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Abstract
The net proceeds of approximately $40 million will be placed into general working capital of the Trust's operating subsidiary Stoneham Drilling L.P. and combined with additional borrowings to fund the construction of five new drilling rigs. Rigs 14 and 15 will be new generation telescopic double drilling rigs designed to drill to depths of 3,500 plus metres. Rigs 16, 17 and 18 will be triple drilling rigs capable of drilling to depths of 4,000 to 5,000 metres. All of the drilling rigs will commence working for existing clients under term contracts upon their completion. The drilling rigs are expected to be delivered during the last half of 2006. The term contracts for all drilling rigs will contain a minimum number of drilling days and current market day rates.