401            288                 -      (72,981)  
        947
    (loss)
                                                                                                                        
           
    Purchase of
    property and             33,029            69,601               163              -                 -             -  
    102,793
    equipment
                                                                                                                        
    
    For six months                      United States                                                                   
          
    ended                                     /
    June 30, 2013         Canadian      International     Manufacturing        Joint       Inter-segment                
          
                                                                              Venture
    ($ thousands)        Operations       Operations        Operations      Operations     Eliminations      Corporate  
    Total
                                                                               (1)
                                                                                                                        
          


Operating               152,552           230,409               484              -                 -             -   
383,445 


    revenue
    Other revenue                57                46                 -              -                 -             -  
       103
    Third party              17,788            11,297                 -              -                 -             -  
    29,085
    recovery
    General and
    administrative                -                 -                 -              -                 -             -  
         -
    - third party
    recovery
    Inter-segment                 -                 -            21,170              -          (21,170)             -  
         -
    revenue
    Elimination of
    downstream                    -                 -                 -              -                 -             -  
         -
    transactions


                        170,397           241,752            21,654              -          (21,170)             -   
412,633 
Operating                88,374           140,100             1,064              -                 -             -   
229,538 


    costs
    Third party              17,788            11,297                 -              -                 -             -  
    29,085
    costs
    Inter-segment                 -                 -            21,170              -          (21,170)             -  
         -
    operating
    Elimination of
    downstream                    -                 -                 -              -                 -             -  
         -
    transactions


Operating                64,235            90,355             (580)              -                 -             -   
154,010 


    income
    Depreciation
    and                      19,143            37,320               998              -                 -             -  
    57,461
    amortization
    Loss (gain) on              235             1,136               (4)              -                 -             -  
     1,367
    sale of assets
    Elimination of
    downstream                    -                 -                 -              -                 -             -  
         -
    transactions
    Impairment of               131                 -                 -              -                 -             -  
       131
    capital assets
                             19,509            38,456               994              -                 -             -  
    58,959
    Segmented                44,726            51,899           (1,574)              -                 -             -  
    95,051
    income (loss)
    Income from


investment in      -              -                 -                 -              -                 -            
 - 


    joint venture 
    General and                   -                 -                 -              -                 -        34,198  
    34,198
    administrative
    General and
    administrative                -                 -                 -              -                 -             -  
         -
    - third party
    costs
    Foreign                       -                 -                 -              -                 -          (26)  
      (26)
    exchange
    Finance costs                 -                 -                 -              -                 -        19,959  
    19,959
    Income taxes                  -                 -                 -              -                 -         7,825  
     7,825
    Net earnings             44,726            51,899           (1,574)              -                 -      (61,956)  
    33,095
    (loss)
                                                                                                                        
          
    Purchase of
    property and             27,119             5,515               194              -                 -             -  
    32,828
    equipment
    (1) The joint venture is recorded using the equity method of
        accounting. The Company's share of individual assets and
        liabilities are recognized as an investment on the consolidated
        statements of financial position, and revenues and expenses are
        recognized with net earnings as income from investment in joint
        venture on the consolidated statements of operations and
        comprehensive income. The joint venture was effective September 3,
        2013.

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, EBITDA from investment in joint venture, Adjusted 
EBITDA, Adjusted net (loss) earnings, working capital, Senior Debt to Bank 
EBITDA, Total Debt to Bank EBITDA, Bank EBITDA to Cash Interest Expense, 
drilling days, operating days, utilization rate - drilling day, utilization 
rate - operating day, and rate per operating day or dayrate.  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 and amortized or how the results are taxed in various 
jurisdictions.

"EBITDA from investment in joint venture" provides an indication of the 
results generated by the Company's joint venture operations prior to how these 
activities are financed, assets are depreciated and amortized 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, share-based payment 
expense, impairment expense and the sale of assets. Adjusted EBITDA also takes 
into account the Company's portion of the principal activities of the joint 
venture arrangement by removing the loss (gain) from investment in joint 
venture and including Adjusted EBITDA from investment in joint venture. 
Adjusted EBITDA is not intended to represent net (loss) 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 expense.

Adjusted EBITDA is calculated as follows:
                                                                           
                                   Three months ended      Six months ended
                                           June 30,              June 30,
    ($ thousands)                    2014         2013         2014    2013
     EBITDA                         5,445       36,326       86,700 118,340
     Plus:                                                                 
       (Gain) loss on
      sale of property            (1,270)        1,331     (11,809)   1,367
      and equipment 
       Impairment of
      property and                 20,630          131       20,630     131
      equipment 
       Share-based                  3,756        2,174        9,331   4,965
      payment expense 
       Foreign exchange             1,635         (21)        4,789    (26)
       (Income) from
      investment in joint           (419)            -        (288)       -
      venture 
     Plus:                                                                 
       Adjusted EBITDA
      from investment in              867            -          733       -
      joint venture 
     Adjusted EBITDA               30,644       39,941      110,086 124,777

"Adjusted EBITDA from investment in joint venture" is used by management and 
investors to analyze EBITDA (as defined above) prior to the effect of foreign 
exchange, share-based payment expense, impairment expense and the sale of 
assets. Adjusted EBITDA from investment in joint venture is not intended to 
represent net (loss) earnings as calculated in accordance with IFRS. Adjusted 
EBITDA from investment in joint venture provides an indication of the results 
generated by TDI'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 expense.

Adjusted EBITDA from investment in joint venture is calculated as follows:
                                                                           
                                 Three months ended       Six months ended 
                                         June 30,               June 30,
    ($ thousands)               2014            2013     2014          2013
     EBITDA from
    investment in joint          867               -      737             -
    venture 
     Plus:                                                                 
       Foreign                     -               -      (4)             -
      exchange 
     Adjusted EBITDA
    from investment in           867               -      733             -
    joint venture 

"Adjusted net (loss) earnings" is used by management and the investment 
community to analyze net (loss) earnings prior to the effect of foreign 
exchange, share-based payment expense, any gains or losses on the sale of 
assets in the period and impairment charges, including taking into account the 
tax effects of these items. This measure is not intended to represent net 
(loss) earnings as calculated in accordance with IFRS. Adjusted net (loss) 
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 expense, 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 Bank EBITDA" is defined as the consolidated balance of the 
revolving facility and other debt secured by a lien at quarter end to 
consolidated Bank EBITDA for the trailing 12 months (TTM).  Bank EBITDA used 
in this financial ratio is calculated as EBITDA plus impairment expense, loss 
(gain) on sale of property and equipment, loss (gain) from investment in joint 
venture, share-based payment expense and unrealized foreign exchange.

"Total Debt to Bank 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 Bank EBITDA for the TTM.  
Bank EBITDA used in this financial ratio is calculated as EBITDA plus 
impairment expense, loss (gain) on sale of property and equipment, loss (gain) 
from investment in joint venture, share-based payment expense and unrealized 
foreign exchange.

"Bank EBITDA to Cash Interest Expense" is defined as the consolidated Bank 
EBITDA for TTM to the cash interest expense on all debt balances for TTM.  
Bank EBITDA used in this financial ratio is calculated as EBITDA plus 
impairment expense, loss (gain) on sale of property and equipment, loss (gain) 
from investment in joint venture, 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 divided by 
total available rig days.

"Rate per operating day" or "Dayrate" 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 (loss) 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 (loss) 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 less third party G&A expenses divided by revenue 
net of operating and G&A third party costs.

FORWARD-LOOKING STATEMENTS

This 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 Ottmann Vice President, Investor Relations (403) 294-4401 
email:lottmann@trinidaddrilling.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/August2014/06/c9091.html 
CO: Trinidad Drilling Ltd.
ST: Alberta
NI: OIL ERN  
-0- Aug/06/2014 20:15 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.