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TSX SYMBOL:  TDG

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CALGARY, Aug. 10, 2011 /CNW/ - Trinidad Drilling Ltd. reported second quarter and year-to-date 2011 results which reflected the strong industry conditions that have been present throughout the first half of the year. Trinidad's dayrates have consistently grown for the past several quarters, and revenue, Adjusted EBITDA ⁽¹⁾ and Adjusted net earnings ⁽¹⁾ were all higher for the quarter and year to date compared to the same periods last year.

"We are encouraged by the strong industry conditions we have seen to date in 2011," said Lyle Whitmarsh, Trinidad's President and Chief Executive Officer. "During the first half of the year, we have moved existing rigs into new, high demand areas, establishing additional operating areas for Trinidad, while also growing our fleet through construction and the acquisition of carefully selected assets. Although the global economy remains fragile and commodity prices have recently shown increased volatility, we have positioned the Company with the flexibility to perform well in a range of circumstances. Our high proportion of long-term contracts and lower debt levels increase our stability, while our top performing equipment remains in demand and provides us with industry-leading activity levels and opportunities for future growth. Demand remains high for our modern, technically advanced equipment and our improving dayrates, growing utilization and the high level of customer interest we continue to experience, lead us to believe that our results for 2011 and 2012 will show ongoing growth."

⁽¹⁾ Please see the Non-GAAP Measures Definitions section of this document for further details.

OVERVIEW

Overall in the second quarter, Trinidad performed strongly showing increased levels of revenue, Adjusted EBITDA and Adjusted net earnings over the same quarter last year. Results in the Company's US and international division were particularly strong in the quarter, with gross margins recovering well, reflecting higher dayrates, activity levels and a reduction in operating costs as rigs had largely been reactivated during prior quarters. The Canadian operations were impacted by a wet spring break-up, reducing activity levels slightly and higher repairs and maintenance expenses, as rigs were made ready in anticipation of a busy second half. Conditions in Canada have improved since the end of the quarter and look set to provide a solid operating environment for the remainder of the year.

When compared to the same quarter last year, net earnings in the second quarter of 2011 were negatively impacted by higher depreciation charges, due to the Company's increased activity level, a lower gain on foreign exchange and the impairment of capital assets recorded in the quarter. These factors were partly offset by lower finance costs reflecting the Company's reduced debt levels. Year-to-date net earnings were significantly higher than the previous year, largely due to improved revenue generation.

Industry activity levels in the second quarter and first half of 2011 continued to show improvement over last year. Demand for high performance, modern equipment, such as Trinidad's, remained strong, particularly in the natural gas liquids (NGL) rich or oil directed drilling areas across North America. Despite an exceptionally wet spring break-up in the second quarter in Canada, industry utilization averaged 23.0%, up three percentage points from the same quarter of 2010; year-to-date industry utilization averaged 44.0% in Canada compared to 36.0% last year.  The US active rig count increased to 1,984 rigs in the second quarter, up 22.2%, from the same period last year and only 16.4% below the peak reached in October 2008. According to Baker Hughes, 52.0% of wells drilled in the second quarter of 2011 were targeting oil, compared to 35.0% in the same quarter last year, a trend the industry has seen develop in both Canada and the US over the past two years.

Strong demand has led to increasing pricing power for drilling contractors and Trinidad has recorded improving dayrates for the past three consecutive quarters in Canada and the past four consecutive quarters in its US and international segment. This clearly demonstrates the strong and growing demand for the Company's equipment and the general robustness of conditions in the drilling industry. Overall the improving dayrates and increasing activity levels led to higher revenue and Adjusted EBITDA⁽¹⁾  in the second quarter and first half of 2011, partly offset by the impact of the weaker US dollar.

Crude oil prices improved in the second quarter and first half of 2011 compared to the same periods in 2010, driving the growing activity levels in oil and NGL-rich directed drilling. West Texas Intermediate crude oil averaged US$102.59 per barrel in the quarter and US$98.36 per barrel year to date in 2011, a 31.7% and 25.6% increase from the same periods of 2010, respectively.   In contrast, natural gas prices remained at relatively stable but low levels over the same period. Henry Hub natural gas spot prices averaged US$4.37 per mmBtu in the second quarter and US$4.27 per mmBtu year to date in 2011, up 0.7% and down 9.2% from the same periods of 2010, respectively. North American storage levels for natural gas remain high and economic demand is relatively low, both factors continue to place downward pressure on natural gas prices.

Trinidad has seen increased demand for its equipment across North America over the past year. The Company's reputation for providing modern, top performing equipment has allowed it to increase utilization, extend expiring contracts at higher dayrates and sign contracts for the construction of new rigs during this period. Trinidad has also been able to make a significant switch towards oil and NGL-rich drilling, moving rigs into newer areas such as the Eagle Ford shale and previously established areas that have shown a resurgence of interest, such as the Niobrara, the Bakken and the Cardium. The Company is well positioned to perform well in the strong industry conditions with improving dayrates, high activity levels, built in organic growth and improved financial flexibility.

Second quarter 2011 and year- to-date highlights

• Trinidad generated revenue of $143.1 million for the second quarter and $359.2 million year to date in 2011, up 11.1% and 20.2% from the same periods of 2010.  Revenue grew in the quarter and year to date as a result of increased operating days and higher dayrates, reflecting stronger industry conditions. The impact of the improved market conditions were partially offset by the weakening of the US dollar versus the Canadian dollar.
• Gross margin ⁽¹⁾ grew to $52.6 million in the second quarter and $137.4 million year to date, an increase of 9.9% and 17.9%, respectively from the prior comparative periods due to higher revenue generation which was partly offset by increased costs. Gross margin percentage ⁽¹⁾ was 36.8% in the quarter and 38.2% year to date, down from 37.2% and 39.0% respectively in 2010, as a result of the absence of one-time revenue items received in 2010, and higher repairs and maintenance costs in Canada. In addition, incremental costs were incurred in the first quarter of 2011 to move rigs into new, higher margin operating areas.
• Adjusted EBITDA ⁽¹⁾ was $39.1 million ($0.32 per share (diluted)) in the second quarter and $108.7 million year to date ($0.90 per share (diluted)), up by 12.6% and 23.3%, respectively from 2010, primarily due to higher revenue and partly offset by the items affecting gross margin mentioned above.
• Adjusted net earnings ⁽¹⁾ were $11.9 million ($0.10 per share (diluted)) for the quarter and $33.7 million ($0.28 per share (diluted)) year to date in 2011, compared to $3.8 million ($0.03 per share (diluted)) and $12.0 million ($0.10 per share (diluted)), respectively in 2010. This increase was due to higher Adjusted EBITDA, lower financing costs, and the gain on sale of assets which were partly offset by increased depreciation costs, reflecting the Company's increased activity levels.
• Total debt at the end of the quarter decreased to $539.0 million, a reduction of $67.1 million or 11.1% from the end of 2010. Trinidad is committed to lowering its overall level of indebtedness and has demonstrated its commitment to this goal throughout the past few years through ongoing debt reduction.
• During the quarter, Trinidad sold its 22 well servicing rigs and related equipment for $38.0 million cash as part of its strategy to focus on its higher return, core business of contract drilling. In addition, with the proceeds of the sale the Company purchased four existing US-based land drilling rigs, which it plans to upgrade. The total anticipated cost of the rig acquisition, and subsequent upgrade, is $44.0 million with expected rig completion dates in the third and fourth quarter of 2011.

RESULTS FROM OPERATIONS

Canadian Drilling Operations

Revenue in the Canadian drilling operations segment totaled $42.1 million in the second quarter of 2011, and $161.6 million for the first six months of 2011, down 1.6% from the second quarter last year, but up 26.9% from the first half of 2010.  Lower revenue levels in the second quarter of 2011 were due to slightly lower operating days and utilization levels, which more than offset the increases in dayrates. Additionally, in the second quarter of 2010, Trinidad received a one-time payment for settlement of an existing customer contract.

In the quarter, operating days and utilization were down compared to the same quarter last year due to a wet and prolonged spring break-up, which delayed Trinidad's ability to get rigs back to work as many roads and leases were too wet to allow heavy equipment to move. As a result, Trinidad's drilling rig utilization averaged 31.0% in the quarter, down 8.8% from the second quarter last year but eight percentage points ahead of the industry average of 23.0%. Year to date, utilization averaged 55.0% in 2011, up from 50.0% in 2010, and an industry average of 44.0% for the first half of 2011, reflecting the strong demand for Trinidad's high quality drilling equipment in Canada.

Gross margin totaled $8.9 million in the second quarter of 2011, and $56.5 million year to date, down 32.2% and up 29.0% from the same periods last year, respectively. In addition to the factors affecting revenue discussed above, gross margin was negatively impacted by higher repairs and maintenance costs as rigs were made ready in anticipation of a busy second half of the year. As well, rigs were placed back in service later than usual in the second quarter due to wet weather conditions following spring breakup, which resulted in a delay in the revenue relative to the repair costs, negatively impacting margins.  Furthermore, the well servicing division had a year-over-year variance in regional activity, resulting in a higher proportion of the activity occurring in the lower margin Lloydminster market in the current quarter, negatively impacting margins. These factors resulted in gross margin percent decreasing to 21.2% in the quarter, from 30.9% in the same quarter last year.  Consistent with the trend in revenue, gross margin in the first half of 2011 increased significantly over the first half of 2010 as Trinidad benefited from a long winter in 2011 and significantly improved day rates over the same period in 2010.  However, gross margin percent increased only slightly in the first half of 2011 to 35.0% from 34.4% for the first half of 2010 mainly due to the factors affecting the second quarter gross margins noted above.  Trinidad expects that gross margin percentage will improve in the coming quarters as dayrates continue to increase, in response to the high demand for the Company's drilling equipment.

Since the second quarter of 2010, three rigs were redeployed from Mexico back to Canada, one Canadian rig was decommissioned and in the second quarter of 2011, one rig was redeployed from Canada to the Company's US operations. The net effect of these changes was one additional rig operating in the second quarter of 2011 compared to the same quarter of 2010.

During the second quarter Trinidad sold its well servicing rigs and related equipment for $38.0 million in cash, excluding positive working capital. The transaction closed on June 15, 2011 and the division's operating results are included in this segment up until that date. Trinidad's decision to sell these assets reflects the Company's strategy to focus on the deep, modern contract drilling market where returns are generally stronger and where the Company sees opportunities for future growth.

Trinidad's coring rigs were largely inactive during the quarter due to the seasonality that is typically associated with these assets. Oil sands activity has increased in the past 12 months and the outlook for Trinidad's coring rigs looks positive for the coming winter drilling season.

United States and International Drilling Operations

In the second quarter and first half of 2011, improved market conditions drove strong demand for drilling equipment, increased utilization levels and higher dayrates in the US and international drilling operations segment, compared to the same periods last year. Revenue increased to $100.6 million for the quarter and $196.3 million for the first six months, up from the prior comparative periods by 22.1% and 17.1%, respectively. The positive impact to revenue from these factors was partly offset by a weakening of the US dollar against the Canadian dollar in 2011, as compared to 2010.

US-dollar denominated dayrates for the land drilling rigs averaged $20,835 per day for the quarter and $20,459 per day for the first half of 2011, up 15.2% and 7.1% from the prior year, demonstrating the strengthening market conditions.  In addition, drilling rig utilization averaged 82.0% in second quarter of 2011and 81% year-to-date, up 24.2% and 24.6% from the same periods of 2010, respectively.  Higher rig utilization led to a 19.8% increase in operating days allowing Trinidad to a reach a record level of 4,741 days in the second quarter of 2011, despite the segment having two fewer rigs than the same quarter last year.

During the second quarter of 2011, two rigs were added to the Company's US and international operations, bringing the total number of rigs to 65, with 62 rigs in the US and three in Mexico. Trinidad transferred one rig from its Canadian operations into the Niobrara play in Wyoming in the quarter. This rig is the first of several rigs that Trinidad expects to move into this area of growing interest and activity in the coming months. The second rig was a newly constructed, high performance rig that was delivered to the Eagle Ford shale under long-term, take-or-pay contract as part of the Company's current rig construction program.  In addition to these changes above, in the past year Trinidad has redeployed three rigs from its Mexican operations to Canada, added three new builds and decommissioned four US land rigs.

Gross margin increased to $43.9 million for the second quarter and $80.9 million in the first six months of 2011, up 33.6% and 16.8% from the same periods last year. Gross margin percentage improved in the quarter to 43.7% from 39.9% in the same quarter last year, largely due to higher dayrates and lower per day operating costs. In 2010, Trinidad incurred higher operating expenses as it reactivated a large number of rigs in response to improving market conditions and increasing activity levels. With almost all its equipment now working, these reactivation expenses were not incurred in the second quarter of 2011. Year to date in 2011, gross margin percentage remained relatively consistent with the prior year, reflecting higher operating costs incurred in the first quarter of 2011 as rigs were moved to new operating areas and final reactivation costs were incurred.

In the Company's barge drilling operations, US-dollar denominated dayrates averaged $23,432 per day in the quarter and $22,749 per day year to date in 2011, down 4.0% and 2.7% from the prior year, respectively. Dayrates were lower largely due to the addition of a lower depth capacity rig in the past year. Dayrates are beginning to show positive trends, utilization levels have been high for several consecutive quarters and higher demand is now beginning to flow through to increasing dayrates.

Construction Operations

In December 2010, the Company made the decision to narrow the focus of its rig construction operations to the rig design, commissioning, and the development of new technology for internal purposes only.

Revenue from the construction operations segment declined to $18.8 million in the second quarter of 2011, down from $27.9 million in the same period of 2010, due to a reduction of both the Company's external and internal rig build program, versus the same period of 2010.  Revenue for the three months ended June 30, 2011 included $18.3 million of inter-segment construction work and $0.4 million of external construction revenue, compared to $24.3 million and $3.6 million respectively in the same period of 2010.  Revenue in 2011 was largely comprised of income related to the ongoing internal rig construction program, including work completed on one rig that was delivered in the US drilling operations segment during the second quarter of 2011.  The decline in third party work of $3.3 million, to $0.4 million in the second quarter of 2011, is in line with Trinidad's reorganization of the construction division to internal rig builds only.

Operating expenses also declined in the quarter from $26.1 million for the three months ended June 30, 2010, to $19.0 million for the three months ended June 30, 2011.  The reorganization impacted the segment's gross margin and gross margin percentage, as there was less third party work in the quarter, which decreased gross margin and gross margin percentage from 6.5% in 2010 to a loss of 1.2% in the second quarter of 2011.  The current quarter loss is reflective of the reorganization of the construction segment to focus on internal rig builds only, and going forward the segment should have no margin as all internal work performed will be billed at cost to Trinidad's other operating segments.

As mentioned previously, working capital in 2011 decreased to $110.9 million during the quarter, a decline of 12.5%. The lower working capital is due to a reduction of accounts receivable offset by an increase in accounts payable and accrued liabilities due to the seasonality of the Canadian Drilling operating segment, but partly offset by approximately $10.0 million in assets held for sale.  Trinidad's total debt declined by $67.1 million year to date 2011, partially due to the retranslation of the Senior Notes of US$450.0 million, as a result of the decline in the US to Canadian foreign exchange rate. The Senior Notes are translated at each quarter end, as such their value will fluctuate quarterly with variations in exchange rates. The Senior Notes are due January 2019 and interest is payable semi-annually in arrears on January 15 and July 15.  The first payment was due on July 15, 2011.

During the first six months of 2011, pursuant to the Company's strategy to reduce overall indebtedness and as a result of the strong operating conditions, Trinidad reduced the balances on its revolving credit facility by $53.2 million. At June 30, 2011, Trinidad had CDN$80.0 million outstanding on its Canadian revolving credit facility and US$37.0 million on its US revolving credit facility, leaving CDN$120.0 million and US$63.0 million unutilized in the facility, respectively.  The new Canadian and US revolving facility requires quarterly interest payments that are based on Bankers Acceptance (BA) and LIBOR rates and incorporate a tiered interest rate, which varies depending on the results of the Consolidated Total Debt to Consolidated EBITDA ratio (see table below). This facility matures December 16, 2014, and is subject to annual extensions of an additional year on each anniversary.

A total of $47.5 million and $72.1 million of capital expenditures were incurred during the three and six months ended June 30, 2011, compared to $36.3 million and $71.7 million for the same periods last year.  Capital expenditures year to date were substantially related to the Company's rig build program, the purchase of four land rigs from a third party and a number of capital upgrades made to Trinidad's rig fleet to improve the equipment's marketability.

Trinidad expects cash flow from operations and the Company's various sources of financing to be sufficient to meet its debt repayments, future obligations and to fund planned capital expenditures.

Current financial performance is well in excess of the financial ratio covenants under the revolving credit facility as reflected in the table below under IFRS:

Readers are cautioned that the ratios noted above do not have standardized meanings prescribed in IFRS or previous GAAP.

OUTLOOK

Although global markets remain concerned about European debt levels and the speed and strength of the US economic recovery, Trinidad is continuing to see strong demand for its equipment. The first half of 2011 has shown increasing activity levels and consistently improving dayrates in both of Trinidad's drilling divisions and the Company believes that its full year results will show continued improvement over the previous year.

In Canada, the wet spring weather and the subsequent delays in customer's drilling programs has led to an increased level of customer demand going forward. The vast majority of the division's equipment is booked throughout the summer and bookings and their associated dayrates are looking strong for the coming winter drilling season. In the US and international divisions, Trinidad has experienced continued demand for its equipment and has moved a number of rigs into higher margin, higher demand areas.

As part of Trinidad's strategy to mitigate the cyclicality of the drilling industry, the Company aims to maintain a range of 40.0% to 60.0% of its fleet under long-term contracts. In weaker industry conditions, this percentage tends to trend downwards as contracts expire and the Company waits for improved conditions before resigning. Trinidad is seeing strong demand to re-contract rigs as their existing contracts expire with terms improving in almost all areas of operation. To date in 2011, the Company has re-contracted a significant number of rigs and expects the full benefit of these improved terms to be realized in the coming year. Including the rigs under construction, Trinidad has approximately 55.0% of its fleet under long-term contract with an average remaining term of between two and two and a half years.

Trinidad has a strong track record of growth and the Company is continuing to grow its fleet both organically and through acquisition. In 2011, the Company plans to add five new rigs to its fleet, the final two rigs from its 2010 rig construction program and three new rigs to be constructed this year. As well, the Company will be constructing an additional three new rigs in 2012. All eight rigs are high-performance, high-mobility rigs with three to five year, long-term, take-or-pay contracts.  In addition, Trinidad purchased four existing rigs which it is currently upgrading; these rigs are expected to be delivered into operation in the third and fourth quarters of 2011. In total, Trinidad expects it will incur capital expenditures, net of dispositions, for these additions and upgrades to existing equipment of approximately $100 million in 2011 and $35 to $40 million in 2012.

While Trinidad is continuing to grow its fleet, it remains focused on reducing overall debt levels. To date in 2011, the Company has lowered its total debt by approximately 11.1% and expects that it will be able to continue to balance its growth opportunities while also lowering its debt levels.

Trinidad has assembled a fleet of equipment that is well suited for today's drilling industry.  The Company's modern, technically advanced equipment has proven its ability to continually meet its customers' evolving needs with its industry-leading utilization and contract extensions. While the Company is presently operating in strong industry conditions and is optimistic regarding the future, it has built additional stability into its business model by maintaining a high level of long-term contracts and lowering its debt levels over the past few years. Current indications for future dayrates and activity levels are positive and Trinidad continues to gain momentum as it moves into the second half of the year. The Company believes that its track record of high performance, the adaptability of its fleet and its growing financial flexibility position it well for the remainder of 2011 and into 2012. 

CONFERENCE CALL

A conference call and webcast to discuss the results will be held for the investment community on Thursday August 11^th, 2011 beginning at 9:00 a.m. MT (11:00 a.m. ET). To participate, please dial (888) 231-8191 (toll-free in North America) or (647) 427-7450 approximately 10 minutes prior to the conference call. An archived recording of the call will be available from approximately 12:00 p.m. MT on August 11^th, 2011 until midnight August 18^th, 2011 by dialing (855) 859 2056 or (416) 849-0833 and entering replay access code 85301445.

A live audio webcast of the conference call will also be available via the Investor Relations page of Trinidad's website.

A full copy of Trinidad's second quarter and year to date 2011 report including Management's Discussion and Analysis, Consolidated Financial Statements and Notes to the Consolidated Financial Statements can be found on the Investor Relations page of Trinidad's website or at www.sedar.com

TRINIDAD DRILLING LTD.

Trinidad is a growth oriented corporation that trades on the Toronto Stock Exchange under the symbol TDG. Trinidad's divisions operate in the drilling, coring and barge-drilling sectors of the North American oil and natural gas industry with operations in Canada, the United States and Mexico. Trinidad is focused on providing modern, reliable, expertly designed equipment operated by well-trained and experienced personnel. Trinidad's drilling fleet is one of the most adaptable, technologically advanced and competitive in the industry.

ADVISORY NON-GAAP MEASURES DEFINITIONS

This document contains references to certain financial measures and associated per share data that do not have any standardized meaning prescribed by IFRS and previous GAAP and may not be comparable to similar measures presented by other companies.  These financial measures are computed on a consistent basis for each reporting period and include gross margin, gross margin percentage, EBITDA, Adjusted EBITDA, cash flow from operations before change in non-cash working capital, Adjusted net earnings, net debt and working capital.

Additional information on the calculation of the above-mentioned, non-GAAP measures can be found in the Management's Discussion and Analysis section of Trinidad's first quarter 2011 report which is available on Trinidad's website at www.trinidaddrilling.com or from SEDAR at www.sedar.com

These non-GAAP measures are identified and defined as follows under IFRS:

"Gross margin" is used by management and investors to analyze overall and segmented operating performance.  Gross margin is not intended to represent operating income nor should it be viewed as an alternative to net earnings or other measures of financial performance calculated in accordance with IFRS.  Gross margin is calculated from the consolidated statements of operations and comprehensive income (loss) and from the segmented information contained in the notes to the consolidated financial statements and is defined as revenue less operating expenses.

"Gross margin percentage" is used by management and investors to analyze overall and segmented operating performance.  Gross margin percentage is calculated from the consolidated statements of operations and comprehensive income (deficit) and from the segmented information in the notes to the consolidated financial statements and is defined as gross margin divided by revenue.

"EBITDA" is a measure of the Company's operating profitability.  EBITDA provides an indication of the results generated by the Company's principal business activities prior to how these activities are financed, assets are depreciated, amortized and impaired, or how the results are taxed in various jurisdictions.

"Adjusted EBITDA" is used by management and investors to analyze EBITDA (as defined above) prior to the effect of foreign exchange loss and stock-based compensation, and is not intended to represent net earnings as calculated in accordance with IFRS.

"Cash flow from operations before change in non-cash working capital" is used to assist management and investors in analyzing Trinidad's liquidity and ability to generate cash to finance investing and financing activities.  Cash flow from operations before change in non-cash working capital is derived from the consolidated statements of cash flows and is defined as cash flow from operating activities plus or minus the change in non-cash operating working capital.

"Adjusted net earnings" is used by management and the investment community to analyze net earnings prior to the effect of foreign exchange (gain) loss, stock-based compensation charges and impairment charges and is not intended to represent net earnings as calculated in accordance with IFRS.

"Working capital" is used by management and the investment community to analyze the operating liquidity available to the Company.

"Net debt" is used by management and the investment community to analyze the amount of debt less the working capital of the Company.

References to gross margin, gross margin percentage, EBITDA, Adjusted EBITDA, cash flow from operations before changes in non-cash working capital, Adjusted net earnings, net debt and working capital throughout this document have the meanings set out above.

FORWARD-LOOKING STATEMENTS

The document contains certain forward-looking statements relating to Trinidad's plans, strategies, objectives, expectations and intentions.  The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements.  Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this document.  The forward-looking information and statements included in this document are not guarantees of future performance and should not be unduly relied upon.  Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements.  Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.  In particular, but without limiting the foregoing, this document may contain forward-looking information and statements pertaining to the completion of announced rig construction programs on a timely basis and on economical terms; the assumption that Trinidad's customers will honour their take-or-pay contracts; fluctuations in the demand for Trinidad's services; the ability for Trinidad to attract and retain qualified personnel, in particular  field staff to crew the Company's rigs; the existence of competitors, technological changes and developments in the oilfield services industry; the existence of operating risks inherent in the oilfield services industry; assumptions respecting capital expenditure programs and other expenditures by oil and gas exploration and production companies; assumptions regarding commodity prices, in particular oil and natural gas; assumptions respecting supply and demand for commodities, in particular oil and natural gas; assumptions regarding foreign currency exchange rates and interest rates; the existence of regulatory and legislative uncertainties; the possibility of changes in tax laws; and general economic conditions including the capital and credit markets. Trinidad cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive.  The forward-looking information and statements contained in this document speak only as of the date of this document and Trinidad assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.