Stoneham Drilling Trust
TSX : SDG.UN

Stoneham Drilling Trust

May 15, 2009 15:00 ET

Stoneham Drilling Trust Announces the Renewal of Its Credit Facilities

CALGARY, ALBERTA--(Marketwire - May 15, 2009) -

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

Stoneham Drilling Trust (TSX:SDG.UN) ("Stoneham" or the "Trust") is pleased to announce the renewal of its credit facilities to July 2010. The components of the credit facilities remain unchanged. Under the renewal the $75.0 million extendable revolving secured facility will bear interest at a rate of prime plus 3.25% and the $15.0 million operating loan and the $2.0 million secondary operating facility will bear interest at a rate of prime plus 3.0%. This marks a significant increase in interest cost for the Trust.

Should the extendable revolving secured facility not be renewed, repayment will commence three months after the expiry. Monthly repayments will be based on the outstanding principal divided by 48 for a period of 24 months. At that time the remaining principal balance would be payable.

Security on the facilities remained unchanged, secured by a general a security agreement and the assignment by the Trust of all risk insurance to the banks. There also has been no change to the debt covenants.

Stoneham is an income trust that provides contract drilling services to oil and natural gas exploration and production companies operating in the Western Canada Sedimentary Basin and in the Anadarko Basin of Oklahoma. With its modern, innovative fleet of drilling rigs, Stoneham is an industry leader in operational performance, safety and rig utilization. Stoneham trades on the TSX under the symbol SDG.UN. To learn more about Stoneham, log on to our website at www.stonehamdrilling.com.

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, subject to its obligations under applicable law, Stoneham does not intend, and does not assume any obligation to update these forward looking statements if conditions or opinions should change.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Stoneham Drilling Trust
    Bruce Jones
    President and Chief Executive Officer
    (403) 264-7777
    or
    Stoneham Drilling Trust
    Jack Smart
    Chief Financial Officer
    (403) 264-7777
    or
    Stoneham Drilling Trust
    1230, 335 - 8 Avenue SW
    Calgary, Alberta T2P 1C9
    Website: www.stonehamdrilling.com