Tuscany International Drilling Inc.
TSX : TID

Tuscany International Drilling Inc.

May 20, 2010 09:00 ET

Tuscany International Drilling Inc. Announces Completion of Investment in Warrior Rig Ltd.

CALGARY, ALBERTA--(Marketwire - May 20, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. 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 that it has successfully completed the previously announced transaction with Warrior Rig Ltd. ("Warrior") pursuant to which Tuscany has: (i) acquired an aggregate of 3,600,000 common shares of Warrior ("Warrior Shares") from existing shareholders of Warrior on the basis of 0.6662 of a common share of Tuscany ("Tuscany Shares") for each Warrior Share; (ii) subscribed for an additional 2,000,000 Warrior Shares at a subscription price of $1.00 per Warrior Share; and (iii) made available to Warrior a $3,000,000 revolving loan, bearing interest at a rate of prime plus 4% per annum and having a term of 3 years (collectively, the "Transaction"). An aggregate of 2,398,320 Tuscany Shares were issued pursuant to the Transaction.

Warrior, a private company headquartered in Calgary, Alberta, is an oilfield services company specializing in the design, manufacture and service of top drive systems and automated tubular tongs. The Transaction is beneficial to Warrior, its customers and Tuscany with the continued development of existing and future drilling technologies.

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 Bogota, Colombia, Quito, Ecuador and Rio de Janeiro, Brazil and Peru. 

READER ADVISORY

Statements in this press release contain forward-looking information including, without limitation, components of cash flow and earnings. 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.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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.
    Bruce Moyes
    CFO
    (403) 265-8258
    (403) 265-8793 (FAX)
    or
    Tuscany International Drilling Inc.
    100, 522-11th Avenue S.W.
    Calgary, Alberta