CALGARY, Oct. 4 /CNW/ - Precision Drilling Corporation ("Precision")
announced today the mailing to securityholders of the Notice of Special
Meeting of Securityholders and Information Circular with respect to the Plan
of Arrangement for the reorganization of Precision into Precision Drilling
Trust (the "Trust"). Copies of this documentation have been submitted for
posting on SEDAR (www.sedar.com). The special meeting to consider the
conversion is scheduled to take place on October 31, 2005 at 10:00 a.m.
(Calgary time) at the Metropolitan Conference Centre, Royal Room, 333 - 4th
Avenue S.W., Calgary, Alberta.
Pursuant to the reorganization, shareholders will be entitled to receive
in exchange for each common share held (i) one unit of the Trust ("Trust
Units"); (ii) their pro-rata share of the 26 million common shares of
Weatherford International Ltd. owned by Precision ("Weatherford Shares"); and
(iii) their pro-rata share of up to $850 million of cash in aggregate. The
Weatherford Shares will not be subject to any resale restrictions, however,
Precision will not be able to complete the reorganization or transfer the
Weatherford Shares until a Registration Statement to be filed by Weatherford
is declared effective by the U.S. Securities and Exchange Commission. The
Trust will own Precision's existing business and will make regular monthly
distributions to holders of the Trust Units. Based on current business
conditions, it is anticipated that the board of Trustees of the Trust will set
the initial regular distributions to the Trust's unitholders at approximately
$0.24 per Trust Unit per month with the first such payment expected to be made
in the month following the effective date of the reorganization.
The actual amount distributed will be dependent on various economic
factors and is at the discretion of the Board of Trustees. The anticipated
distribution policy targets the use of approximately 70% of available cash for
distribution to Trust Unitholders. Based upon current economic factors and the
size of the Trust's capital budget, it is expected that the remaining
approximately 30% of cash available for distribution will fund the Trust's
annual capital expenditure program.
Certain statements contained in this press release may contain words such
as "anticipate", "could", "should", "expect", "believe", "will" and similar
expressions and statements relating to matters that are not historical facts.
These statements are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Act of 1934. Such forward-looking statements involve known and unknown risks
and uncertainties which may cause the actual results, performance or
achievements of the entities discussed in this Press Release to be materially
different from any future results, performances or achievements expressed or
implied by such forward-looking statements. Such factors include fluctuations
in the market for oil and gas and related products and services; competition;
the demand for services provided by Precision; changes in laws and
regulations, including environmental and tax laws and regulations, to which
Precision is subject and other factors, which are described in further detail
in Precision's filings with the US Securities and Exchange Commission.
Precision 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".
%SEDAR: 00002052E
