TRINIDAD DRILLING LTD. ANNOUNCES CLOSING OF SENIOR NOTES OFFERING AND
REDEMPTION OF OUTSTANDING CONVERTIBLE DEBENTURES

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

TSX SYMBOL:  TDG; TDG.DB

CALGARY, Dec. 16 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the "Company") announced today that it has closed the private placement of US$450 million aggregate principal amount of 7.875% senior notes due January 2019 (the "Notes"). In addition, the Company announced that it has given notice for the redemption of its outstanding 7.75% Convertible Unsecured Subordinated Debentures due in 2012 (the "Debentures"), which total approximately C$354 million.

Trinidad expects to use the net proceeds from the Notes offering to fund the redemption of its Debentures and to repay a portion of its remaining outstanding indebtedness. The Debentures will be redeemed on January 19, 2011, at their principal amount plus any accrued and unpaid interest.

In conjunction with the closing of the Notes offering, Trinidad terminated its existing credit facilities and entered into a new senior secured revolving credit facility expiring in December 2014. The new facility is comprised of two tranches; a C$200 million revolving tranche and a US$100 million revolving tranche.

The Notes were offered and sold only to qualified institutional buyers in accordance with Rule 144A under the United States Securities Act of 1933 (the "Securities Act") and outside the United States to persons other than U.S. persons in reliance on Regulation S under the Securities Act.  The offer and sale of the Notes will not be registered under the Securities Act, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

Trinidad is a growth-oriented corporation that trades on the Toronto Stock Exchange (TSX) under the symbol TDG and TDG.DB. Trinidad's divisions operate in the drilling, well-servicing, coring and barge-drilling sectors of the North American oil and natural gas industry with operations in Canada, the United States and Mexico. Trinidad is focused on providing modern, reliable, expertly designed equipment operated by well-trained and experienced personnel. Trinidad's drilling fleet is one of the most adaptable, technologically advanced and competitive in the industry.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction.  The Notes offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States or to a United States person, absent registration, or an applicable exemption therefrom.

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking statements relating to Trinidad's plans, strategies, objectives, expectations and intentions.  The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements.  Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this document.  The forward-looking information and statements included in this document are not guarantees of future performance and should not be unduly relied upon.  Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements.  Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.  In particular, but without limiting the foregoing, this document may contain forward-looking information and statements pertaining to the existence of operating risks inherent in the oilfield services industry; assumptions respecting capital expenditure programs and other expenditures by oil and gas exploration and production companies; assumptions regarding commodity prices, in particular oil and natural gas; assumptions respecting supply and demand for commodities, in particular oil and natural gas; assumptions regarding foreign currency exchange rates and interest rates; the existence of regulatory and legislative uncertainties; the possibility of changes in tax laws; general economic conditions including the capital and credit markets; Trinidad's ability to complete the offering of the Notes, Trinidad's ability to enter into the new credit facility and Trinidad's ability and continued desire to redeem the Debentures. Trinidad cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive.  The forward-looking information and statements contained in this document speak only as of the date of this document and Trinidad assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.