Stoneham Drilling Trust

Stoneham Drilling Trust

March 03, 2005 08:12 ET

Stoneham Drilling Trust-$21.0 Million Bought Deal Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STONEHAM DRILLING TRUST

TSX SYMBOL: SDG.un

MARCH 3, 2005 - 08:12 ET

Stoneham Drilling Trust-$21.0 Million Bought Deal
Financing

CALGARY, ALBERTA--(CCNMatthews - March 3, 2005) - NOT FOR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Stoneham Drilling Trust ("Stoneham" or the "Trust")(TSX:SDG.UN) is
pleased to announce that it has entered into a financing agreement with
a syndicate of underwriters, led by Raymond James Ltd. and including
FirstEnergy Capital Corp., under which the underwriters have agreed to
purchase 1,129,033 trust units on a bought deal private placement basis,
at a price of $18.60 per Trust Unit, for gross proceeds of $21.0
million. In addition, the underwriters have been granted an option to
purchase an additional 53,763 trust units under the same terms prior to
closing.

The offering is scheduled to close on or about March 22, 2005 and is
subject to certain conditions including, but not limited to, the receipt
of all necessary approvals including the approval of the Toronto Stock
Exchange.

Net proceeds of approximately $20.0 million will be placed into the
general working capital of the operating subsidiary Stoneham Drilling LP
and combined with incremental term debt, as required, to fund the
construction of one 3,500 metre telescopic double drilling rig and two
4,000 metre telescopic triple drilling rigs. Stoneham is accelerating
its rig construction program in an effort to satisfy customer demand for
its modern and efficient drilling rig configuration.

Stoneham is an income trust that trades on the TSX under the symbol
SDG.UN. Stoneham provides contract drilling services to oil and natural
gas exploration and production companies operating in Western Canada,
using its fleet of 6 modern 3,000 metre telescopic double drilling rigs
and newly constructed 4,000 metre telescopic triple drilling rig. In
addition, Stoneham is currently completing the construction of an
additional 4,000 metre telescopic triple drilling rig.

This news release may contain forward-looking statements concerning the
anticipated performance of Stoneham. Forward-looking statements are
based on the estimates and opinions of management at the date the
statements are made, and Stoneham undertakes no obligation to update
forward looking statements if conditions or opinions should change.

The trust units offered will not be and have not been registered under
the United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States or to a U.S. person, absent
registration, or an applicable exemption therefrom. This news release
shall not constitute an offer to sell or the solicitation of an offer to
buy the trust units in any jurisdiction.

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