CALGARY, ALBERTA--(Marketwired - Jan. 16, 2014) - Tuscany International Drilling Inc. ("Tuscany" or the "Company") (TSX:TID)(COLOMBIA:TIDC) announces that it has closed its previously announced sale ("Rig Sale") of Rigs 112 and C16 to Etablissements Maurel et Prom S.A. ("M&P") for aggregate consideration of US$23.0 million, of which US$19.5 million has been paid by M&P to Tuscany and an aggregate of US$3.5 million has been deposited into escrow, to be released upon receipt of Tanzanian competition approval and the repayment to M&P of certain Colombian withholding taxes remitted by M&P in connection with the Rig Sale. Pursuant to the Company's disposition of its Africa business unit announced December 23, 2013, the Colombian assets of Caroil SAS are now owned by Tuscany through a wholly-owned and controlled subsidiary. As a result of the completion of the transactions with M&P, Tuscany anticipates further reductions in G&A expenses. Tuscany's fleet is now comprised of 12 rigs in Colombia, 9 rigs in Brazil (including the two heli-portable rigs) and 5 rigs in Ecuador.
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, Brazil, and Ecuador.
Statements in this news release contain forward-looking information including, without limitation, statements with respect to the timing and release of funds from escrow, anticipated reduction in Tuscany's G&A expenses, Tuscany's strategic alternatives, the restructuring of the assets and liabilities of the Company and the future financial position and focus of the Company. 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: counterparty completion risks, regulatory approval risk, 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 listing of Tuscany's common shares on the Colombian Stock Exchange does not imply a certification by the BVC of the value or the solvency of Tuscany.
The Toronto Stock Exchange has not reviewed, nor does it accept responsibility for the adequacy or accuracy of this release.