CanElson Drilling Inc.

CanElson Drilling Inc.

November 09, 2009 09:00 ET

CanElson Drilling Joint Venture Receives Approval and Signs Drilling Rig Contract for Mexico

CALGARY, ALBERTA--(Marketwire - Nov. 9, 2009) - CanElson Drilling Inc. ("CanElson") (TSX VENTURE:CDI) announced today that its Mexican joint venture company, Diavaz CanElson de Mexico, S.A. de C.V. ("DCM"), has entered into a one-year Integrated Drilling Services Rig Contract with DS Servicios Petroleros, S.A. de C.V. ("DS"). DCM has also now received approval of the Mexican National Commission of Foreign Investments to conduct "well drilling" activity. It is anticipated that the drilling rig will be operational in Mexico by December 2009, and will operate in the Ebano-Panuco-Cacalilao fields of Misantla-Tampico basin. CanElson will be providing the management and expertise for the drilling rig operation.

DCM's current business plan calls for one (1) additional drilling rig in 2010, and two (2) service rigs, one in 2009 and the other in 2010. It is expected that CanElson will manufacture and supply a service rig and the drilling rigs to be operated by the joint venture company.

As previously announced, CanElson has a 50% ownership interest in DCM, with D&S Petroleum Services, S.A. de C.V. (a wholly owned subsidiary of Grupo Diavaz, S.A. de C.V.) holding the other 50% ownership interest. The business of DCM will be the purchase and operation of drilling and service rigs in Mexico.

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

Forward Looking Information

This press release contains forward-looking information related to DCM's intentions to commence drilling activities in Mexico; CanElson providing management and expertise for the drilling rig operation; and CanElson's supply of service rigs and drilling rigs to the joint venture company. 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 Mexico, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced, the lack of qualified personnel or management, and stock market volatility. 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 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
    403-266-3968 (FAX)
    CanElson Drilling Inc.
    515, 808 - 4th Avenue SW
    Calgary, Alberta T2P 3E8