Cabo Drilling Corp.
TSX VENTURE : CBE

Cabo Drilling Corp.

August 21, 2006 09:00 ET

Cabo Division Drilling Jackson's Arm for Kermode in Newfoundland

NORTH VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 21, 2006) - Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo" or the "Company") announces that its Petro Drilling Company Ltd. division in Springdale Newfoundland, has been awarded a diamond drilling contract by Kermode Resources Ltd. of Vancouver, BC for a minimum of 5,000 metres at Kermode's Jackson's Arm project in NW Newfoundland.

Kermode's Jackson's Arm property is 3 kilometres west of the fishing village of Jackson's Arm and is linked by 75 kilometres of paved road to the Trans Canada Highway. A drill was mobilized to the Jackson's Arm property the week of August 14, 2006, with the possibility of a second rig being added at a later date. The Kermode Phase 4 drill program will test a recently discovered feeder structure at the north end of the Apsy Zone by drilling at right angles to most previous drilling. Gold mineralization being targeted is hosted by sedimentary rock in a geological setting similar to the Carlin type deposits of Nevada. Kermode's primary exploration focus at Jackson's Arm is to delineate tonnage and grade of known gold mineralization with particular emphasis on the newly discovered cross structures. (See Kermode Resources Ltd. news release dated August 15, 2006).

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 subsidiaries Advanced Drilling Ltd. of Surrey, British Columbia; Forages Cabo Inc. of Montreal, Quebec; Heath & Sherwood Drilling Inc., of Kirkland Lake, Ontario; and Petro Drilling Company Limited of Springdale, Newfoundland. The Company's common shares trade 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 the Cabo website (http://www.cabo.ca) and SEDAR (www.sedar.com).

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cabo Drilling Corp.
    Mr. John A. Versfelt
    Chairman, President & CEO
    (604) 984-8894
    or
    Cabo Drilling Corp.
    Ms. Sheri Barton
    Investor Relations
    (403) 217-5830
    Website: www.cabo.ca