CanElson Drilling Inc.
TSX VENTURE : CDI

CanElson Drilling Inc.

November 30, 2009 09:00 ET

CanElson Drilling Joint Venture Signs Second Drilling Rig Contract for Mexico and Starts Drilling Operations in Mexico

CALGARY, ALBERTA--(Marketwire - Nov. 30, 2009) - CanElson Drilling Inc. ("CanElson") (TSX VENTURE:CDI) announced today that its Mexican joint venture company, Diavaz CanElson de Mexico, S.A. de C.V. ("DCM"), has entered into a second one-year Integrated Drilling Services Rig Contract with DS Servicios Petroleros, S.A. de C.V. ("DS"). Since CanElson's rig fleet is fully committed, effective November 22, 2009 DCM subcontracted two drilling rigs already working in the Ebano-Panuco-Cacalilao fields of Misantla-Tampico basin of Mexico which will provide drilling services to DS pursuant to the two drilling services contracts. CanElson will provide the management and expertise for the drilling rig operations of DCM. With CanElson's rig fleet fully committed this represents a great opportunity to participate in drilling operations in Mexico and generate cash flows without further capital commitments and expenditures.

As previously announced, CanElson has a 50% ownership interest in DCM, with D&S Petroleum Services, S.A. de C.V. (a wholly owned subsidiary of Grupo Diavaz, S.A. de C.V.) holding the other 50% ownership interest. The business of DCM is the purchase and operation of drilling and service rigs in Mexico.

DCM's current business plan calls for adding two (2) service rigs in 2010. It is expected that CanElson will retrofit and supply one of the service rigs to be operated by the joint venture company.

"With the commencement of drilling operations in Mexico, CanElson will look to capitalize on further opportunities in Mexico through its interest in DCM as well as its growth platforms in Canada and the United States," stated Randy Hawkings, President of CanElson.

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

Forward Looking Information

This press release contains forward-looking information related to DCM acquiring two service rigs, CanElson's intention to retrofit and supply a service rig and CanElson's intentions to seek out other business opportunities in Mexico. Such forward looking information 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, Mexico 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 occur on such dates, 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
    or
    CanElson Drilling Inc.
    Randy Hawkings
    President and Chief Operating Officer
    403-266-3922
    or
    CanElson Drilling Inc.
    515, 808 - 4th Avenue SW
    Calgary, Alberta T2P 3E8