News

March 19, 2008

Blue Skies Over Cabo Drilling

By Christian Gradley

“We are a ‘fundamentals’ company,” says Cabo Drilling chief executive, John Versfelt, and not a “blue-sky company.” Maybe not, but Cabo’s progress over the past year certainly makes it feel as if the sky is blue and the sun is shining. Growth in Canada for Cabo has been steady, but it’s the company’s international operations that are the real story. From next-to-nothing one year ago, international operations now equate for 17 per cent of Cabo’s operations revenue. This jump is central to the company’s projected 20 25 per cent growth this year. By the company’s June 30th year-end, Cabo is expecting to surpass C$50 million in gross revenue, nearly double 2006.

Cabo’s impressive growth in this fiscal year is largely due to the fact that 2008 marked the company’s first year as a drilling-orientated company.  Cabo went public in 2004 under the name Cabo Mining Enterprises.  With C$7 million in the bank and a number of properties to its name, from 2004 to 2007 Cabo Mining Enterprises conducted exploration and built up its drilling services.  Early in 2007, the company was re-organized and the properties were sold to International...