Precision Drilling Corporation Subsidiary Executes an Agreement to Acquire Reeves Oilfield Services Limited CALGARY, May 10 /PRNewswire-FirstCall/ -- Precision Drilling Corporation ("Precision") announces that its wholly owned subsidiary, Precision Holdings (UK) Limited has reached an agreement with the Board of Directors of Reeves Oilfield Services Limited ("Reeves") on the terms of a cash offer to acquire all of the issued and outstanding shares of Reeves for pnds stlg 92.4 million, ( pnds stlg 88.4 million net of cash acquired, equivalent to Cdn.$218 million). Under the agreement, the major shareholders of Reeves holding 73.6% of the total Reeves shares have irrevocably undertaken to tender their shares to the Precision offer. Reeves premier offering consists of a highly reliable formation evaluation logging system that may be conveyed on wireline or using an array of conveyance alternatives such as drill pipe, tractors, or coil tubing. The Reeves system design enables high quality logging data to be recorded more efficiently than current competitors' offerings. Reeves headquartered in the UK, currently has operations in the US, Canada, Europe, Africa and Australia and employs approximately 490 people. "We are enthusiastic about the Reeves business model and the quality of its people," said John King, Senior Vice President Technology Services, Precision Drilling Corporation. "There is a solid cultural and strategic fit between our two businesses resulting in a combined opportunity that is greater than either business could achieve separately." Post-transaction integration will involve a collaborative effort to build on strengths the two companies bring to the combined business with a focus on delivering fit-for-purpose services to maturing oilfields across the globe. "We are excited about the opportunity with Precision," said Rob Hyde Chief Executive Officer for Reeves. "Our unique technologies and entrepreneurial spirit coupled with Precision's broad offering and international infrastructure provides a great catalyst for expansion and extended market access." CIBC World Markets is acting as exclusive financial advisor to Reeves in connection with this transaction. Certain statements contained in this press release, including statements relating to matters that are not historical facts and statements relating to the strategic fit and integration of Reeves are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Precision 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 ability to successfully integrate the operations of Reeves; political and economic conditions in countries in which Precision does business; the demand for services provided by Precision; changes in laws and regulations, including environmental, to which Precision is subject and other factors which are described in further detail in Precision's filings with the Securities and Exchange Commission. Precision Drilling Corporation (TSX: PD, and PDU; NYSE: PDS) 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 corporate offices 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. DATASOURCE: Precision Drilling Corporation CONTACT: Hank B. Swartout, Chairman, President and Chief Executive Officer, or Dale E. Tremblay, Senior Vice President Finance and Chief Financial Officer, Telephone (403) 716-4500; Fax (403) 264-0251; website: http://www.precisiondrilling.com/; 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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