Trinidad building rig fleet to 74

Trinidad Energy Services Income Trust is moving into the top league of Canada’s drilling contractors.

It has announced spending of C$172 million on 16 new rigs after landing long-term contracts with two major, unidentified North American E&P companies.

The additions will give Trinidad a fleet of 62 rigs in Canada and 12 in the United States and give it a solid hold on fourth place among Canada’s largest operators — Precision Drilling, Ensign Resource Services Group and Nabors Drilling.

Ten of the 16 new rigs will have depth capacities of 11,800-14,800 feet, giving Trinidad 32 Canadian rigs capable of reaching 9,800-14,800 feet, while the remaining six will be able to target depths of 19,600 feet.

The rigs will be delivered between October and February 2006.

Trinidad has entered an agreement with a syndicate of underwriters led by Raymond James to sell trust units for gross proceeds of C$120 million.

—Gary Park