Tuscany International Drilling Inc.
TSX : TID

Tuscany International Drilling Inc.

November 30, 2010 08:01 ET

Tuscany International Drilling Inc. Announces $40 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Nov. 30, 2010) -  

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

Tuscany International Drilling Inc. (TSX:TID) ("Tuscany" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Wellington West Capital Markets Inc. (the "Underwriters") to issue, on a bought deal basis, 28,986,000 common shares ("Common Shares") at a price of $1.38 per Common Share for aggregate gross proceeds of $40,000,680 (the "Offering"). 

Tuscany has also granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 4,347,900 Common Shares at a price of $1.38 per Common Share for additional gross proceeds of $6,000,102. The Over-Allotment Option shall be issued on the same terms and conditions as the Offering, exercisable at any time, in whole or in part for a period of 30 days following closing of the Offering. 

Proceeds of the Offering will be used to fund the Company's ongoing capital program and for general corporate purposes. 

The Common Shares shall be offered by way of short form prospectus. The closing of the offering is expected to occur on December 21, 2010, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in the United States absent registration or applicable exemption from those registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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. The Company 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, as 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.

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.

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
    or
    Tuscany International Drilling Inc.
    Reg Greenslade
    President
    (403) 265-8258
    or
    Tuscany International Drilling Inc.
    Matt Moorman
    Executive Vice President,
    Corporate Finance and Business Development
    (403) 265-8258
    Fax: (403) 265-8793