Tuscany International Drilling Inc.
TSX : TID

Tuscany International Drilling Inc.

April 26, 2010 10:38 ET

Tuscany International Drilling Inc. Announces Execution of Letter of Intent in Respect of Contract Drilling Services in Brazil

CALGARY, ALBERTA--(Marketwire - April 26, 2010) - Tuscany International Drilling Inc. ("Tuscany" or the "Company") (TSX:TID) is pleased to announce that, through its wholly owned subsidiary Tuscany South America Ltd., it has executed a letter of intent (the "Letter of Intent") with HRT Oil & Gas ("HRT") to provide contract drilling services, commencing in September, 2010, for a period of 4 years in connection with operations in northwestern Brazil in the Solimoes Basin (the "Transaction"). The definitive agreement in respect of the Transaction is required to be executed within 45 days of acceptance of the Letter of Intent. Execution of the definitive agreement is conditional upon, among other things, Tuscany opening a registered office in Rio de Janeiro.

HRT Oil & Gas, 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 Oil & Gas signed farm-in deals to buy a 51% stake in the blocks from Petra Energia SA and M&S Brazil. HRT Oil & Gas 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 and Quito, Ecuador, and is currently registering to allow for business operations in Brazil and 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
    (403) 265-8793 (FAX)
    or
    Tuscany International Drilling Inc.
    Reg Greenslade
    President
    (403) 265-8258
    (403) 265-8793 (FAX)
    or
    Tuscany International Drilling Inc.
    Bruce Moyes
    CFO
    (403) 265-8258
    (403) 265-8793 (FAX)
    or
    Tuscany International Drilling Inc.
    100, 522-11th Avenue S.W.
    Calgary, Alberta