Trinidad Drilling Ltd. (TSX:TDG) will sell $150 million worth of its shares to a syndicate of underwriters, with the money to be used to build nine drilling rigs that will service contracts with two major North American oil and gas companies.

"This expansion continues Trinidad's strategic growth into the United States drilling market where there is strong demand for our high-quality rigs, capable of drilling the more technically demanding wells that are becoming more typical in that market," says Lyle Whitmarsh, Trinidad's president and chief executive officer.

The contracts provide Trinidad with a guaranteed utilization rate of 100 per cent on these rigs over their respective contract terms.

The total construction costs for the nine rigs are expected to be C$135 million, the company said in Tuesday's announcement.

The Calgary-based company also said it has succeeded in renegotiating and extending four existing drilling contracts in the United States. Those rigs will continue to operate in Texas and Louisiana.

The syndicate has agreed to a bought-deal basis in which they will purchase 11 million common shares at a price of $13.60 per share, with the option to buy an additional 1.1 million shares under the same terms.

Raymond James Ltd. is leading the syndicate, which includes TD Securities Inc., RBC Capital Markets, BMO Capital Markets, CIBC World Markets Inc., Haywood Securities Inc., Wellington West Capital Markets Inc., FirstEnergy Capital Corp. and Peters & Co. Ltd. 



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