GlobalSantaFe Sells Land Drilling Unit to Precision Drilling

GlobalSantaFe and Precision Drilling have executed a definitive agreement for Precision to buy all GlobalSantaFe's worldwide land drilling assets for US$316.5 million in an all cash transaction. The transaction is anticipated to be completed during the second quarter of 2004.

The sale includes 31 land rigs located in the Middle East, North Africa and South America and an extensive fleet of specialized rig transport equipment that supports land rig operations in Kuwait and the Kuwaiti-Saudi Arabia Partitioned Neutral Zone.

GlobalSantaFe's President and Chief Executive Officer, Jon Marshall stated, "While we have been successful with the land rig business over the years, it has become an increasingly smaller part of our overall operations. This transaction will permit us to focus our management efforts on growing the offshore market. With Precision's reputation for quality operations and with the vast majority of our employees associated with these operations being offered continuous employment with Precision, we are confident our customers will continue to receive an excellent level of service."

Hank B. Swartout, Chairman, President and Chief Executive Officer of Precision stated, "This transaction provides Precision with a tremendous opportunity to expand our growing international presence. We recognize the excellent quality of both the rigs we are acquiring and the people associated with GlobalSantaFe's land drilling operations. This combination with Precision's focus on international land drilling services will strengthen our product offerings for the mutual benefit of our employees, customers and shareholders."

Simmons & Company International served as financial advisor to GlobalSantaFe for this transaction.