CanElson Drilling Inc.
TSX VENTURE : CDI

CanElson Drilling Inc.

September 20, 2010 17:08 ET

CanElson Drilling to Form A Texas Based Joint Venture to Operate Drilling Rigs Under Five Year Contracts

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2010) - CanElson Drilling Inc. ("CanElson") (TSX VENTURE:CDI) announced today that it has entered into agreements with a US based oil and gas company to construct two heavy duty telescopic double drilling rigs for deployment within a joint venture structure ("Joint Venture") with each entity owning 50%. CanElson will operate the drilling rigs on behalf of the Joint Venture. The US based oil and gas company will acquire its 50% interest for cash consideration. CanElson has also finalized the terms of a 5 year drilling contract with the US based oil and gas company under which the drilling rigs will be utilized on properties owned by the US based oil and gas company. It is anticipated that the first drilling rig will commence operations prior to the end of 2010 and the second drilling rig during the first quarter of 2011.

President Randy Hawkings says, "We are pleased to be working for another experienced local customer, and continuing our business model of aligning with our customers through a joint venture. The addition of another two rigs (net: 1) to our Texas based rig fleet will strengthen our presence in the Permian Basin region of west Texas."

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 CanElson's intentions to construct two drilling rigs to operate in Texas, the expected date the drilling rigs will commence operations and CanElson's intention to operate the drilling rigs on behalf of the Joint Venture. 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
    403-266-3922
    or
    CanElson Drilling Inc.
    Randy Hawkings
    President and Chief Operating Officer
    403-266-3922
    or
    CanElson Drilling Inc.
    515, 808 - 4th Avenue SW
    Calgary, Alberta T2P 3E8