Tuscany International Drilling Inc.
TSX : TID

Tuscany International Drilling Inc.

May 06, 2010 09:04 ET

Tuscany International Drilling Inc. Announces Investment in Warrior Rig Ltd., Registration in Peru and Filing of 2009 Year End Audited Annual Financial Statements and MD&A

CALGARY, ALBERTA--(Marketwire - May 6, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Tuscany International Drilling Inc. ("Tuscany" or the "Company") (TSX:TID) is pleased to announce that it has executed a definitive agreement (the "Agreement") with Warrior Rig Ltd. ("Warrior") pursuant to which Tuscany has agreed to: (i) acquire an aggregate of 3,600,000 common shares of Warrior ("Warrior Shares") from existing shareholders of Warrior on the basis of 0.6662 of a common share of Tuscany ("Tuscany Shares") for each Warrior Share; (ii) subscribe for an additional 2,000,000 Warrior Shares at a subscription price of $1.00 per Warrior Share; and (iii) make available to Warrior a $3,000,000 revolving loan, bearing interest at a rate of prime plus 4% per annum and having a term of 3 years (collectively, the "Transaction").

Warrior, a private company headquartered in Calgary, Alberta, is an oilfield services company specializing in the design, manufacture and service of top drive systems and automated tubular tongs. The Transaction is beneficial to Warrior, its customers and Tuscany with the continued development of existing and future drilling technologies.

The Transaction is scheduled to close on or about May 17, 2010, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange for the listing of the Tuscany Shares issuable pursuant to the Agreement.

Tuscany is also pleased to announce the registration of Tuscany South American Ltd. in Peru and the filing of its audited annual financial statements and Management's Discussion and Analysis for the year ended December 31, 2009 on the System for Electronic Document Analysis and Retrieval.

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.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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