CanElson Drilling Inc.
TSX VENTURE : CDI

CanElson Drilling Inc.

November 05, 2009 12:09 ET

CanElson Drilling Signs Letter of Intent to Purchase Drilling Rigs

CALGARY, ALBERTA--(Marketwire - Nov. 5, 2009) - CanElson Drilling Inc. ("CanElson") (TSX VENTURE:CDI) announces that it has signed a Letter of Intent with Bronco Drilling Services Ltd., a wholly owned subsidiary of Bronco Energy Ltd., for the purchase of a telescopic double rig, a single rig, and related contracts and equipment for cash proceeds of $6.5 million.

This purchase is subject to CanElson completing satisfactory due diligence on the assets, ratification by the respective Boards 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.

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

Forward Looking Information

This press release contains forward-looking information related to intentions to enter into a definitive purchase and sale agreement and the closing of the purchase 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
    or
    CanElson Drilling Inc.
    515, 808 - 4th Avenue SW
    Calgary, Alberta T2P 3E8