Thursday, June 09, 2011
Trinidad Drilling Ltd.
Trinidad Drilling announced the acquisition of four drilling rigs that, following enhancements, will be added to its US drilling operations.
"We were able to purchase these rigs at a very attractive price and following their upgrades, they will be a good fit with our fleet of deep, technically advanced equipment," said Lyle Whitmarsh, Trinidad's
President and Chief Executive Officer. "The design and style of these rigs will work well in today's drilling environment, and by applying our drilling automation and electrical expertise to the rigs, we will be able to add efficient, high performing equipment to our fleet at a relatively inexpensive cost."
The total cost of the rigs is expected to be US $44 million, including the initial purchase price and subsequent upgrades. Following their enhancement, the rigs will be highly automated, 1,500 horsepower, AC triple rigs with a depth capacity of 20,000 feet (6,096 meters). The first rig is expected to be operational by the end of the third quarter of 2011 and the remainder will be ready by the end of the year.
The forecast annual EBITDA for these four rigs is expected to more than offset any EBITDA associated with the service rigs recently sold. In addition, the land rigs generate a stronger return on capital and align with the Company's strategy to narrow its focus towards contract drilling.
Following the completion of the 2011 and 2012 rig build program, Trinidad will have a total of 129 drilling rigs with 56 rigs in Canada, 70 rigs in the US and 3 rigs in Mexico.
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