Trinidad Drilling Snags Victory Rig Equipment Corp.

Trinidad Drilling Ltd. has purchased Victory Rig Equipment Corporation, a privately-held oilfield equipment
fabrication company based in Red Deer, Alberta. Trinidad plans to combine all its oilfield equipment manufacturing and construction businesses into one business that will retain the name Victory Rig Equipment.

This business will include Victory's current operations and Trinidad's existing operations at Mastco Derrick Service Ltd. and Automation Controls and Electric Ltd. (ACE). The new combined business will be led by Richard Ariss, currently employed by Trinidad as President of ACE. Ariss brings extensive experience from the oilfield equipment manufacturing industry and his strong leadership and respected management style is expected to provide clear strategy and direction for the division.

The combined Victory division will offer an extensive range of drilling solutions including innovative and technically-advanced rigs capable of meeting the growing challenges in the oil and gas industry. The integration of the businesses into one division will provide a unique and seamless ability to deliver the complete cycle of drilling solutions from design, manufacturing and installation through to after-market services. Victory's comprehensive product line is aimed at providing exceptional results for our customer's and
enhanced safety for our crews.

Victory will provide an unmatched selection of patented and highly-effective drilling equipment including:

  • The exclusive rights to sell and distribute the Candrill 1,000 - 3,000 horsepower diesel electric rigs and the Candrill Walk systems;
  • The newly developed Victory 200-535 Ton top drive;
  • Progressive Drive drilling system, which effectively eliminates the need for drawworks and drilling lines, significantly reducing maintenance requirements;
  • Victory AC drawworks and the all new SR (switch reluctance) 1,800 horsepower drawworks;
  • Victory's auto driller - AC Master Drill system;
  • AC direct drive pumps;
  • Automated cat walks; and
  • Trinidad's proprietary control system.

"Trinidad has a reputation for providing top quality, new and technically-advanced equipment," said Lyle Whitmarsh, Trinidad's President and Chief Executive Officer. "Victory has designed and created some of the
industry's most progressive oilfield equipment and this acquisition will allow us to bring these innovative and effective designs into our control. The incorporation of this type of equipment into our fleet continues our focus on first-class performance and results for our customers," Whitmarsh said.

The transaction closed effective August 15, 2008 with a total purchase price of approximately $16.3 million, including specific holdback amounts relating to ongoing business activities and remains subject to final
adjustments. Trinidad expects to retain the vast majority of the talented and experienced team at Victory.