Stoneham Drilling Trust
TSX : SDG.UN

Stoneham Drilling Trust

December 16, 2010 08:00 ET

Stoneham Drilling Trust (TSX:SDG.UN) Announces Acceptance by TSX of Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Dec. 16, 2010) - Stoneham Drilling Trust ("Stoneham" or the "Trust") (TSX:SDG.UN) announced today acceptance by the Toronto Stock Exchange (the "TSX") of the Trust's Notice of Intention to Make a Normal Course Issuer Bid. Pursuant to the Normal Course Issuer Bid ("NCIB"), the Trust proposes to purchase through the facilities of the TSX, from time to time over the next 12 months, if considered advisable, up to an aggregate of 503,318, being approximately 10% of the trust units ("Trust Units") comprising its public float as of the date hereof. Stoneham currently has 8,023,261 Trust Units issued and outstanding. Purchases may commence through the TSX on Monday, December 20, 2010 and will conclude on the earlier of the date on which purchases under the bid have been completed and December 19, 2011. 

FirstEnergy Capital LLP ("FirstEnergy") will be appointed as broker firm responsible for making purchases of Trust Units under the NCIB on behalf of the Trust. FirstEnergy will not make any purchases under the NCIB without having received prior written instructions from the Trust as to the dollar amount of Trust Units that may be purchased on any given trading day, and will only make purchases of Trust Units under the NCIB in compliance with the applicable by-laws, regulations and policies of the TSX. The daily limitation on purchases under the NCIB is 25% of the average daily trading volume, or 2,683 Trust Units.

The board of directors of Stoneham Administration Inc., which is authorized to manage the business and affairs of the Trust, believes that from time to time, the market price of the Trust Units may not reflect their underlying value and the proposed purchases are in the best interests of the Trust and are a desirable use of the Trust's funds. All Trust Units purchased by the Trust will be cancelled.

ABOUT STONEHAM:

Stoneham Drilling Trust 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 select basins in the U.S., with one rig currently operating onshore in western Newfoundland. 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. Visit our website at www.stonehamdrilling.com.

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