Cabo Announces 1st Quarter Results

For Immediate Release: November 30, 2009
                                             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
Cabo Announces 1st Quarter Results
North Vancouver, BC - Cabo  Drilling Corp. ("Cabo" or the  "Company")
(TSX-V:CBE) today reported  results for  its fiscal  year 2010  first
quarter ended September 30, 2009.
1st QUARTER HIGHLIGHTS
 
+-------------------------------------------------------------------+
| (CDN  $000s,  except  earnings | Q1 - 2010 | Q1  - 2009 | FY 2009 |
| per share)                     | Sept. 30  |  Sept. 30  | June 30 |
|--------------------------------+-----------+------------+---------|
| Revenue                        |     6,340 |     16,617 |  41,162 |
|--------------------------------+-----------+------------+---------|
| Earnings     (Loss)     Before |           |            |         |
| Interest, Taxes, Amortization, |       482 |      2,504 |   6,773 |
| Stock Based  Compensation  and |           |            |         |
| Other Items  (EBITDA)          |           |            |         |
|--------------------------------+-----------+------------+---------|
| Net  Earnings  (Loss)   Before |     (463) |      1,695 |     408 |
| Taxes                          |           |            |         |
|--------------------------------+-----------+------------+---------|
| Net  Earnings   (Loss)   After |     (463) |      1,090 |   (847) |
| Taxes                          |           |            |         |
|--------------------------------+-----------+------------+---------|
| Earnings (Loss) per Share  ($) |           |            |         |
| (Basic  and  Diluted)   Before |           |            |         |
| Interest, Taxes, Amortization, |    (0.01) |       0.05 |    0.08 |
| Stock-based  Compensation  and |           |            |         |
| Other Items (EBITDA)           |           |            |         |
|--------------------------------+-----------+------------+---------|
| Earnings (Loss) per Share  ($) |    (0.01) |       0.02 |  (0.02) |
| (Basic and Diluted)            |           |            |         |
|--------------------------------+-----------+------------+---------|
| Cash from Operations*          |       388 |      1,821 |   2,060 |
|--------------------------------+-----------+------------+---------|
| Gross Margin %                 |     29.1% |      26.0% |   26.7% |
|--------------------------------+-----------+------------+---------|
| Working Capital (deficiency)   |     4,706 |      7,716 |   4,588 |
+-------------------------------------------------------------------+
 
*before changes in non-cash working capital items
 "The first  quarter  of fiscal  2010  reversed the  trend  of  three
consecutive quarters  of reduced  revenues compared  to the  previous
quarter, giving us renewed optimism that the Company has  experienced
the bottom of  the cycle.  The Company  has drills  operating in  all
regions at this time."  stated John A.  Versfelt, Cabo's President  &
CEO.   "Drill utilization  has increased  in all  divisions with  new
signed contracts in  Atlantic, Pacific, Mexico  and Europe  divisions
and a more substantial increase in the Ontario division. "
 "General and  administration  costs  have  decreased  in  the  first
quarter of fiscal 2010 by 24% compared to the first quarter of fiscal
2009 and 17% compared  to the fourth quarter  of fiscal 2009,"  noted
Mr. Versfelt.  "This is a result  of the salary and wage  reductions,
restructuring,  and  improved  control  costs.   Management   expects
additional efficiencies through  the use of  technology, and  expects
general and administration expenses in  the range of $5.2 million  to
$5.6 million for the fiscal year 2010."
"Gross margins remained  consistent for the  first quarter of  fiscal
2010 at 29.1% compared to 29.6% in the fourth quarter of fiscal  2009
and improved from  the 26.0% recorded  in the 1st  quarter of  fiscal
2009,"  stated  John  A.  Versfelt.   "The  Company  is  experiencing
improved  cost   controls,  reduced   unit  costs,   more   efficient
purchasing, wage reductions and better supervision. All these changes
have resulted in the gross margin averaging 29% for the previous  two
quarters."
 "The Company recorded a net loss of $463,495 during the 1st  quarter
of fiscal 2010  or $0.01  loss per  share compared  $1.09 million  or
$0.02 earnings per share  in the 1st quarter  of fiscal 2009,"  noted
John A. Versfelt.   "EBITDA decreased  to $482,152  during the  first
quarter of fiscal  2010, compared  to $2.50 million  in the  previous
corresponding period."
"As stated at the end of  fiscal 2009, the Company is receiving  more
bid requests. Gold is leading the way in Canada, as well as in Mexico
and Central  America,"  said  Mr. Versfelt.   "Copper  and  iron  ore
projects  are   also   requesting  bids   for   drilling   services.
Consequently, Cabo Drilling is experiencing and projecting growth  in
drill utilization for the balance of fiscal 2010."
First quarter ended September 30, 2009
Revenue for the  quarter ending September  30, 2009 decreased  $10.28
million or 62% to  $6.34 million, compared to  $16.62 million in  the
first quarter of fiscal 2009; however it improved from $6.20  million
recorded in the fourth  quarter fiscal 2009.  The primary reason  for
the decrease is due  to the contraction of  the drilling market  that
began in the Fall of 2008 as a result of the economic downturn.
Net loss for the first quarter  of fiscal 2010 was $463,495  compared
to net earnings of $1.09 million in the first quarter of fiscal 2009.
 
For the full version of this news release please go to the  Company's
website www.cabo.ca or SEDAR 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  the  Cabo
website  (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 work programs,
geological interpretations, potential mineral recovery processes and
other business transactions 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.
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.