CALGARY, ALBERTA--(CCNMatthews - Jan. 18, 2007) - Precision Drilling Trust ("Precision") announced today the United States ("U.S.") federal income tax treatment of cash distributions paid by Precision to individual U.S. resident unitholders in 2006.
Based on advice from Precision's U.S. tax advisors, the issued and outstanding trust units of Precision will be classified as equity rather than as debt for U.S. federal income tax purposes. Precision believes that the cash distributions paid in 2006 to individual U.S. resident unitholders out of its current and accumulated earnings and profits should be treated as qualified dividend income for U.S. federal income tax purposes eligible for the reduced maximum rate of tax to individuals of generally 15%. More detailed United States tax information regarding the distributions paid in 2006 by Precision are provided on www.precisiondrilling.com.
United States resident unitholders are advised to consult their own tax advisers as to the specific U.S. federal and state income tax consequences of having received a cash distribution in 2006 from Precision.
Precision is Canada's largest energy services trust and the leading provider of energy services to the Canadian oil and gas industry. Precision provides customers with access to an extensive fleet of contract drilling rigs, service rigs, camps, snubbing units, wastewater treatment units and rental equipment backed by a comprehensive mix of technical support services and skilled, experienced personnel.
Precision Drilling Trust is listed on the Toronto Stock Exchange under the trading symbol "PD.UN" and on the New York Stock Exchange under the trading symbol "PDS".
FOR FURTHER INFORMATION PLEASE CONTACT:
Vice President Finance of
Precision Drilling Corporation, Administrator of the Trust
(403) 264-0251 (FAX)
Precision Drilling Trust
4200, 150 - 6th Avenue S.W.
Calgary, Alberta T2P 3Y7