CALGARY – Trinidad Drilling Ltd. (TSX:TDG)) disclosed Thursday that it is building two new, $15-million drilling rigs under long-term, take-or-pay contract for delivery into Canadian operations in mid-2012.
The two new rigs will be telescopic doubles with 850 horsepower draw works and a depth capacity of 3,500 metres or about 11,500 feet, Trinidad said in a release.
The rigs are contracted with an unnamed senior producer for a five-year term with a guarantee of 250 days per year and will be built at Trinidad’s in-house manufacturing facility at an estimated cost of $15 million each.
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They should begin operations in Canada towards the middle of next year.
“We have received a large number of inquiries to build new rigs over the past 12 to 18 months,” president and CEO Lyle Whitmarsh said.
“However, we have been very selective in choosing the best opportunities that fit with our business plan and meet our investment hurdles.”
In 2011, the company expects to deliver five new, technically advanced rigs. The first three rigs have been delivered to Trinidad’s U.S. operations and the final two are expected to be delivered to the Canadian operations prior to the end of the year.
Trinidad also expects to add five new rigs to its operations in 2012, two destined for the U.S. and three for Canada. All 10 rigs built in 2011 and 2012 have associated contracts ranging from three to five years, consistent with Trinidad’s practice of reducing its risk by backing up all rig builds with long-term, take-or-pay contracts.
Following the completion of the rigs in Trinidad’s current construction program, the company will have 131 drilling rigs with 69 in the United States, 59 in Canada and three rigs in Mexico. In addition, Trinidad has 20 pre-set and coring rigs and five barge drilling rigs.
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