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Message: Closing of Acquisition of Brazilian Private Drilling & Workover Company

Press release from Marketwire

Tuscany International Drilling Inc. Announces Closing of Acquisition of Brazilian Private Drilling and Workover Company

Thursday, May 19, 2011

CALGARY, ALBERTA--(Marketwire - May 19, 2011) -

THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Tuscany International Drilling Inc. (TSX:TID) ("Tuscany" or the "Corporation") is pleased to announce that it has successfully closed the previously announced acquisition ("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 ("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. The Corporation is confirming with the Toronto Stock Exchange the timing of the halting of trading and delisting of the Subscription Receipts and will issue a further press release in that regard once determined.

http://www.theglobeandmail.com/globe-investor/news-sources/?date=20110519&archive=ccnm&slug=201105190698231001

Now that the acquisition has been achieved, Tuscany International Drilling Co's shares can start going up, up, up. Analysts still have the outlook for Tuscany's share value at over $2.20 within the next 12 months. I cannot wait to see the Q-2 and Q-3 Report numbers for Tuscany seeing as they currently have more than 17 of their rigs on long term contracts. They will also be refurbishing a number of the newly purchased Brazil rigs, and signing them to long term contracts as they are restored to service. Let the cash flow start rolling in.

Cheers; Scott

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