Union Drilling Announces Auction Results; Raises Gross Proceeds $11.2M

Union Drilling, Inc. UDRL today disclosed the results of a previously announced auction to divest 31 rigs and related equipment which were not being utilized in the Company's business. The auction, which was conducted by Kruse Energy & Equipment and held December 7-8, raised gross proceeds of $11.2 million. Net proceeds of $10.0 million (after deducting auction expenses) will be used to pay down borrowings on the Company's credit facility. While the final accounting is not complete, the Company anticipates a gain of approximately $3 million from the assets sold at auction, which will be reported in the Company's fourth quarter results. The divestiture was completed to better align Union Drilling's rig fleet with the Company's strategy of providing premium, modern rigs and experienced, knowledgeable crews to the major and large independent E&P companies primarily focused on deep horizontal shale drilling.