Precision Drilling Corporation proceeds with trust conversion

CALGARY, Sept. 22 /CNW/ - Precision Drilling Corporation ("Precision")
previously announced on September 7, 2005 that it intended to seek shareholder
approval of a plan of arrangement, which would include reorganizing
Precision's existing operations and holdings into an income trust. Pursuant to
the proposed plan of arrangement, shareholders would also receive a pro rata
share of 26 million common shares of Weatherford International Ltd. owned by
Precision and of up to Cdn $850 million of cash.
Precision has assessed the announcement by Canada's Minister of Finance,
issued on September 19, 2005, stating that the Department of National Revenue
will postpone providing advance income tax rulings respecting flow-through
entity structures.
As part of the trust conversion process, Precision had made an
application for an advance tax ruling seeking as much certainty as possible
regarding the tax consequences of certain elements of its proposed income
trust structure. This ruling request was made in order to receive complete
assurance from the Canada Revenue Agency ("CRA") relating to a limited number
of issues that have previously been ruled on favourably by the federal tax
authorities. Precision is of the view that given previous precedent, existing
published CRA policy and prevailing law, a ruling is not necessary to proceed
with the conversion to an income trust, and will therefore continue to proceed
with the necessary steps to implement the plan of arrangement and trust
conversion.

Precision Drilling Corporation is listed on the Toronto Stock Exchange
under the trading symbols "PD and PD.U" and on the New York Stock Exchange
under the trading symbol "PDS".

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