SOURCE: Cabo Drilling Corp.

March 02, 2010 10:02 ET

Cabo Announces 2nd Quarter Results

VANCOUVER BC, U.S.A.--(Marketwire - March 2, 2010) - Cabo Drilling Corp. ("Cabo" or the "Company") (TSX-V: CBE) today reported results for its fiscal year 2010 second quarter ended December 31, 2009.

2(ND) QUARTER HIGHLIGHTS

+----------------------+----- ---+-----------+-------------+-------------+
|(CDN   $000s,  except|3 months  |  3 months |  6 months   |  6 months   |
|earnings per share)  |ending    |   ending  |   ending    | ending Dec. |
|                     |Dec. 31/09| Dec. 31/08| Dec. 31/09  |    31/08    |
+---------------------+----------+-----------+-------------+-------------+
|Revenue              |     7,983|     11,825|       14,324|       28,442|
+---------------------+----------+-----------+-------------+-------------+
|Earnings       (Loss)|          |           |             |             |
|Before      Interest,|       836|      1,441|        1,318|        3,941|
|Taxes,  Amortization,|          |           |             |             |
|Stock           Based|          |           |             |             |
|Compensation      and|          |           |             |             |
|Other Items  (EBITDA)|          |           |             |             |
+---------------------+----------+-----------+-------------+-------------+
|Net  Earnings  (Loss)|     (147)|        515|        (611)|        2,201|
|Before Taxes         |          |           |             |             |
+---------------------+--- ------+-----------+-------------+-------------+
|Net  Earnings  (Loss)|     (150)|        339|        (614)|        1,420|
|After Taxes          |          |           |             |             |
+---------------------+----------+-----------+-------------+-------------+
|Earnings  (Loss)  per|          |           |             |             |
|Share  ($) (Basic and|          |           |             |             |
|Diluted)       Before|      0.02|       0.03|         0.02|         0.08|
|Interest,      Taxes,|          |           |             |             |
|Amortization,        |          |           |             |             |
|Stock-based          |          |           |             |             |
|Compensation      and|          |           |             |             |
|Other Items (EBITDA) |          |           |             |             |
+---------------------+----------+-----------+-------------+-------------+
|Earnings  (Loss)  per|      0.00|       0.01|       (0.01)|         0.03|
|Share  ($) (Basic and|          |           |             |             |
|Diluted)             |          |           |             |             |
+---------------------+----------+-----------+-------------+-------------+
|Cash from Operations*|       729|        924|        1,117|        2,745|
+---------------------+----------+-----------+-------------+-------------+
|Gross Margin %       |     28.5%|      26.1%|        28.8%|        26.0%|
+---------------------+----------+-----------+-------------+-------------+
|Working       Capital|     6,076|      7,765|        6,076|        7,765|
|(deficiency)         |          |           |             |             |
+---------------------+----------+-----------+-------------+-------------+
*before changes in non-cash working capital items

The Company reports:

-- Improved quarterly revenue for the 2(nd) quarter fiscal 2010 of $7.98 million, compared to $6.34 million in the 1(st) quarter fiscal 2010 and a decrease compared to $11.82 million in 2(nd) quarter fiscal 2009.

-- Gross margin percentage for the 2(nd)quarter fiscal 2010 was 28.5% compared with a gross margin of 26.1% in 2(nd) quarter fiscal 2009 and 29.1% in the 1(st) quarter of fiscal 2010.

-- Cash from operations, before changes in non-cash working capital items, was $728,657 for the 2(nd) quarter fiscal 2010 compared to 2(nd) quarter fiscal 2009 cash from operations of $924,014.

-- A current asset balance of $17.14 million and working capital of $6.08 million.

-- Total assets of $32.55 million and total liabilities of $13.14 million.

"The second quarter of fiscal 2010 is the second consecutive quarter of improved revenues, after three consecutive quarters of reduced revenues," stated John A. Versfelt, Cabo's President & CEO. "At this time, the Company has drills operating in all operating regions. Drill utilization has increased in all divisions with newly signed contracts in Atlantic, Pacific, Mexico and European divisions and a more substantial increase in contracts in the Ontario division. We expect modest revenue growth over the balance of the year."

"The Company recorded a net after tax loss of $150,093 during the 2(nd) quarter of fiscal 2010 or $0.00 per share compared to earnings of $339,053 or $0.01 earnings per share in the 2nd quarter of fiscal 2009," noted John A. Versfelt. "Our second quarter is a 69% improvement over our 1(st) quarter fiscal 2010 loss of $463,495 or $0.01 loss per share. EBITDA decreased to $835,577 during the second quarter of fiscal 2010, compared to $1.44 million in the previous corresponding period and increased 73% from the $482,152 recorded during the first quarter of fiscal 2010."

"Our expectation is that we will continue to see slight increases of exploration spending during 2010 and a greater improvement in 2011," remarked Mr. Versfelt. "This increase in spending will be supported by the current gold and base metal market and pricing improvements, as well as the lack of new discoveries, lower metal supply and higher metal demand factors."

For the full version of this news release please go to the Company's website www.cabo.ca or SEDAR www.sedar.ca.

Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining related and specialty drilling services through its Canadian divisions in Surrey, British Columbia; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling de Mexico S.A. de C.V. of Hermosillo, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Spain S.L. of Sevilla, Spain; Balkan States Drilling SH.P.K. of Tirana, Albania; Cabo Drilling (Ghana) Limited of Accra, Ghana; and Cabo Drilling (International) Inc. The Company's common shares trade on the Frankfurt Exchange under the symbol: DHL and on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

"John A. Versfelt"

John A. Versfelt
Chairman, President and CEO

Further information about the Company can be found on Cabo's website (http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Sheri Barton, Corporate Communications at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894. * * * * The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming business transactions and timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.



[HUG#1389848]


          Telephone: (604) 984-8894
          Facsimile: (604) 983-8056

          e-mail: ir@cabo.ca
CONTACT:  John A. Versfelt, Chairman, President and CEO
          web site: www.cabo.ca

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