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Cabo Announces New Commercial Bank and $4 Million Finance Facility

North Vancouver, BC– Cabo Drilling Corp. (“Cabo” or the “Company”) (TSX-V:CBE) is pleased to announce that HSBC Bank Canada has been appointed as the Company’s commercial bank. This is a very significant step for Cabo in its development as one of Canada’s leading mineral and specialty drilling services companies.

Cabo has secured a $ 4.0 million debt finance facility with HSBC Bank Canada comprised of a $2.5 million operating loan secured by accounts receivable and a $1.5 million demand loan. The demand loan is secured by a general security agreement charge over Company assets and the cost of both facilities is Canadian bank prime plus 1%. The demand loan can be drawn down in multiple advances and is repayable in monthly payments over 5 years. The funds will be used for working capital.

The Company will pay a 2.12% finder’s fee to E-Capital Networks Group Inc. for arranging the financing.

Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides services through its subsidiaries Advanced Drilling Ltd. of Surrey, British Columbia; Forages Cabo Inc. of Montréal, Quebec; Heath & Sherwood Drilling Inc., of Kirkland Lake, Ontario; and Petro Drilling Company Limited of Springdale, Newfoundland. The Company’s common shares trade on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD
(signed “John A .Versfelt”)
John A. Versfelt
Chairman, President and CEO
Further information about the Company can be found on the Cabo website (http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Investor Relations Ms. Sheri Barton at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company.

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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
 
 


Last Updated: 02/19/2006