Tuscany International Drilling Inc.
TSX : TID

Tuscany International Drilling Inc.

May 19, 2011 09:08 ET

Tuscany International Drilling Inc. Announces Closing of Acquisition of Brazilian Private Drilling and Workover Company

CALGARY, ALBERTA--(Marketwire - May 19, 2011) -

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. (TSX:TID) ("Tuscany" or the "Corporation") is pleased to announce that it has successfully closed the previously announced acquisition ("Acquisition") of all of the issued and outstanding shares of a private Brazilian drilling and work-over company ("Brazilco"), together with seven drilling rigs and two work-over rigs located in Brazil, for a cash purchase price of US$52 million.

The Acquisition was funded using a portion of the proceeds from the Corporation's bought deal subscription receipt financing which closed on April 21, 2011. Pursuant to the bought deal subscription receipt financing, Tuscany issued 65,360,000 subscription receipts ("Subscription Receipts") at a price of $1.53 per Subscription Receipt, for gross proceeds of approximately $100 million. As a result of completion of the Acquisition, holders of the Subscription Receipts will receive one common share of Tuscany for each Subscription Receipt held, for no additional consideration and without further action by the holder. The Corporation is confirming with the Toronto Stock Exchange the timing of the halting of trading and delisting of the Subscription Receipts and will issue a further press release in that regard once determined.

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 and has operating centers in Colombia, Ecuador, Brazil and Peru.

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)

    Tuscany International Drilling Inc.
    Reg Greenslade
    President
    (403) 265-8258
    (403) 265-8793 (FAX)

    Tuscany International Drilling Inc.
    Matt Moorman
    CFO
    (403) 265-8258
    (403) 265-8793 (FAX)

    Tuscany International Drilling Inc.
    Suite 1950, 140 - 4th Avenue S.W.
    Calgary, Alberta