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Sprott Resource Corp. Announces US$50 Million Investment in Integrated Oil & Gas Driller
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About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\n\n\n\nNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n DISSEMINATION IN THE UNITED STATES\n\n\nTORONTO, March 5, 2012 /CNW/ - Sprott Resource Corp. (\"SRC\" or the \"Company\") (TSX: SCP) announced today that it has invested US$50 million in\n Independence Contract Drilling, Inc. (\"ICD\"), a newly formed company that will provide land-based contract\n drilling services in the U.S. through a fleet of technologically\n advanced, newly constructed drill rigs.  SRC's investment was part of a\n US$100 million equity offering completed by ICD (the \"Offering\").  \n After giving effect to the Offering and certain concurrent\n transactions, SRC owns approximately 31.6% (basic) of ICD's outstanding\n common shares.  As part of its investment, SRC has the right to appoint\n one member to ICD's board of directors.\n\n\n\"We view our investment in ICD as an effective way to capitalize on the\n growth of unconventional oil and gas resource plays in the United\n States,\" said Kevin Bambrough, President and CEO of SRC. \"As major\n international E&Ps focus on U.S. domestic oil and gas production from\n shale resource plays, we expect demand to be consistent and strong over\n the medium term for rigs of the type ICD will be building and\n contracting.\"\n\n\nThe senior members of ICD's management team, including Byron Dunn (CEO)\n and Steven Hale (President and COO), are all experienced oilfield\n service executives with an average of 25 years of industry experience,\n maintaining long-standing relationships with many leading E&P\n companies. ICD's management team has operated rig manufacturing\n companies and has successfully built, operated and sold other land\n contract drilling companies, including Bison Drilling, Bronco Drilling\n and Forrest Drilling.\n\n\nThrough its own fully staffed and integrated manufacturing facility\n located in Houston, Texas, ICD will manufacture and contract for\n service premium programmable alternating current (\"AC\") rigs designed\n to target longer-reach horizontal wells that are technically demanding\n and are more efficiently drilled by high-specification, programmable AC\n rigs that precisely control and monitor the drilling operation and\n wellbore geometry.  These AC rigs have \"walking\" capability to allow\n the rig to be quickly moved to a ne...