10:10 AM EST, 11/03/2025 (MT Newswires) -- Stampede Drilling ( STPDF ) on Monday said it completed the sale of certain drilling components from its A/C triple drilling rig previously acquired by Stampede in August, 2022, to a private company, as initially announced on May 5, 2025.

A statement noted that the total purchase price was approximately C$5.29 million, which included $5 million in cash and the transfer of certain drilling equipment of the purchaser to Stampede, valued at $290,000.

Stampede said it retained nearly half of the key components from its A/C Triple, which are expected to be sold or integrated into the existing fleet.

"The completion of this transaction marks a significant milestone for Stampede, strengthening our debt position and enhancing our financial flexibility," said Stampede's president and chief executive officer Lyle Whitmarsh. "We are pleased to have recaptured 25% of the total purchase price of our August 2022 acquisition, while retaining the majority of the assets."

The company said its August 2022 acquisition was comprised of one A/C triple, five tele-doubles and other related assets.

"Since that purchase, market conditions have shifted notably, with declining oil prices, operator consolidation and reduced customer interest in committed long-term contracts for the A/C Triple," added the CEO. "The A/C Triple would have required substantial capital to improve its marketability, but in the current environment, we chose to prioritize our balance sheet strength and flexibility, positioning ourselves for future market recovery."

A statement further noted that the proceeds from the sale will be allocated to reduce the existing operating line, enabling the company "to pursue future strategic initiatives based on market conditions," such as potentially renewing its normal course issuer bid, funding capital expenditures to enhance rig marketability, and growth opportunities as market conditions improve.

The company said that the transaction was completed after satisfying all customary closing conditions outlined in the purchase agreement.

The company's shares were last seen up 3.7% to $0.14 on the TSX Venture Exchange.

Price: 0.14, Change: +0.01, Percent Change: +3.70