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CALGARY, ALBERTA--(Marketwired - Jan 19, 2015) - CanElson Drilling Inc. (TSX:CDI) announced today that it has revised its 2015 capital program, including the deferral of construction of three contracted drilling rigs, has reduced its quarterly dividend to $0.03 per share, down from $0.06 per share previously, and provides an operations update. "Our modern fleet of drilling rigs and our continued financial discipline will allow CanElson to weather the impact of sustained low commodity prices. Our focus remains on providing the best possible service to our customers by being measurably more efficient in the drilling process," stated Randy Hawkings, President and CEO of CanElson. "We believe our strong financial position and focus on efficiency will allow us to continue our industry outperformance." OUTLOOK Since inception in 2008, CanElson has remained well positioned to withstand commodity price cycles and its impact on industry activity levels by building a fleet of modern drilling rigs while maintaining modest levels of debt. This strategy is especially relevant today given current commodity price volatility, and we view current industry conditions as an opportunity to continue to differentiate ourselves from our peers. Low crude oil and natural gas prices have materially impacted our outlook across all geographic operating areas. While current activity levels remain relatively strong, CanElson expects both drilling industry activity and pricing levels to decline in 2015 relative to 2014 at current commodity price levels. As such, CanElson expects a reduction to its current active rig count of 36 drilling rigs (72% of the drilling rig fleet). While we expect the impact of current commodity prices to affect all operating areas, we expect that Saskatchewan and North Dakota will see the largest drilling activity reductions, mainly due to lower realized crude oil pricing as a result of higher transportation costs. We remain focused on performance and maintaining strong relationships with our customers. To this end, CanElson has delayed the completion of construction of Rig #47, Rig #48 and Rig #104 indefinitely. In November 2014, CanElson announced that it had signed the aforementioned three drilling rigs to long-term contracts. However, CanElson is in the process of negotiating revisions to its agreements with a view to mutually beneficial outcomes. As at December 31, 2014, CanElson had spent $13.6 million on long-lead components for these three rigs. The Company remains in a strong financial position, with total debt net of cash of $48.3 million at December 31, 2014. CanElson has also taken steps toward maintaining a strong financial position going forward, including the reduction of its capital program to $12.9 million from $63.9 million, which now only covers critical maintenance items and minimal upgrade capital. AMENDED DIVIDEND POLICY Due to the uncertainty of future commodity prices and the corresponding uncertainty of future drilling rig activity, CanElson has reduced its quarterly dividend to $0.03 per share, down from $0.06 per share previously. The Company has taken this step to ensure it will have a balance sheet positioned to weather the cyclical downturn such that the Company is even stronger when there is eventual commodity and rig activity recovery. 2015 CAPITAL PROGRAM 2015 capital has been reduced by $51.0 million to reflect the Company's revised outlook, and includes a $30.2 million reduction in expansion capital as a result of the deferral of Rig #47, Rig # 48 and Rig #104. Additional components on selected drilling rigs, various other selected maintenance items, rig equipment upgrades, and spare equipment have also been either cancelled or deferred.