Share issue to raise $172 million, partly for Halliburton partnership
CALGARY — Trinidad Drilling Ltd. is issuing shares through a bought deal financing to be used in part to fund its participation in an international joint venture with Halliburton Co.
The Calgary driller announced Tuesday it will sell 15 million shares through a consortium of underwriters at $10 each. If a 2.25-million-share overallotment option is exercised, the gross proceeds would be $172 million.
In a news release, Trinidad said the funds would be employed to build and upgrade drilling rigs and related assets to sell to the joint venture, Trinidad Drilling International Luxembourg S.a.r.l., announced in September.
It will also use the money to pay for a 3,000-horsepower deep drilling rig to be deployed in the Liard Basin on the B.C.-Yukon border. The rig is to drill gas wells to supply a West Coast liquefied natural gas export facility through a five-year contract.
The joint venture with Houston-based Halliburton, the world’s second-largest oilfield services company, is to deploy four rigs into Saudi Arabia by mid-2014, three to be rebuilt and relocated from Trinidad’s U.S. rig fleet and the fourth to be built new by Trinidad.
Trinidad has a 60 per cent ownership of TDI, which means it is to fund $72 million of the $120-million budget for the Saudi Arabia rigs. About half of that was expected to be spent in 2013.