<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>ex99-1form6k_q207.txt
<DESCRIPTION>EX-99-1
<TEXT>
                                                                  EXHIBIT 99.1
                                                                  ------------


Precision Drilling Trust

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    June 30,     December 31,
(Stated in thousands of Canadian dollars)                                             2007           2006
=============================================================================================================

ASSETS

Current assets:
<S>                                                                             <C>             <C>
   Accounts receivable                                                          $    150,547    $    354,671
   Income tax recoverable                                                             12,335           8,701
   Inventory                                                                           8,545           9,073
-------------------------------------------------------------------------------------------------------------
                                                                                      171,427        372,445
Property, plant and equipment, net of accumulated depreciation                      1,177,436      1,107,617
Intangibles, net of accumulated amortization                                              330            375
Goodwill                                                                              280,749        280,749
-------------------------------------------------------------------------------------------------------------
                                                                                 $  1,629,942   $  1,761,186
=============================================================================================================
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities:
   Bank indebtedness                                                             $      6,653   $     36,774
   Accounts payable and accrued liabilities                                            70,696        130,202
   Distributions payable                                                               16,349         38,985
-------------------------------------------------------------------------------------------------------------
                                                                                       93,698        205,961
Long-term incentive plan payable                                                       16,071         22,699
Long-term debt                                                                         51,937        140,880
Future income taxes                                                                   195,645        174,571
-------------------------------------------------------------------------------------------------------------
                                                                                      357,351        544,111
-------------------------------------------------------------------------------------------------------------
Unitholders' equity:
   Unitholders' capital (note 3)                                                    1,412,294      1,412,294
   Deficit                                                                           (139,703)      (195,219)
-------------------------------------------------------------------------------------------------------------
                                                                                    1,272,591      1,217,075
-------------------------------------------------------------------------------------------------------------
                                                                                 $  1,629,942   $  1,761,186
=============================================================================================================
Units outstanding (000s)                                                              125,758        125,758
</TABLE>

See accompanying notes to consolidated financial statements

<PAGE>

Precision Drilling Trust
CONSOLIDATED STATEMENTS OF EARNINGS AND DEFICIT (UNAUDITED)

<TABLE>
<CAPTION>
(Stated in thousands of Canadian dollars,           Three months ended June 30,      Six months ended June 30,
except per unit amounts)                                2007             2006            2007            2006
==============================================================================================================

<S>                                              <C>             <C>             <C>             <C>
Revenue                                          $   122,005     $    223,569    $    532,547    $    759,977
Expenses:
   Operating                                          71,906          122,011         266,062         364,664
   General and administrative                         10,274           15,908          24,829          38,799
   Depreciation and amortization                      12,026           11,290          35,510          36,190
   Foreign exchange                                      725             (183)            893            (128)
--------------------------------------------------------------------------------------------------------------
                                                      94,931          149,026         327,294         439,525
--------------------------------------------------------------------------------------------------------------
Operating earnings                                    27,074           74,543         205,253         320,452
Interest:
   Long-term debt                                      1,649            1,725           4,179           4,636
   Other                                                  31               18              58              26
   Income                                                (77)             (66)           (195)           (208)
Gain on disposal of investments                            -             (408)              -            (408)
--------------------------------------------------------------------------------------------------------------
Earnings before income taxes                          25,471           73,274         201,211         316,406
Income taxes: (note 4)
   Current                                            (3,967)           5,870          (3,647)         24,234
   Future                                              3,716          (20,899)         21,069         (20,314)
--------------------------------------------------------------------------------------------------------------
                                                        (251)         (15,029)         17,422           3,920
--------------------------------------------------------------------------------------------------------------
Net earnings                                          25,722           88,303         183,789         312,486
Deficit, beginning of period                        (108,834)        (180,724)       (195,219)       (303,284)
Distributions declared                               (56,591)        (111,681)       (128,273)       (213,304)
--------------------------------------------------------------------------------------------------------------
Deficit, end of period                           $  (139,703)    $   (204,102)   $   (139,703)   $   (204,102)
==============================================================================================================
Earnings per unit:
   Basic and diluted                             $     0.20      $       0.70     $      1.46     $      2.49
==============================================================================================================
Units outstanding (000s)                             125,758          125,507         125,758         125,507
Weighted average and diluted units
    outstanding (000s)                               125,758          125,474         125,758         125,467
</TABLE>

See accompanying notes to consolidated financial statements


<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

                                                        Three months ended June 30,      Six months ended June 30,
(Stated in thousands of Canadian dollars)                   2007             2006            2007            2006
===================================================================================================================

Cash provided by (used in):
Operations:
<S>                                                  <C>             <C>             <C>             <C>
   Net earnings                                      $    25,722     $     88,303    $    183,789    $    312,486
   Adjustments and other items not involving cash:
      Long-term incentive plan compensation               (4,167)           4,442          (6,628)          7,245
      Depreciation and amortization                       12,026           11,290          35,510          36,190
      Future income taxes                                  3,716          (20,899)         21,069         (20,314)
      Other                                                    5             (406)              5            (406)
   Changes in non-cash working capital balances          191,771          256,889         151,626          45,358
-------------------------------------------------------------------------------------------------------------------
                                                         229,073          339,619         385,371         380,559
Investments:
   Purchase of property, plant and equipment             (52,840)         (61,287)       (108,542)       (110,318)
   Proceeds on sale of property, plant and equipment       2,130           13,180           3,258          21,344
   Proceeds on disposal of investments                         -              510               -             510
   Changes in non-cash working capital balances             (471)             914         (10,114)          6,166
-------------------------------------------------------------------------------------------------------------------
                                                         (51,181)         (46,683)       (115,398)        (82,298)
Financing:
   Distributions paid                                    (64,136)        (106,649)       (150,909)       (211,032)
   Repayment of long-term debt                           (95,753)        (179,605)        (95,753)       (179,605)
   Increase in long-term debt                                  -                -           6,810         127,764
   Issuance of Trust units                                     -            1,691               -           1,691
   Changes in non-cash working capital balances                -                -               -         (22,060)
   Change in bank indebtedness                           (18,003)          (8,373)        (30,121)        (15,019)
-------------------------------------------------------------------------------------------------------------------
                                                        (177,892)        (292,936)       (269,973)       (298,261)
Increase in cash and cash equivalents                          -                -               -               -
Cash and cash equivalents, beginning of period                 -                -               -               -
-------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period             $         -     $          -    $          -    $          -
===================================================================================================================
</TABLE>

See accompanying notes to consolidated financial statements

<PAGE>

Precision Drilling Trust
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(Tabular amounts are stated in thousands of Canadian dollars,
 except unit numbers)


NOTE 1.  BASIS OF PRESENTATION

         These interim financial  statements for Precision  Drilling Trust (the
         "Trust") were prepared using accounting  policies and methods of their
         application  consistent  with  those  used in the  preparation  of the
         Trust's  consolidated  audited financial statements for the year ended
         December  31,  2006 except as noted  below.  These  interim  financial
         statements  conform in all material  respects to the  requirements  of
         generally  accepted   accounting   principles  in  Canada  for  annual
         financial  statements  with the exception of certain note  disclosures
         regarding balance sheet items and transactions  occurring prior to the
         current  reporting  period.  As  a  result,  these  interim  financial
         statements should be read in conjunction with the Trust's consolidated
         audited financial statements for the year ended December 31, 2006.

         Effective  January 1, 2007 the Trust adopted new accounting  standards
         issued  by  the  Canadian  Institute  of  Chartered  Accountants.  The
         standards  regarding the disclosure of comprehensive  income (Sections
         1530 and 3251) require a statement of comprehensive  income,  which is
         comprised of net earnings and other  comprehensive  income.  The Trust
         does not have any  amounts  that would be  included  in  comprehensive
         income, therefore,  comprehensive income is equivalent to net earnings
         and no statement of comprehensive income is presented. The adoption of
         the standards relating to the recognition, measurement, disclosure and
         presentation of financial  instruments  (Sections 3855 and 3861),  and
         hedge accounting  (Section 3865) did not have a material impact on the
         consolidated financial statements.

         New  Canadian  accounting  standards  relating  to the  disclosure  of
         financial  instruments and capital have been issued. The new standards
         have not yet been  applied  by the  Trust.  The  application  of these
         standards  will  result in  additional  disclosure,  when  they become
         effective for the fiscal period commencing January 1, 2008.

         Certain  of  the  prior   period's   comparative   figures  have  been
         reclassified to conform to the current year's presentation.


                                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

<PAGE>


NOTE 2.  SEASONALITY OF OPERATIONS

         The majority of the Trust's  operations are carried on in Canada.  The
         ability to move heavy  equipment  in the  Canadian oil and natural gas
         fields is dependent on weather conditions.  As warm weather returns in
         the spring,  the winter's frost comes out of the ground rendering many
         secondary  roads incapable of supporting the weight of heavy equipment
         until they have  thoroughly  dried out.  The  duration of this "spring
         breakup"  has a direct  impact  on the  Trust's  activity  levels.  In
         addition, many exploration and production areas in northern Canada are
         accessible only in winter months when the ground is frozen hard enough
         to  support  equipment.  The  timing of freeze up and  spring  breakup
         affects the ability to move equipment in and out of these areas.  As a
         result,  late March through May is  traditionally  the Trust's slowest
         time.


NOTE 3.  UNITHOLDERS' CAPITAL

         (a) Authorized - unlimited number of voting Trust units
                        - unlimited number of voting exchangeable LP units

         (b) Units issued:

Trust units                                            Number          Amount
===============================================================================
Balance, December 31, 2006                        125,536,329    $  1,409,828
Issued on retraction of exchangeable LP units          42,458             472
-------------------------------------------------------------------------------
Balance June 30, 2007                             125,578,787    $  1,410,300
===============================================================================

Exchangeable LP units                                  Number          Amount
-------------------------------------------------------------------------------

Balance, December 31, 2006                            221,595    $      2,466
Redeemed on retraction of exchangeable LP units       (42,458)           (472)
===============================================================================
Balance June 30, 2007                                 179,137    $      1,994
===============================================================================

Summary                                                Number          Amount
===============================================================================

Trust units                                       125,578,787    $  1,410,300
Exchangeable LP units                                 179,137           1,994
-------------------------------------------------------------------------------
Unitholders' capital                              125,757,924    $  1,412,294
===============================================================================

         The Trust  has a  unitholder  rights  plan (the  "Rights  Plan"),  the
         purpose of which is to protect  unitholders in the event a third party
         attempts  to acquire a  significant  interest in the Trust by ensuring
         that a person seeking control gives  unitholders and the administrator
         of the Trust  sufficient time to evaluate the bid,  negotiate with the
         initial bidder and encourage  competing bids to emerge.  Rights issued
         under the Rights Plan become exercisable when any person or group bids
         to acquire or acquires 20% or more of the  outstanding  units  without
         complying with certain  provisions in the Rights Plan.  Should such an
         acquisition  or  announcement  occur,  each right entitles the holder,
         other than the acquiring  person,  to purchase units at a 50% discount
         to the market price.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

<PAGE>


NOTE 4.  INCOME TAXES

         Currently, the Trust incurs taxes to the extent that there are certain
         provincial  capital  taxes,  as well as taxes on any taxable income of
         its  underlying  subsidiaries.  Future  income  taxes  arise  from the
         differences  between the accounting and tax basis of the Trust's,  and
         its  subsidiaries',  assets and liabilities.  The provision for income
         taxes differs from that which would be expected by applying  statutory
         Canadian income tax rates. A reconciliation  of the difference at June
         30 is as follows:

<TABLE>
<CAPTION>

                                                   Three months ended June 30,      Six months ended June 30,
                                                        2007             2006            2007            2006
===============================================================================================================
<S>                                              <C>             <C>             <C>             <C>
Earnings before income taxes                     $    25,471     $     73,274    $    201,211    $    316,406
Federal and provincial statutory rates                    33%              33%             33%             33%
---------------------------------------------------------------------------------------------------------------
Tax at statutory rates                           $     8,406     $     24,180    $     66,400    $    104,414
Adjusted for the effect of:
   Non-deductible expenses                              (149)            (139)            405             128
   Income to be distributed to unitholders,
      not subject to tax in the Trust                 (5,910)         (15,075)        (47,076)        (80,043)
   Other                                                (408)          (2,783)           (117)            633
---------------------------------------------------------------------------------------------------------------
Income tax expense before tax rate reductions          1,939            6,183          19,612          25,132
Reduction of future tax balances due to
   enacted tax rate reductions                        (2,190)         (21,212)         (2,190)        (21,212)
---------------------------------------------------------------------------------------------------------------
Income tax expense                               $      (251)    $    (15,029)   $     17,422    $      3,920
===============================================================================================================
Effective income tax rate before
   enacted tax rate reductions                             8%               8%             10%              8%
</TABLE>

         In June 2007,  the  Government of Canada  enacted a 0.5%  reduction to
         corporate income tax rates to be effective after 2010.

         The Government of Canada's Bill C-52 Budget  Implementation  Act, 2007
         was  enacted in June 2007 and  includes  legislative  provisions  that
         impose a tax on certain  distributions  from publicly traded specified
         income flow-through  ("SIFT") trusts at a rate equal to the applicable
         federal  corporate  tax rate  plus a  provincial  SIFT tax  factor  (a
         combined 31.5% in 2011). Precision will be a SIFT trust on the earlier
         of January 1, 2011 or the first day after it exceeds the normal growth
         guidelines  announced by the federal Department of Finance on December
         15, 2006. Due to Precision's legal entity structure,  the enacted SIFT
         tax measures had no significant  impact on  Precision's  future income
         tax provision.


                                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>


NOTE 5.  COMPENSATION PLANS

         (a) Non-management directors

         Effective July 1, 2007 non-management directors of Precision may elect
         to receive  their  annual  retainer  and  meeting  fees in the form of
         deferred  trust units  ("DTUs").  These notional units fully vest upon
         issuance to directors  and will be adjusted for each  distribution  to
         unitholders  by issuing  additional  DTUs based on the closing  market
         price of Trust units on the trading day  immediately  prior to the day
         distributions are paid. DTUs are redeemable for equivalent Trust units
         upon ceasing to be a director of Precision.

         (b) Officers and employees

         Eligible  participants  of  Precision's  Performance  Savings Plan may
         elect to receive a portion of their  annual  performance  bonus in the
         form of  deferred  trust  units  ("DTUs").  These  notional  units are
         redeemable  in  cash  and  are  adjusted  for  each   distribution  to
         unitholders by issuing  additional DTUs based on the weighted  average
         trading  price  on the  Toronto  Stock  Exchange  for  the  five  days
         immediately  following  the  ex-distribution  date.  All DTUs  must be
         redeemed  within 60 days of ceasing to be an employee of  Precision or
         by the end of the second full  calendar  year after the receipt of the
         DTUs.

         During the second  quarter,  Precision  issued 81,371 DTUs,  including
         additional  DTUs issued in lieu of cash  distributions,  and  redeemed
         3,877 DTUs on  employee  resignations.  The values of these  DTU's are
         adjusted monthly based on the period-end  trading price of Trust units
         and the resulting  amount is included in accounts  payable and accrued
         liabilities.  Gains or losses  resulting  from these  adjustments  are
         charged to  earnings.  As at June 30, 2007 $2.1 million is included in
         accounts  payable and accrued  liabilities for the  outstanding  DTUs.
         Included in net earnings is an expense recovery of $0.1 million.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

<PAGE>


NOTE 6.  SEGMENTED INFORMATION

         The Trust  operates  primarily in Canada,  in two  segments:  Contract
         Drilling  Services and Completion and  Production  Services.  Contract
         Drilling Services includes drilling rigs, procurement and distribution
         of oilfield supplies,  camp and catering services and the manufacture,
         sale,  and repair of drilling  equipment.  Completion  and  Production
         Services includes service rigs, snubbing units,  wastewater  treatment
         units and oilfield equipment rental.

<TABLE>
<CAPTION>
                                    Contract      Completion
Three months ended                  Drilling     and Production     Corporate    Inter-segment
June 30, 2007                       Services        Services        and Other    Eliminations           Total
===============================================================================================================
<S>                              <C>             <C>             <C>             <C>             <C>
Revenue                          $    78,829     $    44,978     $          -    $     (1,802)   $    122,005
Operating earnings                    24,013           8,954           (5,893)              -          27,074
Depreciation and amortization          6,112           4,861            1,053               -          12,026
Total assets                       1,150,676         447,310           31,956               -       1,629,942
Goodwill                             172,440         108,309                -               -         280,749
Capital expenditures                  45,670           7,001              169               -          52,840
===============================================================================================================

                                    Contract      Completion
Three months ended                  Drilling     and Production     Corporate    Inter-segment
June 30, 2006                       Services        Services        and Other    Eliminations           Total
===============================================================================================================

Revenue                          $   156,133     $    70,291     $          -    $     (2,855)   $    223,569
Operating earnings                    61,473          20,562           (7,492)              -          74,543
Depreciation and amortization          5,916           5,530             (156)              -          11,290
Total assets                       1,066,278         459,797           47,908               -       1,573,983
Goodwill                             172,440          94,387                -               -         266,827
Capital expenditures                  47,653          11,937            1,697               -          61,287
===============================================================================================================

                                    Contract      Completion
Six months ended                    Drilling     and Production     Corporate    Inter-segment
June 30, 2007                       Services        Services        and Other    Eliminations           Total
===============================================================================================================

Revenue                          $   359,724     $   178,184     $          -    $     (5,361)   $    532,547
Operating earnings                   156,748          60,769          (12,264)              -         205,253
Depreciation and amortization         18,722          14,844            1,944               -          35,510
Total assets                       1,150,676         447,310           31,956               -       1,629,942
Goodwill                             172,440         108,309                -               -         280,749
Capital expenditures                  95,566          12,445              531               -         108,542
===============================================================================================================

                                    Contract      Completion
Six months ended                    Drilling     and Production     Corporate    Inter-segment
June 30, 2006                       Services        Services        and Other    Eliminations           Total
===============================================================================================================

Revenue                          $   540,295     $   226,929     $          -    $     (7,247)   $    759,977
Operating earnings                   255,156          84,349          (19,053)              -         320,452
Depreciation and amortization         19,442          15,816              932               -          36,190
Total assets                       1,066,278         459,797           47,908               -       1,573,983
Goodwill                             172,440          94,387                -               -         266,827
Capital expenditures                  89,438          18,909            1,971               -         110,318
===============================================================================================================
</TABLE>

                                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
</TEXT>
</DOCUMENT>
