CABO DRILLING CORP : Announces Annual and Fourth Quarter Results

For Immediate Release: October 29, 2009
                                  Telephone: [phone]


                      Facsimile: [phone]

                                  e-mail: [e-mail]
CONTACT:  John A. Versfelt, Chairman, President and CEO
                      web site: www.cabo.ca

Cabo Announces Annual and Fourth Quarter Results

North Vancouver, BC - Cabo  Drilling Corp. ("Cabo" or the  "Company")
(TSX-V: CBE) reports results for  its fourth quarter and fiscal  year
ended June 30, 2009.

4th QUARTER & ANNUAL HIGHLIGHTS

+-------------------------------------------------------------------+
| (CDN   $000s,   except |  3 months  | 3 months |         |        |
| earnings per share)    |   ending   |  ending  |         |        |
|                        | June 30-09 |   June   | FY 2009 | FY2008 |
|                        |            |  30-08   |         |        |
|------------------------+------------+----------+---------+--------|
| Revenue                |      6,197 |   14,634 |  41,162 | 58,645 |
|------------------------+------------+----------+---------+--------|
| Net  Earnings   (Loss) |            |          |         |        |
| Before Interest,  Tax, |       (62) |      701 |   3,981 |  6,757 |
| Amortization,          |            |          |         |        |
| Stock-based            |            |          |         |        |
| Compensation and Other |            |          |         |        |
| Items (EBITDA)         |            |          |         |        |
|------------------------+------------+----------+---------+--------|
| Net  Earnings   (Loss) |    (1,028) |    (115) |     408 |  3,951 |
| Before Taxes           |            |          |         |        |
|------------------------+------------+----------+---------+--------|
| Net  Earnings   (Loss) |    (1,192) |      581 |   (847) |  3,203 |
| After Taxes            |            |          |         |        |
|------------------------+------------+----------+---------+--------|
| Earnings  (Loss)   per |            |          |         |        |
| Share ($) Basic Before |            |          |         |        |
| Interest,         Tax, |       0.00 |     0.02 |    0.08 |   0.15 |
| Amortization,          |            |          |         |        |
| Stock-based            |            |          |         |        |
| Compensation and Other |            |          |         |        |
| Items (EBITDA)         |            |          |         |        |
|------------------------+------------+----------+---------+--------|
| Earnings  (Loss)   per |     (0.02) |     0.01 |  (0.02) |   0.07 |
| Share ($) Basic        |            |          |         |        |
|------------------------+------------+----------+---------+--------|
| Cash from operations*  |      (339) |      814 |   2,060 |  5,149 |
|------------------------+------------+----------+---------+--------|
| Gross Margin %         |      29.6% |    20.0% |   26.7% |  23.4% |
|------------------------+------------+----------+---------+--------|
| Working Capital        |      4,588 |    7,239 |   4,588 |  7,239 |
+-------------------------------------------------------------------+

*before changes in non-cash working capital items

The Company reports:

§  Revenue of $6.20 million for  the 4th quarter of 2009 compared  to
4th quarter revenue of $14.63 million in fiscal 2008.
§  Net  4th quarter  2009 loss  before interest,  tax,  amortization,
stock-based compensation and other items of $61,635 and a net loss of
$1.19  million   after  interest,   tax,  amortization,   stock-based
compensation and other items resulting in  a loss of $0.00 per  share
and a loss of $0.02 per  share, respectively. This compares with  the
4th quarter  2008 earnings  before interest,  tax, amortization,  and
stock-based compensation  of $701,078  and net  earnings of  $581,487
after  interest,  tax,  amortization,  and  stock-based  compensation
resulting in  earnings  of  $0.02  per  share  and  $0.01  per  share
respectively.
§  Net before tax earnings for fiscal 2009 of $407,905 compared to  a
net before tax earnings for fiscal 2008 of $3.95 million.
§  Net after tax loss for  the fiscal year 2009 of $846,909  compared
to net after tax earnings for fiscal 2008 of $3.20 million.
§  Gross margin percentage for the 4th quarter fiscal 2009 was 29.6%,
compared with a gross  margin of 20.0% in  the 4th quarter of  fiscal
2008 and 26.7% in fiscal 2009 compared to 23.4% in fiscal 2008.
§  Cash from operations, before  changes in non-cash working  capital
items, was a decrease of $339,131 for the 4th quarter 2009 and  $2.06
million for  fiscal 2009,  compared  to 4th  quarter 2008  cash  from
operations of $814,615 and $5.15 million for the fiscal year 2008.
§  A current asset balance of  $16.63 million and working capital  of
$4.6 million.
§  Total assets  of $33.19  million and total  liabilities of  $14.10
million.
"Consistent with our  third quarter fiscal  2009, Cabo experienced  a
continued decrease in  rig utilization during  the fourth quarter  of
fiscal 2009," stated John A. Versfelt, Cabo Drilling's President  and
CEO.  "Due to the uncertainty  in the economy, clients delayed  their
exploration drilling programs.  There was significant contraction  in
the Canadian  and  United States  market,  with a  58%  reduction  in
revenues in the fourth quarter of fiscal 2009. Fortunately, this  was
offset  somewhat  by  a  56%  revenue  growth  in  our  international
divisions."

"We recorded our lowest quarterly  revenue, in the fourth quarter  of
fiscal 2009," commented Mr. Versfelt.  "We believe this is the bottom
of the curve, as we have  seen improvements in more signed  contracts
into the first  and second quarters  of fiscal 2010.  In addition  we
have  received  larger  numbers  of  bid  requests  from  mining  and
exploration companies who have  increased their exploration  budgets,
as a result of new financings."

 "Cabo had a gross  margin performance of 29.6%  for the 4th  quarter
fiscal 2009 (20.0% 4th quarter fiscal 2008), our highest gross margin
performance to date, and  26.7% for the fiscal  year 2009 (23.4%  for
2008)," Mr. Versfelt stated. "We have recorded improved gross margins
since the beginning of 2009 and expect this trend to continue, due to
operational efficiencies and an upgraded and modernized drill fleet.
Going into  2010 we  will  remained focus  on cost  saving  measures,
continuing reduced support costs, improved performance for each drill
and greater utilization of  the drills, which  will lead to  improved
profitability."

"During fiscal 2009, the Company recorded an allowance of $700,000 to
reduce inventory to net realizable value," commented Mr.  Versfelt.
This together  with  recorded  stock based  compensation  expense  of
$120,118 in fiscal 2009 negatively affected net income by  $820,118.
Without recording these accounting adjustments Cabo would have had  a
net loss after taxes of only  $26,791.  It is important to note  that
Cabo can increase the value of inventory to net realized value in the
future and recapture the $700,000 allowance."

"As markets improved  Cabo received  more bid requests,  and gold  is
leading the way  in Canada, as  well as Mexico  and Central  America.
Copper and iron ore  projects are also  requesting bids for  drilling
services," stated Mr. Versfelt. "Cabo  was able to take advantage  of
opportunities to acquire  six newer drills  at significantly  reduced
prices on special terms, which has enabled the Company to improve its
fleet during tough  times at  a greatly  reduced price,  at the  same
time, allowing it to put  these drills into production with  improved
margins.  Consequently, Cabo Drilling is experiencing and  projecting
growth in drill utilization for the balance of fiscal 2010."

Fourth quarter ended June 30, 2009

Revenue for the three months ending June 30, 2009 decreased to  $6.20
million, compared  to  $14.63 million  in  the comparable  period  in
fiscal 2008 and  compared to $6.52  million in the  third quarter  of
fiscal 2009. Revenues  from the  international divisions  represented
65% of the revenues for fourth quarter of fiscal 2009, as compared to
27% during the fourth quarter of fiscal 2008.

Net loss for  the fourth  quarter of  fiscal 2009  was $1.19  million
compared to net earnings of $581,487 in the fourth quarter of  fiscal
2008 and fiscal 2008 and a net loss of $765,330 in the third  quarter
of fiscal 2009. Earnings primarily  decreased during the quarter  due
to the $700,000 allowance for inventory and the $120,118 stock  based
compensation.

Year ended June 30, 2009

Revenue for the year ending June 30, 2009 decreased $17.48 million or
30% to $41.16 million, compared to $58.64 million in fiscal 2008. The
primary reason for  the decrease  is due  to the  contraction of  the
drilling market, as a result  of the economic downturn. The  revenues
from the Canadian and United States divisions decreased by 50%, while
the other divisions increased  by 56%.  Panama  provided most of  the
growth during this period as  drill utilization increased 100% to  an
average of  six drills  per month.  Revenues from  Spain, Mexico  and
Liberia decreased from  the previous years  as several projects  were
shut down.  During  the first  year  of operation,  Albania  recorded
$912,944 in revenues before the  economic downturn. All the  Canadian
divisions were negatively  affected by the  contracted market  during
fiscal 2009. The expansion into the international market helped  Cabo
Drilling to weather  the downturn in  the global markets.  Management
expects  international   operations  to   stabilize  between   30-40%
throughout fiscal 2010 as the market in Canada also improves.

Gross margins for the year ended June 30, 2009 were 26.7% compared to
23.4% during  the fiscal  year ending  June 30,  2008. The  increased
gross  margin  is  a  direct   result  of  cost  reduction   measures
implemented during fiscal 2009.  Management expects gross margins  to
increase to between 28-30% range  during fiscal 2010 due to  improved
cost controls, and upgrades and modernization of the drill fleet.

EBITDA (earnings  before  interest,  tax,  amortization,  stock-based
compensation and other items) for fiscal 2009 decreased $2.78 million
to $3.98  million ($0.08  per share  basic dilution)  as compared  to
$6.76 million ($0.15 per share basic dilution) in fiscal 2008.

Net loss for  fiscal 2009 was  $846,909 compared to  net earnings  of
$3.20 million in fiscal 2008.  Earnings decreased during fiscal  2009
due to lower  revenues, increased amortization  and increased  income
taxes.

For the full version of this news release please go to the  Company's
website www.cabo.ca or SEDAR www.sedar.ca.

About Cabo Drilling Corp. (TSX-V: CBE)
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.  For general investor  relation inquiries you may  also
contact Renmark Financial  Communications Inc.   Barbara  Komorowski:
[e-mail]        or        Dan         Symons:
[e-mail] at Tel: [phone] or 416-644-2020.
                          *    *    *    *
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.


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