CALGARY, Jan. 20 /CNW/ - Precision Drilling Trust ("Precision") announces
today that the cash distribution for the month of January 2006 will be
Cdn$ 0.27 per trust unit of Precision. The distribution will be payable on
February 15, 2006 to unitholders of record on January 31, 2006. The ex-
distribution date is January 27, 2006. A payment of Cdn$ 0.27 per unit will
also be made to holders of Class B limited partnership units of Precision
Drilling Limited Partnership using the same record date and payment date.
United States Federal Income Tax Information for 2005
Based on advice from Precision's United States tax advisors, the issued
and outstanding trust units of Precision will be classified as equity rather
than as debt for United States federal income tax purposes. Precision believes
that the cash distributions paid in 2005, out of its current and accumulated
earnings and profits, to individual United States unitholders, should be
treated as qualified dividend income for United States federal income tax
purposes eligible for the reduced maximum rate of tax to individuals of
generally 15%. More detailed information regarding the 2005 distribution will
be reported at a later date on Precision's website at
www.precisiondrilling.com.
United States unitholders are advised to consult their own tax advisers
as to the specific United States federal and state income tax consequences of
having received a cash distribution in 2005 from Precision.
Precision Drilling Trust is Canada's largest energy services trust.
Headquartered in Calgary, Alberta, Precision is the leading provider of
contract drilling services to the Canadian oil and gas industry. Precision
provides customers with access to an extensive fleet of drilling and service
rigs backed by a comprehensive mix of support services utilizing skilled and
experienced personnel.
Precision is listed on the Toronto Stock Exchange under the trading
symbol "PD.UN" and in U.S. dollars "PD.U" and on the New York Stock Exchange
under the trading symbol "PDS".
%SEDAR: 00022925E
