FORT WORTH, Texas, May 19 /PRNewswire-FirstCall/ -- Union Drilling, Inc. (the "Company") today announced that it has filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC) that, if declared effective by the SEC, would allow the Company to sell, from time to time, up to 5,000,000 shares of its common stock in one or more offerings. The registration statement also includes the resale of up to approximately 10.7 million shares of Union Drilling's common stock owned by certain stockholders who have exercised their contractual registration rights.
While the Company does not have any present intention to use the shelf registration statement, it is intended to give Union Drilling greater flexibility to take advantage of favorable market conditions and to respond to strategic opportunities as they may arise. Any proceeds from the Company's sale of securities pursuant to the shelf registration statement may be used for general corporate purposes, including without limitation repaying or refinancing all or a portion of its existing debt, making acquisitions, capital expenditures and for working capital. The terms of any offering under the shelf registration statement will be established at the time of such offering.
The Company is also registering for resale approximately 10.7 million shares of common stock obtained by certain stockholders prior to Union Drilling's November 2005 initial public offering. The selling stockholders may choose not to sell some or all of the shares of common stock offered by this prospectus. Union Drilling will not receive any proceeds from the sale of the Company's common stock by the selling stockholders.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Upon effectiveness of the registration statement, Union Drilling and the selling stockholders may periodically offer shares of common stock in amounts, at prices and on terms to be announced when and if the common stock is offered. At the time any of the common stock covered by the registration statement is offered for sale by the Company or the selling stockholders, to the extent required by applicable law, a prospectus supplement will be prepared and filed with the Securities and Exchange Commission containing specific information about the terms of any such offering. When available, a written prospectus may be obtained by contacting the underwriters which will be named in any such prospectus supplement, by contacting David S. Goldberg at Union Drilling, Inc. at 4055 International Plaza, Suite 610, Fort Worth, Texas 76109, or by accessing the Securities and Exchange Commission's website at http://www.sec.gov/.
About Union Drilling
Union Drilling, Inc., headquartered in Fort Worth, Texas, provides contract land drilling services and equipment, primarily to natural gas producers, in the United States. Union Drilling currently owns and markets 71 rigs and specializes in unconventional drilling techniques.
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This press release contains various forward-looking statements and information that are based on management's belief as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding the Company's anticipated growth, demand from the Company's customers, capital spending by oil and gas companies and the Company's expectations regarding its new rigs and the U. S. land drilling sector. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions and industry trends; the continued strength or weakness of the contract land drilling industry in the geographic areas where the Company operates; decisions about onshore exploration and development projects to be made by oil and gas companies; the highly competitive nature of the contract land drilling business; the Company's future financial performance, including availability, terms and deployment of capital; the continued availability of qualified personnel; and changes in governmental regulations, including those relating to workplace safety and the environment. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.
Contacts: Union Drilling, Inc. Christopher D. Strong, CEO A.J. Verdecchia, CFO 817-735-8793 DRG&E Ken Dennard / Ben Burnham 713-529-6600
