Precision Drilling Corporation's third quarter 2004 earnings expected to be Cdn $0.65 to Cdn $0.70 CALGARY, Oct. 13 /PRNewswire-FirstCall/ -- Precision Drilling Corporation ("Precision" or the "Corporation") today announces that it expects diluted earnings per share from continuing operations for the third quarter of 2004 to be in the range of from $0.65 to $0.70 per share. This is less than the current consensus estimate of approximately $0.74 per share. The principal reason for the earnings shortfall is the often reported wet weather conditions extending through September which have hampered Canadian oilfield activity during the third quarter. The province of Alberta has received approximately 23% more rainfall this year than last year. Also contributing to reduced earnings is the close to 6% strengthening of the Canadian dollar versus the US dollar during the third quarter. This serves to reduce the Canadian dollar equivalent of the income earned by our foreign operations and also to generate foreign exchange losses on certain US dollar denominated assets. The above items were offset somewhat by a $2.5 million gain on sale of equity investments. Demand for the Corporation's services in the Canadian market is very strong and this is reflected in improved pricing in the fourth quarter. The supply and demand fundamentals of the oilfield services business, which hinge on commodity prices, appear to be very sound with all indications pointing to a strong fourth quarter and a busy 2005. Certain statements contained in this press release, including statements which are related to expected earnings, demand for the Corporation's services and supply and demand fundamentals of the oilfield services business and which may contain words such as "anticipate", "could", "should", "expect", "believe", "will" and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance 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; 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 corporate subsidiary offices in 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: please contact 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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