Precision Drilling Corporation announces filing of a universal debt and equity shelf prospectus CALGARY, May 10 /PRNewswire-FirstCall/ -- Precision Drilling Corporation ("Precision") announced that it has filed a Preliminary Base Shelf Prospectus with securities regulators in each of the provinces of Canada and with the Securities and Exchange Commission in the United States in respect of US$1,000,000,000 of debt securities and common shares to be sold in both Canada and the United States from time to time. Once Precision's final Base Shelf Prospectus has been filed with applicable securities regulators in Canada and the Securities and Exchange Commission in the United States it is Precision's intention to sell approximately up to US$240 million of common shares under the Base Shelf Prospectus. Precision will use the net proceeds from the sale of the common shares to partially finance the previously announced acquisition of the land drilling business assets of GlobalSanteFe Corporation and the acquisition of all of the issued and outstanding shares of Reeves Oilfield Services Limited, which proposed acquisition was announced earlier today. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. Certain statements contained in this press release, including statements relating to matters that are not historical facts and statements relating to the intention to sell securities and the ultimate use of proceeds are forward- looking statements, including under the U.S. Private Securities Litigation Reform Act of 1995. 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 carry out its intentions; 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, 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 available through CNW E-Pix at http://www.newswire.ca/. Images are free to members of The Canadian Press. 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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