Union Drilling to Buy Six Drilling Rigs from National-Oilwell, L.P.

Union Drilling has executed an agreement to acquire three Ideal Rigs from National-Oilwell, L.P. for an aggregate purchase price of $24 million and an option, which must be exercised by April 30, 2006, to acquire an additional three Ideal Rigs from National-Oilwell, L.P. for an aggregate purchase price of $25.2 million. The Company paid $1 million for the option, which will be applied against the purchase price if the option is exercised.

The three Ideal Rigs subject to the purchase agreement are scheduled for delivery in March, May and June of 2006. The three Ideal Rigs subject to the option are scheduled for delivery, if the option is exercised, in September, October and November of 2006.

The Company also took delivery of two newly constructed 185k top head drive rigs in November and early December 2005. These rigs will be deployed in the Southern Appalachian basin drilling for natural gas in CBM (Coalbed Methane) formations.

Union Drilling, Inc., headquartered in Bridgeville, Pennsylvania, provides contract land drilling services and equipment, primarily to natural gas producers, in the United States.
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