Cabo Announces 2nd Quarter Results

For Immediate Release: March 2, 2010
                     Telephone: (604) 984-8894
 
          Facsimile: (604) 983-8056
 
                                  e-mail: ir@cabo.ca 
CONTACT:  John A. Versfelt, Chairman, President and CEO
          web site: www.cabo.ca <http://www.cabo.ca/>
 
Cabo Announces 2(nd) Quarter Results
 
North  Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company") (TSX-V:CBE)
today  reported results for  its fiscal year  2010 second quarter ended December
31, 2009.
 
2(ND) QUARTER HIGHLIGHTS
 
+---------------------+--------------+-------------+-------------+-------------+
|(CDN   $000s,  except|   3 months   |  3 months   |  6 months   |  6 months   |
|earnings per share)  |    ending    |   ending    |   ending    | ending Dec. |
|                     |  Dec. 31/09  | Dec. 31/08  | Dec. 31/09  |    31/08    |
+---------------------+--------------+-------------+-------------+-------------+
|Revenue              |         7,983|       11,825|       14,324|       28,442|
+---------------------+--------------+-------------+-------------+-------------+
|Earnings       (Loss)|              |             |             |             |
|Before      Interest,|           836|        1,441|        1,318|        3,941|
|Taxes,  Amortization,|              |             |             |             |
|Stock           Based|              |             |             |             |
|Compensation      and|              |             |             |             |
|Other Items  (EBITDA)|              |             |             |             |
+---------------------+--------------+-------------+-------------+-------------+
|Net  Earnings  (Loss)|         (147)|          515|        (611)|        2,201|
|Before Taxes         |              |             |             |             |
+---------------------+--------------+-------------+-------------+-------------+
|Net  Earnings  (Loss)|         (150)|          339|        (614)|        1,420|
|After Taxes          |              |             |             |             |
+---------------------+--------------+-------------+-------------+-------------+
|Earnings  (Loss)  per|              |             |             |             |
|Share  ($) (Basic and|              |             |             |             |
|Diluted)       Before|          0.02|         0.03|         0.02|         0.08|
|Interest,      Taxes,|              |             |             |             |
|Amortization,        |              |             |             |             |
|Stock-based          |              |             |             |             |
|Compensation      and|              |             |             |             |
|Other Items (EBITDA) |              |             |             |             |
+---------------------+--------------+-------------+-------------+-------------+
|Earnings  (Loss)  per|          0.00|         0.01|       (0.01)|         0.03|
|Share  ($) (Basic and|              |             |             |             |
|Diluted)             |              |             |             |             |
+---------------------+--------------+-------------+-------------+-------------+
|Cash from Operations*|           729|          924|        1,117|        2,745|
+---------------------+--------------+-------------+-------------+-------------+
|Gross Margin %       |         28.5%|        26.1%|        28.8%|        26.0%|
+---------------------+--------------+-------------+-------------+-------------+
|Working       Capital|         6,076|        7,765|        6,076|        7,765|
|(deficiency)         |              |             |             |             |
+---------------------+--------------+-------------+-------------+-------------+
*before changes in non-cash working capital items
 
The Company reports:
 
§   Improved  quarterly  revenue  for  the  2(nd) quarter  fiscal  2010 of $7.98
million,  compared  to  $6.34  million  in  the  1(st) quarter fiscal 2010 and a
decrease compared to $11.82 million in 2(nd) quarter fiscal 2009.
§   Gross margin percentage for  the 2(nd)quarter fiscal 2010 was 28.5% compared
with  a  gross  margin  of  26.1% in  2(nd) quarter fiscal 2009 and 29.1% in the
1(st) quarter of fiscal 2010.
§   Cash from operations, before changes  in non-cash working capital items, was
$728,657  for  the  2(nd) quarter  fiscal  2010 compared to 2(nd) quarter fiscal
2009 cash from operations of $924,014.
§   A  current  asset  balance  of  $17.14  million and working capital of $6.08
million.
§  Total assets of $32.55 million and total liabilities of $13.14 million.
 
"The second quarter of fiscal 2010 is the second consecutive quarter of improved
revenues,  after three consecutive quarters of reduced revenues," stated John A.
Versfelt,  Cabo's  President  &  CEO.   "At  this  time,  the Company has drills
operating  in all  operating regions.   Drill utilization  has increased  in all
divisions  with newly signed contracts in Atlantic, Pacific, Mexico and European
divisions  and a more substantial increase in contracts in the Ontario division.
We expect modest revenue growth over the balance of the year."
 
"The Company recorded a net after tax loss of  $150,093 during the 2(nd) quarter
of  fiscal 2010 or  $0.00 per  share compared  to earnings  of $339,053 or $0.01
earnings  per share in the 2nd quarter of fiscal 2009," noted John A. Versfelt.
"Our second quarter is a 69% improvement over our 1(st) quarter fiscal 2010 loss
of  $463,495 or $0.01 loss  per share.  EBITDA decreased  to $835,577 during the
second  quarter  of  fiscal  2010, compared  to  $1.44  million  in the previous
corresponding  period and  increased 73% from  the $482,152  recorded during the
first quarter of fiscal 2010."
 
 "Our  expectation  is  that  we  will  continue  to  see  slight  increases  of
exploration  spending during  2010 and a  greater improvement in 2011," remarked
Mr.  Versfelt.  "This increase in spending will be supported by the current gold
and  base metal  market and  pricing improvements,  as well  as the  lack of new
discoveries, lower metal supply and higher metal demand factors."
 
For  the full version  of this news  release please go  to the Company's website
www.cabo.ca <http://www.cabo.ca/> or SEDAR www.sedar.ca <http://www.sedar.ca/>.
 
Cabo  Drilling  Corp.  is  a  drilling  services  company headquartered in North
Vancouver,  British Columbia, Canada.   The Company provides  mining related and
specialty  drilling services through  its Canadian divisions  in Surrey, British
Columbia;   Montréal,   Quebec;   Kirkland   Lake,   Ontario;   and  Springdale,
Newfoundland;  as well as  Cabo Drilling de  Mexico S.A. de  C.V. of Hermosillo,
Mexico;  Cabo  Drilling  (Panama)  Corp.  of  Panama,  Republic  of Panama; Cabo
Drilling Spain S.L. of Sevilla, Spain; Balkan States Drilling SH.P.K. of Tirana,
Albania;  Cabo  Drilling  (Ghana)  Limited  of  Accra,  Ghana; and Cabo Drilling
(International)  Inc.   The  Company's  common  shares  trade  on  the Frankfurt
Exchange under the symbol: DHL and on the TSX Venture Exchange under the symbol:
CBE.
 
ON BEHALF OF THE BOARD
 
     "John A. Versfelt"
 
John A. Versfelt
Chairman, President and CEO
 
Further   information   about  the  Company  can  be  found  on  Cabo's  website
(http://www.cabo.ca  <http://www.cabo.ca/>)  and  SEDAR  (www.sedar.com)  or  by
contacting Sheri Barton, Corporate Communications at 403-217-5830 or Mr. John A.
Versfelt, Chairman, President & CEO of the Company at 604-984-8894.
                                *    *    *    *
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 business transactions and 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.
 
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