Trinidad Drilling Considers Sale as Canadian Exploration Slumps

(Bloomberg) -- Trinidad Drilling Ltd., which provides contract drilling services in North America and the Middle East, is considering selling itself as years of slumping exploration in Canada weigh on revenue.

A potential sale is one option the Calgary-based company is considering as it undertakes a strategic review, which also may result in a the divestiture of some assets or a strategic partnership.

Drilling activity has been sluggish in Canada, where Trinidad has almost half of its rigs, with the number of wells completed rising just 1.8 percent to 6,138 last year, according to the Canadian Association of Oilwell Drilling Contractors. That’s still below the 6,199 wells drilled in 2015. Trinidad’s revenue has fallen by more than half since 2014.

Trinidad’s review is being led by a special committee of independent directors, with advice from Toronto-Dominion Bank and Blake, Cassels & Graydon LLP, the company said Tuesday.

The shares rose 5.7 percent to C$1.87 at 10:22 a.m. in Toronto. Trinidad had gained 4.1 percent this year through Friday, after sliding 49 percent in 2017.

To contact the reporter on this story: Kevin Orland in Calgary at korland@bloomberg.net.

To contact the editors responsible for this story: Reg Gale at rgale5@bloomberg.net, Carlos Caminada, Christine Buurma

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