Stampede Drilling Inc. has entered into a joint venture relationship with 'AlbertaCo' specializing in the engineering, manufacturing and supply of fully integrated under balanced coil drilling rigs and corresponding support equipment for the oil and gas industry worldwide. The business of the Joint Venture will be carried on through a new subsidiary ("UBC Drillco") to be managed and operated by Stampede. Stampede will make a total contribution of $4.5 million to UBC Drillco, consisting of $3 million of previous cash contributions and ancillary drilling equipment valued at $1.5 million for a 50% ownership.

In addition, Stampede has acquired a minority interest in AlbertaCo for an aggregate investment of $3 million in cash. AlbertaCo will continue to own the technology in respect of the UBC Drilling Rigs and related systems which will be licensed to UBC Drillco. UBC Drillco has completed the fabrication of one UBC Drilling Rig.

Stampede believes both investments will enhance the Corporation's strategy in the provision of industry leading services for ESG extraction of hydrocarbons from bypassed reserves, low pressure reservoirs and extend the reach in underbalanced short radius wells through-tubing re-entry drilling applications in the future. The purpose of the Joint Venture is to combine Stampede's extensive drilling operations experience with AlbertaCo's technology of E-line coil tubing directional tools, tool deployment system, integrated drilling control systems, pumping systems, automated live wellbore modeling system, coil tubing injectors and reels. The Joint Venture estimates deployment and beta testing on the new UBC Drilling Rig and related technology to be completed by the end of the second quarter in 2022.