CanElson Drilling Inc.

CanElson Drilling Inc.

October 13, 2010 09:00 ET

CanElson Drilling Announces Texas Contracts Extensions and Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Oct. 13, 2010) - CanElson Drilling Inc. ("CanElson") (TSX VENTURE:CDI) announced that 2 multi-well performance-based contracts for 2 drilling rigs with an existing Midland, Texas based resource customer have been extended for additional wells, which is estimated to extend the drilling contract period until early 2012 from Q1 2011.

With the extension of these 2 contracts and the recent announcement on September 20, 2010 for the addition of 2 rigs within a joint venture under 5 year contracts, CanElson has been able to procure significant commitments for its growing modern Texas based drilling rig fleet which presently operates in the oil weighted Permian Basin.

President Randy Hawkings says, "We are very pleased to be continuing to work for this local customer with a view to continuing our high quality level of service in the Permian Basin region of west Texas."

CanElson's Texas operations provided for high activity levels during the third quarter with CanElson achieving utilization of 94%. In addition to strong US activity levels, Canadian operating results also continued to show strong results with Q3 utilization of approximately 74% compared to industry utilization of approximately 40% during the third quarter. At the date of this press release, CanElson has 16 (net: 14) rigs operating and currently expects to have 19 (net: 16) rigs operating by the end of the first quarter of 2011.

CanElson is an Alberta, Canada corporation that is engaged in the manufacture in Canada and operation of drilling rigs in Canada's Western Sedimentary Basin, the United States and Mexico.

Forward Looking Information

This press release contains forward-looking information related to the expected length of the contract extensions and the expected number of rigs operating by the end of the first quarter of 2011. Such forward looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond CanElson's control. Such assumptions, risks and uncertainties include, without limitation, those associated with, loss of markets, volatility of commodity prices, delays resulting from or inability to obtain required regulatory approvals, the effect of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced and the lack of qualified personnel or management. CanElson's actual achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur, or occur on such dates, or if any of them do so, what benefits CanElson will derive therefrom. The forward-looking information is made as at the date of this press release and CanElson does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • CanElson Drilling Inc.
    Elson J. McDougald
    Chairman and Chief Executive Officer
    CanElson Drilling Inc.
    Randy Hawkings
    President and Chief Operating Officer
    CanElson Drilling Inc.
    515, 808 - 4th Avenue SW
    Calgary, Alberta T2P 3E8