DS Dividend Select 15 Corp

CanElson Drilling Inc. ("CanElson" or the "Company") (TSX:CDI) announces that
its Mexican Joint Venture, Diavaz CanElson de Mexico, S.A. de C.V. ("DCM") has
acquired two existing telescoping double drilling rigs ("tele-doubles") for
US$5.6 million. 


"The acquisition of these two rigs is a significant step forward for our Mexican
joint venture," said Randy Hawkings, President and CEO of CanElson. "We expect
this will increase profitability and improve payouts compared with DCM's current
practice of using a sub-contracted drilling rig in Mexico."


The two tele-doubles are already in southern Mexico and will be moved to
Tampico, a city in the eastern part of the country. In Tampico the rigs will
undergo refurbishment to fit-for-purpose small-footprint plug-n-play
configuration, complete with built-in managed pressure drilling and snubbing
capability. When the refurbishment is completed, the rigs will be similar to the
other highly standardized rigs in CanElson's North American fleet.


Cost, with refurbishing, compares favourably with new tele-doubles

The refurbishment of each tele-double is expected to cost about US$2.5 million
resulting in a total expected cost per rig of US$5.3 million. This compares
favourably with the cost of approximately $8 million to assemble new
tele-doubles. 


DCM intends to finance these capital investment activities using a combination
of existing working capital and external funding as needed. DCM's Mexican
engineering team, which has been training with CanElson, will supervise the
upgrades.


Rigs to commence drilling in Q2 2013

During the second quarter of 2013, upon completion of the re-configuration,
CanElson expects that the tele-doubles will commence drilling in the Ebano
Panuco fields, located near the Central Gulf of Mexico. While the tele-doubles
are being refurbished, DCM's drilling operations will continue through use of
one sub-contracted drilling rig.


DCM expects to finalize a 5-year contract for one of the tele-doubles with its
customer DS Servicios Petroleros, S.A. de C.V. ("DS") imminently. Discussions
regarding the contract terms for the second tele-double are ongoing. 


DS recently signed a 30-year production-sharing contract with PEMEX, Mexico's
state-owned petroleum company, to operate the Ebano heavy oil block near
Tampico, Mexico. CanElson anticipates increased profitability and excellent
payouts for DCM-owned tele-doubles drilling on a performance basis with Mexican
crews, as compared with sub-contracting third-party drilling rigs. 


Established Operations at DCM

DCM has established a profitable operation and has substantially improved its
drilling operations since the joint venture was formed in 2009. Among other
things, DCM has:




--  Reduced well drilling times by more than 50% through performance-based
    drilling management, and 
--  Developed a base of local Mexican engineers and management expertise
    through a strategy of transferring CanElson's Canadian drilling
    optimization practices and technology.  



During its first 38 months of operations DCM has grown an initial US$3.9 million
of partner equity investment into US$6.2 million of retained earnings.


About DCM

DCM was formed in 2009 as a joint venture between CanElson and D&S Petroleum,
S.A. de C.V., a subsidiary of Grupo Diavaz, S.A. de C.V. ("Diavaz"). Diavaz, a
Mexican headquartered service company, is celebrating 40 years of providing oil
and gas services in Mexico, primarily focused on servicing PEMEX. 


About CanElson

CanElson operates contract drilling rigs in Canada, the US and Mexico for oil
and natural gas exploration and development companies. CanElson also assembles
new drilling rigs at a facility in Nisku, Alberta, operates contract oil and gas
service rigs in Mexico, and operates a CNG transportation and related services
business. CanGas is a Calgary-based CNG transport company and a North American
leader in the development and utilization of containerized natural gas
transport. More information on CanElson can be found on its website:
www.canelsondrilling.com.


FORWARD-LOOKING INFORMATION

This press release contains certain statements or disclosures relating to
CanElson that are based on the expectations of CanElson as well as assumptions
made by and information currently available to CanElson which may constitute
forward-looking information under applicable securities laws. In particular,
statements pertaining to the intention to move the tele-doubles to Tampico and
refurbish them; the estimated refurbishment cost of the two tele-doubles; DCM's
intentions for financing the purchase and refurbishment of the two tele-doubles;
expected timing of when the tele-doubles will commence drilling; expected timing
for execution of drilling contracts with DS; and expected increased
profitability and excellent payouts from owning the two tele-doubles, contain
forward-looking information or achievements that may be expressed or implied by
such forward-looking information. Many factors could cause the performance or
achievement by CanElson to be materially different from any future results,
performance or achievements that may be expressed or implied by such
forward-looking information. CanElson's Annual Information Form and other
documents filed with securities regulatory authorities (accessible through the
SEDAR website www.sedar.com) describe the risks, material assumptions and other
factors that could influence actual results and which are incorporated herein by
reference. CanElson disclaims any intention or obligation to publicly update or
revise any forward-looking information, whether as a result of new information,
future events or otherwise, except as may be expressly required by applicable
securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
CanElson Drilling Inc.
Randy Hawkings
President and CEO
(403) 266-3922


CanElson Drilling Inc.
Robert Skilnick
Chief Financial Officer
(403) 266-3922
www.canelsondrilling.com

Dividend Select 15 (TSX:DS)
Gráfica de Acción Histórica
De May 2024 a Jun 2024

Dividend Select 15 (TSX:DS)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024