CanElson Drilling Inc.
TSX : CDI

CanElson Drilling Inc.

June 13, 2013 08:23 ET

CanElson Drilling Inc. Announces Completion of $29 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwired - June 13, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

CanElson Drilling Inc. ("CanElson" or the "Company") (TSX:CDI) today announced that it has closed its recently announced bought deal financing of 5,980,000 common shares ("Common Shares"), which includes the exercise in full of the over-allotment option of 780,000 Common Shares, at $4.85 per Common Share for aggregate gross proceeds of approximately $29 million (the "Financing"). The syndicate of underwriters was co-led by FirstEnergy Capital Corp. and Peters & Co. Limited, and included AltaCorp Capital Inc., Paradigm Capital Inc. and National Bank Financial Inc. (collectively the "Underwriters").

The net proceeds from the Financing will be used initially to temporarily reduce bank debt (which had been incurred in the ordinary course of business and operations, primarily to fund the construction of five drilling rigs deployed in Alberta and west Texas) and subsequently to partially fund the Corporation's previously announced 2013 capital program. The net proceeds may also be used for anticipated incremental capital investment opportunities. Incremental opportunities are based on inquiries from potentially new and existing customers and involve demand for rig additions beyond the current capital expenditure budget.

Such new opportunities could involve regional expansion in west Texas and in the deep basin of Alberta and B.C., and incremental investment into Mexico. In West Texas and Mexico, producers are primarily focused on developing oil reserves. In the deep basin of Alberta and BC producers are primarily focused on developing natural gas reserves.

About CanElson

The primary business of CanElson is operating land-based contract drilling rigs in Canada, the US and Mexico for oil and natural gas exploration and development companies. The Company also operates a compressed natural and raw gas transportation related services business through our wholly owned subsidiary, CanGas Solutions Inc.

More information on CanElson can be found on its website: www.canelsondrilling.com.

Forward Looking Information

This press release contains certain statements or disclosures relating to CanElson that are based on the expectations of CanElson as well as assumptions made by and information currently available to CanElson which may constitute forward-looking information under applicable securities laws. In particular, this press release contains forward-looking information related to the anticipated use of the net proceeds from the Financing. Such forward looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond CanElson's control. Many factors could cause the performance or achievement by CanElson to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information. CanElson's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. CanElson disclaims any intention or obligation to publicly update or revise any forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. This news release is not an offer for sale within the United States of any Common Shares or other securities of CanElson. Any offering of securities of CanElson will not be registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration under U.S. securities laws or an applicable exemption from registration under such laws. These securities may not be sold in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

Contact Information

  • CanElson Drilling Inc.
    Randy Hawkings
    President and Chief Executive Officer
    403-266-3922

    CanElson Drilling Inc.
    Robert Skilnick
    Chief Financial Officer
    403-266-3922