Precision Drilling Closes Share Issue

Precision Drilling has closed its previously announced equity offering of 4,000,000 common shares at a price of US$49.80 per Share, (C$65.25 per Share), for gross proceeds of approximately US$200 million.

The sale of these securities was completed by a syndicate of underwriters led by TD Securities Inc. and RBC Capital Markets. Precision has granted the Underwriters an option to purchase up to an additional 400,000 Shares at the offering price to cover over-allotments and for stabilization purposes. The over-allotment option is exercisable for up to 30 days after the date of the closing of this offering.

Precision expects to use the net proceeds from the offering primarily to pay down indebtedness, including all indebtedness incurred in connection with the acquisitions of the land drilling assets of GlobalSanteFe Corporation and the acquisition of all of the issued and outstanding shares of Reeves Oilfield Services Limited as well as for general corporate purposes.

A shelf registration statement relating to the common shares of Precision has been filed with the Securities and Exchange Commission and has been declared effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in the United States prior to registration and any sale in the United States will be made by means of a prospectus that may be obtained from TD Securities Inc. at 222 Bay Street, Ernst & Young Tower, 7th Floor, Toronto, Ontario, M1K 1A2 or from RBC Capital Markets at 200 Bay Street, Royal Bank Plaza, 4th Floor, Toronto, Ontario, M5J 2W7.

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