United States resident shareholder information regarding estimated current or accumulated earnings and profits of Precision Dril
26 Ottobre 2005 - 2:19AM
PR Newswire (US)
CALGARY, Oct. 25 /PRNewswire-FirstCall/ -- Pursuant to the
Information Circular, dated October 3, 2005, regarding the Plan of
Arrangement ("Arrangement") for the conversion of Precision
Drilling Corporation ("Precision") to Precision Drilling Trust
("Trust"), the information contained herein is to provide
shareholders who are United States persons ("U.S. Shareholders")
with information pertaining to the current or accumulated earnings
and profits of Precision for its taxable year ended December 31,
2005. As indicated in the second last paragraph on page 52 of the
Information Circular, the receipt of Weatherford Shares and the
Special Cash Payment by U.S. Shareholders should result in dividend
income for United States federal income tax purposes to the extent
of their allocable share of Precision's current or accumulated
earnings and profits as at its taxable yearend. The company will
not be able to provide U.S. Shareholders with the final calculation
of the current or accumulated earnings and profits until after the
Arrangement is completed, and after the end of the taxable year of
Precision. Based on current estimates, Precision expects that a
significant portion (greater than 50%) of the sum of the value of
the Weatherford Shares and Special Cash Payment should constitute
dividend income for United States federal income tax purposes. The
final calculation of the current or accumulated earnings and
profits of Precision and the portion of the distribution that will
be treated as a dividend for U.S. federal income tax purposes will
be posted on the company's website
http://www.precisiondrilling.com/ in January 2006. United States
shareholders should consult the United States Federal Income Tax
Consequences section of the Information Circular for a more
detailed discussion of the United States federal income tax
consequences of the Arrangement and all shareholders are urged to
consult their own tax advisers as to the specific United States
federal and state tax consequences of the Arrangement based upon
their particular circumstances. Certain statements contained in
this press release may contain words such as "anticipate",
"estimate", "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". DATASOURCE: Precision Drilling Corporation
CONTACT: Mr. Robert T. German, Vice President and Chief Accounting
Officer, 4200, 150 - 6th Avenue S.W., Calgary, Alberta, T2P 3Y7,
Telephone: (403) 716-4500, Fax: (403) 264-0251, Website:
http://www.precisiondrilling.com/; Archived images on this
organization are searchable through CNW Photo Archive website at
http://photos.newswire.ca/. Images are free to accredited members
of the media. To request a free copy of this organization's annual
report, please go to http://www.newswire.ca/ and click on Tools for
Investors.
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