Tuscany International Drilling Inc.
TSX : TID

Tuscany International Drilling Inc.

December 21, 2010 09:56 ET

Tuscany International Drilling Inc. Completes $46 Million Bought Deal Financing and Updates Rig Deployment

CALGARY, ALBERTA--(Marketwire - Dec. 21, 2010) -

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

Tuscany International Drilling Inc. ("Tuscany" or the "Company") (TSX:TID) is pleased to announce that it has closed its recently announced bought deal financing of 33,333,900 common shares ("Common Shares"), which includes the exercise in full of the over-allotment option of 4,347,900 Common Shares, at $1.38 per Common Share for aggregate gross proceeds of approximately $46 million (the "Offering"). The syndicate of underwriters was led by Wellington West Capital Markets Inc. and included Jennings Capital Inc., Stifel Nicolaus Canada Inc., Raymond James Ltd., Macquarie Capital Markets Canada Ltd. and Citigroup Global Markets Canada Inc.

The net proceeds of the Offering will be used to fund the Company's on-going capital program which includes the construction of new drilling rigs to be deployed in Colombia.

Of Tuscany's current 17 rigs fleet, 14 rigs have been imported into South America and are currently either working on contract or moving to location. One rig is currently clearing customs in South America and is expected to be ready to move to location before the end of the year and the remaining two rigs are destined for Brazil. Construction and testing of the two Brazil rigs is nearing completion, and shipping of the first of these rigs is scheduled for December 27, 2010. Shipment of the second Brazil rig is scheduled to occur in early January 2011. Once these two rigs are imported into Brazil, Tuscany's current fleet of 17 rigs will all be operational in South America.

Potential investors are cautioned that notwithstanding the Company's current intentions regarding the use of the net proceeds of the Offering, there may be circumstances where a reallocation of funds may be necessary. While the Company anticipates that it will spend the funds available to it as set forth above, the Company regularly reviews its budget and, as a result, there may be circumstances where, for sound business reasons, a reallocation of the net proceeds may be necessary.

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.

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 a 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.

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