Bronco Energy Ltd.
TSX : BCF

Bronco Energy Ltd.

November 05, 2009 13:31 ET

Bronco Signs Letter of Intent to Sell Drilling Rigs

CALGARY, ALBERTA--(Marketwire - Nov. 5, 2009) -

THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US NEWSWIRE SERVICES

Bronco Energy Ltd. ("Bronco" or the "Company") (TSX:BCF) is pleased to announce that Bronco Drilling Services Ltd., a wholly owned subsidiary, has signed a Letter of Intent with CanElson Drilling Inc., for the sale of a telescopic double rig, a single rig, and related contracts and equipment for cash proceeds of $6.5 million.

"This sale is very positive to Bronco as the drilling business has been considered non core to the Company for quite some time. As well, the proceeds will strengthen an already solid balance sheet." commented Mr. Peter Pelensky, Bronco's President and CEO.

This sale is subject to CanElson completing satisfactory due diligence on the assets, ratification by the respective Board of Directors and the receipt of all other applicable consents and approvals. The parties will work to enter into a definitive purchase and sale agreement and expect to close the purchase by November 18, 2009.

Bronco is a publicly listed junior oil and gas exploration and development company based in Calgary, Alberta. Bronco's shares trade on the TSX under the symbol "BCF".

Forward-Looking Information

Statements herein about a future transaction constitute forward-looking statements. Although we believe that the assumptions reflected in the forward-looking statements (including the expectation that the conditions to closing referred to above will be satisfied) are reasonable, there can be no assurance that such expectations will prove to be correct. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Contact Information

  • Bronco Energy Ltd.
    Peter J. Pelensky
    President and CEO
    (403) 699-8383
    (403) 693-0038 (FAX)
    or
    Bronco Energy Ltd.
    Paul E. Belliveau
    VP Finance and CFO
    (403) 699-8383
    (403) 693-0038 (FAX)
    WWW.BRONCOENERGY.CA