Tuscany International Drilling Inc.
TSX : TID

Tuscany International Drilling Inc.

January 27, 2011 08:45 ET

Tuscany International Drilling Inc. Announces Contracts to Build Two Additional New Rigs and Updates Rig Deployment

CALGARY, ALBERTA--(Marketwire - Jan. 27, 2011) -

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Tuscany International Drilling Inc. ("Tuscany" or the "Company") (TSX:TID) is pleased to announce that it recently entered into contracts to build two new, state-of-the-art rigs. The first rig is an AC electric 1500 horsepower drilling rig complete with walking system to enable the rig to move from well to well, with the drilling string in the derrick, on the clients' multi-well drilling pad. Construction of this rig is currently scheduled to be completed by the end of March 2011 and is anticipated to be added to Tuscany's active fleet during the second quarter 2011. Tuscany has received a letter of intent from an existing client to contract the rig who has been using a similar rig during the past year. The letter of intent contemplates a long term multi-well contract as soon as the rig can be delivered to the field. 

The second rig is a 1000 horsepower drilling rig complete with walking system designed to more efficiently drill numerous wells from the same pad. The walking system allows the rig to move hydraulically from location to location with the drill pipe in the derrick, allowing substantially reduced move times, costs and safety between wells. This walking system not only allows movement forward and backward, but also side to side, providing considerably more flexibility for drilling programs. This rig is being built for a multi-client base who have seen the benefits of this new technology for expanded multi-well drilling programs. Delivery of this rig is estimated for the latter part of the second quarter of this year. 

"This is the start of our 2011 multi-rig build program and will increase our fleet to a total of 19 rigs," stated Reg Greenslade, President of Tuscany. 

Of the Company's fleet of 19 rigs, 15 are now operational in South America, two are moving to South America, and two are under construction. Of the rigs not under construction, nine are located in Colombia, of which seven are under contract and two are moving to commence their contracts. Four rigs are in Ecuador of which three are under contract and one is waiting on permits and is expected to be operational within seven days on its contract. One rig is in Peru under contract and rigging up to spud and one rig is in Guyana under contract and drilling. The two remaining rigs are destined for Brazil. The first has cleared Brazilian customs and is currently on barges moving up the Amazon river for contract deployment and the second rig is currently finished testing at the manufacturer in Houston and is being rigged out and crated for its scheduled shipping on February 7th

Tuscany continues to execute its business model of providing North American made newly built, state-of-the-art equipment for South America where demand for Tuscany's new equipment exceeds expectation.

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 timely construction and deployment of drillings rigs, the successful negotiation of drilling contracts, 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 rig construction and deployment, 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.
    Matt Moorman
    Executive VP Corporate Finance and Business Development
    (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
    www.tuscanydrilling.com