Stoneham Drilling Trust

Stoneham Drilling Trust

March 22, 2005 09:47 ET

Stoneham Drilling Trust-Closing of $22.0 Million Bought Deal Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STONEHAM DRILLING TRUST

TSX SYMBOL: SDG.UN

MARCH 22, 2005 - 09:47 ET

Stoneham Drilling Trust-Closing of $22.0 Million
Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - March 22, 2005) - Stoneham Drilling
Trust (TSX:SDG.UN) -

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

Stoneham Drilling Trust ("Stoneham" or the "Trust") is pleased to
announce the closing of its previously announced private placement
offering of 1,182,796 trust units ("Trust Units"), which includes 53,763
Trust Units that were issued on exercise of the underwriters' option, at
a price of $18.60 per Trust Unit for total gross proceeds of
$22,000,006. The offering was made on a bought deal basis through a
syndicate of underwriters, led by Raymond James Ltd. and including
FirstEnergy Capital Corp.

Purchasers of Trust Units issued pursuant to the offering will be
eligible for the distribution payable on April 15, 2005 to unitholders
of record on March 31, 2005.

Net proceeds of approximately $21 million will be placed into the
general working capital of the operating subsidiary Stoneham Drilling
Limited Partnership 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 six modern 3,000 metre telescopic double drilling
rigs and two newly constructed 4,000 metre telescopic triple drilling
rigs.

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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