Tuscany International Drilling Inc.
TSX VENTURE : TID

Tuscany International Drilling Inc.

April 29, 2010 19:35 ET

Tuscany International Drilling Inc. Announces Execution of Drilling Contract With Winchester Oil and Gas S.A. and Registration in Brazil

CALGARY, ALBERTA--(Marketwire - April 29, 2010) - Tuscany International Drilling Inc. ("Tuscany" or the "Company") (TSX:TID) is pleased to announce that its wholly owned subsidiary, Tuscany South America Ltd., has signed a contract (the "Contract") with Winchester Oil and Gas S.A. ("Winchester") to provide drilling services in the Yamu field in Colombia. The Contract is for five wells ranging in depths of up to 14,000 feet. Tuscany has recently completed construction of a 1500 HP SCR drilling rig and imported the rig into Colombia. Rig operations are expected to commence in early May and continue throughout the remainder of 2010.

Winchester is a privately held exploration and production company with operations in Colombia. Winchester operates two blocks in the Llanos Basin and has working interests in six additional blocks in the Llanos, Middle Magdalena and Catatumbo Basins.

Mr. Orlando Sardi de Lima, Winchester's President, commented, "Winchester is pleased to have commissioned Tuscany Rig 109 for its 2010 Yamu Block 5 drilling campaign. Rig 109 will be the best rig of its kind in Colombia, and we expect its technologically advanced equipment will allow us to achieve substantial cost savings.

Tuscany is also pleased to announce it has completed the registration of its newly formed subsidiary, Tuscany Drilling (Brazil) Ltd., in Rio de Janeiro, Brazil. With the completion of the registration, the Company has satisfied the requirements to enter into a definitive agreement with HRT Oil & Gas ("HRT") to provide contract drilling services for a 4 year period commencing in September, 2010, as previously announced on April 26, 2010.

HRT, a newly established exploration and production unit of the Brazilian oilfield consulting firm, HRT Petroleum, holds operator stakes in 21 blocks in the Solimoes Basin in Brazil's Amazonas state. The area is home to Brazil's largest producing field of light oil, the Urucu field operated by state-run energy company Petroleo Brasileiro. HRT signed farm-in deals to buy a 51% stake in the blocks from Petra Energia SA and M&S Brazil. HRT is funded with $275 million raised pursuant to a brokered private placement.

About Tuscany

Tuscany, a corporation headquartered in Calgary, Alberta, is engaged in the business of providing contract drilling and work-over services along with equipment rentals to the oil and gas industry. The Company is currently focused on providing services to oil and natural gas operators in South America. Tuscany has operating centers in Bogota, Colombia, Quito, Ecuador and Rio de Janeiro, Brazil, and is currently registering to allow for business operations in Peru. 

READER ADVISORY

Statements in this joint press release contain forward-looking information including, without limitation, components of cash flow and earnings. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Tuscany. These risks include, but are not limited to: the risks associated with the oil and gas industry, commodity prices and exchange rate changes, regulatory changes, successful exploitation and integration of technology, customer acceptance of technology, changes in drilling activity and general global economic, political and business conditions. Industry related risks could include, but are not limited to; operational risks, delays or changes in plans, health and safety risks and the uncertainty of estimates and projections of costs and expenses and access to capital. The risks outlined above should not be construed as exhaustive. The reader is cautioned not to place undue reliance on this forward-looking information. Tuscany does not undertake any obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws.

Contact Information

  • Tuscany International Drilling Inc.
    Walter Dawson
    Chairman and CEO
    (403) 265-8258
    or
    Tuscany International Drilling Inc.
    Reg Greenslade
    President
    (403) 265-8258
    or
    Tuscany International Drilling Inc.
    Bruce Moyes
    CFO
    (403) 265-8258
    or
    Tuscany International Drilling Inc.
    100, 522-11th Avenue S.W.,
    Calgary, Alberta
    (403) 265-8793 (FAX)