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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