The purchase price paid for the equipment is $5.73 million. The principal rig is a truck mounted Cabot 900 with a collapsible derrick, which is capable of drilling to 11,000 feet. The other rigs, an Ideco H35 and a National T20, are capable of drilling depths of between 6,500 to 7,000 feet.

The purchase forms the major part of the company’s retooling process and puts the company in an advantageous position to aggressively explore its concession in Nicaragua with a full suite of drilling equipment to meet its requirements for the short and medium term.

Norwood’s drilling team is modifying the equipment to meet the company’s specific drilling requirements. Once completed, the equipment will be transported to the port of Houston and shipped to the port of Rama in Nicaragua.