PDS Precision Drilling Corporation New

GlobalSantaFe Corporation and Precision Drilling Corporation Announce Agreement for Sale and Purchase of Land Drilling Business HOUSTON and CALGARY, Alberta, April 2 /PRNewswire-FirstCall/ -- Worldwide oil and gas drilling contractors GlobalSantaFe Corporation ("GlobalSantaFe") and Precision Drilling Corporation ("Precision") today jointly announced they have executed a definitive agreement for Precision to buy all GlobalSantaFe's worldwide land drilling assets for US$316.5 million in an all cash transaction. The transaction is anticipated to be completed during the second quarter of 2004. The sale includes 31 land rigs located in the Middle East, North Africa and South America and an extensive fleet of specialized rig transport equipment that supports land rig operations in Kuwait and the Kuwaiti-Saudi Arabia Partitioned Neutral Zone. GlobalSantaFe's President and Chief Executive Officer, Jon Marshall stated, "While we have been successful with the land rig business over the years, it has become an increasingly smaller part of our overall operations. This transaction will permit us to focus our management efforts on growing the offshore market. With Precision's reputation for quality operations and with the vast majority of our employees associated with these operations being offered continuous employment with Precision, we are confident our customers will continue to receive an excellent level of service." Hank B. Swartout, Chairman, President and Chief Executive Officer of Precision stated, "This transaction provides Precision with a tremendous opportunity to expand our growing international presence. We recognize the excellent quality of both the rigs we are acquiring and the people associated with GlobalSantaFe's land drilling operations. This combination with Precision's focus on international land drilling services will strengthen our product offerings for the mutual benefit of our employees, customers and shareholders." Simmons & Company International served as financial advisor to GlobalSantaFe for this transaction. Forward Looking Statements Certain statements contained in this news release, including statements relating to matters that are not historical facts or statements relating to the anticipated date the transaction will be completed and to growth and expansion internationally, are forward-looking statements. Such forward- looking statements involve known and unknown risks and uncertainties which may cause actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include but are not limited to the impact of governmental laws andregulations and the uncertainties involved in their administration, particularly in some foreign jurisdictions; the political and other uncertainties inherent in foreign operations; fluctuations in the market for oil and gas and related products and services; competition; economic conditions in various countries; the demand for services provided by GlobalSantaFe and Precision; changes in laws and regulations, including environmental, and other factors which are described in further detail in the respective filings of GlobalSantaFe and Precision with the Securities and Exchange Commission. About GlobalSantaFe GlobalSantaFe is a leading worldwide oil and gas drilling contractor offering a full range of premium equipment and drilling management services. The company's diverse and technologically advanced fleet of 59 offshore rigs includes premium and heavy duty harsh environment jackups, semisubmersibles, and dynamically positioned ultra-deepwater drillships. Additionally, the company has three rigs under construction. GlobalSantaFe is the world's leading provider of turnkey drilling and drilling management services. More information can be found at http://www.gsfdrill.com/ . About Precision Drilling Corporation Precision Drilling Corporation is a global oilfield services company providing a broad range of drilling, production and evaluation services with focus on fulfilling customer needs through fit-for-purpose technologies for the maturing oilfields of the 21st century. With corporateoffices in Calgary, Alberta, Canada and Houston, Texas, and research facilities in the U.S. and Europe, Precision employs more than 10,000 people conducting operations in more than 30 countries. Precision is committed to providing efficient and safe services to create value for our customers, our shareholders and our employees. More information can be found at http://www.precisiondrilling.com/ For further information please contact: Precision Drilling Corporation GlobalSantaFe Corporation Hank B. Swartout Investors: Chairman, President & CEO Richard Hoffman Telephone: 281 925 6441 Dale E. Tremblay, Senior Vice President Finance & CFO Media: 4200, 150 - 6th Avenue S.W., Julie Tushingham Calgary, Alberta T2P 3Y7, Telephone: 281 925 6443 Telephone: 403 716 4500 Cell: 713 417 4763 Fax: 403 264 0251 http://www.newscom.com/cgi-bin/prnh/20011218/DATU049LOGO-b http://photoarchive.ap.org/ DATASOURCE: GlobalSantaFe Corporation; Precision Drilling Corporation CONTACT: Hank B. Swartout, Chairman, President & CEO, or Dale E. Tremblay, Senior Vice President Finance & CFO, both of Precision Drilling Corporation, +1-403-716-4500, or fax, +1-403-264-0251; or investors, Richard Hoffman, +1-281-925-6441, or media, Julie Tushingham, +1-281-925-6443, or cell, +1-713-417-4763, both of GlobalSantaFe Corporation Web site: http://www.gsfdrill.com/ http://www.precisiondrilling.com/

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