Precision Drilling Posts Private Offering of Senior Notes

Precision Drilling announced plans to commence a private offering of US $550 million aggregate principal amount of senior unsecured notes due 2020 (the "notes"). Precision intends to use the net proceeds from the proposed notes offering, together with cash on hand, to repay in full its outstanding indebtedness under its existing term loan A and term loan B credit facilities. The current outstanding balance of the term A is approximately US $263 million and the outstanding balance under the term B credit facility is approximately US $318 million. In conjunction with the closing of the notes offering, Precision expects to enter into a new US $650 million senior secured revolving credit facility expiring in 2013.

The notes will be offered to qualified institutional buyers under Rule 144A and may be offered outside the United States pursuant to Regulation S. The notes have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of the notes in any state, or jurisdiction in which such offer, solicitation, or sale would be unlawful.