Cabo Drilling Corp.
TSX VENTURE : CBE

Cabo Drilling Corp.

March 21, 2006 08:30 ET

Cabo Divisions Awarded Drilling Contracts by ESO Uranium Corp.

NORTH VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2006) - Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo" or the "Company") announces that its Advanced Drilling Ltd. and Heath & Sherwood Drilling Inc. divisions have both been awarded drilling contracts by ESO Uranium Corp. of Vancouver, BC.

Advanced Drilling will drill ESO's Cluff Lake uranium project, in the Athabasca Basin, Saskatchewan. The project is a 50/50 joint venture with Logan Resources Ltd. A camp has been established, crew and equipment mobilized and drilling has commenced. The primary objective of the program is to test the Gorilla Lake zone. A total of 5,000 metres of drilling has been budgeted for this phase of work. The Cluff Lake project covers more that 169,000 acres, surrounds the past producing Cluff Lake Mine and is immediately north of UEX/Cogema's Shea Creek project.

Heath & Sherwood has also commenced a 2,500 metre diamond drilling contract on ESO Uranium Corp.'s 100% owned Mikwam gold project in the Detour Lake gold mine area in Noseworthy Township in north eastern Ontario. Overland exploration drilling will be done during the winter months as frozen winter roads provide drill site access on this otherwise swampy property. Special drilling muds and a casing advancer system are being used to manage the overburden. The property's remote location has made it necessary to set up a winter drill camp, which is accessible by an all-weather road maintained by timber companies in the area. Continuous operation of the program is assured by Heath & Sherwood's maintenance of a full compliment of necessary equipment, supplies and spares on site.

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

(signed "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.
    Ms. Sheri Barton
    Investor Relations
    (403) 217-5830
    or
    Cabo Drilling Corp.
    Mr. John A. Versfelt
    Chairman, President and CEO
    (604) 984-8894
    (604) 983-8056 (FAX)
    Email: ir@cabo.ca
    Website: www.cabo.ca