Tuscany International Drilling Inc.
TSX : TID

Tuscany International Drilling Inc.

September 13, 2010 07:00 ET

Tuscany International Drilling Announces Disbursement of the Remaining $30 Million Under the Previously Announced $50 Million Loan

CALGARY, ALBERTA--(Marketwire - Sept. 13, 2010) -

THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Tuscany International Drilling Inc. ("Tuscany" or the "Company") (TSX:TID) is pleased to announce the disbursement of the remaining $30 million under the previously announced $50 million senior secured guaranteed term loan with Credit Suisse AG, Cayman Islands Branch ("Credit Suisse"), who is acting as lender and as administrative agent. The term of the loan is five years with an option to increase the facility to $125 million so long as the Company is in compliance with certain conditions. The closing of the first drawdown of $20 million occurred on August 13, 2010. In consideration for underwriting the facility and with respect to this disbursement, Tuscany granted the lender 2,400,000 share purchase warrants. The warrants are exercisable at $1.50 per warrant and expire 2.5 years from the date of closing. Proceeds from the loan will be used to fund the capital program for 2010 and advance the construction and deployment of 8 additional drilling rigs bringing Tuscany's fleet to 17 rigs by the end of 2010. 

About Tuscany

Tuscany, a corporation headquartered in Calgary, Alberta, is engaged in the business of providing contract drilling and work‐over services along with equipment rentals to the oil and gas industry. Tuscany is currently focused on providing services to oil and natural gas operators in South America. Tuscany has operating centers in Colombia, Ecuador, Brazil and Peru.

READER ADVISORY

Statements in this press release contain forward-looking information. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Tuscany. These risks include, but are not limited to: the risks associated with the oil and gas industry, commodity prices and exchange rate changes, regulatory changes, successful exploitation and integration of technology, customer acceptance of technology, changes in drilling activity and general global economic, political and business conditions. Industry related risks could include, but are not limited to; operational risks, delays or changes in plans, health and safety risks and the uncertainty of estimates and projections of costs and expenses and access to capital. The risks outlined above should not be construed as exhaustive. The reader is cautioned not to place undue reliance on this forward-looking information. Tuscany does not undertake any obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws.

The Toronto Stock Exchange has not reviewed, nor does it accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Tuscany International Drilling Inc.
    Walter Dawson
    Chairman and CEO
    (403) 265-8258
    (403) 265-8793 (FAX)
    or
    Tuscany International Drilling Inc.
    Reg Greenslade
    President
    (403) 265-8258
    (403) 265-8793 (FAX)
    or
    Tuscany International Drilling Inc.
    Bruce Moyes
    CFO
    (403) 265-8258
    (403) 265-8793 (FAX)
    or
    Tuscany International Drilling Inc.
    100, 522-11th Avenue S.W.
    Calgary, Alberta