CALGARY, Sept. 22 /PRNewswire-FirstCall/ -- 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". DATASOURCE: Precision Drilling Corporation CONTACT: Hank B. Swartout, Chairman, President and Chief Executive 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 reports@cnw.

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