CanElson Drilling Inc. has entered into an agreement with a syndicate of Underwriters pursuant to which the Underwriters have agreed to purchase on a bought deal basis 4,900,000 common shares at a price of $6.20 per Common Share (the "Issue Price") for aggregate gross proceeds of approximately $30.4 million (the "Offering").

"The additional financial flexibility will allow us to respond to customer requests and capitalize on potential acquisition opportunities," said Randy Hawkings, President and Chief Executive Officer. "We expect to achieve returns on the new capital that are consistent with our Canadian industry-leading levels."

The net proceeds will be used to initially reduce indebtedness and for incremental capital investment opportunities which may include the construction of three additional drilling rigs, subject to finalizing customer contracts, as well as for general corporate purposes.

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