Tuscany International Drilling Inc successfully closed its previously announced acquisition of all of the issued and outstanding shares of a private Brazilian drilling and work-over company (Brazilco), together with seven drilling rigs and two work-over rigs located in Brazil, for a cash purchase price of US$52 million.

The Acquisition was funded using a portion of the proceeds from the Corporation's bought deal subscription receipt financing which closed on April 21, 2011. Pursuant to the bought deal subscription receipt financing, Tuscany issued 65,360,000 subscription receipts at a price of $1.53 per Subscription Receipt, for gross proceeds of approximately $100 million.

As a result of completion of the Acquisition, holders of the Subscription Receipts will receive one common share of Tuscany for each Subscription Receipt held, for no additional consideration and without further action by the holder, announced Tuscany.

The Corporation is confirming with the Toronto Stock Exchange the timing of the halting of trading and delisting of the Subscription Receipts and will make an announcement soon.

Tuscany, a corporation headquartered in Calgary, Alberta, is engaged in the business of providing contract drilling and work-over services along with equipment rentals to the oil and gas industry. Tuscany is currently focused on providing services to oil and natural gas operators in South America and has operating centers in Colombia, Ecuador, Brazil and Peru.

With headquarters in Calgary, Alberta, Tuscany International Drilling Inc. is a Canadian-based international drilling, completion, work over, and equipment rental oilfield services company. Established in late 2008 by Walter Dawson, Tuscany is presently focused on providing new state-of-the-art drilling and work over equipment to customers operating in the northern half of South America.

Tuscany currently has operating centers in Bogotá, Colombia and Quito, Ecuador, and is currently registering in Brazil and Peru in preparation for future work in these countries. Of the nine rigs acquired by Tuscany International Drilling, two drilling rigs are on long-term contracts and one drilling rig is on a year-to-year contract.

The addition of the nine rigs will increase Tuscany's rig count in Brazil to 11, or approximately 20 per cent of the active rig fleet in Brazil.

Tuscany International Drilling intends to build a technologically sophisticated company through the delivery of high quality state-of-the-art oilfield equipment and services. The move gives Tuscany International Drilling a crucial base in Latin America’s largest and fastest growing economy.

22nd May 2011