Cabo Drilling Corp.
TSX VENTURE : CBE
FRANKFURT : DHL

Cabo Drilling Corp.

August 25, 2010 09:01 ET

Cabo Drilling Panama-Pacifico Corp. Awarded Drill Contract by Galway Resources Ltd.

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2010) - Cabo Drilling Corp. (TSX VENTURE:CBE)(FRANKFURT:DHL) ("Cabo" or the "Company") announces that Galway Resources Ltd., ("Galway") has awarded Cabo Drilling Panama-Pacifico Corp. a drilling contract for two drill rigs and a minimum of 10,000 meters, in the California Gold District of Colombia. Galway's California project is located in the northern part of the Colombian State of Santander, in the municipality of California, 50 kilometers northeast of the city of Bucaramanga.

The Company currently has two Hydracore 2000 man portable drills operating at Galway's California project. These drills are designed to separate into several components, each of which can be easily transported by helicopter, pick-up truck, mule or by small crews, which make them versatile and maneuverable. Hydracore 2000 drills are ideal for servicing mountainous areas that are otherwise inaccessible for diamond core drilling.

Cabo Drilling believes that flexibility is one of the keys to success in Central and South America. It offers a full range of diamond core drilling services using man portable and helicopter fly drills to access remote sites, small electric and hydraulic underground drills for mine expansion drilling, or large skid and track mounted drills for deep hole drilling. In Central and South America, the Company's ability to access exploration projects with highly maneuverable man portable drills, provides Cabo with the opportunity to work with exploration and mining companies wherever their projects are located.

Herb Butler, Panama and Colombia division General Manager states, "We are more than just a drilling contractor. We take care of our customers by formulating and implementing efficient and cost effective solutions for their exploration and development drilling challenges."

Cabo's "safety first" culture has gained Cabo numerous industry awards and recognition for operating with safe work practices. Cabo Drilling Panama-Pacifico Corp. has demonstrated this by recently achieving its sixth consecutive month of operating without a single lost time injury.

About Galway Resources Ltd.

Galway Resources Ltd. is a well capitalized company, primarily focused on the exploration of gold and coal in Colombia. The current focus of Galway is gold exploration in northeast Colombia, with a drilling program underway at the California gold project with 3 drill rigs operating, and extensive underground channel and surface sampling taking place at their nearby Vetas gold project. Galway has also reported that drilling is expected to resume next month at the GALCA coal project in Colombia, which is being managed and funded by Prodeco, the Colombian subsidiary of Glencore.

About Cabo Drilling Corp.

Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining related and specialty drilling services through its Canadian divisions in Surrey, British Columbia; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling de Mexico S.A. de C.V. of Hermosillo, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Panama-Pacifico Corp. of Panama, Republic of Panama doing business as Cabo Drilling Colombia Corp.; Cabo Drilling Spain S.L. of Sevilla, Spain; Balkan States Drilling SH.P.K. of Tirana, Albania; and Cabo Drilling (International) Inc. The Company's common shares trade on the Frankfurt Exchange under the symbol: DHL and on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

John A. Versfelt, Chairman, President and CEO

Further information about the Company can be found on the Cabo website (http://www.cabo.ca) and SEDAR (www.sedar.com).

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cabo Drilling Corp.
    Sheri Barton
    Corporate Communications
    403-217-5830
    or
    Cabo Drilling Corp.
    Mr. John A. Versfelt
    Chairman, President & CEO
    604-984-8894
    604-983-8056 (FAX)
    ir@cabo.ca
    www.cabo.ca
    or
    For general investor relation inquiries:
    Renmark Financial Communications Inc.
    Barbara Komorowski
    514-939-3989
    bkomorowski@renmarkfinancial.com
    or
    Renmark Financial Communications Inc.
    Arash Shahi
    416-644-2020
    ashahi@renmarkfinancial.com