CanElson Drilling Inc.

CanElson Drilling Inc.

December 21, 2009 09:00 ET

CanElson Drilling Completes Acquisition of Rigs and Closes Financing

CALGARY, ALBERTA--(Marketwire - Dec. 21, 2009) - CanElson Drilling Inc. ("CanElson") (TSX VENTURE:CDI) announces that it has completed the previously announced purchase from CCS Corporation ("CCS") of a top drive equipped telescopic double rig with and a single service rig for cash proceeds of $6.0 million.

The drilling rig will go to work immediately in west Central Alberta on a one year contract and it is anticipated the service rig will be deployed to Mexico in early 2010. "CanElson is pleased to add a quality telescopic drilling rig to its Canadian drilling rig fleet that is suited to the demands of the current Canadian drilling market.", stated Randy Hawkings, CanElson's President.

In addition, CanElson has closed the previously announced financing with a Canadian chartered bank whereby the bank will make available $10.0 million under an evergreen revolving term loan and an operating loan of $5.0 million.

CanElson is an Alberta, Canada corporation that is engaged in the manufacture and operation of drilling rigs in Canada's Western Sedimentary Basin, Texas and Mexico.

Forward-Looking Information

This press release contains forward-looking information related to expected deployment of rigs that involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond CanElson's control. Such assumptions, risks and uncertainties include, without limitation, those associated with, loss of markets, volatility of commodity prices, delays resulting from or inability to obtain required regulatory approvals, the effect of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced, the lack of qualified personnel or management, and stock market volatility. CanElson's actual achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits CanElson will derive therefrom. The forward-looking information is made as at the date of this press release and CanElson does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • CanElson Drilling Inc.
    Elson J. McDougald
    Chairman and Chief Executive Officer
    (403) 266-3922
    (403) 266-3968 (FAX)
    CanElson Drilling Inc.
    515, 808 - 4th Avenue SW
    Calgary, Alberta T2P 3E8