Western Lakota Announces Receives Advance to Construct New Drilling Rigs

Western Lakota Energy Services says that it has received a $5 million cash drilling advance from an oil and gas company. The advance is in conjunction with the three-year term contracts on two 3,600 meter ultra-heavy telescoping double drilling rigs and three 3,200 meter telescoping double drilling rigs which were announced on July 7, 2005 and is to be used to assist in the construction of these five rigs. The five rigs include three that are scheduled to be built in 2005 and two that will be built in 2006. The advance will be recognized into income over the term of the contracts.

The Company also announces that construction of its fourth 3,600 meter ultra-heavy telescoping double drilling rig is now complete and is drilling its first well location. This brings the current number of rigs to 29.

The Board of Directors of Western Lakota has approved the construction of four more surface casing/core rigs. Construction on three of these rigs has been started and they are expected to be in operation for the winter drilling season. The construction of these rigs will complement the existing four surface casing/core rigs that were recently acquired. All of the coring rigs will be operated through Western Lakota's wholly-owned subsidiary Akuna Drilling Inc.