North Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company") (TSX-V:CBE) today reported results for its fiscal year 2009 third quarter ended March 31, 2009

3rd QUARTER HIGHLIGHTS

The Company reports:

• Quarterly revenue for the 3rd quarter fiscal 2009 of $6.52 million compared to $16.04 million revenue in the 3rd quarter of fiscal 2008.
• 3rd quarter fiscal 2009 earnings before interest, taxes, amortization, stock-based compensation and other items (EBITDA) of $101,828 compared to 3rd quarter fiscal 2008 earnings before interest, tax, amortization, stock based compensation and other items (EBITDA) of $1.87 million, resulting in 3rd quarter fiscal 2009 earnings before interest, taxes, amortization, stock-based compensation and other items of $0.00 per share and $0.04 per share in the 3rd quarter of fiscal 2008.
• Net before tax loss for the 3rd quarter of fiscal 2009 of $765,330 compared to 3rd quarter fiscal 2008 before tax earnings of $1.10 million.
• Net after tax loss for the 3rd quarter of fiscal 2009 of $1.08 million compared to net after tax earnings for the 3rd quarter of fiscal 2008 of $731,277, resulting in 3rd quarter fiscal 2009 net after tax loss of $0.02 per share compared to net after tax earnings for 3rd quarter fiscal 2008 of $0.02 per share.
• Gross margin percentage for the 3rd quarter fiscal 2009 was 26.7% compared with a gross margin of 22.9% in 3rd quarter fiscal 2008.
• Cash from operations, before changes in non-cash working capital items, was $(345,533) for the 3rd quarter fiscal 2009 compared to 3rd quarter fiscal 2008 cash from operations of $1.42 million.
• A current asset balance of $17.63 million and working capital of $7.24 million.
• Total assets of $32.91 million and total liabilities of $12.65 million.

"The Company recorded revenue for the 3rd quarter ending March 31, 2009 of $6.52 million, compared to $11.83 million in the second quarter of fiscal 2009, a 45% decrease, revenues decreased 59% compared to the $16.04 million recorded in the third quarter of fiscal 2008", stated Mr. John Versfelt, President and CEO of Cabo Drillling Corp. "The decrease can be attributed to lower revenues from our Canada, Mexico and Spain operations, which were partially offset by revenue growth from the Panama operations."

"During the third quarter fiscal 2009, the Company experienced a significant decrease in rig utilization due to the uncertainty in the economy, as clients have delayed, cancelled or reduced exploration drilling programs. This reduction started in the second fiscal quarter ending December 31, 2008 and was severe in the third quarter of fiscal 2009," noted Mr. Versfelt. "Seasonal shutdowns occurred earlier than previous years and continue through Spring break-up, with programs remaining delayed until the summer drilling season. This is both a domestic and global condition. Consequently, we expect that revenues in the balance of 2009 will remain low. Although revenues in Canada will be lower, the Company continues to service several longer term, multi-drill projects for intermediate and major mining companies, domestic and international."

"Gross margins showed an improvement with an increase to 27% in the 3rd quarter of fiscal 2009 compared to 22.9% in the 3rd quarter of fiscal 2008 and 26.1% in the 2nd quarter of fiscal 2009," stated John A. Versfelt. "In order to improve on our gross margins and profitability in an environment of decreasing demand and volatile commodity prices, we are relentless on cost control and reducing our spending, while at the same time maintaining our experienced workforce, enforcing our high safety standards, and remaining focused on high employee relations and customer relations."
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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; Montr�al, 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 Seville, Spain; Balkan States Drilling SH.P.K. of Tirana, Albania; 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 Investor Relations, Sheri Barton, 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.

Cabo Drilling Corp. was recognized as a TSX Venture 50T company in 2008. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license. -