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<SEC-DOCUMENT>0000950134-08-017132.txt : 20081212
<SEC-HEADER>0000950134-08-017132.hdr.sgml : 20081212

<ACCEPTANCE-DATETIME>20080925060243

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000950134-08-017132

CONFORMED SUBMISSION TYPE:	F-4

PUBLIC DOCUMENT COUNT:		16

FILED AS OF DATE:		20080925

DATE AS OF CHANGE:		20081028


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			PRECISION DRILLING TRUST

		CENTRAL INDEX KEY:			0001013605

		STANDARD INDUSTRIAL CLASSIFICATION:	DRILLING OIL & GAS WELLS [1381]

		IRS NUMBER:				000000000

		STATE OF INCORPORATION:			A0

		FISCAL YEAR END:			0430



	FILING VALUES:

		FORM TYPE:		F-4

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-153664

		FILM NUMBER:		081087580



	BUSINESS ADDRESS:	

		STREET 1:		150 - 6TH AVENUE S.W.

		STREET 2:		SUITE 4200

		CITY:			CALGARY

		STATE:			A0

		ZIP:			T2P 3Y7

		BUSINESS PHONE:		403-264-0251



	MAIL ADDRESS:	

		STREET 1:		150 - 6TH AVENUE S.W.

		STREET 2:		SUITE 4200

		CITY:			CALGARY

		STATE:			A0

		ZIP:			T2P 3Y7



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	PRECISION DRILLING CORP

		DATE OF NAME CHANGE:	19960506



</SEC-HEADER>

<DOCUMENT>
<TYPE>F-4
<SEQUENCE>1
<FILENAME>h59905fv4.htm
<DESCRIPTION>FORM F-4 - REGISTRATION STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>fv4</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">As filed
    with the Securities and Exchange Commission on
    September&#160;25, 2008</FONT></B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Registration No.
    [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;]</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION<BR>
    </FONT><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">Form&#160;F-4</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">REGISTRATION
    STATEMENT</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">UNDER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">THE SECURITIES ACT OF
    1933</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">PRECISION DRILLING
    TRUST</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Exact name of registrant as
    specified in its charter)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="32%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <B>ALBERTA, CANADA</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>1381</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>N/A</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(State or other jurisdiction
    of<BR>
    incorporation or organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(I.R.S. Employer<BR>
    Identification Number)</FONT></I><FONT style="font-size: 8pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">4200,
    <FONT style="white-space: nowrap">150-6th</FONT>
    Avenue S.W., Calgary, Alberta, Canada T2P 3Y7<BR>
    <FONT style="white-space: nowrap">(403)&#160;716-4500</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Address, including zip code,
    and telephone number, including area code, of registrant&#146;s
    principal executive offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CT
    Corporation System, 350 North St. Paul Street, Dallas, Texas
    75201<BR>
    <FONT style="white-space: nowrap">(214)&#160;979-1172</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">WITH
    COPIES TO:</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="32%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="center" valign="top">
    <B>Robert F. Gray, Jr.<BR>
    William S. Moss III<BR>
    Mayer Brown LLP<BR>
    700 Louisiana Street, Suite 3400<BR>
    Houston, Texas 77002<BR>
    (713) 238-3000<BR>
    Fax: (713) 238-4600</B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>David W. Wehlmann<BR>
    Grey Wolf, Inc.<BR>
    10370 Richmond Avenue, Suite 600<BR>
    Houston, Texas 77042<BR>
    (713) 435-6100<BR>
    Fax: (713) 435-6171</B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>Nick D. Nicholas<BR>
    Porter &#038; Hedges, L.L.P.<BR>
    1000 Main, 36th&#160;Floor<BR>
    Houston, Texas 77002<BR>
    (713) 226-6000<BR>
    Fax: (713) 226-6237</B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale of the
    securities to the public:&#160;&#160;</B>As promptly as
    practicable after this registration statement becomes effective
    and the conditions to consummation of the merger described
    herein have been satisfied or waived.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act,
    check the following box and list the Securities Act registration
    statement number of the earlier effective registration statement
    for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this form is a post-effective amendment filed pursuant to
    Rule&#160;462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="24%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Each Class of<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount to be<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Offering Price per<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate Offering<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Securities to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registered(1)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Unit</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Price(2)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registration Fee(3)</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision trust units
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-top: 1px solid #000000">
    42,000,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-top: 1px solid #000000">
    Not Applicable
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-top: 1px solid #000000">
    $617,329,293.00
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-top: 1px solid #000000">
    $24,261.00
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based upon the maximum number of Precision Drilling Trust trust
    units issuable upon completion of the merger described herein,
    calculated as the product of 0.1883, the prorated exchange ratio
    in the merger, multiplied the sum of (a) 178,900,000&#160;shares
    of Grey Wolf, Inc. common stock issued and outstanding, and (b)
    1,700,000&#160;shares of Grey Wolf, Inc. common stock issuable
    assuming the exercise of all outstanding options and
    (c)&#160;42,400,000&#160;shares of Grey Wolf, Inc. common stock
    underlying Grey Wolf, Inc.&#146;s convertible notes, each as of
    the date of this registration statement.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Estimated solely for purposes of calculating the registration
    fee required by Section&#160;6(b) of the Securities Act. The
    estimated maximum aggregate offering price is calculated
    pursuant to Rules&#160;457(c) and 457(f) under the Securities
    Act, by multiplying (i)&#160;the estimated maximum number of
    shares of Grey Wolf, Inc. common stock to be acquired in the
    merger by (ii)&#160;$7.77, the average of the high and low
    prices of Grey Wolf, Inc. common stock on September&#160;23,
    2008, as reported on the American Stock Exchange, less the value
    of the cash consideration to be paid for Grey Wolf, Inc. common
    stock in the merger.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Computed in accordance with Section&#160;6(b) under the
    Securities Act at a rate equal to $39.30 per $1,000,000 of the
    proposed maximum aggregate offering price.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act of 1933 or until this Registration
    Statement shall become effective on such date as the Commission,
    acting pursuant to Section&#160;8(a), may determine.</B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD style=text-align:justify>
<FONT style="font-size: 8pt; font-family: Arial, Helvetica; color: #E8112D">The
information in this document is not complete and may be changed.
Precision Drilling Trust may not sell the securities offered by
this document until the registration statement filed with the
Securities and Exchange Commission is effective. This document
is not an offer to sell these securities, and we are not
soliciting an offer to buy these securities, in any state where
the offer or sale is not permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #E8112D">PRELIMINARY
    DRAFT DATED SEPTEMBER&#160;25, 2008, SUBJECT TO
    COMPLETION</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROXY
    STATEMENT OF GREY WOLF, INC.</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PROSPECTUS OF PRECISION DRILLING TRUST</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <IMG src="h59905h5990503.gif" alt="(Precision Drilling LOGO)"><FONT style="font-family: 'Times New Roman', Times">
    </FONT></TD>
    <TD nowrap align="right">    <IMG src="h59905h5990500.gif" alt="(GreyWolf LOGO)"><FONT style="font-family: 'Times New Roman', Times">
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MERGER
    PROPOSAL&#160;&#151; YOUR VOTE IS VERY IMPORTANT</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the holders of Grey Wolf, Inc. common stock:
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You are cordially invited to attend a special meeting of
    shareholders of Grey Wolf, Inc. (&#147;Grey Wolf&#148;),
    relating to the proposed merger of Grey Wolf with and into a
    wholly-owned subsidiary of Precision Drilling Trust
    (&#147;Precision&#148;). The meeting will be held
    at&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;a.m.,
    local time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008,
    at&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,&#160;Houston,
    Texas.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are sending you the accompanying proxy statement/prospectus
    to notify you of the special meeting of Grey Wolf shareholders
    being held to vote on the agreement and plan of merger and
    related matters and to ask you to vote at the special meeting in
    favor of the agreement and plan of merger.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the merger agreement, you may elect to receive
    either cash or Precision trust units in exchange for your shares
    of Grey Wolf common stock. Each share of Grey Wolf common stock
    will be converted, at your option, into $9.02 in cash or 0.4225
    Precision trust units, subject to proration. The maximum amount
    of cash to be paid by Precision will be approximately
    $1.12&#160;billion, and the maximum number of Precision trust
    units to be issued will be approximately 42.0&#160;million.
    These amounts take into account shares of Grey Wolf common stock
    issuable upon the conversion of Grey Wolf&#146;s convertible
    debt securities and the exercise of Grey Wolf stock options,
    which, together with Grey Wolf&#146;s issued and outstanding
    common stock, totals approximately 223&#160;million
    fully-diluted shares of Grey Wolf common stock. These maximum
    amounts translate to $5.00 in cash and 0.1883 of a Precision
    trust unit for each share of Grey Wolf common stock.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision trust units are listed on the New York Stock Exchange
    under the symbol &#147;PDS&#148; and the Toronto Stock Exchange
    under the symbol &#147;PD.UN.&#148; On September&#160;23, 2008,
    the closing price of Precision trust units on the New York Stock
    Exchange was $17.30.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE BOARD OF DIRECTORS OF GREY WOLF HAS DETERMINED UNANIMOUSLY
    THAT THE MERGER IS FAIR TO, AND IN THE BEST INTERESTS OF, THE
    GREY WOLF SHAREHOLDERS, AND HAS APPROVED, ADOPTED AND DECLARED
    ADVISABLE THE MERGER AGREEMENT. ACCORDINGLY, THE GREY WOLF BOARD
    UNANIMOUSLY RECOMMENDS THAT YOU VOTE OR GIVE
    INSTRUCTIONS&#160;TO VOTE &#147;FOR&#148; THE PROPOSAL&#160;TO
    APPROVE THE AGREEMENT AND PLAN OF MERGER.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Your vote is important. </B>Approval of the merger requires
    the affirmative vote of a majority of the outstanding shares of
    Grey Wolf common stock. Whether you plan to attend the special
    meeting or not, please take the time to vote by completing and
    mailing the enclosed proxy to us. If your shares are held in
    &#147;street name,&#148; you must instruct your broker in order
    to vote.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you were a record holder of Grey Wolf common stock at the
    close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008, you have the right to vote or direct your vote at the
    special meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 47%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h59905h5990501.gif" alt="-s- Thomas P. Richards">
</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Thomas Richards
</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Chairman of the Board, President and Chief Executive Officer
</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf, Inc.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>YOU SHOULD CONSIDER THE MATTERS DISCUSSED UNDER &#147;RISK
    FACTORS&#148; BEGINNING ON PAGE&#160;25 OF THE ACCOMPANYING
    PROXY STATEMENT/PROSPECTUS BEFORE VOTING.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    NONE OF THE SECURITIES AND EXCHANGE COMMISSION, ANY SECURITIES
    COMMISSION OR SIMILAR AUTHORITY IN CANADA, OR ANY STATE OR
    FOREIGN SECURITIES COMMISSION OR SIMILAR AUTHORITY HAS APPROVED
    OR DISAPPROVED OF THE PRECISION TRUST&#160;UNITS TO BE ISSUED IN
    CONNECTION WITH THE MERGER DESCRIBED IN THIS PROXY
    STATEMENT/PROSPECTUS, NOR HAVE THEY DETERMINED IF THIS PROXY
    STATEMENT/PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION
    TO THE CONTRARY IS A CRIMINAL OFFENSE.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This proxy statement/prospectus is dated September&#160;24,
    2008, and is first being mailed to Grey Wolf shareholders on or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GREY
    WOLF, INC.<BR>
    <FONT style="font-size: 10pt">10370 Richmond Avenue,
    Suite&#160;600<BR>
    Houston, Texas 77042<BR>
    <FONT style="white-space: nowrap">(713)&#160;435-6100</FONT></FONT></FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">NOTICE OF SPECIAL MEETING OF
    SHAREHOLDERS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">To be held
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notice is hereby given that a special meeting of shareholders
    will be held
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008, at&#160;&#160;&#160;a.m., local time,
    at&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    Houston, Texas. At the special meeting, you will be asked to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;approve the Agreement and Plan of Merger, dated as of
    August&#160;24, 2008, among Grey Wolf, Inc. (&#147;Grey
    Wolf&#148;), Precision Drilling Trust, Precision Drilling
    Corporation and Precision Lobos Corporation, a copy of which is
    included as <B>Annex&#160;A </B>to the proxy
    statement/prospectus;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;approve the adjournment or postponement of the Grey Wolf
    special meeting, if necessary or appropriate, to solicit
    additional proxies in favor of the foregoing proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For more information about the proposals and the special
    meeting, please review the accompanying proxy
    statement/prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Only holders of record of shares of Grey Wolf common stock at
    the close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008, the record date for the special meeting, are entitled to
    notice of, and a vote at, the special meeting and any
    adjournments or postponements of the special meeting. In order
    for the Agreement and Plan of Merger to be approved by Grey Wolf
    shareholders, the affirmative vote of the holders of a majority
    of the shares of Grey Wolf common stock outstanding and entitled
    to vote as of the record date is required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Your vote is important. We encourage you to sign and return your
    proxy card, or use the telephone or Internet voting procedures,
    before the special meeting, so that your shares will be
    represented and voted at the special meeting even if you cannot
    attend in person.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By Order of the Board of Directors
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h59905h5990502.gif" alt="-s- David W. Wehlmann">
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    David W. Wehlmann, Secretary
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">HOW TO
    OBTAIN ADDITIONAL INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you have more questions about the proposed merger or if you
    would like copies of any documents incorporated by reference
    into the accompanying proxy statement/prospectus, which include
    important business and financial information about Grey Wolf and
    Precision that is not included in or delivered with this
    document, you may write or call the following persons. Upon
    written or oral request, we will provide the documents you ask
    for at no cost to you. Please note that copies of these
    documents will not include exhibits to the documents, unless the
    exhibits are specifically incorporated by reference into the
    documents or this proxy statement/prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Precision Drilling Trust</B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>Grey Wolf, Inc.</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    4200, 150-6th&#160;Avenue S.W.<BR>
    Calgary, Alberta, Canada T2P 3Y7<BR>
    (403) 716-4500<BR>
    Attention:  Douglas J. Strong<BR>
    Chief Financial Officer
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    10370 Richmond Avenue, Suite 600<BR>
    Houston, Texas 77042<BR>
    (713) 435-6100<BR>
    Attention:  David W. Wehlmann<BR>
    Executive Vice President, Chief Financial Officer and Secretary
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may also obtain documents incorporated by reference in this
    proxy statement/prospectus by requesting them in writing or by
    telephone from the information agent:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Georgeson, Inc.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    199 Water Street
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26<SUP style="font-size: 85%; vertical-align: text-top">th
    </SUP>Floor
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York, N.Y. 10038
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Banks and Brokers call
    <FONT style="white-space: nowrap">(212)&#160;440-9800</FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf shareholders call toll-free
    <FONT style="white-space: nowrap">(800)&#160;561-3540</FONT>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the accompanying proxy card and voting
    instruction form, enclosed is a letter of transmittal and form
    of election to enable you to submit your share certificates and
    elect the form of merger consideration you wish to receive. The
    letter of transmittal and form of election contains complete
    instructions on how to submit your stock certificates and to
    make your election of cash
    <FONT style="white-space: nowrap">and/or</FONT>
    Precision trust units. Please complete and return the letter of
    transmittal and form of election together with your Grey Wolf
    common stock certificates in the separate envelope that is
    provided for that purpose. Your election must be submitted to
    the exchange agent, Computershare Trust Company, N.A.,
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. The consequences of failing to timely deliver an election
    form are outlined in detail in the accompanying proxy
    statement/prospectus. You will not actually receive your cash
    <FONT style="white-space: nowrap">and/or</FONT>
    Precision trust units until after the merger is completed and
    you have returned a properly completed letter of transmittal and
    form of election.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TO ENSURE
    TIMELY DELIVERY PRIOR TO THE GREY WOLF SPECIAL MEETING,<BR>
    ANY REQUEST FOR DOCUMENTS SHOULD BE RECEIVED
    BY&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008.</FONT></B>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#201'>SUMMARY OF THE PROXY STATEMENT/PROSPECTUS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#202'>Glossary of Certain Terms Used in this Proxy
    Statement/Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#203'>The Merger </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#204'>Grey Wolf Shareholders Will Receive Cash and
    Precision Trust&#160;Units in the Merger </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#205'>Effect of Conversion of Grey Wolf Convertible
    Notes </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#206'>Treatment of Grey Wolf Stock Options </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#207'>Comparative Market Prices and Share Information
    </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#208'>Opinion of Grey Wolf&#146;s Financial Advisor </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#209'>Material US Federal Income Tax Consequences to
    Holders of Grey Wolf Common Stock </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#210'>Material Canadian Federal Income Tax Consequences
    to Holders of Grey Wolf Common Stock </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#211'>Accounting Treatment </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#212'>Dissenters&#146; Rights of Appraisal of Grey Wolf
    Shareholders under Texas Law </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#213'>Grey Wolf&#146;s Board of Directors Unanimously
    Recommends that You Vote &#147;FOR&#148; the Approval of the
    Merger Agreement </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#214'>Your Rights as a Holder of Precision
    Trust&#160;Units Will Be Different from Your Rights as a Holder
    of Grey Wolf Common Stock </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#215'>Grey Wolf Directors and Executive Officers Have
    Financial and Other Interests in the Merger that are Different
    from or in Addition to Your Interests </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#216'>The Companies</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#217'>The Special Meeting of Grey Wolf Shareholders </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#218'>Precision Unitholder Approval</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#219'>The Merger Agreement </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#220'>Voting Agreements </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#221'>Regulatory Approval Required for the Merger </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#222'>Completion of the Merger is Subject to Conditions
    </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#223'>Precision Will Obtain Financing In Connection
    With the Merger </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#224'>The Merger Agreement Contains a &#147;No
    Solicitation&#148; Provision</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#225'>The Merger Agreement May Be Terminated Under Some
    Circumstances </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#226'>Grey Wolf May Be Required to Pay a Termination
    Fee Under Some Circumstances </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#227'>Exchange of Grey Wolf Common Stock </A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#228'>Election to Receive Cash and/or Precision
    Trust&#160;Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#229'>FREQUENTLY ASKED QUESTIONS AND ANSWERS ABOUT THE
    MERGER</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#230'>VOTING BY INTERNET, TELEPHONE OR MAIL</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#231'>SUMMARY HISTORICAL FINANCIAL STATEMENT
    PRESENTATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#232'>SELECTED HISTORICAL CONSOLIDATED FINANCIAL AND
    OPERATING DATA OF PRECISION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#233'>SELECTED HISTORICAL CONSOLIDATED FINANCIAL AND
    OPERATING DATA OF GREY WOLF</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#234'>SELECTED UNAUDITED PRO FORMA CONDENSED COMBINED
    FINANCIAL INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#235'>COMPARATIVE PER SHARE AND TRUST UNIT SHARE
    DATA</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#236'>COMPARATIVE PER SHARE AND PER TRUST UNIT MARKET
    PRICE AND DIVIDEND INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#237'>CURRENCY EXCHANGE RATE DATA</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#238'>RISK FACTORS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#239'>Risks Relating to the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#240'>Risks Relating to Precision Trust Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#241'>Risks Relating to the Businesses of the Combined
    Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#242'>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
    STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#243'>THE GREY WOLF SPECIAL MEETING</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#244'>Date, Time and Place</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#245'>Record Date; Voting Rights and Outstanding
    Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Solicitation, Use and Revocation of the Proxies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#246'>Quorum, Voting Requirements and Effect of
    Abstentions and Non-votes</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#247'>Approval of the Merger Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#248'>THE MERGER</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#249'>Background of the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#250'>Grey Wolf&#146;s Reasons for the Merger and
    Recommendation of Grey Wolf&#146;s Board of Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#251'>Precision&#146;s Reasons for the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#252'>Opinion of Grey Wolf&#146;s Financial Advisor</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#253'>Financial Forecasts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#254'>Material US Federal Income Tax Consequences of
    the Merger and of Owning Precision Trust&#160;Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#255'>Material Canadian Federal Income Tax Consequences
    of the Merger and of Owning Precision Trust Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#257'>Anticipated Accounting Treatment</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#258'>Regulatory Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#259'>Merger Fees, Costs and Expenses</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#260'>Election and Exchange Procedures</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#261'>Effect of Conversion of Grey Wolf Convertible
    Notes</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#262'>Treatment of Grey Wolf Stock Options</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#263'>Voting Agreements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#264'>Appraisal Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#265'>Interests of Grey Wolf Directors and Officers in
    the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#266'>Listing of Precision Trust&#160;Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#267'>Deregistration and Delisting of Grey Wolf
    Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#268'>Grey Wolf&#146;s Dividend Policy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#269'>Precision&#146;s Distribution Policy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#270'>Resale of Precision Trust Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#271'>THE MERGER AGREEMENT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#272'>Execution of the Merger Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#273'>The Closing and the Effective Time of the
    Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#274'>Merger Consideration to be Received in the
    Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#276'>Covenants and Agreements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#277'>Representations and Warranties</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#278'>Conditions to the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#279'>Termination, Termination Fees and Expenses</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#280'>Amendment; Extensions and Waivers</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#281'>Governing Law</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#282'>FINANCING OF THE MERGER</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#283'>TRUSTEES, DIRECTORS AND EXECUTIVE MANAGEMENT OF
    THE COMBINED COMPANIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#284'>Board of Trustees of Precision</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#285'>Board of Directors of PDC</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#286'>Executive Management of PDC</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#287'>LEGAL PROCEEDINGS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#288'>BENEFICIAL OWNERSHIP OF GREY WOLF SECURITIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    107
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#289'>Management</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    107
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#290'>Certain Shareholders of Grey Wolf</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#291'>BENEFICIAL OWNERSHIP OF PRECISION SECURITIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#292'>Management</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#293'>Certain Unitholders of Precision</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#294'>Description of Precision Capital Structure</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#296'>UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
    STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#295'>COMPARISON OF SHAREHOLDER RIGHTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#322'>Limited Liability of Shareholders and
    Unitholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#323'>Voting Rights Generally</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#324'>Meetings of the Shareholders and Unitholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    122
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#325'>Action by Written Consent In Lieu of a Meeting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#326'>Amendments to Governing Documents</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#327'>Dissenters&#146;/Appraisal Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#328'>Derivative and Oppression Actions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#329'>Payment of Dividends and Distributions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#330'>Redemption&#160;Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#331'>Fiduciary Duties of Directors and Trustees</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#332'>Indemnification of Officers, Directors and
    Trustees</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#333'>Liability of Directors, Officers, Employees and
    Trustees</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#334'>Applicable Anti-Takeover Laws and Provisions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    129
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#335'>Access to Corporate Records</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    129
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#336'>Directors and Trustees Generally</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    130
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#337'>Removal of Directors and Trustees</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#338'>GREY WOLF SHAREHOLDER PROPOSALS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#313'>EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#314'>LEGAL MATTERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#315'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h59905exv5w1.htm">Form of Opinion of Bennett Jones LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h59905exv8w1.htm">Form of Opinion of Mayer Brown LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h59905exv8w2.htm">Form of Opinion of Felesky Flynn LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h59905exv23w4.htm">Consent of KPMG LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h59905exv23w5.htm">Consent of KPMG LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h59905exv99w2.htm">Consent of UBS</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h59905exv99w3.htm">Form of Letter of Transmittal and Form of Election</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h59905exv99w4.htm">Commitment Letter</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEXES
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <I>A&#160;&#151; Agreement and Plan of Merger</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <I>B&#160;&#151; Form of Voting Agreement</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <I>C&#160;&#151; Opinion of UBS Securities LLC</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <I>D&#160;&#151; Article&#160;5.12 of the Texas Business
    Corporation Act</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    YOU SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN THIS
    DOCUMENT OR ON THE INFORMATION TO WHICH WE HAVE REFERRED YOU. WE
    HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH INFORMATION THAT
    IS DIFFERENT.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL, OR A
    SOLICITATION OF AN OFFER TO BUY, ANY SECURITIES, OR THE
    SOLICITATION OF A PROXY, IN ANY JURISDICTION IN WHICH IT IS NOT
    LAWFUL TO MAKE ANY SUCH OFFER OR SOLICITATION OR TO ANY PERSON
    TO WHOM IT IS NOT LAWFUL TO MAKE ANY SUCH OFFER OR SOLICITATION.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='201'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF THE PROXY STATEMENT/PROSPECTUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary highlights material information from this proxy
    statement/prospectus. It may not contain all of the information
    that may be important to you. You should carefully read this
    entire document, including the appendices and the other
    documents to which this document refers you, for a more complete
    understanding of the matters being considered at the special
    meeting. In addition, we incorporate by reference into this
    document important business and financial information about
    Precision and Grey Wolf. You may obtain the information
    incorporated by reference into this document without charge by
    following the instructions in the section entitled &#147;Where
    You Can Find More Information&#148; beginning on page&#160;132.
    Where applicable, each item in this summary includes a page
    reference directing you to a more complete description of that
    item. All references in this proxy statement/prospectus to
    dollars, $ or US$ are to US dollars and all references to Cdn$
    are to Canadian dollars.</I>
</DIV>
<A name='202'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Glossary
    of Certain Terms Used in this Proxy
    Statement/Prospectus</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;Grey Wolf&#148;</I> means Grey Wolf, Inc., a Texas
    corporation.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;Grey Wolf common stock&#148;</I> means shares of the
    common stock, par value $0.10 per share, of Grey Wolf.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;Merger&#148;</I> means the merger of Grey Wolf with and
    into Merger Sub, with Merger Sub surviving the merger as a
    wholly-owned subsidiary of Precision, pursuant to the terms and
    subject to the conditions of the Merger Agreement.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;Merger Agreement&#148;</I> means the Agreement and Plan
    of Merger, dated August&#160;24, 2008, by and among Precision,
    Grey Wolf, PDC and Merger Sub.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;Merger Sub&#148;</I> means Precision Lobos Corporation,
    a Texas corporation, and a wholly-owned subsidiary of Precision.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;PDC&#148;</I> means Precision Drilling Corporation, an
    Alberta corporation.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;Precision&#148;</I> means Precision Drilling Trust, an
    Alberta unincorporated open-ended investment trust.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;Precision trust units&#148;</I> means the trust units
    of Precision, each representing an equal, undivided beneficial
    interest in Precision.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>&#147;UBS&#148;</I> means UBS Securities LLC.
</TD>
</TR>

</TABLE>
<A name='203'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Merger (Page&#160;40)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides for the merger of Grey Wolf with
    and into Merger Sub, with Merger Sub surviving the Merger as a
    wholly-owned subsidiary of Precision.
</DIV>
<A name='204'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grey Wolf
    Shareholders Will Receive Cash and Precision Trust&#160;Units in
    the Merger (Page&#160;89)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the Merger Agreement, shareholders of Grey
    Wolf may elect to receive either cash or Precision trust units
    in exchange for their Grey Wolf common stock. Each share of Grey
    Wolf common stock will be converted, at the option of the
    holder, into $9.02 in cash or 0.4225 Precision trust units,
    subject to proration. The maximum amount of cash to be paid by
    Precision will be approximately $1.12&#160;billion, and the
    maximum number of Precision trust units to be issued will be
    approximately 42.0&#160;million. These amounts take into account
    shares of Grey Wolf common stock issuable upon the conversion of
    Grey Wolf&#146;s convertible debt securities and the exercise of
    Grey Wolf stock options, which, together with Grey Wolf&#146;s
    issued and outstanding common stock, total approximately
    223&#160;million fully-diluted shares of Grey Wolf common stock.
    These maximum amounts translate to $5.00 in cash and 0.1883 of a
    Precision trust unit for each share of Grey Wolf common stock.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For information on recent market prices of the Precision trust
    units and Grey Wolf common stock, see &#147;Comparative Per
    Share and Per Trust Unit Market Price and Dividend
    Information&#148; beginning on page&#160;23. See also &#147;Risk
    Factors&#148; beginning on page&#160;25.
</DIV>
<A name='205'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Effect of
    Conversion of Grey Wolf Convertible Notes
    (Page&#160;83)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of Grey Wolf&#146;s Floating Rate Contingent
    Convertible Senior Notes Due 2024 and 3.75% Contingent
    Convertible Senior Notes due 2023 (collectively,
    &#147;convertible notes&#148;) will be entitled to a special
    conversion privilege entitling them to convert the principal
    amount of their convertible notes into Grey Wolf common stock
    for a period beginning 15 business days prior to, and ending two
    business days prior to, the anticipated effective time of the
    Merger. If the holders of Grey Wolf&#146;s convertible notes do
    not convert their notes into Grey Wolf common stock at least two
    business days prior to the effective time of the Merger, the
    convertible notes will be assumed by, and become indebtedness
    of, Precision.
</DIV>
<A name='206'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Treatment
    of Grey Wolf Stock Options (Page&#160;83)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of vested options granted under a Grey Wolf equity
    incentive plan can exercise their options any time prior to the
    Merger and will participate in the Merger in the same manner as
    other Grey Wolf shareholders. At the effective time of the
    Merger, all outstanding options, except for those granted under
    the Grey Wolf, Inc. 2003 Incentive Plan (&#147;2003 Incentive
    Plan&#148;), that have not been exercised will be cancelled.
    Each stock option granted under the 2003 Incentive Plan that is
    outstanding at the effective time of the Merger will be
    converted into a trust unit appreciation right pursuant to a
    plan to be adopted by Precision.
</DIV>
<A name='207'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Comparative
    Market Prices and Share Information (Page&#160;23)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below sets forth the closing sale prices of Grey Wolf
    common stock and Precision trust units as reported on the
    American Stock Exchange and the New York Stock Exchange,
    respectively, on August&#160;22, 2008, the last trading day
    before the public announcement of the Merger,
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008, the last practicable trading day before the distribution
    of this proxy statement/prospectus. The table also sets forth
    the equivalent pro forma sale price of Grey Wolf common stock on
    each of these dates, as determined by multiplying the applicable
    closing sale price of a Precision trust unit on the New York
    Stock Exchange by 0.1883 and adding the $5.00 cash portion of
    the Merger consideration. We urge you to obtain current market
    quotations for both Precision trust units and Grey Wolf common
    stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Grey Wolf<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Precision<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Grey Wolf<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Trust Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Equivalent</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    August&#160;22, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<A name='208'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Opinion
    of Grey Wolf&#146;s Financial Advisor (Page&#160;61)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the Merger, on August&#160;24, 2008, UBS
    delivered to the board of directors of Grey Wolf an oral
    opinion, which was subsequently confirmed in writing, to the
    effect that, as of that date and based upon and subject to
    various assumptions, matters considered and limitations
    described in its opinion, the consideration, taken in the
    aggregate, to be received by holders of Grey Wolf common stock
    in the Merger was fair, from a financial point of view, to such
    holders. The full text of the opinion of UBS is attached as
    <B>Annex&#160;C </B>to this proxy statement/prospectus.
    <B>UBS&#146; opinion was provided for the benefit of the Grey
    Wolf board in connection with, and for the purpose of, its
    evaluation of the consideration to be received by holders of
    Grey Wolf common stock in the Merger from a financial point of
    view and does not address any other aspect of the Merger. The
    opinion does not address the relative merits of the Merger as
    compared to other business strategies or transactions that might
    be available with respect to Grey Wolf or Grey Wolf&#146;s
    underlying business decision to effect the Merger. The opinion
    does not constitute a recommendation to any shareholder as to
    how to vote or make any election or otherwise act with </B>
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>respect to the Merger. Holders of shares of Grey Wolf common
    stock are encouraged to read UBS&#146; opinion carefully in its
    entirety.</B>
</DIV>
<A name='209'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Material
    US Federal Income Tax Consequences to Holders of Grey Wolf
    Common Stock (Page&#160;69)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exchange by US Holders (as defined in &#147;The
    Merger&#160;&#151; Material US Federal Income Tax Consequences
    of the Merger and of Owning Precision Trust&#160;Units&#148;) of
    Grey Wolf common stock for Precision trust units has been
    structured to be generally tax free for US federal income tax
    purposes, except that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    US Holders of Grey Wolf common stock that receive both cash and
    Precision trust units generally will recognize gain, but not
    loss, to the extent of the cash received;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    US Holders of Grey Wolf common stock that receive only cash
    generally will recognize a gain or loss.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Non-US Holder (as defined in &#147;The Merger&#160;&#151;
    Material US Federal Income Tax Consequences of the Merger and of
    Owning Precision Trust&#160;Units&#148;) of Grey Wolf common
    stock generally will not be subject to US federal income tax
    with respect to the Merger unless such Non-US Holder has certain
    connections to the US.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of Grey Wolf common stock should consult with their own
    tax advisors as to the tax consequences of the Merger in their
    particular circumstances, including the applicability and the
    effect of the alternative minimum tax and any state, local or
    foreign and other tax laws and of changes in those laws. For
    additional discussion of certain US federal income tax
    consequences of the Merger, see &#147;The Merger&#160;&#151;
    Material US Federal Income Tax Consequences of the Merger and of
    Owning Precision Trust&#160;Units&#148; beginning on
    page&#160;69.
</DIV>
<A name='210'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Material
    Canadian Federal Income Tax Consequences to Holders of Grey Wolf
    Common Stock&#160;(Page&#160;76)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For Canadian federal income tax purposes, the Merger generally
    should not be a taxable transaction for persons who are
    non-residents of Canada. For a Canadian Holder (as defined in
    &#147;The Merger&#160;&#151; Material Canadian Federal Income
    Tax Consequences of the Merger and of Owning Precision Trust
    Units&#148;), the Merger will be a taxable transaction. For
    Canadian federal income tax purposes, a Canadian Holder who
    holds Grey Wolf common stock as capital property should
    recognize a capital gain or capital loss equal to the difference
    between (i)&#160;the sum of the cash consideration and the fair
    market value of the Precision trust units received in the Merger
    and (ii)&#160;the sum of such holder&#146;s adjusted cost base
    of the Grey Wolf common stock disposed of in the Merger and such
    holder&#146;s reasonable costs of disposition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summaries of the principal Canadian federal income tax
    consequences contained in this document are of a general nature
    and are not intended to be, and should not be construed to be,
    legal or tax advice or representations to any particular holder
    of Grey Wolf common stock or Precision trust units. Holders of
    Grey Wolf common stock and prospective holders of Precision
    trust units should consult with their own tax advisors in
    respect of the Canadian federal income tax consequences, as well
    as the consequences under any provincial or foreign laws that
    may apply to such person, of the Merger and their acquisition
    and holding of Precision trust units having regard to their
    particular circumstances. For additional discussion of certain
    Canadian federal income tax consequences of the Merger, see
    &#147;The Merger&#160;&#151; Material Canadian Federal Income
    Tax Consequences of the Merger and of Owning Precision Trust
    Units&#148; beginning on page&#160;76.
</DIV>
<A name='211'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Accounting
    Treatment (Page&#160;79)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision intends to account for the Merger as a purchase of
    Grey Wolf for both Canadian and US financial accounting purposes.
</DIV>
<A name='212'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dissenters&#146;
    Rights of Appraisal of Grey Wolf Shareholders under Texas Law
    (Page&#160;84)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to Article&#160;5.12 of the Texas Business Corporation
    Act (&#147;TBCA&#148;), holders of shares of Grey Wolf common
    stock who do not vote in favor of the Merger will have the right
    to dissent, but only if they submit a written objection to the
    Merger and comply with other Texas law procedures and the
    requirements
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    described in &#147;The Merger&#160;&#151; Appraisal Rights&#148;
    beginning on page&#160;84. Grey Wolf shareholders who wish to
    dissent to the Merger are in any case urged to seek the advice
    of counsel with respect to the availability of dissenters&#146;
    rights. The full text of Article&#160;5.12 of the TBCA is
    attached to this proxy statement/prospectus as
    <B>Annex&#160;D</B>.
</DIV>
<A name='213'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf&#146;s Board of Directors Unanimously Recommends that You
    Vote &#147;FOR&#148; the Approval of the Merger Agreement
    (Page&#160;55)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf&#146;s board of directors has determined that the
    Merger, the Merger Agreement and the transactions contemplated
    by the Merger Agreement are fair to and in the best interests of
    Grey Wolf and its shareholders and has unanimously adopted a
    resolution recommending that the Merger Agreement be approved by
    the Grey Wolf shareholders. For the factors considered by the
    Grey Wolf board of directors in reaching its decision to
    recommend approval of the Merger Agreement, see the section
    entitled &#147;The Merger&#160;&#151; Grey Wolf&#146;s Reasons
    for the Merger and Recommendation of Grey Wolf&#146;s Board of
    Directors&#148; beginning on page&#160;55. <B>Grey Wolf&#146;s
    board of directors unanimously recommends that Grey Wolf
    shareholders vote &#147;FOR&#148; the approval of the Merger
    Agreement.</B>
</DIV>
<A name='214'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Your
    Rights as a Holder of Precision Trust&#160;Units Will Be
    Different from Your Rights as a Holder of Grey Wolf Common Stock
    (Page&#160;120)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion of your shares of Grey Wolf common stock into
    Precision trust units in the Merger will result in material
    changes from your current rights as a Grey Wolf shareholder,
    which generally are governed by the TBCA and Grey Wolf&#146;s
    organizational documents, to your rights as a Precision
    unitholder, which generally will be governed by Alberta law and
    Precision&#146;s declaration of trust (the &#147;Declaration of
    Trust&#148;).
</DIV>
<A name='215'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grey Wolf
    Directors and Executive Officers Have Financial and Other
    Interests in the Merger that are Different from or in Addition
    to Your Interests (Page&#160;84)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Some of the members of Grey Wolf&#146;s board of directors and
    Grey Wolf&#146;s executive officers have financial interests in
    the Merger that are in addition to,
    <FONT style="white-space: nowrap">and/or</FONT>
    different from, your interests. The independent members of the
    Grey Wolf board of directors were aware of these additional
    <FONT style="white-space: nowrap">and/or</FONT>
    differing interests and potential conflicts and considered them,
    among other matters, in evaluating, negotiating and adopting a
    resolution recommending approval of the Merger Agreement. These
    interests include employment agreements between Grey Wolf and
    its executive officers that provide for, among other things,
    cash payments in the case of a change of control, such as the
    completion of the Merger, and the vesting of outstanding stock
    options and certain retirement plan account balances upon the
    completion of the Merger.
</DIV>
<A name='216'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Companies</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Grey Wolf, Inc.<BR>
    </I></B>10370 Richmond Avenue, Suite&#160;600<BR>
    Houston, Texas 77042<BR>
    <FONT style="white-space: nowrap">(713)&#160;435-6100</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf, with a fleet of 122 rigs, is a leading provider of
    contract land drilling services in the US. Grey Wolf&#146;s
    customers include independent producers and major oil and
    natural gas companies. Grey Wolf currently conducts its
    operations primarily in the Ark-La-Tex, Gulf Coast,
    Mississippi/Alabama, South Texas, Rocky Mountain and
    Mid-Continent domestic drilling markets and in Mexico. Grey Wolf
    had approximately 3,000&#160;employees at December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Precision Drilling Trust<BR>
    </I></B>4200,
    <FONT style="white-space: nowrap">150-6th</FONT>
    Avenue S.W.<BR>
    Calgary, Alberta, Canada T2P 3Y7<BR>
    <FONT style="white-space: nowrap">(403)&#160;716-4500</FONT>
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In Canada, based on the size of its drilling rig fleet,
    Precision is the largest provider of land based contract
    drilling services to oil and natural gas exploration and
    production companies. Precision&#146;s business services in
    Canada during 2007 were comprised of the following: contract
    drilling; well servicing; snubbing; procurement and distribution
    of oilfield supplies; camp and catering; manufacture and
    refurbishment of rig equipment; portable wastewater treatment;
    and rental of surface oilfield equipment, tubulars, well control
    equipment and wellsite accommodations. In the US,
    Precision&#146;s business is primarily the provision of contract
    drilling services in land based markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, Precision increased capital spending on additions to
    property, plant and equipment to grow and upgrade its high
    performance drilling rig fleet in Canada and the US,
    significantly expanded its contract drilling operations in the
    US and mobilized one drilling rig for a project in Latin America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s operations are carried out in two segments
    consisting of Contract Drilling Services and Completion and
    Production Services. The Contract Drilling Services segment
    includes land drilling services, camp and catering services,
    procurement and distribution of oilfield supplies and the
    manufacture and refurbishment of drilling and service rig
    equipment. The Completion and Production Services segment
    includes service rig well completion and workover services,
    snubbing services, wastewater treatment services and the rental
    of oilfield surface equipment, tubulars and well control
    equipment and wellsite accommodations. As of December&#160;31,
    2007, Precision had approximately 4,600&#160;employees.
</DIV>
<A name='217'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Special Meeting of Grey Wolf Shareholders
    (Page&#160;38)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf special meeting will be held
    at&#160;&#160;&#160;a.m. local time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008,
    at&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Houston, Texas. At the Grey Wolf special meeting, Grey Wolf
    shareholders will be asked:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to approve the Merger Agreement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to approve the adjournment or postponement of the Grey Wolf
    special meeting, if necessary or appropriate, to solicit
    additional proxies in favor of the foregoing proposal.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Record
    Date</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf shareholders may cast one vote at the special meeting
    for each share of Grey Wolf common stock that was owned at the
    close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. At that date, directors and executive officers of Grey
    Wolf and their respective affiliates had the right to vote
    approximately&#160;&#160;&#160;&#160;&#160;% of the Grey Wolf
    common stock entitled to be voted at the special meeting, and
    directors and executive officers of Precision and their
    affiliates owned (directly or indirectly) and had the right to
    vote less than 1% of the Grey Wolf common stock entitled to be
    voted at the special meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Required
    Vote</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order for the Merger Agreement to be approved by Grey Wolf
    shareholders, the affirmative vote of the holders of a majority
    of the shares of Grey Wolf common stock outstanding and entitled
    to vote at the special meeting as of the record date is required.
</DIV>
<A name='218'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Precision
    Unitholder Approval (Page&#160;5)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision unitholders are not required to adopt or approve the
    Merger or the issuance of Precision trust units as part of the
    Merger consideration.
</DIV>
<A name='219'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Merger Agreement (Page&#160;88)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement is described beginning on page&#160;88 and
    is included as <B>Annex&#160;A </B>to this proxy
    statement/prospectus. We urge you to read the Merger Agreement
    in its entirety because it is the legal document governing the
    Merger.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='220'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Agreements (Page&#160;83)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Grey Wolf director and executive officer has entered into a
    voting agreement, in the form included as <B>Annex&#160;B</B>,
    pursuant to which he is required to vote the shares of Grey Wolf
    common stock that he owns for the approval of the Merger
    Agreement.
</DIV>
<A name='221'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Regulatory
    Approval Required for the Merger (Page&#160;79)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the
    <FONT style="white-space: nowrap">Hart-Scott-Rodino</FONT>
    Antitrust Improvements Act of 1976, as amended (&#147;HSR
    Act&#148;), Precision and Grey Wolf may not complete the Merger
    until they have furnished certain information and materials to
    the Antitrust Division of the US Department of Justice
    (&#147;DOJ&#148;) and the US Federal Trade Commission
    (&#147;FTC&#148;) and the applicable waiting period has expired
    or they have received early termination. Precision and Grey Wolf
    filed premerger notification forms pursuant to the HSR Act with
    the DOJ and the FTC on September&#160;11, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because Precision is a foreign corporation, the President of the
    United States has the authority to block the Merger if he
    determines that the Merger threatens to impair the national
    security of the United States. Precision and Grey Wolf jointly
    and voluntarily filed a notification with the Committee on
    Foreign Investments in the United States (&#147;CFIUS&#148;) on
    September&#160;15, 2008, which examines proposed foreign
    acquisitions and makes recommendations to the President. The
    CFIUS process can, by statute, take up to 90&#160;days.
    Precision and Grey Wolf anticipate that CFIUS will conclude that
    the Merger does not threaten to impair the national security of
    the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no assurance that regulatory approvals will be
    obtained, that such approvals will be received on a timely basis
    or that such approvals will not impose conditions or
    requirements that would be reasonably likely to have a material
    adverse effect on Grey Wolf or Precision.
</DIV>
<A name='222'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Completion
    of the Merger is Subject to Conditions (Page&#160;98)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The respective obligations of each of Precision and Grey Wolf to
    complete the Merger are conditioned upon the satisfaction or
    waiver of the following conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approval of the Merger Agreement by Grey Wolf shareholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the expiration or early termination of any waiting period
    applicable to the consummation of the Merger under the HSR Act;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the receipt by Precision of written notice from CFIUS of its
    determination not to undertake an investigation of the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the approval of the listing of the Precision trust units to be
    issued in the Merger on the New York Stock Exchange and the
    Toronto Stock Exchange;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the absence of any action taken by any governmental agency or US
    court of competent jurisdiction that prohibits the consummation
    of the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the receipt by each of Precision and Grey Wolf of a legal
    opinion with respect to certain US federal income tax
    consequences of the Merger;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other customary conditions, including the truth and correctness
    of the representations and warranties and performance of
    covenants by both Precision and Grey Wolf, subject to a
    materiality standard, and the absence of any occurrence, state
    of facts or development that has had or is reasonably likely to
    have a material adverse effect on either Precision or Grey Wolf.
</TD>
</TR>

</TABLE>
<A name='223'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Precision
    Will Obtain Financing In Connection With the Merger
    (Page&#160;102)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with, but not as a condition to, the Merger, PDC
    expects to obtain from certain financial institutions
    (i)&#160;senior secured credit facilities comprised of
    $800&#160;million of term loan facilities and a
    $400&#160;million revolving credit facility and (ii)&#160;up to
    $400&#160;million (reduced by the amount of Grey Wolf&#146;s
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    convertible notes that PDC determines on or prior to the closing
    date of the Merger will not be converted or redeemed on or after
    the closing date) in cash proceeds from the issuance of debt
    securities in a Rule&#160;144A or other private placement or, if
    PDC is unable to issue the full amount of such debt securities
    at or prior to the closing date, from a senior unsecured
    facility, which notes or senior unsecured facility may become
    secured under certain circumstances.
</DIV>
<A name='224'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Merger Agreement Contains a &#147;No Solicitation&#148;
    Provision (Page&#160;95)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement contains a &#147;no solicitation&#148;
    provision that prohibits Grey Wolf from taking any action to
    solicit an alternative acquisition proposal. The Merger
    Agreement does not, however, prohibit Grey Wolf from furnishing
    information to or participating in negotiations with a person
    making an unsolicited acquisition proposal if Grey Wolf&#146;s
    board of directors determines in good faith that (i)&#160;the
    proposal is, or is reasonably likely to result in, a superior
    acquisition proposal, (ii)&#160;the party proposing such
    transaction has the financial and legal capacity to consummate
    such proposal and (iii)&#160;Grey Wolf enters into a
    confidentiality agreement no less favorable than the
    confidentiality agreement between Precision and Grey Wolf. Grey
    Wolf may terminate the Merger Agreement to enter into a
    definitive agreement with respect to a superior proposal.
</DIV>
<A name='225'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Merger Agreement May Be Terminated Under Some Circumstances
    (Page&#160;99)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement may be terminated at any time before the
    completion of the Merger, whether before or after approval of
    the Merger Agreement by Grey Wolf shareholders, in any of the
    following circumstances:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by mutual written consent of Precision and Grey Wolf; or
</TD>
</TR>
    <FONT style="font-size: 10pt">
    </FONT>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by either Precision or Grey Wolf if:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    the Merger has not been consummated by February&#160;28, 2009,
    through no fault of the terminating party;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    there is a final and nonappealable legal restraint, injunction
    or prohibition of the Merger, through no fault of the
    terminating party;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    the Grey Wolf shareholders have held a meeting to consider the
    Merger Agreement but have voted not to approve the Merger
    Agreement;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    the other party has breached its representations and warranties
    or failed to perform its covenants or agreements and such breach
    gives rise to a failure of certain closing conditions, unless
    the breach is cured within 30&#160;days after receipt of written
    notice of the breach;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by Precision if the board of directors of Grey Wolf has
    withdrawn or adversely modified its recommendation of the Merger
    Agreement or recommended a superior proposal, Grey Wolf has
    entered into an agreement for any alternative acquisition
    proposal or either Grey Wolf or the board of directors of Grey
    Wolf has announced its intention to do any of the
    foregoing;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by Grey Wolf before approval of the Merger Agreement by Grey
    Wolf shareholders, if Grey Wolf decides to accept a superior
    proposal.
</TD>
</TR>

</TABLE>
<A name='226'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grey Wolf
    May Be Required to Pay a Termination Fee Under Some
    Circumstances (Page&#160;99)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Merger Agreement is terminated under certain
    circumstances, including circumstances involving a change in
    recommendation by Grey Wolf&#146;s board of directors, Grey Wolf
    will be required to pay Precision a termination fee of
    $64&#160;million. In addition, Grey Wolf may be required to pay
    an expense reimbursement fee of $7.5&#160;million if the Merger
    Agreement is terminated under specified circumstances, but in no
    event will Grey Wolf be required to pay Precision more than
    $64&#160;million. The above referenced fees and expenses are in
    addition to the $25&#160;million termination fee that Grey Wolf
    will be required to pay to Basic Energy Services, Inc.
    (&#147;Basic&#148;) upon consummation of the Merger or, in the
    event of an alternative acquisition transaction, upon
    consummation of an alternative acquisition, in each case if
    consummated prior to July&#160;15, 2009 and as
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    set forth in Grey Wolf&#146;s previously terminated Agreement
    and Plan of Merger with Basic (the &#147;Basic Merger
    Agreement&#148;).
</DIV>
<A name='227'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exchange
    of Grey Wolf Common Stock (Page&#160;80)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You will need to surrender your Grey Wolf common stock
    certificates to receive the Merger consideration in exchange for
    your Grey Wolf common stock. The letter of transmittal and form
    of election accompanying this proxy statement/prospectus
    contains complete instructions on how to exchange your stock
    certificates to receive the Merger consideration. The letter of
    transmittal and form of election and your stock certificate
    should be submitted in the enclosed envelope to the exchange
    agent, ComputershareTrust Company, N.A., at the address given in
    the materials prior to the election deadline.
</DIV>
<A name='228'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Election
    to Receive Cash and/or Precision Trust&#160;Units
    (Page&#160;80)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Merger Agreement, you may elect to receive
    either cash or Precision trust units in exchange for your shares
    of Grey Wolf common stock. Each share of Grey Wolf common stock
    will be converted, at your option, into $9.02 in cash or 0.4225
    Precision trust units, subject to proration. In addition to the
    accompanying proxy card and voting instruction form, enclosed is
    a letter of transmittal and form of election to enable you to
    elect the form of consideration you wish to receive. The form of
    election must be submitted by the second business day prior to
    the anticipated effective time of the Merger (currently
    anticipated to
    be&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008). If you do not submit a properly completed letter of
    transmittal and form of election prior to such second business
    day prior to the announced anticipated effective time of the
    Merger, your shares of Grey Wolf common stock will be deemed to
    be &#147;No Election Shares.&#148; For a discussion of No
    Election Shares, please see &#147;The Merger&#160;&#151;
    Election and Exchange Procedures&#148; beginning on page&#160;80.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='229'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FREQUENTLY
    ASKED QUESTIONS AND ANSWERS ABOUT<BR>
    THE MERGER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What am I being asked to vote on?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Precision and Grey Wolf have entered into the Merger Agreement
    pursuant to which Precision has agreed to acquire Grey Wolf. You
    are being asked to vote to approve the Merger Agreement pursuant
    to the terms and subject to the conditions of the Merger
    Agreement. Under the terms of the Merger Agreement, Grey Wolf
    will merge with and into Merger Sub with Merger Sub continuing
    as the surviving corporation and a wholly-owned subsidiary of
    Precision. In addition, you are also being asked to vote to
    approve a proposal to adjourn the special meeting if necessary
    or appropriate, including to permit further solicitation of
    proxies if there are not sufficient votes at the time of the
    special meeting to approve the Merger.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What will I receive if the Merger is completed?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Under the terms of the Merger Agreement, shareholders of Grey
    Wolf may elect to receive either cash or Precision trust units
    in exchange for their Grey Wolf common stock. Each share of Grey
    Wolf common stock will be converted, at the option of the
    holder, into $9.02 in cash or 0.4225 Precision trust units,
    subject to proration. The maximum amount of cash to be paid by
    Precision will be approximately $1.12&#160;billion, and the
    maximum number of Precision trust units to be issued will be
    approximately 42.0&#160;million. These amounts take into account
    shares of Grey Wolf common stock issuable upon the conversion of
    Grey Wolf&#146;s convertible debt securities and the exercise of
    Grey Wolf stock options, which, together with Grey Wolf&#146;s
    issued and outstanding common stock, totals approximately
    223&#160;million fully-diluted shares of Grey Wolf common stock.
    These maximum amounts are equivalent to $5.00 in cash and 0.1883
    of a Precision trust unit for each share of Grey Wolf common
    stock.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>When and how must I elect the type of Merger consideration
    that I prefer to receive?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Accompanying this proxy statement/prospectus is a letter of
    transmittal and form of election. The letter of transmittal and
    form of election allows you to elect to receive cash or
    Precision trust units for each share of Grey Wolf common stock
    that you own. You must return your properly completed and signed
    letter of transmittal and form of election to the exchange agent
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. If the effective time is delayed to a subsequent date, the
    election deadline will also be delayed and Precision and Grey
    Wolf will promptly announce any such delay and, when determined,
    the rescheduled election deadline. For additional information,
    see &#147;The Merger&#160;&#151; Election and Exchange
    Procedures&#160;&#151;&#160;Elections as to Form of
    Consideration; Form of Election&#148; beginning on page&#160;81.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What happens if I fail to elect a type of Merger
    consideration?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Under the terms of the Merger Agreement, shares for which
    shareholders fail to elect to receive cash
    <FONT style="white-space: nowrap">and/or</FONT>
    Precision trust units in exchange for their Grey Wolf common
    stock shall be treated as &#147;No Election Shares.&#148; To the
    extent that the amount of cash consideration that would be paid
    with respect to shares for which holders of Grey Wolf common
    stock have elected to receive cash, together with the aggregate
    amount of cash consideration payable to Grey Wolf dissenting
    shares, exceeds the $1.12&#160;billion maximum cash
    consideration to be paid by Precision in the Merger, No Election
    Shares will be converted into Precision trust units. However, to
    the extent that the amount of cash consideration that would be
    paid with respect to shares for which Grey Wolf shareholders
    have elected to receive cash, together with the aggregate amount
    of cash consideration payable to Grey Wolf dissenting shares, is
    less than the $1.12&#160;billion maximum cash consideration
    amount, then No Election Shares shall be converted into cash up
    to the maximum cash consideration amount. If payment of the No
    Election Shares would cause the aggregate cash consideration to
    exceed the maximum cash consideration amount, then all No
    Election Shares will be converted pro rata into cash up to the
    maximum cash consideration amount, with the balance of such
    shares converted into Precision trust units. For additional
    information, see &#147;The Merger&#151;&#160;Election and
    Exchange Procedures&#160;&#151; Elections as to Form of
    Consideration; Form of Election&#148; beginning on page&#160;81.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Can I revoke or change an election after it has been
    submitted to the exchange agent?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Yes. An election may be revoked by written notice to the
    exchange agent received prior to the election deadline. An
    election may also be changed prior to the election deadline by
    submitting to the exchange agent a properly completed and signed
    revised letter of transmittal and form of election. For
    additional information, see &#147;The
    Merger&#160;&#151;&#160;Election and Exchange
    Procedures&#160;&#151;&#160;Elections as to Form of
    Consideration; Form of Election&#148; beginning on page&#160;81.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Will I be able to vote in elections of the trustees of
    Precision following the Merger?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Each Precision trust unit entitles its holder to one vote on
    each proposal put forth at any meeting of the holders of
    Precision trust units, including the election of the trustees of
    Precision, pursuant to the terms and conditions of
    Precision&#146;s Declaration of Trust. Precision&#146;s trustees
    are generally elected by the holders of Precision trust units at
    each annual meeting of Precision unitholders, though trustees
    may also be elected at special meetings in accordance with the
    procedures set forth in the Declaration of Trust. Further
    information on the governance structure of Precision, including
    the election of Precision&#146;s trustees is set forth in
    &#147;Comparison of Shareholder Rights&#160;&#151; Voting Rights
    Generally&#148; and &#147;Comparison of Shareholder
    Rights&#160;&#151; Directors and Trustees Generally&#148;
    beginning on pages&#160;120 and 130, respectively. Additionally,
    the holders of Precision trust units are entitled to elect the
    board of directors of PDC in the manner set forth and described
    in &#147;Comparison of Shareholder Rights&#160;&#151; Voting
    Rights Generally&#148; beginning on page&#160;120.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Does Precision pay dividends?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Precision has a policy of making monthly cash distributions to
    the holders of the Precision trust units. Distributions are paid
    from Precision&#146;s &#147;cash flow,&#148; as that term is
    defined in Precision&#146;s Declaration of Trust. The
    Declaration of Trust provides that an amount equal to
    Precision&#146;s taxable income not already paid to holders of
    Precision trust units during the year will become payable on
    December 31 of each year, such that Precision will not be liable
    for ordinary Canadian income taxes for that year. Additional
    information on the distribution policies of Precision is set
    forth in &#147;The Merger&#160;&#151; Precision&#146;s
    Distribution Policy&#148; beginning on page&#160;86 and
    &#147;Comparison of Shareholder Rights&#160;&#151; Payment of
    Dividends and Distributions&#148; beginning on page&#160;125.
    For a discussion of the general US federal income tax
    consequences of distributions by Precision, see &#147;The
    Merger&#160;&#151; Material US Federal Income Tax Consequences
    of the Merger and of Owning Precision
    Trust&#160;Units&#160;&#151; Ownership by US Holders of
    Precision Trust Units&#160;&#151; Dividends and
    Distributions&#148; and &#147;The Merger&#160;&#151; Material US
    Federal Income Tax Consequences of the Merger and of Owning
    Precision Trust Units&#160;&#151; Ownership by
    <FONT style="white-space: nowrap">Non-US&#160;Holders</FONT>
    of Precision Trust Units.&#148; For a discussion of the general
    Canadian federal income tax consequences of distributions by
    Precision, see &#147;The Merger&#160;&#151; Material Canadian
    Federal Income Tax Consequences of the Merger and of Owning
    Precision Trust Units&#160;&#151; Canadian Holders&#160;&#151;
    Taxation of Trust&#160;Unit Distributions to Canadian
    Holders&#148; and &#147;The Merger&#160;&#151; Material Canadian
    Federal Income Tax Consequences of the Merger and of Owning
    Precision Trust Units&#160;&#151; Non-Canadian
    Holders&#160;&#151; Taxation of Trust&#160;Unit Distributions to
    Non-Canadian Holders.&#148;</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What is the total value of the Merger and will it change
    between now and the time the Merger is completed?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The total consideration to be paid by Precision is
    $1.12&#160;billion in cash and approximately 42.0&#160;million
    Precision trust units. The total value of the Merger will vary
    with changes in Precision&#146;s trust unit price.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>How much of the combined company will Grey Wolf shareholders
    own?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    After the Merger, Grey Wolf shareholders will hold approximately
    25% of the outstanding Precision trust units, assuming that all
    of Grey Wolf&#146;s convertible notes are converted into Grey
    Wolf common stock and all vested stock options are exercised
    prior to the Merger.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>When do you expect the Merger to be completed?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    It is currently anticipated that the Merger will be completed on
    the first business day following approval of the Merger
    Agreement by the Grey Wolf shareholders.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Can the number of Precision trust units to be issued in the
    Merger for each share of Grey Wolf common stock change between
    now and the time the Merger is completed based on changes in the
    trading price of the Precision trust units?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    No.&#160;The aggregate number of Precision trust units to be
    issued at the time of the Merger is fixed regardless of the
    trading price of Precision trust units. However, in aggregate,
    the market value of the Precision trust units Grey Wolf
    shareholders will receive in the Merger will depend on the price
    of the Precision trust units at the time the trust units are
    issued. For various reasons, including the underlying value of
    Precision trust units, individual Grey Wolf shareholders may
    elect to receive all cash or all Precision trust units, which
    will ultimately impact the consideration mix on an individual
    level. See &#147;Risk Factors&#160;&#151; Risks Relating to the
    Merger&#148; beginning on page&#160;25.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What are the material US federal income tax consequences of
    the Merger to Grey Wolf shareholders?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Precision and Grey Wolf have structured the Merger to qualify as
    a reorganization within the meaning of Section&#160;368(a) of
    Internal Revenue Code of 1986, as amended (the
    &#147;Code&#148;). The material US federal income tax
    consequences of the Merger to US Holders (as defined in
    &#147;The Merger&#160;&#151; Material US Federal Income Tax
    Consequences of the Merger and of Owning Precision
    Trust&#160;Units&#148; beginning on page&#160;69) are as follows:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A US Holder that exchanges Grey Wolf common stock solely for
    Precision trust units generally will not be subject to US
    federal income tax with respect to such transfer. US Holders of
    Grey Wolf common stock that receive both cash and Precision
    trust units generally will recognize gain, but not loss, to the
    extent of the cash received. US Holders of Grey Wolf common
    stock that receive only cash generally will recognize a gain or
    loss.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A US Holder&#146;s aggregate tax basis in the Precision trust
    units that such holder receives in the Merger will equal its
    aggregate tax basis in the Grey Wolf common stock surrendered,
    increased by the amount of taxable gain or dividend income, if
    any, recognized in the Merger, and decreased by the amount of
    cash, if any, received in the Merger.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A US Holder&#146;s holding period for the Precision trust units
    that such holder receives in the Merger generally will include
    the holding period for the Grey Wolf common stock exchanged
    therefor.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A Non-US Holder (as defined in &#147;The Merger&#160;&#151;
    Material US Federal Income Tax Consequences of the Merger and of
    Owning Precision Trust Units&#148; beginning on page&#160;69) of
    Grey Wolf common stock generally will not be subject to US
    federal income tax with respect to the Merger unless such Non-US
    Holder has certain connections to the US.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;The Merger&#160;&#151; Material US Federal Income Tax
    Consequences of the Merger and of Owning Precision
    Trust&#160;Units&#148; beginning on page&#160;69.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What are the material Canadian federal income tax
    consequences of the Merger to Grey Wolf shareholders?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The Merger itself should not give rise to any Canadian federal
    income tax liability for Grey Wolf shareholders who are
    non-residents of Canada for Canadian federal income tax
    purposes. For a Canadian Holder (as defined in &#147;The
    Merger&#160;&#151; Material Canadian Federal Income Tax
    Consequences of the Merger and of Owning Precision Trust
    Units&#148; beginning on page&#160;76), the Merger will be
    treated for Canadian federal income tax purposes as a taxable
    disposition by such holder of the Grey Wolf common stock that
    such holder disposes of in the Merger. The material Canadian
    federal income tax consequences </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    of the Merger to a Canadian Holder who holds Grey Wolf common
    stock as capital property are as follows:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A Canadian Holder should realize a capital gain or capital loss
    equal to the difference between (i)&#160;the sum of the cash
    consideration and the fair market value of the Precision trust
    units received in the Merger and (ii)&#160;the sum of such
    holder&#146;s adjusted cost base of the Grey Wolf common stock
    that such holder disposes of in the Merger and any reasonable
    costs of disposition.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A Canadian Holder that holds the Precision trust units received
    in the Merger as capital property should have an adjusted cost
    base in Precision trust units equal to the fair market value of
    Precision trust units at the time of the Merger, subject to the
    adjusted cost base of Precision trust units being averaged with
    the adjusted cost base to such holder of any Precision trust
    units held as capital property prior to the Merger.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;The Merger&#160;&#151; Material Canadian Federal
    Income Tax Consequences of the Merger and of Owning Precision
    Trust Units&#148; beginning on page&#160;76.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Are there risks I should consider in deciding whether to vote
    for the Merger?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Yes. We have set forth a list of known material risk factors
    that you should consider carefully in connection with the Merger
    in the section entitled &#147;Risk Factors&#148; beginning on
    page&#160;25.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Can I dissent and require appraisal of my shares?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Holders of shares of Grey Wolf common stock who do not vote in
    favor of the Merger will have the right to dissent, but only if
    they submit a written objection to the Merger and comply with
    other Texas law procedures and the requirements described in
    &#147;The Merger&#160;&#151; Appraisal Rights&#148; beginning on
    page&#160;84. Grey Wolf shareholders who wish to dissent to the
    Merger are in any case urged to seek the advice of counsel with
    respect to the availability of dissenters&#146; rights.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>When and where is the Grey Wolf special meeting?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The Grey Wolf special meeting will take place
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. The time and location of the meeting are specified on the
    cover page of this proxy statement/prospectus.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Who can vote at the special meeting?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Holders of Grey Wolf common stock as of the close of business on
    the record date
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008 are entitled to vote at the special meeting. Beneficial
    owners as of the record date should receive instructions from
    their bank, broker or other nominee describing the procedures to
    vote their shares.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What vote of Grey Wolf shareholders is required to approve
    the Merger Agreement?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The affirmative vote of the holders of a majority of the issued
    and outstanding shares of Grey Wolf common stock as of the
    record date is required to approve the Merger Agreement.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What do I need to do now?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    After carefully reading and considering the information
    contained in this document, please submit your proxy by
    telephone or via the Internet in accordance with the
    instructions set forth in the enclosed proxy card, or fill out,
    sign and date the proxy card and then mail your signed proxy
    card in the enclosed prepaid envelope as soon as possible so
    that your shares may be voted at the special meeting. See
    &#147;The Grey&#160;Wolf Special Meeting&#148; beginning on
    page&#160;38.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What happens if I do not indicate my preference for or
    against approval of the Merger?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    If you submit a proxy without specifying the manner in which you
    would like your shares to be voted, your shares will be voted
    &#147;FOR&#148; approval of the Merger Agreement.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What happens if I do not vote at all?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Because approval of the Merger Agreement requires the
    affirmative vote of a majority of the shares of Grey Wolf common
    stock outstanding and entitled to vote as of the record date, if
    you abstain or fail to vote your shares in favor of approval of
    the Merger Agreement, this will have the same effect as voting
    your shares against approval of the Merger Agreement. If you
    fail to respond with a vote or fail to instruct your broker or
    other nominee how to vote on the approval of the Merger
    Agreement, it will have the same effect as a vote against the
    approval of the Merger Agreement.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>If my shares are held in &#147;street name&#148; by my bank,
    broker or other nominee, will my bank, broker or other nominee
    vote my shares for me?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    You should instruct your bank, broker or other nominee to vote
    your shares. If you do not instruct your nominee, your nominee
    will not be able to vote your shares. Please check with your
    nominee and follow the voting procedures your nominee provides.
    Your nominee will advise you whether you may submit voting
    instructions by telephone or via the Internet. See &#147;The
    Grey Wolf Special Meeting&#160;&#151; Record Date; Voting Rights
    and Outstanding Shares&#148; and &#147;The Grey Wolf Special
    Meeting&#160;&#151; Quorum, Voting Requirements and Effect of
    Abstentions and Non-votes&#148; beginning on pages&#160;38 and
    39, respectively.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>May I change my vote after I have submitted a proxy?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Yes. You may send a later-dated, signed proxy card so that it is
    received prior to the special meeting, or you may attend the
    special meeting in person and vote. You may also revoke your
    proxy card by sending a notice of revocation that is received
    prior to the special meeting to Grey Wolf&#146;s corporate
    secretary at the address set forth under &#147;&#151; The
    Companies.&#148; You may also change your vote by telephone or
    Internet. You may change your vote by using any one of these
    methods regardless of the procedure used to cast your previous
    vote. Additional information on how to change your vote is
    located beginning on page&#160;80.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>If I want to attend the special meeting, what do I do?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    You should come
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    Houston, Texas
    at&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;a.m.,
    local time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. If you hold your shares in &#147;street name,&#148; you
    will need to bring proof of ownership (by means of a recent
    brokerage statement, letter from your bank or broker or similar
    means) to be admitted to the meeting. Shareholders of record as
    of the record date for the special meeting can vote in person at
    the special meeting. If your shares are held in &#147;street
    name,&#148; then you are not the shareholder of record and you
    must ask your bank, broker or other nominee how you can vote at
    the special meeting.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Can I send in my stock certificates with my proxy card?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Yes, you may send in your Grey Wolf stock certificates with your
    proxy card <I>provided</I> that they are submitted in the
    enclosed envelope with a properly completed letter of
    transmittal and form of election. Otherwise, prior to the
    election deadline, which will be the second business day prior
    to the anticipated effective date of the Merger, which date
    Precision and Grey Wolf expect to publicly announce at least
    five business days prior to the anticipated effective date, you
    should send your Grey Wolf stock certificates to the exchange
    agent, together with your completed, signed letter of
    transmittal and form of election. If your shares of Grey Wolf
    common stock are held in &#147;street name&#148; by your broker
    or other nominee, you should follow your broker or
    nominee&#146;s instructions for making an election with respect
    to your shares of Grey Wolf common stock.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Who can help answer my additional questions about the Merger
    or voting procedures?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Grey Wolf has retained Georgeson, Inc., which we refer to as
    Georgeson, to serve as an information agent in connection with
    the Merger. Shareholders of Grey Wolf may call Georgeson
    toll-free at
    <FONT style="white-space: nowrap">(800)&#160;561-3540</FONT>
    with any questions they may have. Banks and brokers may call
    collect at
    <FONT style="white-space: nowrap">(212)&#160;440-9800.</FONT></TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='230'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">VOTING BY
    INTERNET, TELEPHONE OR MAIL</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you hold your shares through a bank, broker, custodian or
    other recordholder, please refer to your proxy card or voting
    instruction form or the information forwarded by your bank,
    broker, custodian or other recordholder to see which options are
    available to you.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grey Wolf
    shareholders of record may submit their proxies by:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Internet.</I>&#160;&#160;You can vote over the Internet by
    accessing www.voteproxy.com and following the instructions on
    the website prior to&#160;&#160;&#160;a.m.
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. Internet voting is available 24&#160;hours a day. If you
    vote over the Internet, do not return your proxy card(s) or
    voting instruction card(s).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Telephone.</I>&#160;&#160;You can vote by telephone by
    calling 1-800-PROXIES
    <FONT style="white-space: nowrap">(1-800-776-9437)</FONT>
    toll-free in the US, Canada or Puerto Rico on a touch-tone phone
    prior to&#160;&#160;&#160;a.m.
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. You will then be prompted to enter the control number
    printed on your proxy card and to follow subsequent
    instructions. Telephone voting is available 24&#160;hours a day.
    If you vote by telephone, do not return your proxy card(s) or
    voting instruction card(s).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mail.</I>&#160;&#160;You can vote by mail by completing,
    signing, dating and mailing your proxy card(s) or voting
    instruction card(s) in the postage-paid envelope included with
    this proxy statement/prospectus. If you vote by mail, your proxy
    card(s) must be received prior
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008, the date of the special meeting.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='231'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    HISTORICAL FINANCIAL STATEMENT PRESENTATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated in this document, all financial
    information relating to Grey Wolf is presented in US dollars,
    has been prepared in accordance with generally accepted
    accounting principles in the US (&#147;US GAAP&#148;) and has
    been derived from Grey Wolf&#146;s consolidated financial
    statements prepared in accordance with US GAAP. All historical
    financial information relating to Precision is presented in
    Canadian dollars and in accordance with US GAAP and is derived
    from Precision&#146;s consolidated financial statements prepared
    in accordance with generally accepted accounting principles in
    Canada (&#147;Canadian GAAP&#148;) and reconciled to US GAAP,
    except for pro forma data which is presented under US GAAP in US
    dollars.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Canadian GAAP differs from US GAAP and may result in material
    differences in reported financial results for Precision. For a
    reconciliation to US GAAP of Precision&#146;s financial
    statements for the six-month period ended June&#160;30, 2008 and
    June&#160;30, 2007, see Precision&#146;s reports on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    and, for each of the five years ended December&#160;31, 2007,
    2006, 2005, 2004 and 2003, see Precision&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;40-F</FONT>
    for the years ended December&#160;31, 2007, 2006 and 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the Merger, Precision expects that it will continue to
    be a &#147;foreign private issuer&#148; eligible to file reports
    under the US Securities Exchange Act of 1934, as amended (the
    &#147;Exchange Act&#148;) and the multi-jurisdictional
    disclosure system. The multi-jurisdictional disclosure system
    facilitates cross-border offerings of securities and continuous
    reporting by specified Canadian issuers. The system permits
    eligible companies in the US and Canada to offer securities in
    the other country using the disclosure documents meeting the
    regulatory requirements of their home country. As a trust
    governed by the laws of the Province of Alberta and subject to
    the reporting requirements of the various securities regulatory
    authorities in Canada, Precision is required to prepare and file
    financial information under Canadian GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and Grey Wolf expect that the Merger will be accounted
    for as a purchase. Following the Merger, Precision anticipates
    filing with the Securities and Exchange Commission
    (&#147;SEC&#148;) annual consolidated financial statements
    prepared in accordance with Canadian GAAP reconciled to US GAAP.
    Communications with unitholders will also primarily focus on the
    financial results of the merged company prepared in accordance
    with Canadian GAAP.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='232'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    HISTORICAL CONSOLIDATED FINANCIAL</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>AND OPERATING DATA OF PRECISION</B>
</DIV>
</A>
<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selected consolidated financial data of Precision as of and
    for each of the years ended December&#160;31, 2007, 2006, 2005,
    2004 and 2003 (shown in US GAAP) have been derived from
    Precision&#146;s audited consolidated financial statements which
    are prepared in accordance with Canadian GAAP and reconciled to
    US GAAP. The selected historical financial data as of and for
    the six-month periods ended June&#160;30, 2008 and 2007 have
    been derived from the unaudited consolidated financial
    statements of Precision, and the related US GAAP reconciliation
    incorporated by reference in this proxy statement/prospectus.
    The unaudited financial data presented have been prepared on a
    basis consistent with Precision&#146;s audited consolidated
    financial statements as of and for the year ended
    December&#160;31, 2007. In the opinion of Precision&#146;s
    management, such unaudited financial data reflect all
    adjustments, consisting only of normal and recurring
    adjustments, necessary for a fair statement of the results for
    those periods. The results of operations for the interim periods
    are not indicative of the results to be expected for the full
    year or any future period. More comprehensive financial
    information is included in Precision&#146;s financial statements
    and annual reports. The selected consolidated financial data set
    forth below is qualified in its entirety by reference to, and
    should be read in conjunction with, Precision&#146;s complete
    consolidated financial statements, including the notes thereto,
    and the section entitled &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of Operations&#148;
    contained in Precision&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;40-F</FONT>
    for the year ended December&#160;31, 2007, which is incorporated
    by reference in this proxy statement/prospectus. See &#147;Where
    You Can Find More Information&#148; regarding how you can obtain
    this information beginning on page&#160;132.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="39%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Six Months Ended June&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B>(In US GAAP, Cdn$ in thousands, except per unit/share data
    and operating data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    481,203
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    532,547
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,009,201
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,437,584
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,269,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,028,488
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    915,170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Operating
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    266,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    516,094
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    688,207
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    641,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    566,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    544,163
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,829
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,997
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81,217
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89,557
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,959
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73,234
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,561
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,829
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Foreign exchange
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    893
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (353
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,474
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,100
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,216
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,344
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,735
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (160
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (195
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (555
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (942
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,023
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (541
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (541
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (408
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    160,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,899
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,493
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Earnings from continuing operations before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    141,719
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    201,211
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    349,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    587,658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    280,071
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    298,122
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    226,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income taxes:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Current
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,697
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,647
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (737
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,526
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    241,402
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Deferred
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,069
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19,380
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (169,019
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,103
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total income tax
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,997
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,213
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,146
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,383
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,728
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net earnings continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127,722
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    183,789
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    342,855
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    572,512
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    207,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    196,321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Earnings from discontinued operations (2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,388,060
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,920
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,162
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127,722
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    183,789
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    345,811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    579,589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,595,748
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    188,676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Distributions declared
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,091
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    276,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    471,524
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash distributions declared per unit&#160;(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Earnings per unit/share from continuing operations:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="39%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Six Months Ended June&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited) </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B>(In US GAAP, Cdn$ in thousands, except per unit/share data
    and operating data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Unit/share data: (3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Issued
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    109,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Weighted average units/shares outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,545
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123,304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Weighted average&#160;&#151; diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,545
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    117,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Statement of cash flow data:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    From operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    257,765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    385,371
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    484,115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    609,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    206,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    286,437
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200,921
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    From investments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (103,443
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (115,398
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (191,402
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (234,723
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,037,529
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (873,160
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (220,144
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    From financing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (147,205
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (269,973
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (292,713
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (375,021
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,462,574
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    527,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (34,228
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Discontinued operations (2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    160,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,506
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other financial data:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Acquisitions net of cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,428
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    679,814
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Purchase of property, plant and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,812
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108,542
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    186,973
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    263,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    155,231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    122,692
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96,193
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Distributions paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,909
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    249,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    444,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Operating Data:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Drilling rigs available (2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    247
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    245
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    230
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    245
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Canada rig days
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,475
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,768
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,937
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    US rig days
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,243
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    499
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    International rig days (2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>As of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="22" align="center" valign="bottom">
    <B>(In US GAAP, Cdn$ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Statement of Balance Sheet Data:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,819,331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,826,506
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,824,215
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,781,911
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,915,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,001,637
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,948
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    119,826
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96,838
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    718,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    399,422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Assets net of liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,409,096
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,379,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,280,104
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,137,620
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,530,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,193,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Unitholders&#146; temporary equity (1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,146,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,730,328
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,153,594
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,304,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Share capital (3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,272,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    936,529
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    On November&#160;7, 2005, PDC converted to an open-ended
    investment trust. Pursuant to the reorganization, shareholders
    of PDC exchanged their PDC common shares for Precision trust
    units. Precision trust units are, subject to certain
    limitations, redeemable at any time on demand by the unitholder.
    Under US GAAP the amount included on the consolidated balance
    sheet for unitholder&#146;s equity is classified as temporary
    equity and recorded at an amount equal to the redemption value
    of the Precision trust units as of the balance sheet date.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    On August&#160;31, 2005, Precision sold its Energy Services and
    International Contract Drilling divisions to Weatherford
    International Ltd. for proceeds of approximately
    Cdn$1.13&#160;billion and 26&#160;million common shares of
    Weatherford, valued at Cdn$2.1&#160;billion.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    In addition, on September&#160;13, 2005, Precision sold its
    industrial plant maintenance business to Borealis Investments
    Inc. for proceeds of approximately Cdn$274&#160;million.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    In 2005, Cdn$2.9&#160;billion (Cdn$23.07 per share) was
    distributed to Precision&#146;s shareholders in connection with
    the sale of Precision&#146;s energy services and international
    contract drilling divisions.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    For comparative purposes results of discontinued operations
    information has been removed from the financial and operating
    data.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    On May&#160;15, 2005, PDC undertook a 2 for 1 stock split.
    Comparative numbers have been changed to affect the stock split
    equivalent.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='233'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    HISTORICAL CONSOLIDATED FINANCIAL AND</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>OPERATING DATA OF GREY WOLF</B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selected historical consolidated financial data of Grey Wolf
    as of and for each of the years ended December&#160;31, 2007,
    2006, 2005, 2004 and 2003 has been derived from Grey Wolf&#146;s
    audited consolidated financial statements and prepared in
    accordance with US GAAP. The selected historical financial data
    as of and for the six-month periods ended June&#160;30, 2008 and
    2007 has been derived from the unaudited consolidated financial
    statements of Grey Wolf incorporated by reference in this proxy
    statement/prospectus. The unaudited financial data presented has
    been prepared on a basis consistent with Grey Wolf&#146;s
    audited consolidated financial statements. In the opinion of
    Grey Wolf&#146;s management, such unaudited financial data
    reflects all adjustments, consisting only of normal and
    recurring adjustments, necessary for a fair statement of the
    results for those periods. The results of operations for the
    interim periods are not necessarily indicative of the results to
    be expected for the full year or any future period. The selected
    consolidated financial data set forth below should be read in
    conjunction with, Grey Wolf&#146;s complete consolidated
    financial statements, including the notes thereto, and the
    section entitled &#147;Management&#146;s Discussion and Analysis
    of Financial Condition and Results of Operations&#148; contained
    in Grey Wolf&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007, which is incorporated
    by reference in this proxy statement/prospectus. See &#147;Where
    You Can Find More Information&#148; beginning on
    page&#160;132&#160;regarding how you can obtain this information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information below refers to EBITDA of Grey Wolf. Grey Wolf
    believes that its disclosure of EBITDA and EBITDA per rig day as
    a measure of rig operating performance allows investors to make
    a direct comparison between Grey Wolf and its competitors,
    without regard to differences in capital structure or to
    differences in the cost basis of Grey Wolf&#146;s rigs and those
    of Grey Wolf&#146;s competitors. EBITDA means earnings before
    interest, income taxes, depreciation and amortization. EBITDA
    has limitations as an analytical tool and should not be
    considered an alternative to net income, operating income, cash
    flow from operating activities or any other measure of financial
    performance or liquidity presented in accordance with US GAAP.
    EBITDA excludes some, but not all, items that affect net income.
    Limitations to using EBITDA as an analytical tool include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    EBITDA does not reflect current or future requirements for
    capital expenditures or capital commitments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    EBITDA does not reflect changes in, or cash requirements
    necessary to service interest or principal payments on
    indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    EBITDA does not reflect income taxes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    although depreciation and amortization are non-cash charges, the
    assets being depreciated and amortized will often have to be
    replaced in the future, and EBITDA does not reflect any cash
    requirements for such replacements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an improving trend in EBITDA may not be indicative of an
    improvement in profitability;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other companies in Grey Wolf&#146;s industry may calculate
    EBITDA differently than Grey Wolf, limiting its usefulness as a
    comparative measure.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please see the reconciliations of EBITDA to net income, which is
    the most directly comparable US GAAP financial measure for each
    of the periods presented, below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Six Months Ended June&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B>(US$ in thousands, except per share data and operating
    data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Statement of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Contract Drilling Revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    418,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    469,533
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    906,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    945,527
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    696,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    424,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    285,974
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Drilling operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    243,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    253,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    513,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    516,787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    418,644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    327,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    244,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,361
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,279
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,521
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,439
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,317
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    (Gain) loss on sale of assets and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (129
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (175
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,054
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (115
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (45
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (81
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Total costs and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    315,097
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    311,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    640,472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    599,048
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    496,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    396,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    306,693
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest income (expense), net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (178
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (708
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,128
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,791
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,982
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,878
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,621
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    169,892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    219,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120,637
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30,200
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Net income (loss) per common stock:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.17
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.17
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Statement of Cash Flows Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash flows provided by (used in):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    172,218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    190,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    295,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    288,230
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    221,612
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,146
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,040
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (104,214
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (120,349
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (225,500
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (170,514
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (128,250
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (74,077
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,927
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,644
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,014
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (52,404
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (61,088
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,073
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,291
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,582
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Other Financial Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Capital Expenditures:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Acquisitions, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,362
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,906
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    122,842
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    220,191
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197,161
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131,352
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Deposits for new rig purchases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,766
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    162,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    208,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    376,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    431,975
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265,775
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,342
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,770
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Operating Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Rig days(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,664
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,397
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,561
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,147
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Average revenue per rig day
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,561
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,901
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,620
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,913
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Average EBITDA per rig day
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,754
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,789
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,919
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,139
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Average number of rigs operating
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    A rig day is a twenty-four hour period in which a Grey Wolf rig
    is under contract and should be earning revenues.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents a reconciliation of EBITDA to net
    income, which is the most directly comparable US GAAP financial
    performance measure, for each of the periods indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="39%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Six Months Ended June&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B>(US$ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Earnings before interest expense, income taxes, depreciation and
    amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    162,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    208,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    376,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    431,975
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    265,775
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    84,342
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,770
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (54,753
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (43,811
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (97,361
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (74,010
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (61,279
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (55,329
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50,521
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,046
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,930
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,910
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,614
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,364
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,759
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (27,832
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total income tax (expense) benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (37,943
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (57,569
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (95,505
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (124,400
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (72,495
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,176
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,383
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income (loss) applicable to common shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,621
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    169,892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    219,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120,637
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30,200
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of June&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B>(US$ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Balance Sheet Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    313,061
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    291,729
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    247,701
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    229,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    173,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    71,710
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    54,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Working capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    369,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    352,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    338,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    304,764
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,096
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,304,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,203,330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,207,970
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,086,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    869,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    635,876
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    532,184
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    456,954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    434,131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    443,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    406,108
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    404,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337,810
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    285,615
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    725,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    630,941
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    659,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    533,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    369,232
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    237,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    195,637
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='234'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    UNAUDITED PRO FORMA CONDENSED</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>COMBINED FINANCIAL INFORMATION</B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables set forth selected unaudited pro forma
    condensed combined financial information. The pro forma amounts
    included in the tables below are presented as if the Merger had
    been effective as of June&#160;30, 2008 for the pro forma
    balance sheet and as of January&#160;1, 2007 for the pro forma
    statements of operations, and reflects adjustments directly
    related to the Merger. The pro forma adjustments are based on
    available information and assumptions that each company&#146;s
    management believes are reasonable and in accordance with SEC
    requirements. You should read this information in conjunction
    with, and such information is qualified in its entirety by, the
    consolidated financial statements and accompanying notes of
    Precision and Grey Wolf incorporated in this document by
    reference and the pro forma combined financial statements and
    accompanying discussions and notes beginning on page&#160;111.
    See &#147;Where You Can Find More Information&#148; beginning on
    page&#160;132&#160;regarding how you can obtain the complete
    financial statements and accompanying footnotes. The pro forma
    amounts in the tables below are presented for informational
    purposes. You should not rely on the pro forma amounts as being
    indicative of the financial position or the results of
    operations of the combined company that would have actually
    occurred had the Merger been effective during the periods
    presented or of the future financial position or future results
    of operations of the combined company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Six Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>June&#160;30, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(US$ in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Statement of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    896,087
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,847,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Operating expenses (excluding depreciation and amortization)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    503,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    994,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,187
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81,621
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income from continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    162,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    433,205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    162,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    435,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Net Income Per Trust Unit:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Weighted Average Trust Units Outstanding:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of June&#160;30, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(US$ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Balance Sheet Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Working capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,842
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,247,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Long-term debt, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    930,185
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Unitholders&#146; equity (including temporary equity)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,276,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='235'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPARATIVE
    PER SHARE AND TRUST&#160;UNIT DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth, for the periods indicated,
    selected pro forma per trust unit amounts, for the Precision
    trust units, after giving effect to the Merger accounted for
    under the purchase method of accounting, pro forma per trust
    unit equivalent amounts for shares of Grey Wolf common stock and
    the corresponding historical per share data for the Grey Wolf
    common stock and per trust unit data for the Precision trust
    units. The information presented is based upon, and is qualified
    in its entirety by, the consolidated financial statements and
    the related notes of each of Grey Wolf and Precision
    incorporated in this document by reference. You should not rely
    on the pro forma per share or per trust unit data as being
    indicative of the results of operations or the financial
    condition that would have been reported by the combined company
    had the Merger been in effect during these periods or that may
    be reported in the future. See &#147;Selected Unaudited Pro
    Forma Condensed Combined Financial Information&#148; beginning
    on page&#160;21 for a more complete discussion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Information presented in the table below reflects the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Each of the comparative per share and trust unit data has been
    calculated assuming completion of the Merger as if it had been
    in effect for all periods presented based on the conversion of
    Grey Wolf&#146;s convertible notes and an aggregate of
    approximately 223&#160;million outstanding shares of Grey Wolf
    common stock to Precision trust units subject to the maximum
    amounts translated to $5.00 in cash and 0.1883 of a Precision
    trust unit for each share of Grey Wolf common stock.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Net income per trust unit is presented based upon the pro forma
    results of the two entities stated under US&#160;GAAP.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Six Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Precision&#160;&#151; Historical (Cdn$)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Net Income From Continuing Operations Per Trust Unit:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Book value per trust unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Grey Wolf&#160;&#151; Historical (US$)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Net Income Per Share:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Book value per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Combined Entity&#160;&#151; Unaudited Pro Forma Combined
    Amounts (US$)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Net Income Per Trust Unit:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Book value per trust unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='236'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPARATIVE
    PER SHARE AND PER TRUST UNIT MARKET PRICE<BR>
    AND DIVIDEND INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s trust units are listed on the Toronto Stock
    Exchange under the trading symbol &#147;PD.UN&#148; and the New
    York Stock Exchange under the trading symbol &#147;PDS.&#148;
    Grey Wolf&#146;s common stock is listed on the American Stock
    Exchange under the trading symbol &#147;GW.&#148; The following
    table sets forth, for the respective calendar years and quarters
    indicated, the high and low sale prices per share of Grey Wolf
    common stock as reported on the American Stock Exchange
    Composite Tape, and the high and low sale prices per Precision
    trust units as reported on the New York Stock Exchange Composite
    Tape and the Toronto Stock Exchange. The Toronto Stock Exchange
    sale prices of Precision trust units are presented in Canadian
    dollars, and the New York Stock Exchange sale prices of
    Precision trust units are presented in US dollars.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>The American Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>The New York Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>The Toronto Stock <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exchange (US$)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exchange (US$)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exchange (Cdn$)</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>Grey Wolf<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>Precision Trust<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>Precision Trust<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <U>Annual</U>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2003(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    58.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2004(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2005
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Through September&#160;23, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Prior to November&#160;7, 2005, Precision was a corporation and
    its common shares were listed for trading.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below sets forth the cash distributions declared per
    Precision trust unit and dividends declared per share of Grey
    Wolf common stock for the fiscal years ended 2003, 2004, 2005,
    2006 and 2007 and for the six months ended June&#160;30, 2007
    and 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="80%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Declared Distributions/Dividends</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Precision<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Grey Wolf<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Cdn$)(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(US$)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Year Ended December 31,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2003
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2004
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2005(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Six Months Ended June&#160;30,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Aggregate of the cash distributions declared each calendar month.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Cash distributions were initially declared for unitholders of
    record in the month of November 2005 following the conversion of
    PDC to a trust effective November&#160;7, 2005. In 2005,
    Cdn$2.9&#160;billion (Cdn$23.07&#160;per share) was distributed
    to Precision&#146;s shareholders in connection with the sale of
    Precision&#146;s energy services and international contract
    drilling divisions.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='237'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CURRENCY
    EXCHANGE RATE DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables show, for the date or periods indicated,
    certain information regarding the
    <FONT style="white-space: nowrap">US&#160;dollar/Canadian</FONT>
    dollar exchange rate. The information is based on the noon
    buying rate as reported by the Federal Reserve Bank in the City
    of New York.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Closing Rate</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Average</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Cdn$ per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Cdn$ per<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>US$1.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>US$1.00</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Year Ended December&#160;31,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2003
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.2923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.4008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2004
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.3017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2005
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1656
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    .9881
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0742
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Six Months Ended June&#160;30,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1345
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0185
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0070
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='238'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>In addition to the other information included or incorporated
    by reference in this proxy statement/prospectus, you should
    carefully consider the matters described below relating to the
    proposed Merger in deciding whether to vote for approval of the
    Merger Agreement. Although Precision and Grey Wolf believe that
    the matters described below cover the material risks related to
    the Merger, they may not contain all of the information that is
    important to you in evaluating the Merger. Accordingly, we urge
    you to read this entire proxy statement/prospectus, including
    the appendices and the information included or incorporated by
    reference in this document. Please also refer to the additional
    risk factors identified in the periodic reports and other
    documents of Precision and Grey Wolf incorporated by reference
    into this proxy statement/prospectus and listed in the section
    entitled &#147;Where You Can Find More Information&#148;
    beginning on page&#160;132.</I>
</DIV>
<A name='239'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">All
    the anticipated benefits of the Merger may not be
    realized.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The success of the Merger will depend, in part, on our ability
    to achieve the anticipated strategic benefits from integrating
    the businesses of Grey Wolf into Precision. We expect Precision
    to benefit from modest operational synergies resulting from the
    integration of the capabilities of Grey Wolf as well as greater
    efficiencies from increased scale. If we are not able to achieve
    these objectives, the anticipated cost synergies and other
    strategic benefits of the Merger may not be realized fully or at
    all or may take longer to realize than expected. We may fail to
    realize some or all of the anticipated benefits of the Merger in
    the amounts and times projected for a number of reasons,
    including that the integration may take longer than anticipated,
    be more costly than anticipated or have unanticipated adverse
    results relating to Precision&#146;s or Grey Wolf&#146;s
    existing businesses. As a result of these factors, it is
    possible that Precision and Grey Wolf will not achieve the
    anticipated operating synergies from the Merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf may not be integrated successfully.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and Grey Wolf have operated, and until completion of
    the Merger will continue to operate, independently. As a result,
    the Merger will present challenges to management, including the
    integration of the operations, systems, technologies and
    personnel of Grey Wolf, and special risks, including possible
    unanticipated liabilities, unanticipated costs, diversion of
    management&#146;s attention, inconsistencies in standards,
    controls, procedures and policies, operational interruptions and
    the loss of key employees, customers or suppliers. The
    difficulties to be encountered in the transition and integration
    processes could have an adverse effect on the revenues, levels
    of expenses and operating results of the combined company. As a
    result, Precision may not be able to successfully integrate Grey
    Wolf.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision
    and Grey Wolf will incur transaction, integration and
    restructuring costs in connection with the Merger.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to incur significant costs associated with transaction
    fees, including a $25&#160;million termination fee payable to
    Basic, professional services and other costs related to the
    Merger. We also will incur integration and restructuring costs
    following the completion of the Merger as the business
    operations of Grey Wolf are integrated with the business of
    Precision. Although Precision and Grey Wolf expect that, over
    time, the realization of efficiencies related to such
    integration will offset incremental transaction, Merger-related
    and restructuring costs, this net benefit may not be achieved in
    the near term, or at all. This may result in unanticipated costs
    and other changes in our future financial results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    directors and executive officers of Grey Wolf have interests in
    the Merger that are different from yours.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In considering the recommendation of the board of directors of
    Grey Wolf to vote for the proposal to approve the Merger
    Agreement, you should be aware that members of the Grey Wolf
    board and members of Grey Wolf&#146;s management team have
    pre-existing arrangements that provide them with interests in
    the Merger that differ from, or are in addition to, those of
    Grey Wolf shareholders generally. These arrangements include
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    employment agreements between Grey Wolf and its executive
    officers. For a more complete discussion see &#147;The
    Merger&#160;&#151; Interests of Grey Wolf Directors and Officers
    in the Merger&#148; beginning on page&#160;84. The Grey Wolf
    board was aware of these pre-existing agreements and
    arrangements during its deliberations on the merits of the
    Merger and in determining to unanimously recommend to the
    shareholders of Grey Wolf that they vote for the proposal to
    approve the Merger Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in the value of the Precision trust units may affect the value
    of your Merger consideration.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The specific value of the consideration Grey Wolf&#146;s
    shareholders will receive in the Merger will depend on the
    market price of the Precision trust units at the effective time
    of the Merger. As a Grey Wolf shareholder, you will have the
    ability to elect to receive cash or the Precision trust units
    subject to proration, where the maximum amount of cash to be
    paid by Precision will be approximately $1.12&#160;billion, and
    the maximum number of the Precision trust units to be issued
    will be approximately 42.0&#160;million (these maximums assume
    the conversion of all Grey Wolf&#146;s convertible debt
    securities and exercise of certain stock options which, together
    with the outstanding shares of Grey Wolf common stock, total
    approximately 223&#160;million fully-diluted shares of Grey Wolf
    common stock). These maximum aggregate amounts translate to
    $5.00 in cash and 0.1883 of a Precision trust unit for each
    share of Grey Wolf common stock, subject to the appropriate
    adjustment, if any is necessary, to account for any
    reclassification, recapitalization, stock or unit split,
    consolidation, combination or exchange of shares or trust units
    or similar event. Thus, if the market price of the Precision
    trust units increases or decreases, the market value of any
    Precision trust units you receive in the Merger will
    correspondingly increase or decrease. Because the date that the
    Merger becomes effective may be later than the date of the
    special meeting, the price of the Precision trust units on the
    date the Merger becomes effective may be higher or lower than
    the price on the date of the special meeting. Many of the
    factors that affect the market price of the Precision trust
    units are beyond the control of Precision and Grey&#160;Wolf. We
    urge Grey Wolf shareholders to obtain current market quotations
    for the Precision trust units and Grey Wolf common stock. If you
    elect all cash, the amount per share of Grey Wolf common stock
    is fixed at $9.02, assuming there is not a proration of shares
    electing to receive cash Merger consideration.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    rights of Grey Wolf shareholders will change as a result of the
    Merger.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the completion of the Merger, Grey Wolf shareholders
    will no longer be shareholders of Grey&#160;Wolf, a Texas
    corporation, but will instead be unitholders of Precision, a
    Canadian open-ended, unincorporated investment trust. There will
    be important differences between your current rights as a
    shareholder of Grey&#160;Wolf, on the one hand, and the rights
    to which you will be entitled as a unitholder of Precision, on
    the other hand. For a more complete discussion, see
    &#147;Comparison of Shareholder Rights&#148; beginning on
    page&#160;120.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Merger is subject to the receipt of consents and approvals from
    government entities that may impose conditions that could have
    an adverse effect on Precision.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot complete the Merger unless we receive various
    consents, orders, approvals and clearances from the DOJ, FTC and
    CFIUS. These authorities may impose conditions on the completion
    of the Merger or require changes to the terms of the Merger.
    While Precision and Grey Wolf do not currently expect that any
    such conditions or changes would be imposed, there can be no
    assurance that they will not be, and such conditions or changes
    could have the effect of imposing additional costs on or
    limiting the revenues of Precision following the Merger, any of
    which may have an adverse effect on Precision.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision
    expects to maintain its status as a &#147;foreign private
    issuer&#148; in the US and thus will be exempt from a number of
    rules under the Exchange Act and will be permitted to file less
    information with the SEC than a company incorporated in the
    US.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a &#147;foreign private issuer,&#148; Precision is exempt
    from certain rules under the Exchange Act that impose disclosure
    requirements, as well as procedural requirements, for proxy
    solicitations under Section&#160;14 of the Exchange Act.
    Precision&#146;s officers, trustees and principal unitholders
    are exempt from the reporting and &#147;short-swing&#148; profit
    recovery provisions of Section&#160;16 of the Exchange Act.
    Moreover, Precision is not
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    required to file periodic reports and financial statements with
    the SEC as frequently or as promptly as US companies whose
    securities are registered under the Exchange Act, nor is it
    generally required to comply with Regulation&#160;FD, which
    restricts the selective disclosure of material nonpublic
    information. Accordingly, there may be less information
    concerning Precision publicly available than there is for US
    public companies such as Grey Wolf and such information may not
    be provided as promptly. In addition, Precision is permitted,
    under a multi-jurisdictional disclosure system adopted by the US
    and Canada, to prepare its disclosure documents in accordance
    with Canadian disclosure requirements, including preparing its
    financial statements in accordance with Canadian GAAP, which
    differs in some respects from US GAAP.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    ability of Grey Wolf shareholders to elect to receive cash or
    Precision trust units in exchange for their shares of Grey Wolf
    will be subject to proration in the event of an oversubscription
    or under subscription of the cash election or the Precision
    trust unit election.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the Merger, each Grey Wolf shareholder may elect to receive
    for each share of Grey Wolf common stock either cash or
    Precision trust units, but such elections are subject to
    proration and adjustment to ensure that, in the aggregate, the
    maximum amount of cash to be paid by Precision will not be more
    than approximately $1.12&#160;billion, and the maximum number of
    Precision trust units to be issued will not be more than
    approximately 42.0&#160;million. Accordingly, despite your
    election, you may not receive exactly the amount, type and mix
    of consideration that you elected to receive for your shares of
    Grey Wolf, which could result in, among other things, tax
    consequences that differ from those that would have resulted if
    you had received the form of consideration that you elected
    (including the potential recognition of gain for US federal
    income tax purposes if you receive cash).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Merger may fail to qualify as a reorganization within the
    meaning of Section&#160;368(a) of the Code, resulting in your
    recognition of taxable gain or loss in respect of your Grey Wolf
    common stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger is intended to qualify as a reorganization within the
    meaning of Section&#160;368(a) of the Code. Neither Precision
    nor Grey Wolf intends to request any ruling from the IRS as to
    the tax treatment of the Merger. No assurance can be given that
    the IRS will not assert, or that a court would not sustain, that
    the Merger does not qualify as a reorganization. If the Merger
    fails to qualify as a reorganization, you generally would
    recognize gain or loss equal to the difference between the sum
    of the fair market value of the Precision trust units and the
    amount of cash received in the Merger (including cash received
    in lieu of fractional Precision trust units) and your tax basis
    in shares of Grey Wolf common stock surrendered in exchange
    therefore. In addition, if the Merger fails to qualify as a
    reorganization, Grey Wolf will be subject to tax on a deemed
    sale of its assets, with any gain or loss for this purpose
    measured by the difference between Grey Wolf&#146;s tax basis in
    its respective assets and the cash and Precision trust units
    conveyed in the Merger plus the amount of Grey Wolf&#146;s
    liabilities. For a further discussion see &#147;The
    Merger&#160;&#151; Material US Federal Income Tax Consequences
    of the Merger and of Owning Precision Trust Units&#160;&#151;
    Failure to Qualify as a Reorganization&#148; beginning on
    page&#160;73.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Merger Agreement contains provisions that may discourage other
    companies from trying to acquire Grey Wolf for greater
    consideration.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement contains provisions that may discourage a
    third party from submitting a business combination proposal to
    Grey Wolf that might result in greater value to Grey Wolf&#146;s
    shareholders than the proposed Merger. These provisions include
    a general prohibition on Grey Wolf from soliciting or
    encouraging any acquisition proposal or offers for competing
    transactions and the requirement that Grey Wolf pay a
    termination fee of $64&#160;million if the Merger Agreement is
    terminated in specified circumstances. Such termination fee is
    in addition to the $25&#160;million termination fee that Grey
    Wolf will be required to pay to Basic upon consummation of the
    Merger or, in the event of an alternative acquisition
    transaction, upon consummation of an alternative acquisition, in
    each case if consummated prior to July&#160;15, 2009 and as set
    forth in the Basic Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision required Grey Wolf to agree to deal protection as a
    condition to Precision&#146;s willingness to enter into the
    Merger Agreement. These provisions, however, might discourage a
    third party that might have an
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    interest in acquiring all or a significant part of Grey Wolf
    from considering or proposing an acquisition, even if that party
    were prepared to pay consideration with a higher per share price
    than the current proposed Merger consideration. Furthermore, the
    termination fee may result in a potential competing acquiror
    proposing to pay a lower per share price to acquire Grey Wolf
    than it might otherwise have proposed to pay.
</DIV>
<A name='240'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to Precision Trust&#160;Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision
    is presently dependent on PDC for all cash available for
    distributions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To receive cash available for distributions, Precision is
    presently entirely dependent on the operations and assets of PDC
    through Precision&#146;s interest in Precision Drilling Limited
    Partnership, a limited partnership formed under the laws of the
    Province of Manitoba (&#147;PDLP&#148;), which in turn owns 100%
    of the shares of PDC and a promissory note owing by PDC (the
    &#147;Promissory Note&#148;). Cash generated from the operations
    of PDC flows to PDLP in settlement of principal and interest
    owing on the Promissory Note and PDLP in turn makes
    distributions to Precision. Thus, distributions to holders of
    Precision trust units are dependent on the ability of PDC to
    make principal and interest payments on the Promissory Note,
    dividends and return of capital payments to PDLP. After the
    Merger, cash generated through the operations of the merged
    company will also flow to Precision and be available for
    distribution. The actual amount of cash available for
    distribution is and will be dependent upon numerous factors
    relating to the business of PDC (and Merger Sub after the
    Merger), including profitability, changes in revenue,
    fluctuations in working capital, capital expenditure levels,
    applicable laws, compliance with contracts, contractual
    restrictions contained in the instruments governing its
    indebtedness, the impact of interest rates, the growth of the
    general economy, the price of crude oil and natural gas, changes
    to tax laws, weather, future capital requirements, the number of
    Precision trust units issued and outstanding and potential tax
    liabilities resulting from any successful reassessments of prior
    taxation years by taxation authorities. Any reduction in the
    amount of cash available for distribution, or actually
    distributed, by PDC or Merger Sub to Precision may impact the
    amount of cash available for distributions to the holders of the
    Precision trust units. The market value of the Precision trust
    units may deteriorate if Precision is unable to meet
    distribution expectations in the future, and such deterioration
    may be material.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Distributions
    by Precision on the Precision trust units are
    variable.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The actual cash flow available for distribution to holders of
    Precision trust units is a function of numerous factors
    including Precision&#146;s financial performance; debt
    obligations; working capital requirements; future upgrade
    capital expenditures and future expansion capital expenditure
    requirements for the purchase of property, plant and equipment;
    tax obligations; the impact of interest rates; the growth of the
    general economy; the price of crude oil and natural gas;
    weather; and the number of the Precision trust units issued and
    outstanding. Distributions may be increased, reduced or
    suspended entirely depending on Precision&#146;s operations and
    the performance of its assets. The market value of the Precision
    trust units may deteriorate if Precision is unable to meet
    distribution expectations in the future, and that deterioration
    may be material.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Risks
    associated with the taxation of Precision could negatively
    affect the value of the Precision trust units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no assurances that Canadian federal income tax laws
    and administrative policies respecting the treatment of mutual
    fund trusts will not be changed or will not be applied in a
    manner which adversely affects the holders of Precision trust
    units. For example, if Precision ceases to qualify as a
    &#147;mutual fund trust&#148; under the <I>Income Tax Act
    </I>(Canada), as amended (the &#147;Canadian Tax Act&#148;),
    certain Canadian federal income tax considerations would be
    materially and adversely different in certain respects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Moreover, if Precision were to cease to qualify as a mutual fund
    trust, Precision trust units held by non-residents of Canada for
    purposes of the Canadian Tax Act (&#147;non-residents&#148;)
    would become taxable Canadian property under the Canadian Tax
    Act. These non-resident holders would be subject to Canadian
    income tax on any gains realized on a disposition of the
    Precision trust units held by them unless they were exempt under
    an income tax convention, and non-resident holders would be
    subject to certain notification and withholding requirements on
    a disposition of their Precision trust units. In addition,
    Precision would be taxed on certain types of income distributed
    to holders of Precision trust units (apart from under the
    specified investment flow-
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    through legislation discussed below). Payment of this tax may
    have adverse consequences for some holders of Precision trust
    units, particularly holders of Precision trust units that are
    non-residents and residents of Canada that are otherwise exempt
    from Canadian income tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Canadian Tax Act provides that a trust will not be
    considered a &#147;mutual fund trust&#148; for purposes of the
    Canadian Tax Act if it is established or is maintained primarily
    for the benefit of non-residents of Canada. However, this
    disqualification rule does not apply if all or substantially all
    of the trust&#146;s property is property other than
    &#147;taxable Canadian property&#148; as defined in the Canadian
    Tax Act. The assets of Precision have been structured to allow
    Precision to assert that all or substantially all of its
    property is property other than &#147;taxable Canadian
    property&#148; as defined in the Canadian Tax Act. However, no
    assurances can be provided that all or substantially all of
    Precision&#146;s property is property other than &#147;taxable
    Canadian property&#148; as defined in the Canadian Tax Act and
    that this disqualification rule will not apply to cause
    Precision to cease to qualify as a &#147;mutual fund trust&#148;
    under the Canadian Tax Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;16, 2004 draft amendments to the
    disqualification rule were introduced providing that a trust
    will lose its status as a mutual fund trust if the aggregate
    fair market value of all trust units issued by the trust held by
    one or more non-residents of Canada or partnerships that are not
    &#147;Canadian partnerships&#148; (as defined in the Canadian
    Tax Act) is more than 50% of the aggregate fair market value of
    all the trust units issued by the trust where more than 10%
    (based on fair market value) of the trust&#146;s property is
    certain types of &#147;taxable Canadian property,&#148; Canadian
    resource property or timber resource property as defined in the
    Canadian Tax Act. Since the assets of Precision have been
    structured to allow Precision to assert that greater than 10% of
    its property will not be taxable Canadian property, Canadian
    resource property or timber resource property, these draft
    amendments should not adversely affect Precision&#146;s status
    as a mutual fund trust. However, no assurances can be provided
    that such draft legislation will be enacted as currently
    proposed or at all. Moreover, no assurances can be provided that
    no more than 10% of Precision&#146;s property will be taxable
    Canadian property, Canadian resource property or timber resource
    property and, therefore, that, if enacted, such draft
    legislation would not adversely affect Precision&#146;s status
    as a mutual fund trust under the Canadian Tax Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Legislation to implement proposals originally announced on
    October&#160;31, 2006 relating to the taxation of certain
    publicly-traded trusts and their unitholders under the Canadian
    Tax Act has received royal assent. This legislation applies to
    trusts that are resident in Canada for purposes of the Canadian
    Tax Act, that hold one or more &#147;non-portfolio
    properties,&#148; and the trust units of which are listed on a
    stock exchange or other public market (a &#147;SIFT
    trust&#148;). A SIFT trust effectively is subject to tax on its
    income from non-portfolio properties and taxable capital gains
    from dispositions of non-portfolio properties paid, or made
    payable, to unitholders at a rate comparable to the combined
    federal and provincial corporate income tax rate. Distributions
    of such income to unitholders should be treated as eligible
    dividends paid by a taxable Canadian corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general terms, a trust that existed on October&#160;31, 2006
    and to which the SIFT trust legislation otherwise would apply,
    should not become a SIFT trust until the earlier of
    January&#160;1, 2011 or the first day after December&#160;15,
    2006 that the trust exceeds &#147;normal growth&#148; determined
    by reference to guidelines issued on December&#160;15, 2006 by
    the Minister of Finance (Canada) (the &#147;Guidelines&#148;).
    The Guidelines provide that a trust should not be considered to
    exceed &#147;normal growth&#148; if the trust does not issue new
    equity (including convertible debentures or other equity
    substitutes) that exceeds the greater of Cdn$50&#160;million per
    year or certain specified &#147;safe harbor&#148; amounts based
    on the market capitalization of the trust on October&#160;31,
    2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Provided that Precision does not issue new equity in an amount
    greater than the &#147;safe-harbor&#148; determined by the
    approximately Cdn$4&#160;billion market capitalization of
    Precision on October&#160;31, 2006, Precision should not be
    considered to exceed &#147;normal growth&#148; as set forth in
    the Guidelines. The Precision trust units issued in connection
    with the Merger should not result in Precision exceeding the
    &#147;safe-harbor&#148; amounts and becoming a SIFT trust prior
    to January&#160;1, 2011. However, no assurances can be provided
    that Precision will not otherwise become a SIFT trust prior to
    January&#160;1, 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of its ongoing strategic planning, Precision will
    continue to examine and evaluate its various strategic
    alternatives, including its ability to reorganize its legal and
    tax structure to mitigate the expected impact of the SIFT
    legislation. While no assurances can be provided regarding the
    strategic alternatives, if any, that may
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    be available, the strategic alternatives considered will
    recognize that on December&#160;20, 2007 the Minister of Finance
    announced that the federal government remains committed to
    ensuring that a SIFT trust may convert to a taxable Canadian
    corporation without undue tax consequences, and draft
    legislation was released on July&#160;14, 2008 to specifically
    facilitate such a conversion. However, no assurances can be
    provided that such draft legislation will be enacted as
    currently proposed, or at all, or that if enacted the resulting
    legislation will apply to Precision&#146;s particular
    circumstances to allow it to mitigate the impact of the SIFT
    legislation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Precision trust units have certain risks not associated with
    traditional investments in the oil and natural gas services
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Precision trust units do not represent a traditional
    investment in the oil and natural gas services business and
    should not be viewed as shares of PDC or Grey Wolf. The
    Precision trust units represent a fractional interest in
    Precision. Holders of Precision trust units do not have the
    statutory rights normally associated with ownership of shares of
    a corporation including, for example, the right to bring
    &#147;oppression&#148; or &#147;derivative&#148; actions.
    Precision&#146;s sole assets are the shares of the general
    partner of PDLP and Merger Sub, the PDLP A units and other
    investments in securities. The price per Precision trust unit is
    a function of anticipated net earnings, distributable cash, the
    underlying assets of Precision and management&#146;s ability to
    effect long-term growth in the value of PDC, Grey Wolf and other
    entities now or hereafter owned directly or indirectly by
    Precision. The market price of the Precision trust units is
    sensitive to a variety of market conditions including, but not
    limited to, interest rates, the growth of the general economy,
    the price of crude oil and natural gas and changes in law.
    Changes in market conditions may adversely affect the trading
    price of the Precision trust units. The Precision trust units
    are not &#147;deposits&#148; within the meaning of the
    <I>Deposit Insurance Corporation Act </I>(Canada) and are not
    insured under the provisions of that act or any other
    legislation. Furthermore, Precision is not a trust company and,
    accordingly, is not registered under any trust and loan company
    legislation as it does not carry on or intend to carry on the
    business of a trust company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If
    Precision does not constitute a &#147;qualified foreign
    corporation&#148; for US federal income tax purposes,
    US&#160;Holders of the Precision trust units will be taxed at a
    higher rate on Precision distributions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision is advised that distributions it makes to individual
    US Holders of Precision trust units that are treated as
    dividends for US federal income tax purposes generally should be
    treated as qualified dividend income eligible for the reduced
    maximum rate to individuals of 15% (5% for individuals in lower
    tax brackets). However, if Precision does not constitute a
    &#147;qualified foreign corporation&#148; for US federal income
    tax purposes, and as a result such dividends to individual US
    Holders of Precision trust units do not qualify for this reduced
    maximum rate, such holders will be subject to tax on such
    dividends at ordinary income rates (currently at a maximum rate
    of 35%). In addition, under current law, the preferential tax
    rate for qualified dividend income will not be available for
    taxable years beginning after December&#160;31, 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    composition for Canadian federal income tax purposes of
    distributions on the Precision trust units may change over time,
    and such changes could negatively affect the return on the
    Precision trust units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unlike interest payments on an interest-bearing security,
    distributions by income trusts on trust units (including those
    of Precision) are, for Canadian federal income tax purposes,
    composed of different types of payments (portions of which may
    be fully or partially taxable or may constitute non-taxable
    &#147;returns of capital&#148;). The composition for Canadian
    federal income tax purposes of distributions may change over
    time, thus affecting the after-tax return to holders of
    Precision trust units. Therefore, the rate of return for holders
    of Precision trust units over a defined period may not be
    comparable to the rate of return on a fixed-income security that
    provides a return on capital over the same period. This is
    because a holder of Precision trust units may receive
    distributions that constitute a return of capital (rather than a
    return on capital) to some extent during the relevant period.
    Returns on capital are generally taxed as ordinary income,
    dividends or taxable capital gains in the hands of a holder of
    Precision trust units, while returns of capital are generally
    non-taxable to a holder of Precision trust units (but reduce the
    adjusted cost base in a Precision trust unit for Canadian
    federal income tax purposes).
</DIV>

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    <BR>
    30
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If
    Precision ceases to qualify as a mutual fund trust under the
    Canadian Tax Act, the Precision trust units will cease to be
    qualified investments for a variety of plans, which could have
    negative tax consequences.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Precision ceases to qualify as a mutual fund trust, the
    Precision trust units will cease to be qualified investments for
    registered retirement savings plans, registered retirement
    income funds, deferred profit sharing plans and registered
    education savings plans, each as defined in the Canadian Tax Act
    (collectively, the &#147;Exempt Plans&#148;). Where at the end
    of any month an Exempt Plan holds Precision trust units that are
    not qualified investments, the Exempt Plan must, in respect of
    that month, pay a tax under Part&#160;XI.1 of the Canadian Tax
    Act equal to 1% of the fair market value of Precision trust
    units at the time such Precision trust units were acquired by
    the Exempt Plan. In addition, where a trust governed by a
    registered retirement savings plan or registered retirement
    income fund holds Precision trust units that are not qualified
    investments, such trust will become taxable on its income
    attributable to the Precision trust units while they are not
    qualified investments, including the full amount of any capital
    gain realized on a disposition of Precision trust units while
    they are not qualified investments. Where a trust governed by a
    registered education savings plan holds Precision trust units
    that are not qualified investments, the plan&#146;s registration
    may be revoked.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If an
    investor acquires 10% or more of Precision&#146;s trust units it
    may be subject to taxation under the &#147;controlled foreign
    corporation&#148; (the &#147;CFC&#148;) rules.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under certain circumstances, a US person who directly or
    indirectly owns 10% or more of the voting power of a foreign
    corporation that is a CFC (generally a foreign corporation in
    which 10% US shareholders own more than 50% of the voting power
    of the foreign corporation) for an uninterrupted period of
    30&#160;days or more during a taxable year and who holds any
    shares of the foreign corporation on the last day of the
    corporation&#146;s tax year must include in gross income for US
    federal income tax purposes its pro rata share of certain income
    of the CFC even if such share is not distributed to such person.
    We believe that Precision will not be a CFC immediately after
    the Merger, but this could change in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision&#146;s
    debt service obligations may limit the amount of cash available
    for distributions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and its affiliates may, from time to time, finance a
    significant portion of their growth (either from acquisitions or
    capital expenditure additions) through debt. Amounts paid in
    respect of interest and principal on debt incurred by Precision
    and its affiliates may impair Precision&#146;s ability to
    satisfy its obligations under its subordinated inter-entity debt
    instruments through which cash flow is paid to PDLP and
    eventually to Precision for further distribution to its
    unitholders. Variations in interest rates and scheduled
    principal repayments could result in significant changes in the
    amount required to be applied to service debt before payment of
    subordinated inter-entity debt. This may result in lower levels
    of cash for distribution by Precision. Ultimately, subordination
    agreements or other debt obligations could preclude
    distributions altogether.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sales
    of additional Precision trust units to unitholders could
    negatively affect the value of the Precision trust
    units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision may issue additional Precision trust units in the
    future to pay down indebtedness or to directly or indirectly
    fund the capital expenditure requirements of PDC and other
    entities now or hereafter owned directly or indirectly by
    Precision, including to finance acquisitions by those entities.
    Such additional Precision trust units may be issued without the
    approval of holders of Precision trust units, and the holders
    have no pre-emptive rights in connection with such additional
    issues. Precision&#146;s trustees have discretion in connection
    with the price and the other terms of the issue of such
    additional Precision trust units.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Issuance
    of additional Precision trust units in lieu of cash
    distributions could negatively affect the value of the Precision
    trust units and result in the payment of taxes.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s Declaration of Trust provides that an amount
    equal to the taxable income of Precision will be payable each
    year to holders of Precision trust units in order to reduce
    Precision&#146;s taxable income for Canadian federal income tax
    purposes to zero. Where in a particular year, Precision does not
    have sufficient
</DIV>

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    <BR>
    31
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    cash to distribute such an amount, the Declaration of Trust
    provides that additional Precision trust units (which are
    subsequently consolidated into a unitholder&#146;s existing
    Precision trust units) may be distributed in lieu of cash
    payments. Holders of Precision trust units will generally be
    required to include an amount equal to the fair market value of
    those Precision trust units in their taxable income for Canadian
    federal income tax purposes, notwithstanding that they do not
    directly receive a cash payment. In addition, as any such
    non-cash distributions made to persons that are not Canadian
    residents will be subject to Canadian tax withholding, but are
    generally not included in income for US federal income tax
    purposes (and also may not be included in income under the laws
    of certain other jurisdictions), such Canadian taxes withheld
    may exceed a US Holder&#146;s or other non-resident
    holder&#146;s allowable foreign tax credit under the laws of the
    relevant jurisdiction for the taxable year of the distribution.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">A
    successful challenge by the tax authorities of the amount of
    interest expense deducted by PDC on its payments of promissory
    note interest could negatively affect the value of the Precision
    trust units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Income fund structures often involve significant amounts of
    inter-entity debt, which may generate substantial interest
    expense and which serves to reduce earnings and therefore income
    tax payable. This is the case in respect of PDC and its interest
    expense on the Promissory Note. There can be no assurance that
    the taxation authorities will not seek to challenge the amount
    of interest expense deducted. If such a challenge were to
    succeed against PDC, it could have a material adverse affect on
    the amount of distributable cash available.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">A
    successful challenge by the tax authorities of the amount of
    expenses deducted by Precision, PDC and PDLP could negatively
    affect the value of the Precision trust units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no assurance that the Canadian taxation authorities
    will agree with the classification of expenses claimed by
    Precision, PDLP and PDC, respectively. If the taxation
    authorities successfully challenge the deductibility of any such
    expenses, the return to holders of Precision trust units may be
    adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Holders
    of Precision trust units face a remote possibility of personal
    liability in connection with the obligations and affairs of
    Precision.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s Declaration of Trust provides that no holder of
    Precision trust units will be subject to any liability in
    connection with Precision or its obligations and affairs and, in
    the event that a court determines that holders of Precision
    trust units are subject to any such liabilities, the liabilities
    will be enforceable only against, and will be satisfied only out
    of, Precision&#146;s assets. Pursuant to the Declaration of
    Trust, Precision will indemnify and hold harmless each holder of
    Precision trust units from any costs, damages, liabilities,
    expenses, charges and losses suffered by a holder resulting from
    or arising out of such holder not having such limited liability.
    The Declaration of Trust also provides that all written
    instruments signed by or on behalf of Precision must contain a
    provision to the effect that obligations under those instruments
    will not be binding upon holders of any trust units personally.
    Personal liability may however arise in respect of claims
    against Precision that do not arise under contracts, including
    claims in tort, claims for taxes and possibly some other
    statutory liabilities. The possibility of any personal liability
    of this nature arising is considered unlikely. The <I>Income
    Trusts Liability Act </I>(Alberta) came into force on
    July&#160;1, 2004. The legislation provides that a holder of
    Precision trust units will not be, as a beneficiary, liable for
    any act, default, obligation or liability of Precision&#146;s
    trustee(s) that arises after the legislation came into force.
    However, this legislation has not yet been judicially considered
    by the courts and may not apply to unitholders outside of
    Alberta. The operations of Precision will be conducted, upon the
    advice of counsel, in such a way and in such jurisdictions as to
    avoid as far as possible any material risk of liability to the
    holders of Precision trust units for claims against Precision,
    including by obtaining appropriate insurance, where available
    and to the extent commercially feasible. However, no assurance
    can be provided that holders of Precision trust units will not
    be subject to any liability of Precision.
</DIV>

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    <BR>
    32
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Asset
    valuation variability could negatively affect the value of the
    Precision trust units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The net asset value of the assets of Precision from time to time
    will vary depending upon factors which are beyond the control of
    Precision. The trading price of the Precision trust units also
    fluctuates due to factors beyond the control of Precision and
    such trading prices may be greater than the net asset value of
    Precision&#146;s assets.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    price of Precision&#146;s trust units may experience
    volatility.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the consummation of the Merger, the price of
    Precision&#146;s trust units may be volatile. Some of the
    factors that could affect the price of Precision&#146;s trust
    units are quarterly increases or decreases in revenue or
    earnings, changes in revenue or earnings estimates by the
    investment community, the ability of Precision to implement its
    integration strategy and to realize the expected benefits from
    the Merger and speculation in the press or investment community
    about Precision&#146;s financial condition or results of
    operations. General market conditions and US or international
    economic factors and political events unrelated to the
    performance of Precision may also affect its unit price. For
    these reasons, investors should not rely on recent trends in the
    price of Precision trust units or Grey Wolf common stock to
    predict the future price of Precision&#146;s trust units or its
    financial results.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    become a passive foreign investment company, or PFIC, which
    could result in adverse US tax consequences to US
    investors.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since PFIC status is determined on an annual basis and will
    depend on the composition of Precision&#146;s income and assets
    from time to time, it is possible that Precision could be
    considered a PFIC in a future taxable year. Such
    characterization could result in adverse US tax consequences to
    you if you are a US investor. In particular, a US investor would
    be subject to US federal income tax at ordinary income rates,
    plus a possible interest charge, in respect of any gain derived
    from a disposition of the Precision trust units, as well as
    certain distributions by Precision. In addition, a
    <FONT style="white-space: nowrap">step-up</FONT> in
    the tax basis of the Precision trust units would not be
    available upon the death of an individual holder.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Canadian
    tax withholding may exceed allowable US foreign tax credits and
    reduce effective yield to US investors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Withholding of Canadian tax is imposed at a 25% rate (reduced to
    15% for recipients that are residents of the US eligible for
    benefits under the Canada-US Tax Convention) both on cash and
    non-cash distributions by Precision to persons that are not
    Canadian residents. However, as any non-cash distributions by
    Precision generally will not be included in income for US
    federal income tax purposes, such Canadian tax withholding may
    exceed a US Holder&#146;s allowable foreign tax credit for the
    taxable year of the distribution, potentially resulting in a
    reduced after-tax cash yield to US investors for the year of
    such distribution. For a further discussion see &#147;The
    Merger&#160;&#151; Material US Federal Income Tax Consequences
    of the Merger and of Owning Precision Trust Units&#160;&#151;
    Ownership by US Holders of Precision Trust Units&#160;&#151;
    Dividends and Distributions&#148; and &#147;The
    Merger&#160;&#151; Material Canadian Federal Income Tax
    Consequences of the Merger and of Owning Precision Trust
    Units&#160;&#151; Non-Canadian Holders&#160;&#151; Taxation of
    Trust Unit Distributions to Non-Canadian Holders&#148; beginning
    on pages&#160;74 and 78, respectively.
</DIV>
<A name='241'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to the Businesses of the Combined Company</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>In addition to risks relating to the businesses currently
    conducted by Precision and Grey Wolf, there are considerations
    applicable to the combined company after the Merger.</I>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision
    and its subsidiaries will have substantial debt after the
    Merger, which could have a material adverse effect on its
    financial health and limit its future operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and its subsidiaries will have a significant amount of
    debt immediately after the Merger. As of June&#160;30, 2008, on
    a pro forma basis to reflect the Merger and Precision&#146;s
    borrowing to finance the cash component of the Merger
    consideration, repayment of outstanding Grey Wolf and Precision
    debt and expenses relating to the Merger, Precision&#146;s total
    outstanding long-term debt would have been $930&#160;million.
    Under the commitment letter between PDC and its lenders dated
    August&#160;24, 2008, and subject to the terms and
</DIV>

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    <BR>
    33
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    conditions set forth in the commitment letter, the lenders have
    committed to provide an aggregate principal amount of
    $800&#160;million under senior secured term loan facilities to
    Precision, an aggregate principal amount of $400&#160;million
    under a senior secured revolving credit facility and
    $400&#160;million (reduced by the amount of Grey Wolf&#146;s
    convertible notes that PDC determines on or prior to the closing
    date of the Merger will not be converted or redeemed on or after
    the closing date) in cash proceeds from the issuance of debt
    securities in a Rule&#160;144A or other private placement or, if
    PDC is unable to issue the full amount of the debt securities at
    or prior to the closing date, from a senior unsecured facility,
    which notes or senior unsecured facility may become secured
    under certain circumstances. The proceeds of the credit
    facilities may be used by Precision to finance the cash
    component of the Merger consideration, to repay outstanding debt
    of Precision and its subsidiaries, to pay expenses relating to
    the Merger, and to provide ongoing working capital requirements
    of Precision and its subsidiaries following the Merger. See
    &#147;Financing of the Merger&#148; beginning on page&#160;102.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s substantial debt could have a material adverse
    effect on its financial condition and results of operations. In
    particular, it could:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase Precision&#146;s vulnerability to general adverse
    economic and industry conditions and require it to dedicate a
    substantial portion of its cash flow from operations to payments
    on its indebtedness, thereby reducing the availability of its
    cash flow to fund working capital, capital expenditures,
    acquisitions, other debt service requirements, distributions and
    other general corporate purposes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase Precision&#146;s exposure to risks inherent in interest
    rate fluctuations and changes in credit ratings or statements
    from rating agencies because certain of its borrowings
    (including borrowings under the new credit facilities) are at
    variable rates of interest, which would result in higher
    interest expense to the extent Precision has not hedged these
    risks against increases in interest rates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limit Precision&#146;s flexibility in planning for, or reacting
    to, changes in its business or the industry in which it operates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    place Precision at a competitive disadvantage compared to its
    competitors that have less debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limit Precision&#146;s ability to borrow additional funds to
    meet its operating expenses, to make acquisitions and for other
    purposes;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limit Precision&#146;s ability to construct, purchase or acquire
    new rigs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Currency
    Exchange Exposure</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s operations in the US have revenue, expenses,
    assets and liabilities denominated in US dollars. As a result
    Precision&#146;s income statement, balance sheet and statement
    of cash flow are impacted by changes in exchange rates between
    Canadian and US currencies in two main aspects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Translation of US Currency Assets and Liabilities to Canadian
    Dollars</I>.&#160;&#160;For Precision&#146;s integrated
    operations, non-monetary assets and liabilities are recorded in
    the financial statements at the exchange rate in effect at the
    time of the acquisition or expenditure. As a result, the book
    value of these assets and liabilities are not impacted by
    changes in exchange rates. Monetary assets and liabilities are
    converted at the exchange rate in effect at the balance sheet
    dates, and the unrealized gains and losses are shown on the
    statements of earnings as &#147;Foreign exchange.&#148;
    Precision has a net monetary asset position for its US
    operations, which are US dollar based. As a result, if the
    Canadian dollar strengthens versus the US dollar, Precision will
    incur a foreign exchange loss from the translation of net
    monetary assets.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Translation of US Currency Statement of Earnings Items to
    Canadian Dollars</I>.&#160;&#160;Precision&#146;s US operations
    generate revenue and incur expenses in US dollars and the US
    dollar based earnings are converted into Canadian dollars for
    purposes of financial statement consolidation and reporting. The
    conversion of the US dollar based revenue and expenses to a
    Canadian dollar basis does not result in a foreign exchange gain
    or loss but does result in lower or higher net earnings from US
    operations than would have occurred had the exchange rate not
    changed. If the Canadian dollar strengthens versus the US
    dollar, the Canadian dollar equivalent of net earnings from the
    US will be negatively impacted. The
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    majority of Precision&#146;s US operations are transacted in US
    dollars. Transactions for Precision&#146;s Canadian operations
    are primarily transacted in Canadian dollars. However, Precision
    occasionally purchases goods and supplies in US dollars. These
    transactions and foreign exchange exposure would not typically
    have a material impact on the Canadian operations&#146;
    financial results. Precision does not currently hedge any of its
    exposure related to the translation of US dollar based earnings
    into Canadian dollars. Precision&#146;s consolidated results of
    operations may be negatively impacted by foreign currency
    fluctuations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial portion of Precision&#146;s consolidated revenues
    following the Merger will be earned in non-Canadian currencies,
    primarily US dollars. For purposes of financial reporting under
    Canadian GAAP, revenues and expenses denominated in non-Canadian
    currencies are translated into Canadian dollars at the average
    exchange rates prevailing during the year. Precision expects to
    continue to report its financial results in Canadian dollars.
    The revenues that are earned in currencies other than Canadian
    dollars are subject to unpredictable fluctuations if the values
    of non-Canadian currencies change relative to the Canadian
    dollar. Such fluctuations could decrease Precision&#146;s
    revenues earned in non-Canadian currencies and have a material
    adverse impact on its business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision&#146;s
    consolidated results of operations may be negatively impacted by
    foreign currency fluctuations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial portion of Precision&#146;s consolidated revenues
    following the Merger will be earned in non-Canadian currencies,
    primarily US dollars. For purposes of financial reporting under
    Canadian GAAP, revenues and expenses denominated in non-Canadian
    currencies are translated into Canadian dollars at the average
    exchange rates prevailing during the year. Precision expects to
    continue to report its financial results in Canadian dollars.
    The revenues that are earned in currencies other than Canadian
    dollars are subject to unpredictable fluctuations if the values
    of non-Canadian currencies change relative to the Canadian
    dollar. Such fluctuations could decrease Precision&#146;s
    revenues earned in non-Canadian currencies and have a material
    adverse impact on its business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Business
    acquisitions entail numerous risks and may disrupt
    Precision&#146;s business or distract management
    attention.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is contemplated that as part of Precision&#146;s business
    strategy it will continue to consider and evaluate acquisitions
    of, or significant investments in, businesses and assets that
    are complementary to it. Any acquisition that Precision
    completes could have a material adverse effect on
    Precision&#146;s operating results
    <FONT style="white-space: nowrap">and/or</FONT> the
    price of its securities. Acquisitions involve numerous risks,
    including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unanticipated costs and liabilities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulty of integrating the operations and assets of the
    acquired business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ability to properly access and maintain an effective
    internal control environment over an acquired company in order
    to comply with public reporting requirements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    potential loss of key employees and customers of the acquired
    companies;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an increase in Precision&#146;s expenses and working capital
    requirements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision may incur substantial indebtedness to finance future
    acquisitions and also may issue equity securities or convertible
    securities in connection with any such acquisitions. Debt
    service requirements could represent a significant burden on
    Precision&#146;s results of operations and financial condition
    and the issuance of additional equity could be dilutive to
    unitholders. Precision will also be required to meet certain
    financial covenants in order to borrow money under its credit
    agreement to fund future acquisitions. Acquisitions could also
    divert the attention of Precision&#146;s management and other
    employees from Precision&#146;s day-to-day operations and the
    development of new business opportunities. Even if Precision is
    successful in integrating its current or future acquisitions
    into its existing operations, Precision may not derive the
    benefits, such as operational or administrative synergies, that
    Precision expected from such acquisitions, which may result in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the commitment of Precision&#146;s capital resources without the
    expected returns on such capital. In addition, Precision may not
    be able to continue to identify attractive acquisition
    opportunities or successfully acquire identified targets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Any
    difficulty Precision experiences retaining, replacing or adding
    personnel could adversely affect Precision&#146;s
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is anticipated that Precision will continue its current
    businesses and those of Grey Wolf after the Merger and as a
    result will have personnel issues similar to those currently
    faced from time to time by Grey Wolf and Precision. Precision
    may not be able to find enough skilled labor to meet its needs,
    which could limit its growth. As a result, Precision may have
    problems finding enough skilled and unskilled laborers in the
    future if demand for its services increases. If Precision is not
    able to increase its service rates sufficiently to compensate
    for similar wage rate increases, its operating results may be
    adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although neither Precision nor Grey Wolf has historically
    encountered material difficulty in hiring and retaining
    qualified rig crews, shortages of qualified personnel have
    occurred in the past in their industry during periods of high
    demand. The demand for qualified rig personnel has increased as
    a result of overall stronger demand for land drilling services
    over the last few years. Precision believes the demand for
    qualified rig personnel could increase further as new and
    refurbished rigs are brought into service by Precision and its
    competitors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other factors may also inhibit Precision&#146;s ability to find
    enough workers to meet its employment needs. The work currently
    performed by Precision and Grey Wolf employees requires skilled
    workers who can perform physically demanding work. As a result
    of that industry&#146;s volatility and the demanding nature of
    the work, workers may choose to pursue employment in fields that
    offer a more desirable work environment at wage rates that are
    competitive with Precision&#146;s. Precision believes that its
    success is dependent upon its ability to continue to employ and
    retain skilled technical personnel and qualified rig personnel.
    Precision&#146;s inability to employ or retain skilled technical
    personnel and qualified rig personnel generally could have a
    material adverse effect on its operations.
</DIV>
<A name='242'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This proxy statement/prospectus, including information included
    or incorporated by reference into this proxy
    statement/prospectus, contains certain forward-looking
    statements within the safe harbor provisions of the Private
    Securities Litigation Reform Act of 1995 and forward-looking
    information within the meaning of applicable Canadian
    legislation. Generally, the words &#147;expects,&#148;
    &#147;anticipates,&#148; &#147;targets,&#148; &#147;goals,&#148;
    &#147;projects,&#148; &#147;intends,&#148; &#147;plans,&#148;
    &#147;believes,&#148; &#147;seeks,&#148; &#147;estimates,&#148;
    variations of these words and similar expressions identify
    forward-looking statements, and any statements regarding the
    timing or benefits of the Merger, or Precision&#146;s or Grey
    Wolf&#146;s future financial condition, results of operations
    and business, are also forward-looking statements. All
    statements other than statements of historical fact are
    statements that could be deemed forward-looking statements.
    These statements are based upon current expectations and
    estimates of the management of Precision and Grey Wolf and are
    subject to risks and uncertainties that may cause actual results
    to differ materially, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the various risks and other factors considered by the Grey Wolf
    board of directors as described under &#147;The
    Merger&#160;&#151;&#160;Grey Wolf&#146;s Reasons for the Merger
    and Recommendation of Grey Wolf&#146;s Board of Directors&#148;
    beginning on page&#160;55;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount and timing of any synergies expected to result from
    the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    future capital expenditures and refurbishment, repair and
    upgrade costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    expected completion times for refurbishment and upgrade projects;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sufficiency of funds for required capital expenditures, working
    capital and debt service;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    liabilities under laws and regulations protecting the
    environment;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of purchase accounting;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    expected outcomes of litigation, claims and disputes and their
    expected effects on Precision&#146;s and Grey Wolf&#146;s
    financial condition and results of operations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the various risks and other factors identified in Grey
    Wolf&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007, Precision&#146;s
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;40-F</FONT>
    for the year ended December&#160;31, 2007, and in subsequent
    filings by Precision and Grey Wolf with the SEC.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and Grey Wolf have based these statements on their
    assumptions and analyses in light of their experience and
    perception of historical trends, current conditions, expected
    future developments and other factors they believe are
    appropriate in the circumstances. Forward-looking statements by
    their nature involve substantial risks and uncertainties that
    could significantly affect expected results, and actual future
    results could differ materially from those described in these
    statements. Although it is not possible to identify all factors,
    Precision and Grey Wolf continue to face many risks and
    uncertainties. Among the factors that could cause actual future
    results to differ materially are the risks and uncertainties
    described under &#147;Risk Factors&#148; beginning on
    page&#160;25 and in the documents incorporated into this proxy
    statement/prospectus and the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ability to consummate the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulties and delays in achieving synergies and cost savings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    potential difficulties in meeting conditions set forth in the
    Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulties and delays in obtaining consents and approvals that
    are conditions to the completion of the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    oil and natural gas prices and industry expectations about
    future prices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ability of Precision and Grey Wolf to enter into and the
    terms of future contracts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of governmental laws and regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the adequacy of sources of liquidity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    uncertainties relating to the level of activity in oil and
    natural gas exploration, development and production;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the availability of skilled personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effect of litigation and contingencies;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    inability to carry out plans and strategies as expected.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Actual results and plans could differ materially from those
    expressed in any forward-looking statements if underlying
    assumptions prove incorrect, or if there occurs one or more of
    the risks or uncertainties described elsewhere herein or in the
    reports and documents incorporated by reference into this proxy
    statement/prospectus as described under &#147;Where You Can Find
    More Information&#148; beginning on page&#160;132.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All forward-looking statements, expressed or implied, included
    in this proxy statement/prospectus are expressly qualified in
    their entirety by this cautionary statement. This cautionary
    statement should also be considered in connection with any
    subsequent written or oral forward-looking statements that
    Precision, Grey Wolf or persons acting on their behalf may issue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise required by applicable law, Precision and
    Grey Wolf disclaim any duty to update any forward-looking
    statements, all of which are expressly qualified by the
    statements in this section. See also &#147;Where You Can Find
    More Information&#148; beginning on page&#160;132.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='243'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE GREY
    WOLF SPECIAL MEETING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This section contains information for Grey Wolf shareholders
    about the special meeting that Grey Wolf has called to allow its
    shareholders to consider and approve the Merger Agreement. Grey
    Wolf is first mailing this proxy statement/prospectus to its
    shareholders on or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. Together with this proxy statement/prospectus, Grey Wolf
    is sending a notice of the special meeting and a form of proxy
    that Grey Wolf&#146;s board of directors is soliciting for use
    at the special meeting and at any adjournments or postponements
    of the meeting.</I>
</DIV>
<A name='244'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Date,
    Time and Place</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The special meeting will be held at&#160;&#160;&#160;a.m., local
    time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008,
    at&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    Houston, Texas, to vote on the proposal to approve the Merger
    Agreement.
</DIV>
<A name='245'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Record
    Date; Voting Rights and Outstanding Shares</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf&#146;s board of directors has established the close of
    business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008, as the record date for determining Grey Wolf shareholders
    entitled to receive notice of and to vote on proposals at the
    special meeting or any adjournment or postponement of the
    special meeting. Only holders of record of Grey Wolf common
    stock on the record date are entitled to vote at the special
    meeting. Each owner of record is entitled to one vote on all
    matters submitted for a vote for each share of Grey Wolf common
    stock held. As of the record date, there
    were&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Grey Wolf common stock issued and outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A complete list of shareholders entitled to vote at the Grey
    Wolf special meeting will be available for examination by any
    Grey Wolf shareholder at Grey Wolf&#146;s headquarters, 10370
    Richmond Avenue, Suite&#160;600, Houston, Texas 77042 for
    purposes pertaining to the Grey Wolf special meeting, during
    normal business hours for a period of ten days before the Grey
    Wolf special meeting, and at the time and place of Grey
    Wolf&#146;s special meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Solicitation,
    Use and Revocation of the Proxies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf&#146;s board of directors solicits the accompanying
    proxy for use at the special meeting to be held
    at&#160;&#160;&#160;a.m., local time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008,
    at&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    Houston, Texas. Giving a proxy means that a Grey Wolf
    shareholder of record authorizes the persons indicated on the
    Grey Wolf proxy card to vote his, her or its shares at Grey
    Wolf&#146;s special meeting in the manner directed. If a Grey
    Wolf shareholder of record signs, dates and returns the enclosed
    proxy card but does not specify how to vote, his, her or its
    shares will be voted (i)&#160;for the approval of the Merger
    Agreement and (ii)&#160;adjournment of the Grey Wolf special
    meeting to solicit additional proxies in favor of the approval
    of the foregoing proposal. A Grey Wolf shareholder of record may
    revoke his, her or its proxy at any time before it is voted at
    the special meeting by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    voting over the telephone or Internet if eligible to do so, in
    which case a Grey Wolf shareholder&#146;s latest dated vote
    before the special meeting will be the vote counted;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delivering to Grey Wolf&#146;s corporate secretary a signed
    notice of revocation or a new proxy card with a later
    date;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    voting in person at the special meeting.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For more information on how to vote your proxy, see &#147;Voting
    by Internet, Telephone or Mail&#148; beginning on page&#160;14.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf shareholders whose shares are registered in the name
    of a bank or brokerage firm may be eligible to vote through the
    Internet or by telephone. The enclosed proxy card or voting
    instruction form or information forwarded by your bank brokerage
    firm provides instructions for eligible Grey Wolf shareholders.
    Grey Wolf shareholders not wishing to vote through the Internet
    or by telephone or who are not eligible to vote through the
    Internet or by telephone should complete the enclosed paper
    proxy card and return it in the enclosed postage-paid envelope.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Signing and returning the proxy card or submitting the proxy via
    the Internet or by telephone does not affect a Grey Wolf
    shareholder&#146;s right to revoke his, her or its proxy or to
    vote in person at the special meeting. A Grey Wolf
    shareholder&#146;s attendance at the special meeting by itself
    does not constitute revocation of his, her or its proxy. Before
    the Grey Wolf special meeting, any written notice of revocation
    should be sent by a shareholder of record of Grey Wolf to Grey
    Wolf, Inc., 10370 Richmond Avenue, Suite&#160;600, Houston,
    Texas 77042, Attention: Corporate Secretary. Any notice of
    revocation that is delivered at the special meeting by a
    shareholder of record of Grey Wolf should be hand delivered to
    the corporate secretary before a vote is taken. If you hold your
    shares in &#147;street name,&#148; please follow the
    instructions provided by your bank or brokerage firm to revoke
    or change your vote. A Grey Wolf shareholder may be asked to
    present documents for the purpose of establishing his or her
    identity as a Grey Wolf shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008, Grey Wolf commenced mailing this proxy
    statement/prospectus and the enclosed form of proxy to its
    shareholders entitled to vote at the special meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the Merger Agreement, Grey Wolf and
    Precision will share equally the costs and expenses of printing
    and mailing this proxy statement/prospectus. Grey Wolf will pay
    the cost of soliciting proxies from its shareholders. Proxies
    are being solicited by mail and may be solicited by telephone,
    telegram, facsimile, or in person by employees of Grey Wolf, who
    will not receive additional compensation for their services.
    Grey Wolf has retained Georgeson, the information agent, to
    assist in the solicitation of proxies at a fee of approximately
    $25,000, plus out-of-pocket expenses. Grey Wolf will also
    request brokers and other fiduciaries to forward the proxy
    materials to the beneficial owners of Grey Wolf common stock and
    will reimburse their reasonable out-of-pocket expenses.
</DIV>
<A name='246'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quorum,
    Voting Requirements and Effect of Abstentions and
    Non-votes</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A quorum is necessary for the transaction of business at the
    Grey Wolf special meeting. A quorum exists when holders of a
    majority of the total number of issued and outstanding shares of
    Grey Wolf common stock that are entitled to vote at the special
    meeting are present in person or by proxy. At the special
    meeting, inspectors of election will determine the presence of a
    quorum and tabulate the results of the voting by Grey Wolf
    shareholders. The inspectors will treat valid proxies marked
    &#147;abstain&#148; or proxies required to be treated as
    &#147;non-votes&#148; as present for purposes of determining
    whether there is a quorum at the special meeting. A
    &#147;non-vote&#148; occurs when a broker or nominee holding
    shares for a beneficial owner votes on one proposal but does not
    vote on another proposal, because the broker or nominee does not
    have discretionary voting power and has not received
    instructions from the beneficial owner of the shares. Broker
    non-votes will not be treated as votes cast, except that they
    will have the same effect as votes against the approval of the
    Merger Agreement. Brokers do not have discretionary authority to
    vote on the Merger Agreement. Abstentions will have the same
    effect as a vote against all of the proposals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The approval of the Merger Agreement requires the approval of
    the holders of a majority of the issued and outstanding shares
    of Grey Wolf common stock. The approval of the proposal to
    adjourn the Grey Wolf special meeting to solicit additional
    proxies in favor approving the Merger requires the approval of a
    majority of the votes cast.
</DIV>
<A name='247'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Approval
    of the Merger Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed elsewhere in this proxy statement/prospectus,
    holders of Grey Wolf common stock are considering approval of
    the Merger Agreement pursuant to the terms and subject to the
    conditions of the Merger Agreement. Holders of Grey Wolf common
    stock should read carefully this proxy statement/prospectus,
    including the annexes, in its entirety for more detailed
    information concerning the Merger Agreement and the Merger. In
    particular, holders of Grey Wolf common stock are directed to
    the Merger Agreement, a copy of which is included as
    <B>Annex&#160;A</B> to this proxy statement/prospectus. <B>The
    Grey Wolf board of directors unanimously recommends that
    shareholders vote FOR the approval of the Merger Agreement.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
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    <B><FONT style="font-family: 'Times New Roman', Times">THE
    MERGER</FONT></B>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The discussion in this proxy statement/prospectus of the
    Merger and the principal terms of the Merger Agreement are
    subject to, and are qualified in their entirety by reference to,
    the Merger Agreement, a copy of which is attached to this proxy
    statement/prospectus as <B>Annex&#160;A</B></I> and incorporated
    into this proxy statement/prospectus by reference.
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    <B><FONT style="font-family: 'Times New Roman', Times">Background
    of the Merger</FONT></B>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf&#146;s board of directors and senior management had
    from time to time engaged in strategic planning reviews to
    consider ways to enhance shareholder value. In early 2007, Grey
    Wolf&#146;s board of directors determined that Grey Wolf should
    seek a merger partner that was engaged primarily in
    complementary land-based oilfield service businesses other than
    domestic land drilling. This diversification growth strategy was
    intended to increase the scale of Grey Wolf&#146;s overall
    business and position it for further growth and value creation
    in both land drilling and additional business lines.
    Diversification was also expected to lend more stability to Grey
    Wolf&#146;s long-term financial performance by balancing the
    inherent cyclicality of its existing US land drilling business
    with the more stable performance of non-drilling oilfield
    service businesses or international land drilling.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this context, Grey Wolf held merger discussions during the
    fourth quarter of 2007 with &#147;Company A,&#148; a
    publicly-held company primarily engaged in oilfield service
    businesses. These discussions culminated with the negotiation of
    a stock-for-stock merger of equals between Company A and Grey
    Wolf in which Grey Wolf would be the surviving company, coupled
    with a post-closing stock repurchase plan. However, the proposed
    merger discussions were terminated when, on the day Grey
    Wolf&#146;s board of directors was scheduled to formally approve
    the merger agreement, senior management of Company A disclosed
    to senior management of Grey Wolf two developments that were
    regarded by Grey Wolf as materially adverse to the planned
    merger. The first development was that Company A was unable to
    deliver promised amendments to contractual corporate governance
    arrangements with one of Company A&#146;s largest stockholders
    which would have been binding on the combined company following
    the merger. The second development was that Company A disclosed
    it would miss analysts&#146; consensus earnings estimates for
    the fourth quarter of 2007 by a substantial margin.
    Additionally, Company A was not prepared to publicly announce
    the expected earnings shortfall (which later proved to be
    greater than the earnings shortfall then disclosed to Grey Wolf)
    prior to execution of the proposed merger agreement with Grey
    Wolf. As a consequence of these developments, Grey Wolf and
    Company A abandoned merger discussions in early December 2007.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of a strategic review in late 2007, management of
    Precision determined that an important element of its five-year
    strategy should include an attempt to reduce the impact of
    seasonality on Precision&#146;s business through geographical
    diversification beyond Canada and to capitalize on growth
    opportunities arising as a result of increased drilling activity
    in the US. Precision identified Grey Wolf as one of the few
    publicly-traded companies that met the key criteria of its
    strategic analysis and acquisition plan. Similarly, Grey Wolf
    identified Precision as a highly-regarded potential merger
    partner in Grey Wolf&#146;s strategic planning in 2007.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following on the 2007 strategic review, Kevin A. Neveu, Chief
    Executive Officer of PDC, met with Thomas P. Richards, Chairman,
    Chief Executive Officer and President of Grey Wolf, and David W.
    Wehlmann, Chief Financial Officer, of Grey Wolf, on
    December&#160;11, 2007, in Houston, Texas. At the meeting, the
    executives discussed the possibility of a business combination
    between their companies, including strategic fit, valuation
    issues and Precision&#146;s trust structure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;4, 2008, Mr.&#160;Neveu and Douglas J. Strong,
    PDC&#146;s Chief Financial Officer, as well as
    Mr.&#160;Richards, Mr.&#160;Wehlmann and David J. Crowley,
    Executive Vice President and Chief Operating Officer of Grey
    Wolf met again in Houston to further discuss a possible business
    combination, including strategic fit, valuation issues and
    Precision&#146;s trust structure.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;11, 2008, PDC&#146;s Vice President of Business
    Development, Kenneth J. Haddad, began negotiations with
    Mr.&#160;Wehlmann regarding a confidentiality agreement between
    PDC and Grey Wolf. The confidentiality agreement was executed on
    February&#160;13, 2008.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;19, 2008, Mr.&#160;Crowley and Mr.&#160;Neveu
    met in Calgary, Alberta and discussed the dynamics of the
    seasonality of the Canadian drilling market and the impact of
    recent legislative changes to the taxation of income trusts in
    Canada as well as the strategic fit of Precision and Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Wehlmann and Mr.&#160;Crowley met with Mr.&#160;Haddad
    on February&#160;21, 2008, to discuss Grey Wolf&#146;s level of
    interest in entering into formal conversations regarding a
    possible merger. It was agreed that no confidential information
    would be exchanged until the parties could agree to a structure
    for a possible transaction. Precision understood that Grey
    Wolf&#146;s board of directors would be willing to consider a
    merger with Precision. However, no further substantive
    conversations on a possible transaction occurred until July 2008.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the first and second quarters of 2008, Grey Wolf held
    merger negotiations with Basic. On April&#160;21, 2008, Basic
    and Grey Wolf publicly announced that they had executed the
    Basic Merger Agreement which was subject to the approval of the
    shareholders of each company. The Basic Merger Agreement called
    for Basic and Grey Wolf each to be merged into a newly-formed
    corporation which would be renamed Grey Wolf and would succeed
    to the business of both Basic and Grey Wolf. Under the Basic
    Merger Agreement, Basic&#146;s shareholders would have received
    0.9195 of a share of the common stock of the combined company
    and $6.70 in cash for each share of Basic common stock. Grey
    Wolf shareholders would have received 0.2500 of a share of the
    common stock of the combined company and $1.82 in cash for each
    share of Grey Wolf common stock. Former Grey Wolf shareholders
    would have owned 53% and former Basic shareholders would have
    owned 47% of the combined company. We refer to the proposed
    merger transaction between Basic and Grey Wolf pursuant to the
    Basic Merger Agreement as the &#147;Basic Merger.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Basic Merger Agreement contained customary provisions
    generally restricting both Basic and Grey Wolf from soliciting,
    encouraging or facilitating competing acquisition proposals
    while the Basic Merger Agreement remained in effect. We refer to
    these as the &#147;non-solicitation restrictions.&#148; An
    exception to the non-solicitation restrictions permitted Grey
    Wolf to conduct discussions or negotiations if a potential
    acquirer submitted an unsolicited, written acquisition proposal
    and Grey Wolf&#146;s board of directors, acting in good faith,
    determined (i)&#160;after consultation with its outside legal
    counsel and financial advisors and based on such other matters
    as it deemed relevant, that the unsolicited acquisition proposal
    was reasonably likely to result in a superior proposal, and
    (ii)&#160;that the potential acquirer had the financial and
    legal capacity to consummate its acquisition proposal. The Basic
    Merger Agreement also provided that in order for an unsolicited
    acquisition proposal to be regarded as superior to the Basic
    Merger, Grey Wolf&#146;s board of directors must have determined
    in good faith, after consultation with a financial advisor of
    nationally recognized reputation, and taking into account all
    legal, financial, regulatory and other aspects of the
    acquisition proposal, that the acquisition proposal satisfied
    three criteria. The first criteria was that the acquisition
    proposal would, if consummated in accordance with its terms, be
    more favorable, from a financial point of view, to Grey
    Wolf&#146;s shareholders than the Basic Merger. Next, the
    acquisition proposal was required to contain conditions which
    were all reasonably capable of being satisfied in a timely
    manner. Finally, the acquisition proposal could not be subject
    to any financing contingency or, to the extent financing for the
    proposal was required, be fully committed in writing by
    financially sound financial institutions of national reputation.
    We refer to an acquisition proposal that meets these criteria as
    a &#147;Superior Offer.&#148;
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision continued its analysis of Grey Wolf as an acquisition
    target despite the announcement of its proposed merger with
    Basic. At PDC&#146;s regularly scheduled board meeting on
    April&#160;22, 2008, the agenda included a discussion of
    Precision&#146;s five-year business model, containing a detailed
    review of identified acquisition candidates. Grey Wolf was the
    primary candidate. At the next meeting of the board of directors
    of PDC on May&#160;10, 2008, management received a mandate to
    investigate various acquisition structures relating to Grey Wolf
    with Precision&#146;s external advisors. Precision engaged
    Deutsche Bank Securities Inc. and RBC Capital Markets as its
    financial advisors and, together with Mayer Brown LLP, Bennett
    Jones LLP and Felesky Flynn LLP as its legal advisors, began its
    formal investigation of a potential acquisition of Grey Wolf.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PDC&#146;s board of directors met on Sunday, June&#160;8, 2008,
    as did the board of trustees of Precision. Each board
    unanimously approved making a proposal to acquire Grey Wolf.
    Following the meeting, Mr.&#160;Neveu contacted
    Mr.&#160;Richards by telephone to advise him that Precision
    would be sending a letter to Mr.&#160;Richards
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    relating to a proposal by Precision to acquire Grey Wolf.
    Mr.&#160;Richards advised Mr.&#160;Neveu that, because of the
    non-solicitation restrictions of the Basic Merger Agreement, he
    was not at liberty to discuss such a transaction, but that upon
    receipt of Precision&#146;s written proposal he would consult
    Grey Wolf&#146;s board of directors on the matter. Later on
    June&#160;8, 2008, Grey Wolf received the first of the three
    unsolicited acquisition proposals that it would receive from
    Precision during the pendency of the Basic Merger.
    Precision&#146;s June&#160;8, 2008 letter stated that Precision
    proposed to acquire all of the common stock of Grey Wolf for
    total consideration of $9.00 per share consisting of cash and
    trust units at the election of Grey Wolf shareholders, subject
    to proration so that the cash portion would not exceed
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the equity purchase price.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the morning of Monday, June&#160;9, 2008, Mr.&#160;Neveu
    returned a call from Mr.&#160;Richards. Mr.&#160;Wehlmann was
    also on the call. Mr.&#160;Richards advised that Grey
    Wolf&#146;s board of directors and advisors would consider
    Precision&#146;s proposal and explained that Grey Wolf was
    obligated to disclose publicly that it had received the
    proposal. Mr.&#160;Neveu took the opportunity to state that
    Precision and its advisors had conducted a thorough review of
    the capital structure of Precision following an acquisition with
    Grey Wolf which it would like the opportunity to share with Grey
    Wolf&#146;s board. He also stated that Precision understood that
    its trust structure was a concern for Grey Wolf based on the
    conversations that had taken place earlier in the year.
    Mr.&#160;Neveu expressed the belief that Precision&#146;s
    research regarding the resultant capital structure as well as
    its analysis of Grey Wolf&#146;s strategic fit with Precision
    would be very compelling to the Grey Wolf board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Later that day, a special meeting of the board of directors of
    Grey Wolf was held telephonically to review and discuss
    Precision&#146;s June&#160;8, 2008 unsolicited acquisition
    proposal. Also present were senior management of Grey Wolf,
    representatives of UBS Securities LLC, financial advisor to Grey
    Wolf, and representatives of Porter&#160;&#038; Hedges, LLP and
    Gardere Wynne Sewell LLP, legal counsel to Grey Wolf. Steven A.
    Webster, a director of Grey Wolf and also a director of Basic,
    did not participate in any Grey Wolf board meetings relating to
    Precision and its proposed acquisition of Grey Wolf until after
    the Basic Merger Agreement was terminated by Basic and Grey Wolf
    on July&#160;15, 2008. At the June&#160;9, 2008 special meeting
    of Grey Wolf&#146;s board, senior management briefed the Grey
    Wolf board on Precision&#146;s business operations.
    Mr.&#160;Richards reminded the Grey Wolf board that Precision
    had been identified as one of the leading potential business
    combination partners during the board&#146;s strategic planning
    work early in 2007. Representatives of UBS presented a
    preliminary financial analysis of the June&#160;8, 2008
    proposal. The Grey Wolf board also received legal advice. At the
    conclusion of the meeting, the Grey Wolf board determined to
    consider further the information and professional advice
    received and to reconvene a board meeting on June&#160;11, 2008
    to receive additional and updated financial and legal advice
    before making a decision with respect to the Precision offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Tuesday, June&#160;10, 2008, Grey Wolf publicly announced
    that it had received Precision&#146;s unsolicited acquisition
    proposal of June&#160;8, 2008 and that, due to its recent
    receipt, Grey Wolf&#146;s board intended to evaluate
    Precision&#146;s proposal consistent with its fiduciary duties
    and Grey Wolf&#146;s obligations with respect to unsolicited
    third party offers under the Basic Merger Agreement, which
    remained in effect. Later the same day, Precision issued a press
    release confirming that it had made its June&#160;8, 2008
    proposal to Grey Wolf. PDC&#146;s board of directors was briefed
    by management during a telephonic meeting later that day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Also on June&#160;10, 2008, Basic and Grey Wolf finalized their
    joint proxy statement/prospectus soliciting shareholder approval
    for the Basic Merger at their respective special shareholders
    meetings to be held on July&#160;15, 2008, and began mailing the
    joint proxy statement/prospectus to shareholders on or about
    June&#160;16, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Wednesday, June&#160;11, 2008, Mr.&#160;Richards received a
    telephone call from the chief executive offer of a publicly-held
    company engaged in contract drilling and oilfield services,
    which we refer to as &#147;Company B.&#148; The CEO of Company B
    was aware of Precision&#146;s acquisition proposal and inquired
    of Mr.&#160;Richards whether Grey Wolf would be receptive to
    possible business combination discussions with Company B.
    Mr.&#160;Richards noted that he was constrained from such
    discussions by the non-solicitation restrictions of the Basic
    Merger Agreement but that if Company B made a written offer, he
    would present the offer to Grey Wolf&#146;s board of directors.
    No further communications between Company B and Grey Wolf
    occurred until the latter half of July 2008.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;11, 2008, Grey Wolf&#146;s board again held a
    telephonic special meeting in which all members of the board
    other than Mr.&#160;Webster participated to consider
    Precision&#146;s June&#160;8, 2008 unsolicited acquisition
    proposal, and to receive additional and updated information and
    analysis from its advisors. Senior management of Grey Wolf and
    representatives of UBS, Porter&#160;&#038; Hedges and Gardere
    Wynne Sewell were also in attendance. Mr.&#160;Richards reported
    the acquisition overture from Company B and advised his fellow
    board members that he would keep them informed if there were
    further developments regarding Company B&#146;s interest in Grey
    Wolf. Representatives of UBS made a presentation to the Grey
    Wolf board regarding its financial analysis of Precision&#146;s
    June&#160;8, 2008 proposal. The Grey Wolf board also received
    additional legal advice from Porter&#160;&#038; Hedges and
    Gardere Wynne Sewell. Following a general discussion among the
    members of the board and its financial and legal advisors
    regarding the Precision offer all members of the Grey Wolf board
    present determined that Precision&#146;s June&#160;8, 2008
    proposal was not reasonably likely to result in a Superior Offer
    to the Basic Merger and voted to reject the unsolicited offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;11, 2008, Mr.&#160;Neveu received an email from
    Mr.&#160;Richards requesting a call early on June&#160;12, 2008.
    PDC&#146;s board met telephonically on June&#160;11, 2008 to
    discuss Grey Wolf&#146;s anticipated response to its proposal of
    June&#160;8, 2008. The PDC board considered various scenarios
    and confirmed the negotiating parameters set at its June&#160;8,
    2008 meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Thursday, June&#160;12, 2008, Mr.&#160;Richards called
    Mr.&#160;Neveu, prior to opening of trading on the New York
    Stock Exchange, to advise that Grey Wolf&#146;s board of
    directors had considered Precision&#146;s acquisition proposal
    and had found that under the Basic Merger Agreement the proposal
    was not sufficient to allow Grey Wolf to engage in discussions
    with Precision. Mr.&#160;Richards stated that he could not
    engage in further discussions with Mr.&#160;Neveu because of the
    non-solicitation restrictions of the Basic Merger Agreement.
    Mr.&#160;Richards advised Mr.&#160;Neveu that Grey Wolf was
    obliged to disclose its rejection of the Precision proposal
    prior to market opening by news release.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Later on June&#160;12, 2008, Grey Wolf publicly announced that
    its board of directors, after carefully analyzing
    Precision&#146;s June&#160;8, 2008 proposal and after receiving
    advice from financial and legal advisors, had concluded that the
    June&#160;8, 2008 proposal was not superior to Grey Wolf&#146;s
    pending Basic Merger and also confirmed that the Basic Merger
    Agreement had not been amended and remained in effect. Later
    that day, Mr.&#160;Neveu contacted Mr.&#160;Richards seeking a
    clarifying call between their respective legal advisors
    regarding Grey Wolf&#146;s analysis of the non-solicitation
    provisions contained in the Basic Merger Agreement. This request
    was denied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Friday, June&#160;13, 2008, PDC&#146;s board of directors met
    telephonically to discuss an increased proposal to Grey Wolf.
    Financial and legal advisors participated in the discussion. The
    board also considered various financing alternatives. Following
    its deliberations, the board of directors approved an increased
    proposal for Grey Wolf. The board of trustees of Precision also
    approved the amended proposal as recommended by PDC&#146;s board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Saturday, June&#160;14, 2008, Mr.&#160;Neveu called
    Mr.&#160;Richards and stated that Precision would be sending a
    letter amending its previous proposal. Mr.&#160;Neveu conveyed
    the terms of the proposal. Mr.&#160;Neveu emphasized that
    Precision&#146;s balance sheet could easily support the funding
    of the proposed consideration and that Precision would be able
    to quickly close a transaction. In addition, Mr.&#160;Neveu
    noted that reputable financial institutions had provided
    Precision with highly confident financing letters in relation to
    the proposed merger but would not be able to provide financing
    commitment letters prior to completing their own due diligence
    review of Grey Wolf. Grey Wolf received a second unsolicited
    acquisition proposal from Precision shortly thereafter. In its
    June&#160;14, 2008 proposal, Precision sought to acquire all of
    the common stock of Grey Wolf for total consideration of $9.30
    per share (on a fully diluted basis) consisting of cash and
    trust units at the election of Grey Wolf shareholders, subject
    to proration so that the cash portion would not exceed 40% of
    the equity purchase price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Monday, June&#160;16, 2008, a telephonic special meeting of
    the board of directors of Grey Wolf was held in which all
    members of the board other than Mr.&#160;Webster participated to
    review and discuss Precision&#146;s June&#160;14, 2008
    unsolicited acquisition proposal. Also present were senior
    management of Grey Wolf and representatives of UBS,
    Porter&#160;&#038; Hedges and Gardere Wynne Sewell. UBS made a
    presentation to Grey
</DIV>

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    Wolf&#146;s board of directors regarding its financial analysis
    of the June&#160;14, 2008 proposal. The Grey Wolf board received
    legal advice from Porter&#160;&#038; Hedges and Gardere Wynne
    Sewell with respect to the proposal and, following further
    discussion, all Grey Wolf&#146;s board members present
    determined that Precision&#146;s June&#160;14, 2008 proposal was
    not reasonably likely to lead to a Superior Offer to the Basic
    Merger and voted to reject the proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Tuesday, June&#160;17, 2008, Mr.&#160;Richards called
    Mr.&#160;Neveu to advise that Precision&#146;s second proposal
    had been considered and rejected by the Grey Wolf board.
    Mr.&#160;Richards stated the Grey Wolf board had concerns about,
    among other things, the implicit value of the proposal, the
    Canadian drilling market and the uncertainty on the timing and
    impact of Precision&#146;s conversion from a trust structure to
    a corporate structure. Mr.&#160;Richards also reiterated that
    Grey Wolf could not engage in discussions with another party
    under the terms of the Basic Merger Agreement and that Grey Wolf
    did not believe that Precision&#146;s proposal was reasonably
    likely to result in a Superior Offer to the Basic Merger under
    the Basic Merger Agreement. The PDC board was briefed during a
    telephone meeting on June&#160;17, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Also on June&#160;17, 2008, Grey Wolf publicly announced that it
    had received Precision&#146;s June&#160;14, 2008 proposal, that
    its board of directors had carefully analyzed and considered
    Precision&#146;s second unsolicited acquisition proposal and,
    after receiving advice from financial and legal advisors, had
    determined that it was not reasonably likely to result in a
    Superior Offer to the Basic Merger. Grey Wolf also reaffirmed
    that its board of directors continued to believe that the Basic
    Merger offered the best long-term value for Grey Wolf&#146;s
    shareholders for the reasons described in its joint proxy
    statement/prospectus for its special meeting of shareholders to
    approve the Basic Merger. Later the same day, Precision publicly
    confirmed that it had made the June&#160;14, 2008 acquisition
    proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Wednesday, June&#160;18, 2008, Mr.&#160;Richards received a
    telephone call from the president of a publicly-held company
    engaged in contract drilling and other oilfield services, which
    we call &#147;Company C.&#148; The president of Company C
    advised Mr.&#160;Richards that Company C might be interested in
    making an all cash proposal to acquire Grey Wolf, possibly
    within a week. Mr.&#160;Richards informed the president of
    Company C of Grey Wolf&#146;s obligations under the
    non-solicitation restrictions of the Basic Merger Agreement and
    advised him that any such proposal by Company C should be
    submitted in writing and would then be considered by Grey
    Wolf&#146;s board. In the following week, Company C&#146;s
    president telephoned Mr.&#160;Richards to advise him that
    Company C would not be making an offer to acquire Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;19, 2008, Grey Wolf retained Simmons&#160;&#038;
    Company International to provide additional financial advice to
    its board of directors in the event that either Precision or
    Company C made another unsolicited acquisition proposal for Grey
    Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;19, 2008, PDC&#146;s board met to receive an update
    on the financing structures under consideration and to consider
    a further approach to Grey Wolf. The PDC board decided it would
    be prudent to analyze additional alternatives and finalize the
    financing terms of the primary structure before proceeding with
    another overture to Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Friday, June&#160;20, 2008, Mr.&#160;Richards received a
    telephone call from Mr.&#160;Neveu advising him that Precision
    planned to submit another acquisition proposal to Grey Wolf that
    day. Later that day, Mr.&#160;Neveu telephoned Mr.&#160;Richards
    and advised him that Precision&#146;s board of trustees had not
    yet been able to reach a consensus on Precision&#146;s third
    offer, but would be meeting over the weekend to discuss it
    further and that Mr.&#160;Neveu expected to send
    Mr.&#160;Richards a revised acquisition proposal on Sunday,
    June&#160;22, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Neveu called Mr.&#160;Richards on Monday, June&#160;23,
    2008, to say that board deliberations were continuing and that
    there was no proposal to deliver to Grey Wolf at that time.
    Mr.&#160;Neveu asked if there were any comments that he could
    make to address Grey Wolf&#146;s concerns with Precision&#146;s
    prior rejected proposals. Mr.&#160;Richards responded that he
    could not discuss Precision&#146;s proposal, other than to say
    that Grey Wolf&#146;s views were set out in its public documents
    and that the Grey Wolf board had focused on the valuation of
    Precision&#146;s trust units. He stated that Grey Wolf&#146;s
    concerns about the Canadian market and Precision&#146;s trust
    structure had not changed since the earlier conversations
    between Precision and Grey Wolf.
</DIV>

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    44
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;23, 2008, Grey Wolf&#146;s board of directors held
    a telephonic special meeting originally scheduled to consider a
    third unsolicited acquisition offer from Precision that had been
    expected the previous day but had not been received.
    Representatives of UBS, Porter&#160;&#038; Hedges and Gardere
    Wynne Sewell were also present. Mr.&#160;Richards reported that
    Mr.&#160;Neveu had called earlier in the day and advised him
    that PDC&#146;s board of directors was still deliberating and
    that Mr.&#160;Neveu expected to deliver Precision&#146;s revised
    acquisition proposal the next day. Mr.&#160;Richards also
    reported his earlier conversation with the president of Company
    C. In the absence of a revised proposal from Precision, the Grey
    Wolf board and its advisors held a general discussion of Grey
    Wolf&#146;s proxy solicitation efforts in support of the Basic
    Merger. Also discussed was the possible sequence of board
    meetings, public announcements and other events if
    Precision&#146;s expected third unsolicited offer was determined
    by the board to be one not reasonably likely to lead to a
    Superior Offer to the Basic Merger and, conversely, if the Grey
    Wolf board determined that the third Precision offer was
    reasonably likely to result in a Superior Offer to the Basic
    Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PDC&#146;s board met on June&#160;23, 2008, to hear a report
    from management and Precision&#146;s financial advisors
    regarding possible financing for the acquisition of Grey Wolf.
    Following its deliberations, the PDC board considered and
    approved a revised proposal to acquire Grey Wolf. However, prior
    to authorizing the making of the proposal to Grey Wolf, the PDC
    board asked for a further detailed briefing on some aspects with
    respect to proceeding with the proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Tuesday, June&#160;24, 2008, Mr.&#160;Neveu called
    Mr.&#160;Richards to inform him that PDC&#146;s board would be
    meeting that afternoon and to confirm Mr.&#160;Richards&#146;
    availability for a communication from Precision later in the
    day. The PDC board met again on June&#160;24, 2008, and
    unanimously recommended to the board of trustees of Precision
    that it proceed with the revised proposal and the board of
    trustees unanimously approved making the revised proposal.
    Mr.&#160;Neveu contacted Mr.&#160;Richards and conveyed the
    terms of Precision&#146;s revised proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s third unsolicited acquisition proposal to Grey
    Wolf provided for the acquisition of all of the common stock of
    Grey Wolf for $10.00 per share (on a fully diluted basis)
    consisting of cash and trust units at the election of Grey Wolf
    shareholders, subject to proration such that the cash portion
    would not exceed 50% of the aggregate offer price. The
    June&#160;24, 2008 proposal stated that it was for the
    acquisition of Grey Wolf alone and did not extend to the
    combined Basic and Grey Wolf if the Basic Merger was
    consummated. This third proposal contained a statement that it
    was Precision&#146;s final unsolicited acquisition proposal to
    Grey Wolf, a point that also had been emphasized by
    Mr.&#160;Neveu in his call to Mr.&#160;Richards introducing the
    third proposal. The June&#160;24, 2008 proposal also contained
    the following additional terms and conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Final agreement on a transaction between Grey Wolf and Precision
    would be conditioned on:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    negotiation of acceptable legal documentation, which Precision
    expected to contain substantially the same terms (apart from
    consideration) as the Basic Merger Agreement,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    completion of focused confirmatory due diligence, which
    Precision indicated would be conducted on an expedited basis,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    Grey Wolf shareholder approval, but would not be conditioned on
    approval of Precision&#146;s unitholders,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    regulatory approval under the HSR Act and other customary
    approvals.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Precision expected possible completion of evaluation, due
    diligence, negotiation and signing of definitive merger
    documentation within two weeks.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Precision stated that it had Cdn$600&#160;million of borrowing
    capacity to assist it in funding of the proposed business
    combination.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Letters from Deutsche Bank Securities, Inc. and Royal Bank of
    Canada were attached indicating that they were highly confident
    that they could arrange for, or provide financing to, Precision
    as required to complete the proposed business combination,
    subject in each case to numerous conditions, some of
</TD>
</TR>

</TABLE>

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    <BR>
    45
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    which were unspecified or were to be met to the satisfaction of
    the lender; however, each institution indicated that their
    letter should not be considered a binding commitment to provide
    such financing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Precision stated that it was prepared to discuss adding Grey
    Wolf nominees to the board of directors of PDC, the
    administrator of Precision.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;24, 2008, a special meeting of the board of
    directors of Grey Wolf was held telephonically to review and
    discuss Precision&#146;s third unsolicited acquisition proposal
    received earlier that day. Also present were senior management
    of Grey Wolf and representatives of UBS, Simmons&#160;&#038;
    Company, Porter&#160;&#038; Hedges and Gardere Wynne Sewell.
    Mr.&#160;Richards reported to the board that, as previously
    approved by the board on June&#160;16, 2008, Grey Wolf&#146;s
    engagement letter with UBS had been amended so as to equalize
    UBS&#146;s compensation regardless of whether Grey Wolf
    consummated a merger with Basic or Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Richards advised the board that due to Precision&#146;s
    most recent acquisition proposal, previously-planned meetings
    that week with certain Grey Wolf shareholders to solicit their
    vote in favor of the Basic Merger would be postponed until the
    Grey Wolf board had determined whether or not Precision&#146;s
    June&#160;24, 2008 proposal was reasonably likely to result in a
    Superior Offer to the Basic Merger. Mr.&#160;Richards also
    reported to the board the substance of his telephone call from
    Mr.&#160;Neveu discussed in the following paragraph.
    Simmons&#160;&#038; Company made a presentation to the Grey Wolf
    board (during which UBS was absent) regarding a preliminary
    financial analysis of Precision&#146;s June&#160;24, 2008
    proposal. Thereafter, Simmons&#160;&#038; Company was excused
    and UBS presented its preliminary financial analysis of the
    proposal. At the conclusion of the meeting, the Grey Wolf board
    determined to adjourn to enable its members to consider further
    the information and financial analyses received at the meeting,
    and to reconvene a board meeting on June&#160;26, 2008 to
    receive additional and updated financial analyses and legal
    advice before making a decision with respect to Precision&#146;s
    June&#160;24, 2008 proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the special meeting of Grey Wolf&#146;s board on
    June&#160;24, 2008, Mr.&#160;Neveu telephoned Mr.&#160;Richards
    and advised him that Precision&#146;s most recent proposal was
    its final offer and that if the Grey Wolf board did not accept
    it Precision would await the vote of Grey Wolf&#146;s
    shareholders at Grey Wolf&#146;s special meeting of shareholders
    to vote on the Basic Merger. Mr.&#160;Neveu also stated that
    Precision could have fully committed financing for its most
    recent proposal within two weeks and that Precision expected to
    be able to fully negotiate a merger agreement and conclude its
    due diligence in that same two week period. Mr.&#160;Neveu told
    Mr.&#160;Richards that Precision would be publicly announcing
    its final offer to Grey Wolf the next day. He then read
    Mr.&#160;Richards the text of the expected announcement by
    Precision. Mr.&#160;Richards requested clarification of the
    offer regarding the stock exchange method proposed by Precision
    to value its trust units in its proposed transaction, but
    Mr.&#160;Neveu stated that he was not prepared to comment beyond
    the text of Precision&#146;s press release he had just read to
    Mr.&#160;Richards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Tuesday, June&#160;25, 2008, Grey Wolf publicly announced
    that it had received Precision&#146;s third unsolicited
    acquisition proposal and that Grey Wolf&#146;s board of
    directors intended to evaluate Precision&#146;s proposal
    consistent with its fiduciary duties and Grey Wolf&#146;s
    obligations with respect to unsolicited third party offers under
    the Basic Merger Agreement, which remained in effect. The same
    day, Precision publicly announced that it had made the
    June&#160;24, 2008 proposal to Grey Wolf, that its June&#160;24,
    2008 proposal was fully priced, and that Precision would not
    make any further revisions to its proposal. Precision also
    stated that if Grey Wolf&#146;s board chose to reject
    Precision&#146;s most recent proposal, Precision would suspend
    all efforts to pursue a merger with Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Thursday, June&#160;26, 2008, a special meeting of the Grey
    Wolf board of directors was held telephonically in which all
    members of the board participated other than Mr.&#160;Webster to
    continue its review and discussion of Precision&#146;s third
    unsolicited acquisition proposal of June&#160;24, 2008. Also
    present were senior management of Grey Wolf and representatives
    of UBS, Simmons&#160;&#038; Company, Porter&#160;&#038; Hedges
    and Gardere Wynne Sewell. Representatives of UBS made a
    presentation to the board of its financial analysis of
    Precision&#146;s June&#160;24, 2008 proposal, after which UBS
    was excused. Simmons&#160;&#038; Company then presented its
    financial analysis of the proposal. Because the price of Grey
    Wolf&#146;s common stock had likely been affected by both the
    pendency of the Basic Merger and Precision&#146;s three publicly
    announced acquisition proposals, both UBS and
    Simmons&#160;&#038; Company conducted a financial analysis to
    estimate a hypothetical and illustrative price for Grey
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    46
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    Wolf&#146;s common stock premised on the assumption that Grey
    Wolf&#146;s common stock would have traded proportionate to an
    index of selected peers absent the impact on the price of Grey
    Wolf&#146;s common stock of Precision&#146;s publicly announced
    $10.00&#160;per share unsolicited offer for Grey Wolf and Grey
    Wolf&#146;s own publicly announced evaluation of strategic
    alternatives. The Grey Wolf board also received legal advice
    from Porter&#160;&#038;&#160;Hedges and Gardere Wynne Sewell.
    The Grey Wolf board considered that Precision had made an offer
    characterized as a &#147;final business combination
    proposal.&#148; Grey Wolf&#146;s board understood Precision to
    have categorically foreclosed any further increase in its
    June&#160;24, 2008 proposal, both in private conversation
    between Mr.&#160;Neveu and Mr.&#160;Richards on June&#160;24,
    2008 and by public announcement the following day. This refusal
    to negotiate pricing of a possible merger was regarded as highly
    significant. At the conclusion of its June&#160;26, 2008
    meeting, the Grey Wolf board determined that Precision&#146;s
    June&#160;24, 2008 proposal was not reasonably likely to lead to
    a Superior Offer to the Basic Merger, particularly in light of
    Precision&#146;s refusal to consider any further increases to
    its June&#160;24, 2008 proposal. Accordingly, all members of
    Grey Wolf&#146;s board present voted to reject Precision&#146;s
    June&#160;24, 2008 proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Friday, June&#160;27, 2008, Mr.&#160;Richards contacted
    Mr.&#160;Neveu to advise that the Grey Wolf board had rejected
    Precision&#146;s latest unsolicited revised proposal. PDC&#146;s
    board was advised of the rejection in a telephonic meeting held
    later that day. The PDC board determined not to pursue an
    additional unsolicited proposal but would await the
    determination of the shareholders of Basic and Grey Wolf at the
    upcoming meetings on the Basic Merger. In the event that the
    shareholders of Basic or Grey Wolf did not approve the proposed
    merger and the Basic Merger was terminated, the PDC board
    confirmed that it would recommend that Precision reapproach Grey
    Wolf at that time.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Also on June&#160;27, 2008, Grey Wolf publicly announced that
    its board of directors had rejected Precision&#146;s
    June&#160;24, 2008 proposal and continued to believe that the
    Basic Merger remained more consistent with its long-term
    strategic plan and maximized value for Grey Wolf shareholders.
    Later the same day, Precision publicly announced that it would
    await the outcome of Grey Wolf&#146;s shareholders meeting on
    July&#160;15, 2008 to vote on the Basic Merger. Precision also
    stated its intention to re-approach Grey Wolf if the Basic
    Merger Agreement was terminated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;9, 2008, Precision publicly announced that it would
    immediately reapproach the board of directors of Grey Wolf with
    its June&#160;24, 2008 $10.00 per Grey Wolf share acquisition
    proposal if the Basic Merger Agreement was terminated, and that
    it would await the outcome of Grey Wolf&#146;s upcoming
    shareholder meeting to vote on the Basic Merger. Precision
    acknowledged that in the absence of a determination by the board
    of directors of Grey Wolf that Precision&#146;s proposal was
    reasonably likely to result in a Superior Offer to the Basic
    Merger, Precision was unable to engage Grey Wolf in negotiations
    and discussions in relation to its proposal, as Grey Wolf was
    precluded from doing so under the terms of the Basic Merger
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Saturday, July&#160;12, 2008, the Grey Wolf board of
    directors held a special telephonic meeting in which
    Mr.&#160;Rose was unable to participate. Mr.&#160;Webster was in
    attendance, but excused himself from discussions regarding the
    Basic Merger. Senior management of Grey Wolf and representatives
    of UBS, Porter&#160;&#038; Hedges and Gardere Wynne Sewell also
    attended. Senior management reported to the board that it was a
    near certainty that the Basic Merger would not be approved by
    Grey Wolf shareholders based on proxy returns to date.
    Mr.&#160;Richards reported that the chief executive officer of
    Basic had contacted him to propose that Grey Wolf postpone its
    special meeting of shareholders for two weeks during which Basic
    would allow Grey Wolf to negotiate exclusively with Precision.
    In exchange, Basic proposed that Grey Wolf agree that the
    termination fee payable to Basic under the Basic Merger
    Agreement if Grey Wolf shareholder approval was not received for
    the Basic Merger be increased from $5&#160;million to
    $10&#160;million and that the fee payable to Basic in the event
    that Grey Wolf consummated a change of control transaction in
    the next twelve months be increased from $30&#160;million to
    $40&#160;million. Basic further proposed that if Grey Wolf did
    not enter into an agreement with Precision at the end of such
    two-week period, then Grey Wolf&#146;s special meeting of
    shareholders would be held to vote on the Basic Merger
    Agreement. All board members present voted to reject
    Basic&#146;s proposal. Thereafter, Mr.&#160;Webster rejoined the
    meeting. In light of the likely failure of the shareholders of
    Grey Wolf to approve the Basic Merger Agreement, the board also
    discussed whether to seek merger negotiations with Precision
    immediately after the then probable termination of the Basic
    Merger Agreement, possibly on an exclusive basis if insisted
    upon by Precision, or instead to immediately commence an overall
    evaluation of
</DIV>

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    Grey Wolf&#146;s strategic alternatives, including a broad
    solicitation of acquisition proposals for Grey Wolf.
    Unanimously, the Grey Wolf board voted to proceed with an
    evaluation of Grey Wolf&#146;s strategic alternatives, not to
    offer any exclusive negotiation period to Precision and to
    retain UBS as its financial advisor in connection the
    board&#146;s evaluation of Grey Wolf&#146;s strategic
    alternatives, all in the event that the Basic Merger Agreement
    failed to receive Grey Wolf shareholder approval and the Basic
    Merger Agreement was terminated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Monday, July&#160;14, 2008, a special meeting of the Grey
    Wolf board of directors was held to continue discussions
    relating to Grey Wolf&#146;s strategy regarding Precision,
    discuss other strategic alternatives and receive a presentation
    from representatives of UBS regarding its recommendations with
    respect to Grey Wolf&#146;s strategic alternatives process.
    Senior management of Grey Wolf were also present, as were
    representatives of Porter&#160;&#038; Hedges and Gardere Wynne
    Sewell. Representatives of UBS made a presentation to the board
    regarding a possible strategic alternatives process, including a
    preliminary valuation analysis of Grey Wolf and identification
    and discussion of a number of possible financial and strategic
    buyers for Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Tuesday, July&#160;15, 2008, Grey Wolf held its special
    meeting of shareholders to vote on the Basic Merger Agreement.
    The Basic Merger did not receive sufficient shareholder votes
    for approval and, consequently, Basic and Grey Wolf terminated
    the Basic Merger Agreement that same day. Also on July&#160;15,
    2008, Grey Wolf publicly announced the decision of its board of
    directors to review Grey Wolf&#146;s alternatives for enhancing
    shareholder value. The announcement noted that the board&#146;s
    review would include an update to Grey Wolf&#146;s existing
    strategic plan and would encompass consideration of continued
    internal growth by remaining independent, acquisitions, mergers,
    the sale of Grey Wolf, strategic alliances, joint ventures and
    financial alternatives. We refer to this as Grey Wolf&#146;s
    &#147;strategic alternatives process.&#148; The engagement of
    UBS as the Grey Wolf board&#146;s independent financial advisor
    to assist in conducting this review was also announced. Grey
    Wolf disclosed that it would take a one-time, pre-tax charge to
    earnings of approximately $17.0&#160;million (or approximately
    $.05 per diluted share) during the third quarter of 2008 as a
    result of the shareholder vote and related termination of the
    Basic Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Immediately following the conclusion of Grey Wolf&#146;s special
    meeting of shareholders, Grey Wolf&#146;s board of directors
    held a special meeting to discuss its strategic alternatives
    process. Senior management of Grey Wolf and representatives of
    UBS, Porter&#160;&#038; Hedges and Gardere Wynne Sewell were
    also present. UBS was authorized to immediately commence
    solicitation of potential buyers for Grey Wolf. Grey Wolf&#146;s
    management and legal counsel were authorized to permit Precision
    access to Grey Wolf&#146;s virtual data room that had been
    established for the Basic Merger to enable Precision&#146;s
    representatives to begin their due diligence review of
    confidential Grey Wolf information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the afternoon of July&#160;15, 2008, Mr.&#160;Richards
    telephoned Mr.&#160;Neveu to inform him that Precision would be
    given access to confidential information in Grey Wolf&#146;s
    virtual data room. Mr.&#160;Neveu requested that Grey Wolf
    negotiate exclusively with Precision for a two-week period.
    Mr.&#160;Richards declined, noting that the Grey Wolf board had
    considered negotiating exclusively with Precision, but had
    decided to continue with its strategic alternatives process.
    Mr.&#160;Richards observed that Precision already had a
    practical advantage over other possible bidders by having
    evaluated Grey Wolf in connection with its three prior
    acquisition proposals and having arranged financing for those
    proposals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Richards and Mr.&#160;Neveu met on July&#160;16, 2008.
    Mr.&#160;Neveu confirmed that Precision remained interested in a
    strategic transaction with Grey Wolf but pointed out that the
    stock market had moved significantly downward since
    Precision&#146;s last acquisition proposal had been made. They
    discussed Grey Wolf&#146;s anticipated steps pursuant to its
    announced strategic alternatives review process. Precision was
    provided access to Grey Wolf&#146;s electronic data site on
    July&#160;16, 2008. Precision also made its electronic data site
    available to Grey Wolf on July&#160;16, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision instructed its financial advisors to obtain
    information about Grey Wolf&#146;s strategic alternatives
    process. Several conversations between Deutsche Bank and UBS
    ensued. Precision was provided with a process letter from UBS on
    July&#160;22, 2008 and the parties confirmed that their existing
    mutual confidentiality agreement would continue to apply.
</DIV>

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    On Thursday, July&#160;24, 2008, senior management of Grey Wolf
    and Precision made confidential presentations to each other
    concerning their respective companies. Also attending were the
    financial advisors and US legal counsel to each company. Each
    company&#146;s management and advisors responded to due
    diligence questions from the management and advisors of the
    other company. Precision&#146;s management and its financial
    advisors addressed concerns that had been expressed by Grey Wolf
    in its previous rejections of Precision&#146;s unsolicited bids
    to acquire Grey Wolf, including the outlook for Canadian
    drilling markets. Precision&#146;s financial advisors made a
    separate presentation addressing Precision&#146;s status and
    outlook as a Canadian income trust. This included discussion of
    the trading markets for Canadian income trust units and the
    outlook for Canadian income trusts in general, and Precision in
    particular, in light of Canadian federal legislation eliminating
    the favorable taxation of Canadian income trusts beginning in
    2011. Also on July&#160;24, 2008, Mr.&#160;Neveu met with three
    members of the Grey Wolf board for lunch where Precision&#146;s
    long-term strategy, including its views on the capital structure
    of the combined companies, was discussed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PDC&#146;s board met on August&#160;4, 2008, to review the
    results of Precision&#146;s further investigations and to
    consider making another acquisition proposal to Grey Wolf. The
    PDC board approved the submission of a proposal equivalent in
    cash and number of Precision trust units to Precision&#146;s
    June&#160;24, 2008 proposal. The Board also mandated that an
    acceptable proposal had to provide for a reasonable period of
    exclusivity. Upon a unanimous recommendation from the PDC board
    of directors, Precision&#146;s board of trustees also
    unanimously approved the making of the revised proposal.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Neveu called Mr.&#160;Richards on August&#160;4, 2008.
    Mr.&#160;Neveu offered the equivalent of Precision&#146;s last
    prior proposal in terms of cash and number of Precision trust
    units, based on Precisions unit price at the time of the prior
    proposal. This proposal was for $1.12&#160;billion of cash and
    40.2&#160;million Precision trust units. Mr.&#160;Neveu stated
    that this proposal would be outstanding until August&#160;8,
    2008 and that if accepted, Precision would be willing to proceed
    quickly to closing. The proposal letter, sent to
    Mr.&#160;Richards on August&#160;5, 2008, included a draft
    merger agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Thursday, August&#160;7, 2008, a telephonic special meeting
    of the board of directors of Grey Wolf was held to review the
    status of its strategic alternatives process. Also present were
    senior management of Grey Wolf and representatives of UBS,
    Porter&#160;&#038; Hedges and Gardere Wynne Sewell.
    Representatives of UBS reported that 16 potential buyers had
    been contacted by UBS on behalf of Grey Wolf, of which 11 were
    possible strategic buyers and five were possible financial
    buyers. Of these potential buyers, a total of eight (five
    strategic and three financial) had entered into confidentiality
    agreements with Grey Wolf to permit them to review confidential
    information in Grey Wolf&#146;s virtual data room. Finally,
    three potential strategic buyers had submitted indications of
    interest to acquire Grey Wolf. Representatives of UBS presented
    a preliminary financial analysis of the three indications of
    interest, noting that efforts to clarify the proposals were
    ongoing. The three indications of interest received were from
    Company A, Company B and Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Company A&#146;s market capitalization was substantially smaller
    than Grey Wolf&#146;s market capitalization. Company A&#146;s
    indication of interest dated August&#160;4, 2008&#160;stated
    that it was a preliminary, non-binding proposal to acquire all
    outstanding stock of Grey Wolf for $10.25, based on the closing
    price of Grey Wolf common stock as of August&#160;1, 2008, which
    was $8.64. Company A also stated that approximately 75% of the
    transaction consideration would be in cash and the remainder in
    Company A&#146;s stock. Company A noted that it expected that
    the transaction would be taxable to Grey Wolf shareholders and
    that it would be amenable to paying a smaller cash amount if
    Grey Wolf felt it was beneficial. Company A stated that it did
    not expect financing to be a condition to closing of its
    proposed transaction and that it expected to have committed
    financing in place for the transaction. No financing commitment
    letters or &#147;highly confident&#148; letters were included
    with Company A&#146;s indication of interest, but two financial
    institutions were mentioned as financing advisors and financing
    sources to Company A. Company A stated that it expected that
    financing could be arranged within 30&#160;days after
    discussions with the financing sources both of which, Company A
    stated, had reviewed Grey Wolf in connection with the failed
    merger negotiations between Company A and Grey Wolf in 2007.
    Approval of the transaction by Company A&#146;s stockholders
    would be required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Representatives of UBS advised the Grey Wolf board that they had
    discovered in a conversation with Company A&#146;s chief
    executive officer that Company A would also need to obtain
    approximately $500&#160;million
</DIV>

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    of equity capital through a private equity investment in order
    to obtain the necessary financing for its proposal, which was
    not referred to in Company A&#146;s indication of interest. The
    board noted that Company A was carrying a high level of
    indebtedness and that its proposed financing for the acquisition
    of Grey Wolf would substantially exacerbate its already high
    financial leverage. Of particular concern to Grey Wolf&#146;s
    board was the then existing uncertainty in the credit and equity
    capital markets and the verbal revelation that Company A needed
    to raise $500&#160;million in equity capital in addition to the
    over $1&#160;billion of additional indebtedness implied by its
    indication of interest. These matters raised doubts as to
    whether Company A would be able to complete its proposal on the
    terms and within the time mentioned in its indication of
    interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board also observed that Company A&#146;s proposed
    transaction was estimated by UBS to be highly dilutive to
    Company A&#146;s 2009 estimated earnings per share, likely in
    excess of 25% per share. This cast serious doubt both as to the
    value of the stock component of Company A&#146;s proposal and
    whether Company A would be able to obtain approval from its
    stockholders for such a transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Company B&#146;s indication of interest dated August&#160;4,
    2008&#160;stated that, based on the information available to it,
    Company B believed that its acquisition price would be &#147;in
    the range of approximately $9.50 per share,&#148; for each share
    of Grey Wolf common stock outstanding, consisting of equal parts
    of cash and Company B stock. However, Company B noted that this
    offer was subject to further due diligence and that its
    &#147;final offer&#148; would not be subject to any financing
    contingency. Approval of the transaction by Company B&#146;s
    shareholders was not included as a condition of closing Company
    B&#146;s proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board believed that Company B&#146;s bid for Grey
    Wolf was primarily a defensive move to limit Precision&#146;s
    ability to compete on a larger scale against Company B in the
    US. The Grey Wolf board therefore expected that if Precision
    were eliminated or withdrew from bidding for Grey Wolf, Company
    B would be highly motivated to either lower its price for Grey
    Wolf or drop its bid for Grey Wolf altogether. If Precision were
    to withdraw, the board believed that, at the very least, Company
    B would have greatly enhanced bargaining power to lower its
    proposal, having disrupted the Precision offer and narrowed the
    competition for Grey Wolf. The Grey Wolf board also anticipated
    that if Precision exited the bidding process, Company B would
    quickly become aware of that fact, either by rumor or public
    announcement by Precision. Precision had indicated it believed
    it had an obligation to update its public disclosure if its
    negotiations with Grey Wolf did not result in an agreement to
    merge. UBS advised that Company B had requested additional due
    diligence information and had requested that Grey Wolf make a
    management presentation concerning Grey Wolf to Company B and
    its advisors. Company B had pointedly stated in its indication
    of interest that its offered price range was subject to further
    due diligence.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s indication of interest stated that it proposed
    to acquire all of Grey Wolf&#146;s stock, on a fully diluted
    basis, for an aggregate consideration of $1.12&#160;billion in
    cash and 40.2&#160;million Precision trust units. It noted that
    its proposal equated to $5.00 in cash and 0.18 Precision trust
    units for each share of Grey Wolf common stock, and that Grey
    Wolf shareholders would be able to elect to receive cash or
    Precision trust units for their Grey Wolf shares, subject to
    proration. Precision&#146;s proposal also included a financing
    commitment letter from several well known financial institutions
    to provide financing for the transaction. The commitment letter
    offered significantly more certainty of financing than the
    highly confident financing letters that had been submitted with
    Precision&#146;s previous three unsolicited offers. Precision,
    however, insisted in its proposal that Grey Wolf agree to
    negotiate exclusively with Precision until Sunday,
    August&#160;17, 2008, during which time the two companies were
    to conduct due diligence and attempt to negotiate an acquisition
    agreement that would be subject to the approval of the board of
    directors of Grey Wolf, the board of trustees of Precision and
    the board of directors of PDC. Also included with its indication
    of interest was a draft merger agreement based largely on the
    Basic Merger Agreement. Precision&#146;s indication of interest
    was dated Tuesday, August&#160;5, 2008 and provided that the
    period for its acceptance by Grey Wolf ended Friday,
    August&#160;8, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board noted that at the time Precision had made
    its third unsolicited offer on June&#160;24, 2008 to acquire
    Grey Wolf at $10.00 per share (consisting of half cash and half
    Precision trust units) Precision&#146;s trust units were trading
    at approximately $27.86 per trust unit. This implied that the
    aggregate number of trust units being offered on June&#160;24,
    2008 by Precision as half of its proposed merger consideration
    was 40.2&#160;million trust units. Precision&#146;s current
    indication of interest still offered an aggregate of
    40.2&#160;million
</DIV>

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    shares of trust units but, because of the subsequent decline in
    the trading price of its trust units, Precision&#146;s
    indication of interest was then valued at $8.76, based on the
    $20.87 closing price of Precision&#146;s trust units on the New
    York Stock Exchange on August&#160;6, 2008. Thus, the total
    amount of cash and the total number of trust units offered by
    Precision for Grey Wolf was unchanged from its third unsolicited
    offer. The Grey Wolf board considered the fact that although the
    price of Precision&#146;s trust units had fallen by 24% from its
    third unsolicited offer on June&#160;24, 2008 to August&#160;4,
    2008, over the same period the indexed stock prices of Grey
    Wolf&#146;s peer group had dropped by over 27%, while Grey
    Wolf&#146;s own stock price had fallen by only 10%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board also considered an analysis presented by
    representatives of UBS of the comparative valuation of the
    shares of Grey Wolf (on a standalone basis), and the indications
    of interest from Company A, Company B and Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the indications of interest of Company A and Company B
    were on their face higher than Precision&#146;s, the Grey Wolf
    board of directors firmly believed that both of these
    alternatives posed substantially greater risks of renegotiation
    and transaction failure than did Precision&#146;s proposal. In
    contrast, the Grey Wolf board noted that Precision:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provided a detailed indication of interest;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    had remained firm in the amount of cash and number of trust
    units it would pay for Grey Wolf since its June&#160;24, 2008
    unsolicited offer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    offered Grey Wolf shareholders the choice of cash or unit merger
    consideration, subject to proration;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provided written financing commitments from nationally
    recognized financing sources;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provided a reasonable first draft merger agreement based largely
    on the Basic Merger Agreement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    had demonstrated a genuine and sustained interest in acquiring
    Grey Wolf for its strategic value since Precision&#146;s first
    unsolicited offer on June&#160;8, 2008.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At its August&#160;7, 2008 special meeting, the Grey Wolf board
    also discussed pursuing strategic alternatives other than the
    sale of the company, including declaring special dividends,
    engaging in stock repurchases in addition to the share
    repurchase program begun in 2007 and remaining an independent
    land drilling company while aggressively adding new-built rig
    capacity to its rig fleet to spur additional growth. At the
    conclusion of this discussion, the Grey Wolf board directed its
    advisors and management to continue consideration of merger
    transactions without foreclosing the possibility of other
    strategic alternatives. The board also received legal advice
    from Porter&#160;&#038; Hedges and Gardere Wynne Sewell.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The final matter considered by the Grey Wolf board at its
    August&#160;7, 2008 special meeting was how Grey&#160;Wolf would
    respond to Precision&#146;s August 5 letter requesting that Grey
    Wolf contractually agree by August&#160;8, 2008 to negotiate
    exclusively with Precision until August&#160;17, 2008.
    Mr.&#160;Richards reported that Mr.&#160;Neveu had told him
    Precision would withdraw from bidding for Grey Wolf if Grey Wolf
    did not agree to the exclusivity arrangement. Mr.&#160;Richards
    noted that Mr.&#160;Neveu strongly suggested that Precision
    would be required to publicly announce its determination to end
    its pursuit of Grey Wolf. Grey Wolf legal counsel also advised
    the board that Precision would likely be required by law to
    publicly announce its withdrawal from bidding, because it had
    publicly announced to its unitholders that it would approach
    Grey Wolf with a $10.00 offer and because that prior
    announcement would probably continue to adversely affect
    Precision&#146;s trust unit price unless a corrective public
    announcement was made by Precision. A consensus of the board was
    reached to advise Precision that its offer was at the low end of
    the indications of interest received and that Grey&#160;Wolf
    could not agree to negotiate exclusively with Precision unless
    Precision increased its offer. Representatives of UBS and
    Mr.&#160;Richards advised that they believed Precision had
    relatively little room to improve its offer, particularly with
    respect to the cash component of the offer. Mr.&#160;Richards
    was instructed to advise Mr.&#160;Neveu that Grey Wolf would not
    agree to negotiate with Precision exclusively, even for the
    relatively short eleven day period demanded, unless Precision
    increased the number of trust units offered so that that the
    total value to be received by Grey Wolf shareholders, based on
    Precision&#146;s trust unit price at the time, was at least
    $9.30 per Grey Wolf share. This figure equated to $5.00 in cash
    and approximately 0.20 Precision trust units for each Grey Wolf
    share on a fully diluted basis. The Grey Wolf board also
    instructed UBS to continue to seek
</DIV>

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    further clarification from each of Company A and Company B
    regarding their respective indications of interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Richards called Mr.&#160;Neveu on August&#160;8, 2008
    regarding Precision&#146;s proposal. Mr.&#160;Richards advised
    Mr.&#160;Neveu that Grey Wolf&#146;s board had again rejected
    Precision&#146;s proposal but encouraged Precision to continue
    in Grey Wolf&#146;s process. Mr.&#160;Richards asked if
    Precision had room to increase its proposal and Mr.&#160;Neveu
    indicated there was very little room. Mr.&#160;Neveu stated it
    was Precision&#146;s view that it had undertaken a very thorough
    review of Grey Wolf and that its proposal reflected full value.
    Mr.&#160;Neveu said, however, that he would consult the PDC
    board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;8, 2008, Grey Wolf engaged Blake,
    Cassels&#160;&#038; Graydon LLP of Calgary, Alberta, which we
    refer to as &#147;Blakes,&#148; as its legal advisors on
    Canadian law and due diligence matters. Grey Wolf also engaged
    the Transaction Assurance Group of KPMG, which we refer to as
    &#147;KPMG,&#148; to assist Grey Wolf in Canadian financial
    accounting and taxation due diligence matters with respect to
    Precision. Over the ensuing twelve days, all of Grey Wolf&#146;s
    financial, accounting and legal advisors engaged in due
    diligence reviews of Precision. Grey Wolf&#146;s US and Canadian
    legal advisors also negotiated the terms of a merger agreement
    with Precision&#146;s US and Canadian legal counsel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Tuesday, August&#160;12, 2008, Mr.&#160;Neveu telephoned
    Mr.&#160;Richards to advise him that Precision&#146;s board had
    authorized one final offer for Grey Wolf which would be sent to
    Mr.&#160;Richards that morning. Mr.&#160;Neveu also stated that
    he believed that Precision&#146;s trust units had been trading
    at a discount of
    <FONT style="white-space: nowrap">10-12%</FONT> as a
    result of its last unsolicited offer to acquire Grey Wolf. He
    told Mr.&#160;Richards that Precision would withdraw from any
    further negotiations to acquire Grey Wolf if Precision&#146;s
    final offer was not accepted, and that Precision would publicly
    announce its withdrawal. Mr.&#160;Neveu also stated that he had
    been advised by legal counsel that Canadian regulatory
    requirements would require Precision to announce its withdrawal.
    Mr.&#160;Neveu also sought a short time frame for the offer to
    be accepted and the merger agreement to be executed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Later that morning, Grey Wolf received a revised indication of
    interest from Precision. It was substantially the same as
    Precision&#146;s August&#160;5, 2008 indication of interest
    except that the total number of trust units offered to Grey Wolf
    shareholders on a fully diluted basis was increased by 4.5% from
    40.2&#160;million trust units to 42.0&#160;million trust units.
    This revised price equated to $5.00 in cash and 0.1883 Precision
    trust units for each share of Grey Wolf common stock outstanding
    on a fully diluted basis. The revised indication of interest,
    however, required Grey Wolf to contractually agree to negotiate
    exclusively with Precision until Wednesday, August&#160;20,
    2008. Grey Wolf was only given until the next day to accept
    Precision&#146;s final proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;12, 2008, a special meeting of the board of
    directors of Grey Wolf was held telephonically to review the
    status of its strategic alternatives process, including a review
    of Precision&#146;s revised indication of interest. Also present
    were senior management of Grey Wolf and representatives of UBS,
    Porter&#160;&#038; Hedges and Gardere Wynne Sewell.
    Mr.&#160;Richards reported his conversation with Mr.&#160;Neveu
    earlier that morning, in which Mr.&#160;Neveu said that
    Precision&#146;s board had authorized an increase in the number
    of trust units offered to 42.0&#160;million but nothing more and
    that Precision would withdraw from bidding for Grey Wolf and
    publicly announce that fact if Precision&#146;s final offer were
    not accepted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Representatives of UBS updated Grey Wolf&#146;s board regarding
    Company A&#146;s and Company B&#146;s indications of interest.
    Both Company A and Company B had clarified to UBS that they
    proposed to fix the exchange ratio for the conversion of Grey
    Wolf&#146;s shares into shares of their respective common stock
    at the signing of a merger agreement so that the merger
    consideration to be received by Grey Wolf shareholders would be
    $10.25 and $9.50, respectively, as of the announcement date of
    the merger. Company A continued to believe it could obtain
    $500&#160;million of equity financing to underpin the over
    $1&#160;billion of proposed debt financing required for their
    offer. Company A had described to UBS the proposed structure and
    terms of its proposed $500&#160;million of equity financing for
    the merger. Representatives of UBS advised that Company A&#146;s
    equity financing proposal was very optimistic, particularly in
    view of the difficult capital markets conditions then existing.
    The Grey Wolf board also expressed concern that Company A&#146;s
    equity financing might contain terms that would materially
    dilute the ownership of former Grey Wolf shareholders in Company
    A. UBS had arranged for Grey&#160;Wolf and Company A to give
    management presentations of their respective businesses on
    Thursday,
</DIV>

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    August&#160;14, 2008. Representatives of UBS also reported that
    Company D, a publicly-held drilling company, had contacted UBS
    belatedly regarding Grey Wolf and might be in a position to
    provide an indication of interest in a week, but UBS regarded
    the probability that Company D would make a bid as low because
    of the mild interest level of Company D.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board continued to believe that it was improbable
    that Company A could carry out its bid for Grey Wolf on the
    terms and within the time stated in its indication of interest
    because its equity and debt financing plans for the bid were
    unrealistic for a company of the its relatively small size and
    the already highly leveraged financial condition of Company A.
    The Grey Wolf board was also concerned that a merger with
    Company A would not be supported by Grey Wolf&#146;s
    shareholders because Company A was principally engaged in many
    of the same lines of business as Basic. In connection with
    soliciting proxies for the Basic Merger (which had been voted
    down by Grey Wolf shareholders less than a month before)
    management of Grey Wolf learned that many of Grey Wolf&#146;s
    larger shareholders preferred Grey Wolf to merge with another
    land-based drilling company rather than diversify by merging
    with an oilfield services company such as Basic. The
    Grey&#160;Wolf board felt that the same negative shareholder
    sentiment could be expected if Grey Wolf announced a merger with
    Company A. The Grey Wolf board also noted that Company A&#146;s
    proposed transaction would be highly dilutive to Company
    A&#146;s earnings with adverse implications for the value of the
    equity component of Company A&#146;s indication of interest as
    well as its ability to obtain approval of the transaction by its
    own shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The board also reiterated its deep concern that Company B was
    very likely to renegotiate its offer downward or drop out of
    bidding for Grey Wolf if Precision were no longer in the bidding
    for Grey Wolf because the competitive threat to Company B posed
    by Precision&#146;s acquisition of Grey Wolf would have been
    eliminated. Additionally, if Grey Wolf announced a transaction
    with Company B, Grey Wolf&#146;s board was concerned that
    employee attrition could result that would be difficult to
    rectify if a merger with Company B were not ultimately completed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s assertion that it would withdraw from the
    bidding process if its pending offer was not accepted by the
    next day was regarded by the Grey Wolf board as credible and
    likely to occur because of the numerous bids Precision had made
    for Grey Wolf, the protracted time period over which Precision
    had been pursuing Grey Wolf and Precision&#146;s stated position
    that the protracted discussions were depressing its trust unit
    price. Faced with the imminent loss of the most credible bidder,
    the Grey Wolf board concluded that the merger proposal from
    Precision represented the best value reasonably obtainable for
    Grey Wolf shareholders under the circumstances, particularly in
    light of the high risks of transactional failure or
    renegotiation inherent under the circumstances in the
    indications of interest of Company A and Company B. Accordingly,
    the Grey&#160;Wolf board authorized the management and advisors
    of Grey Wolf to accept Precision&#146;s indication of interest
    and to attempt to negotiate a merger agreement with Precision
    during an exclusivity period. The board noted, however, that
    Precision&#146;s draft merger agreement provided that Grey Wolf
    could not hold discussions with any future unsolicited bidder
    unless Grey Wolf&#146;s board determined that the unsolicited
    offer was &#147;superior&#148; to the transaction with
    Precision. Management and Grey Wolf&#146;s advisors were
    instructed to negotiate a less restrictive provision, one which
    would enable Grey Wolf to hold negotiations with unsolicited
    bidders if its board concluded an unsolicited bid would be
    &#147;reasonably likely to result in a superior offer.&#148;
    Precision agreed to this change, and Grey Wolf executed
    Precision&#146;s indication of interest on Thursday,
    August&#160;14, 2008 which contained an exclusive negotiation
    period ending on August&#160;24, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Thursday, August&#160;14, 2008, Mr.&#160;Neveu and
    Mr.&#160;Richards met to discuss matters relating to the
    proposed merger, including merger terms. Mr.&#160;Richards
    stated that Grey Wolf expected to have proportional
    representation on the board of PDC following the merger and that
    Grey Wolf&#146;s appointees to the PDC board would be given
    membership on each of the Audit, Compensation and Corporate
    Governance and Nominating Committees of PDC&#146;s board of
    directors. Mr.&#160;Richards also noted that in Precision&#146;s
    first draft merger agreement, all of Grey Wolf&#146;s
    outstanding stock options were required by Precision to be
    either fully exercised by the holder of the option or terminated
    immediately prior to the merger. Mr.&#160;Richards expressed
    concern that Grey Wolf might not have the unilateral contractual
    right to compel the exercise or termination of the options and
    that, if not, the Grey Wolf options might need to be converted
    into options for Precision trust units. Mr.&#160;Richards also
    stated that Grey Wolf expected the merger agreement to reflect
    the addition of PDC
</DIV>

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    as a party to the merger because it had been delegated the
    authority to manage and administer the affairs of Precision and
    that the merger agreement should require Precision to neither
    increase or decrease its cash distributions to unitholders
    during the pendency of the merger from its previous distribution
    levels. The two executives also discussed the terms of the
    existing employment agreements of Grey Wolf management and that
    it was Mr.&#160;Richards&#146; view that the proposed
    transaction would constitute a change of control that would
    entitle the employees to certain benefits under their employment
    agreements. Mr.&#160;Neveu and Mr.&#160;Richards agreed that
    Mr.&#160;Neveu would personally meet with Grey Wolf&#146;s other
    executive managers in the near future to discuss their possible
    continuation of employment following the proposed merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Monday, August&#160;18, 2008, Grey Wolf&#146;s board of
    directors held a special meeting to receive additional and
    updated financial analysis from UBS regarding the strategic
    alternatives process and to review and discuss the status of due
    diligence and merger negotiations with Precision.
    Representatives of UBS presented a preliminary comparative
    financial analysis of Grey Wolf (on a standalone basis), Company
    A, Company B and Precision. Based on UBS&#146;s financial
    analysis and further board discussion, the Grey Wolf board
    continued to believe that a merger with Precision was likely to
    be the most attractive alternative for Grey Wolf shareholders.
    UBS also presented its analysis of
    <FONT style="white-space: nowrap">break-up</FONT>
    fees in selected precedent merger transactions after which the
    Grey Wolf board directed Mr.&#160;Richards to negotiate a lower
    <FONT style="white-space: nowrap">break-up</FONT> fee
    than the $75&#160;million proposed by Precision in its draft
    merger agreement. Preliminary due diligence reports concerning
    Precision were also delivered by management, Blakes,
    Porter&#160;&#038; Hedges and Gardere Wynne Sewell.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Wednesday, August&#160;20, 2008 Mr.&#160;Neveu and
    Mr.&#160;Richards discussed the status of merger negotiations.
    Mr.&#160;Richards informed Mr.&#160;Neveu that Grey Wolf&#146;s
    board would not accept a termination fee obligation under the
    merger agreement of more than $64&#160;million. Mr.&#160;Neveu
    and Mr.&#160;Richards agreed to a 15% reduction of the
    $75&#160;million
    <FONT style="white-space: nowrap">break-up</FONT> fee
    initially demanded by Precision to $64&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Saturday, August&#160;23, 2008, the Grey Wolf board held a
    special meeting to discuss Grey Wolf&#146;s strategic review
    process and to receive reports of management and Grey
    Wolf&#146;s advisors regarding a potential merger with
    Precision. All directors were present in person except
    Mr.&#160;Webster who participated telephonically. The Grey Wolf
    board received final due diligence reports regarding Precision
    from senior management, Blakes, Gardere Wynne Sewell, KPMG and
    Porter&#160;&#038; Hedges. Mr.&#160;Richards reported that
    Precision had made clear its desire to retain executive
    management of Grey Wolf (other than Mr.&#160;Richards) but that
    Precision planned to discuss continued employment with Grey Wolf
    executives only after a merger agreement with Grey&#160;Wolf had
    been executed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Representatives of UBS presented an analysis initially presented
    to the Grey Wolf board on August&#160;18, 2008 but updated for
    public company trading prices of the comparative valuation of
    the shares of Grey Wolf (on a standalone basis), Company A,
    Company B and Precision. Following additional discussion, the
    Grey Wolf board determined that in their collective business
    judgment the merger transaction proposed by Precision offered
    the best alternative for Grey Wolf shareholders. See
    &#147;&#151;&#160;Grey Wolf&#146;s Reasons for the Merger and
    Recommendation of the Grey Wolf Board of Directors&#148;
    beginning on page&#160;55.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At its August&#160;23, 2008 meeting, the Grey Wolf board also
    met in executive session from which Mr.&#160;Richards and other
    Grey Wolf managers were excused. During the executive session,
    the Grey Wolf board discussed Precision&#146;s recently
    articulated demand that Mr.&#160;Richards enter into a
    post-Merger consulting agreement as a condition to the
    consummation of the Merger and that the consulting agreement
    would prohibit Mr.&#160;Richards from soliciting named Grey Wolf
    executives for employment by Mr.&#160;Richards or others for a
    period of 12&#160;months following the consummation of the
    Merger. Mr.&#160;Richards had advised the board that if Grey
    Wolf agreed to enter into the Merger Agreement with Precision,
    he would enter into such a consulting agreement
    contemporaneously with the execution of the Merger Agreement so
    as to remove its execution as a condition to the Merger. The
    terms of Mr.&#160;Richards&#146; consulting arrangement as
    agreed to by Precision and Mr.&#160;Richards and approved by the
    Grey Wolf board at its August&#160;23, 2008 meeting, are
    described under the caption &#147;&#151;&#160;Interests of Grey
    Wolf&#146;s Directors and Officers in the Merger&#148; beginning
    on page&#160;84. While in executive session, the Grey Wolf board
    also discussed and approved the treatment of Grey Wolf&#146;s
    stock option and restricted stock awards under the Merger
    Agreement, as further described under the caption
    &#145;&#145;&#151; Treatment
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of Grey Wolf Stock Options&#148; beginning on page&#160;83.
    Representatives of Gardere Wynne Sewell advised the board that
    this treatment of Grey Wolf stock options had been provided for
    in the Merger Agreement at the insistence of Precision because
    Precision could not assume Grey Wolf&#146;s stock options due to
    complexities presented by its trust structure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Blakes, Porter&#160;&#038; Hedges and Gardere Wynne Sewell also
    briefed the Grey Wolf board concerning the terms of the Merger
    Agreement that had been negotiated with Precision, copies of
    which had been previously distributed to the board, including
    the Canadian and US taxation aspects of the transaction to Grey
    Wolf and its shareholders. At the conclusion of the meeting, the
    Grey Wolf board determined to reconvene the next day to consider
    the approval and adoption of the proposed merger agreement with
    Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;23, 2008, PDC&#146;s board met to consider the
    results of the due diligence review and the recommended
    agreements and unanimously approved execution of the Merger
    Agreement. Based on the recommendation of the PDC board of
    directors, the Precision board of trustees also unanimously
    approved execution of the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On Sunday, August&#160;24, 2008, the Grey Wolf board held a
    special meeting to consider the approval of the proposed merger
    with Precision at which all board members were present in person
    except Mr.&#160;Webster, Mr.&#160;Donovan and Mr.&#160;Ziegler,
    all of whom participated telephonically. Porter&#160;&#038;
    Hedges advised the board of the changes to the proposed merger
    agreement with Precision that had been negotiated overnight.
    Representatives of UBS then reviewed with Grey Wolf&#146;s board
    of directors the financial analyses of the proposed transaction
    between Grey Wolf and Precision that UBS had performed. At the
    conclusion of this presentation, UBS delivered its oral opinion,
    which opinion was subsequently confirmed in writing, to the
    effect that, as of August&#160;24, 2008 and based upon and
    subject to various assumptions, matters considered and
    limitations described in the opinion, the consideration, taken
    in the aggregate, to be received by holders of Grey Wolf common
    stock in the Merger was fair, from a financial point of view, to
    such holders. Thereafter, the Grey Wolf board of directors
    unanimously determined that the form, terms and provisions of
    the Merger Agreement and the transactions contemplated thereby
    were advisable, fair and in the best interest of Grey Wolf
    shareholders, approved and adopted the Merger Agreement and
    directed that it be submitted to Grey Wolf shareholders with the
    board&#146;s unanimous recommendation that it be approved by
    them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Later in the morning of August&#160;24, 2008, Mr.&#160;Neveu and
    Mr.&#160;Richards signed the Merger Agreement. The directors and
    executive officers of Grey Wolf also delivered to Precision
    their voting agreements to support the Merger. Grey Wolf and
    Precision publicly announced their execution of the Merger
    Agreement before the opening of the New York Stock Exchange on
    Monday, August&#160;25, 2008.
</DIV>
<A name='250'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf&#146;s Reasons for the Merger and Recommendation of Grey
    Wolf&#146;s Board of Directors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At its meeting on August&#160;24, 2008, after due consideration,
    the Grey Wolf board of directors unanimously:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    determined that the Merger Agreement and the transactions it
    contemplates are advisable, fair to and in the best interests of
    Grey Wolf and its shareholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approved the Merger Agreement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    recommended that the Grey Wolf shareholders vote for the
    approval of the Merger Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In reaching its determination to recommend the approval of the
    Merger Agreement to the Grey Wolf shareholders, the Grey Wolf
    board of directors consulted with Grey Wolf management, as well
    as Grey Wolf&#146;s financial and legal advisors. Grey
    Wolf&#146;s board of directors also considered various material
    factors that are discussed below. The discussion in this section
    is not intended to be an exhaustive list of the information and
    factors considered by Grey Wolf&#146;s board of directors. In
    view of the wide variety of factors considered in connection
    with the Merger, the Grey Wolf board of directors did not
    consider it practicable, nor did it attempt, to quantify or
    otherwise assign relative weights to the specific material
    factors it considered in reaching its decision. In addition,
    individual members of the Grey Wolf board of directors may have
    given different weight to different factors. The Grey Wolf board
    of directors considered this information and these
</DIV>

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    <BR>
    55
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    factors, as a whole and considered the relevant information and
    factors to be favorable to, and in support of, its
    determinations and recommendation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board of directors considered the following
    factors as generally supporting its decision to enter into the
    Merger Agreement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Grey Wolf had made it widely known that it was receptive to
    acquisition proposals in addition to actively soliciting
    indications of interest from potential acquirers:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    In the year preceding execution of the Merger Agreement, Grey
    Wolf had publicly stated that it would consider acquisition
    offers from third parties as a possible means to increase Grey
    Wolf shareholder value. These statements had been made by widely
    disseminated means, including publicly available earnings calls
    and webcasts of Grey Wolf management&#146;s presentations at
    investor conferences. Additionally, Grey Wolf had privately
    discussed possible business combinations with other drilling and
    oilfield services companies, including Basic, Precision and
    Company A. Accordingly, Grey Wolf&#146;s board believed that
    Grey Wolf had publicly made it known in the drilling and
    oilfield service industry, and the investment community in
    general, that Grey Wolf was receptive to acquisition proposals.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    The financial press had widely reported Grey Wolf&#146;s entry
    into the Basic Merger Agreement, Precision&#146;s three
    unsolicited offers to acquire Grey Wolf during the pendency of
    the Basic Merger, Grey Wolf&#146;s responses to Precision&#146;s
    unsolicited offers and the failure of Grey Wolf&#146;s
    shareholders to approve the Basic Merger. The Grey Wolf board
    believed that this publicity would be understood by the business
    and financial community as indicating that Grey Wolf was
    &#147;in play&#148; and would have resulted in the receipt of
    indications of interest from any financial or strategic buyers
    who might have been interested in acquiring Grey Wolf. This was
    in fact the case as evidenced by the unsolicited inquiries of
    Company B and Company C received after Precision&#146;s
    acquisition bid for Grey Wolf became publicly known.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Grey Wolf, with the assistance of UBS, conducted a publicly
    announced review of its strategic alternatives, including a sale
    of Grey Wolf. UBS contacted 16 potential strategic and financial
    buyers on behalf of Grey Wolf, which resulted in the execution
    of eight confidentiality agreements with interested potential
    buyers. Despite these efforts and the extensive publicity that
    had recently surrounded Grey Wolf, Grey Wolf&#146;s strategic
    alternatives process drew only three indications of interest,
    two of which (Company A and Precision) had previously engaged in
    discussions with Grey Wolf.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Since Company A&#146;s and Company B&#146;s indications of
    interest for Grey Wolf had never been publicly announced, their
    stock prices, unlike Precision&#146;s trust unit price, had not
    been affected by their bids for Grey Wolf. An unaffected stock
    price analysis was, therefore, regarded by the Grey Wolf board
    as a useful consideration. Accordingly, UBS performed an
    analysis at the request of the Grey Wolf board to estimate a
    hypothetical and illustrative price for Grey Wolf&#146;s common
    stock premised on the assumption that Grey Wolf&#146;s common
    stock would have traded proportionate to an index of selected
    peers absent the impact on the price of Grey Wolf&#146;s common
    stock of Precision&#146;s publicly announced $10.00 per share
    unsolicited offer for Grey Wolf and Grey Wolf&#146;s own
    publicly announced evaluation of strategic alternatives.
    Similarly, UBS performed an analysis at the request of the Grey
    Wolf board in order to estimate a hypothetical and illustrative
    unaffected price of Precision&#146;s trust units premised on the
    assumption that Precision trust units would have traded
    proportionate to an index of selected peers absent the impact on
    the price of Precision trust units of Precision&#146;s public
    announcement that it had proposed to offer $10.00 per share to
    acquire Grey Wolf.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    At the request of the Grey Wolf board, UBS estimated a
    hypothetical and illustrative unaffected price for Grey
    Wolf&#146;s common stock and Precision&#146;s trust units, in
    each case as of the close of trading on August&#160;22, 2008,
    the trading day immediately preceding the date the Merger
    Agreement was signed, premised on the assumption that each would
    have traded proportionate to a relevant index, as described in
    the preceding bullet, were it not for the public disclosures
    described in the preceding bullet. For
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    56
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Grey Wolf this was $7.08 per share and for Precision it was
    $24.10 per trust unit. Based on this analysis, Grey Wolf&#146;s
    board noted that Precision&#146;s proposed merger consideration
    of $5.00 in cash and 0.1883 trust units per Grey Wolf share:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    would equate in value to $9.54 per Grey Wolf share based on
    Precision&#146;s unaffected trust unit price;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    would be $0.04 higher than the &#147;range of approximately
    $9.50 per share&#148; of Company B&#146;s non-binding indication
    of interest;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    would be $0.71 (7.5%) less than the $10.25 face amount of
    Company A&#146;s non-binding indication of interest; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    represented a 34.7% premium to Grey Wolf&#146;s hypothetical and
    illustrative unaffected stock price of $7.08.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Merger Agreement contained no financing conditions to
    closing of the Merger, and Precision had fully committed
    financing from financial institutions of national reputation.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Grey Wolf board believed that if Grey Wolf did not execute a
    merger agreement with Precision, Precision (which the board
    regarded as the most credible and motivated bidder) would drop
    out of bidding for Grey Wolf, thus leaving Grey Wolf with only
    the less attractive and riskier non binding indications of
    interest from Company A and Company B.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The sale of Grey Wolf in the Merger offered greater certainty of
    enhancing Grey Wolf shareholder value as compared to the other
    strategic alternatives considered, including continuing to
    operate as a standalone company and investing in numerous
    new-built rigs, declaring special dividends, instituting a
    significant stock buyback program and incrementally acquiring
    other drilling and oilfield services businesses.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Precision has a positive reputation in the drilling industry and
    Grey Wolf expected its customers and suppliers generally to
    react positively to the Merger.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The reservations Grey Wolf had expressed earlier regarding the
    acceptability of Precision as a merger partner in response to
    its unsolicited offers to acquire Grey Wolf had been
    subsequently satisfied by numerous
    <FONT style="white-space: nowrap">in-depth</FONT>
    conversations between Grey Wolf&#146;s senior management and
    Grey Wolf shareholders held in the course of soliciting proxies
    for the Basic Merger, and by subsequent due diligence
    investigations of Precision. The Grey Wolf board considered that:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Concerns regarding the acceptability of Precision trust units to
    Grey Wolf shareholders were lessened by the fact that many of
    Grey Wolf&#146;s largest shareholders generally indicated a
    willingness to accept, and in some instances, indicated a
    preference for, Precision trust units.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Although Grey Wolf continued to expect the Canadian drilling
    market to underperform the drilling market in the lower 48
    United States in the short to medium term, this concern was
    mitigated by due diligence inquiries regarding Precision&#146;s
    US and international growth plans and Precision&#146;s and
    analysts&#146; views of the underlying fundamentals of the
    Canadian drilling and well service market.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Uncertainty surrounding the value of Precision&#146;s trust
    units as a result of the loss of Precision&#146;s favorable
    Canadian federal tax status scheduled to take effect in 2011
    became of less concern because of additional due diligence
    discussions with Precision and its advisors and consultations
    with Blakes.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Earlier concerns regarding the potential adverse impact of
    Precision&#146;s cash distribution policy on its ability to
    finance future growth were satisfied based on due diligence of
    Precision&#146;s and Grey Wolf&#146;s combined growth plans and
    capital budgets. These plans and budgets led Grey Wolf&#146;s
    board to conclude that the combined company would have
    sufficient liquidity to fund both the Merger and organic growth
    initiatives, and that the combined company should have adequate
    liquidity.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    With respect to Company A&#146;s non-binding indication of
    interest, the Grey Wolf board considered that:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Company A&#146;s market capitalization was less than Grey
    Wolf&#146;s.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    57
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Company A would be highly leveraged following its proposed
    transaction, which had adverse implications for the value of the
    stock portion of its proposed merger consideration.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Company A did not have committed debt financing and stated that
    it needed significant additional time to obtain its proposed
    financing.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Company A&#146;s verbally stated plans to obtain
    $500&#160;million in private equity in order to be able to
    obtain reasonable debt financing were judged to be
    <FONT style="white-space: nowrap">overly-ambitious,</FONT>
    could result in dilution of the ownership of Company A and would
    substantially increase the chances that a merger with Company A
    would not be completed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Company A&#146;s proposed transaction would be highly dilutive
    to its earnings per share with adverse implications for the
    value of the stock portion of its proposed merger consideration
    and Company A&#146;s ability to obtain its own
    shareholders&#146; approval of the transaction it proposed.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    With respect to Company B&#146;s non-binding indication of
    interest, the Grey Wolf board considered that:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Company B&#146;s interest in Grey Wolf was judged to be mainly
    that of a &#147;spoiler&#148; to a potential transaction between
    Precision and Grey Wolf. In contrast, Precision had been
    persistent in its attempts to acquire Grey Wolf for its
    strategic near and long term fit. Grey Wolf&#146;s board
    believed that Company B&#146;s defensive, rather than strategic,
    interest in Grey Wolf made it likely that Company B would either
    substantially lower its indicated merger price for Grey Wolf or
    withdraw from negotiations to acquire Grey Wolf if Precision
    ended its attempt to acquire Grey Wolf, thus eliminating what
    was believed to be Company B&#146;s principal motivation for
    acquiring Grey Wolf.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    Company B&#146;s non-binding indication of interest initially
    indicated that its merger consideration was in a range, rather
    than a firm price, and that its offer was subject to additional
    due diligence.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    If Grey Wolf announced a transaction with Company B, employee
    attrition could result that would be unmanageable if a merger
    with Company B was not ultimately completed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Grey Wolf board believed that the Merger would allow Grey
    Wolf shareholders to participate in possible long-term value
    created by the combination of the two companies, while at the
    same time providing an immediate return to its shareholders in
    the form of the merger consideration of $9.02 in cash or 0.4225
    Precision trust units per Grey Wolf share, subject to proration.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Grey Wolf board considered the fact that the former
    shareholders of Grey Wolf are expected to own approximately 25%
    of Precision&#146;s outstanding trust units immediately
    following the Merger, on a fully diluted basis.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Grey Wolf board considered that following the Merger, the
    board of directors of PDC will be expanded to twelve members,
    three of whom would be designated by Grey Wolf after
    consultation with Precision, and that Grey Wolf would be
    represented by a Grey Wolf board designee on each of PDC&#146;s
    Audit, Compensation and Corporate Governance and Nominating
    Committees, all as further described in &#147;Trustees,
    Directors and Executive Management of the Combined
    Companies&#148; beginning on page&#160;103.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Grey Wolf board considered the fact that the Merger
    Agreement permits Grey Wolf to negotiate with unsolicited
    bidders if Grey Wolf&#146;s board believes that an unsolicited
    acquisition proposal is reasonably likely to result in an offer
    superior to the Merger with Precision, and to terminate the
    Merger Agreement and accept an acquisition proposal superior to
    the Merger, subject to payment of the termination fee.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Grey Wolf board considered the anticipated tax aspects of
    the Merger, as summarized below under the caption
    &#147;&#151;&#160;Material US Federal Income Tax Consequences of
    the Merger and of Owning Precision Trust&#160;Units.&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Based on the business and financial experience of its members
    and the advice of its legal advisors, the Grey Wolf board
    concluded that the terms of the Merger Agreement were reasonable.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    58
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Grey Wolf board considered Grey Wolf senior
    management&#146;s recommendation in support of the Merger.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Grey Wolf board considered the presentation of the financial
    analyses performed by UBS and its opinion, dated August&#160;24,
    2008, to the effect that, as of such date and based upon and
    subject to various assumptions, matters considered and
    limitations described in the opinion, the consideration, taken
    in the aggregate, to be received by holders of Grey Wolf common
    stock in the Merger was fair, from a financial point of view, to
    such holders, as more fully described below under the caption
    &#147;&#151;&#160;Opinion of Grey Wolf&#146;s Financial
    Advisor&#148; beginning on page&#160;61.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board also considered various negative factors and
    potential risks of the Merger, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The fact that the Merger consideration will not adjust upward or
    downward to compensate for changes in the price of Precision
    trust units or Grey Wolf common stock prior to the consummation
    of the Merger, and that the terms of the Merger Agreement do not
    include termination rights triggered expressly by a decrease in
    value of Precision trust units. The Grey Wolf board determined
    that this structure was appropriate and the risk acceptable in
    view of the Grey Wolf board&#146;s focus on the relative
    intrinsic value and financial performance of Precision, the
    percentage of the combined company to be owned by former holders
    of Grey Wolf common stock, and the inclusion in the Merger
    Agreement of other structural protections such as the Grey Wolf
    board&#146;s ability to change its recommendation in favor of
    the Merger Agreement or to terminate the Merger Agreement in the
    event of a material adverse change in Precision&#146;s business.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Certain risks inherent in Precision&#146;s business and
    operations, including the risks that Precision&#146;s business
    was cyclical and subject to wide seasonal swings in activity.
    Based on reports of management and outside advisors regarding
    the due diligence process and the representations and warranties
    of Precision in the Merger Agreement, the Grey Wolf board
    determined that these risks were manageable as part of the
    ongoing business of the combined company.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The fact that as a result of the financing to be obtained by
    Precision in connection with the Merger and the assumption by
    Precision of Grey Wolf&#146;s convertible notes that are not
    converted prior to the Merger, Precision will initially have
    additional indebtedness. This level of indebtedness was,
    however, believed reasonable and unlikely to materially retard
    Precision&#146;s ability to grow or withstand down cycles in the
    industry.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The possibility that the anticipated benefits sought to be
    obtained from the Merger might not be achieved in the time frame
    contemplated, or at all, was considered, as well as the
    possibility that the integration of the two companies could be
    more time consuming and expensive than anticipated.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The adverse impact that uncertainty pending consummation of the
    Merger could have on the ability to attract, retain and motivate
    key personnel until the Merger is completed.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The provisions of the Merger Agreement placing restrictions on
    Grey Wolf&#146;s operations until completion of the Merger. See
    &#147;The Merger Agreement&#160;&#151; Covenants and
    Agreements&#148; beginning on page&#160;89 for further
    information.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Without taking into account the hypothetical and illustrative
    unaffected price analysis of Grey Wolf&#146;s common stock and
    Precision&#146;s trust units or the non-binding nature and risks
    inherent in the indications of Company A and Company B, the
    premium over Grey Wolf&#146;s closing stock price on
    August&#160;22, 2008 (the trading day immediately preceding
    execution of the Merger Agreement), was approximately:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    5.0% in the case of the Merger Agreement offered by Precision;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    19.3% in the case of Company A&#146;s non binding indication of
    interest;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    10.6% in the case of Company B&#146;s non binding indication of
    interest.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    59
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The risk that entering into the Merger Agreement might result in
    the loss of interest by others in acquiring Grey Wolf, including
    Company A and Company B.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The provisions of the Merger Agreement that, subject to certain
    exceptions, prohibit Grey Wolf from soliciting, entering into or
    participating in discussions regarding any takeover proposal and
    the provisions of the Merger Agreement that require Grey Wolf to
    conduct a shareholder meeting to consider adoption of the Merger
    Agreement whether or not the Grey Wolf board continues to
    recommend a vote in favor of the Merger, subject to the ability
    to terminate the Merger Agreement to accept a superior proposal.
    See &#147;The Merger Agreement&#160;&#151; Covenants and
    Agreements&#160;&#151; No Solicitation&#148;  beginning on
    page&#160;95.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The provisions of the Merger Agreement relating to the potential
    payment of a termination fee of $64.0&#160;million under certain
    circumstances or the payment of a $7.5&#160;million expense
    reimbursement under certain other circumstances. See &#147;The
    Merger Agreement&#160;&#151; Termination, Termination Fees and
    Expenses&#148; beginning on page&#160;99.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Under the terms of the Basic Merger Agreement, Grey Wolf will be
    required to pay Basic an additional $25.0&#160;million
    termination fee if it concludes a merger with Precision (or any
    other party) within one year from the termination of the Basic
    Merger Agreement.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The risk that the Merger might not be completed in a timely
    manner or at all.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board also considered the following additional
    factors:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the scope of the due diligence investigation conducted by
    management, the Transactional Advisory Group of KPMG and Grey
    Wolf&#146;s legal counsel and the results thereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    that Grey Wolf shareholders will be entitled to vote on the
    Merger and to exercise dissenters&#146; rights if they disagree
    with the Merger;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the interests that certain Grey Wolf executive officers and
    directors may have with respect to the Merger in addition to
    their interests as Grey Wolf shareholders. See
    &#147;&#151;&#160;Interests of Grey Wolf Directors and Officers
    in the Merger&#148; beginning on page&#160;84.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board of directors concluded that, overall, the
    Merger represents the best strategic alternative available to
    Grey Wolf and its shareholders and that potential benefits of
    the Merger to Grey Wolf and its shareholders outweighed the
    risks. The Grey Wolf board of directors realized that there can
    be no assurance about future results, including results
    considered or expected as described in the factors listed above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>The Grey Wolf board of directors unanimously:</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>determined that the Merger is the best strategic
    alternative available to Grey Wolf;</I></B>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>determined that the Merger Agreement and the transactions
    contemplated thereby, including the Merger, are advisable, fair
    to and in the best interests of Grey Wolf and Grey Wolf&#146;s
    shareholders; and</I></B>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>recommends that Grey Wolf shareholders vote FOR the
    proposal to approve the Merger Agreement.</I></B>
</TD>
</TR>

</TABLE>
<A name='251'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Precision&#146;s
    Reasons for the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One of Precision&#146;s strategic priorities is the continued
    expansion of its US operations. Precision believes that the
    acquisition of Grey Wolf presents a unique opportunity to
    accelerate and enhance its organic US&#160;growth strategy. Grey
    Wolf&#146;s existing presence in the US will expose
    Precision&#146;s high-performance technology to a wider range of
    customers and Precision&#146;s operating systems are expected to
    enhance operating margins across both Precision and Grey
    Wolf&#146;s combined customer base. Precision values the
    opportunities available to the combined enterprise with
    operations in every emerging shale play in North America. In
    addition, the combined rig fleet, with Grey Wolf&#146;s deeper
    and larger rigs, will facilitate international growth for a
    broad range of global drilling opportunities. Grey Wolf&#146;s
    safety and performance oriented culture was also viewed as very
    complimentary to that of Precision and a key feature to a
    successful merger.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    60
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The board of trustees of Precision believes that the Merger is
    in the best interests of Precision and its unitholders. Upon a
    recommendation of PDC&#146;s board of directors, the board of
    trustees approved the Merger Agreement. Both boards had
    discussions with PDC&#146;s senior management and
    Precision&#146;s legal and financial advisors regarding a number
    of factors, including the business, assets, liabilities, results
    of operations, financial performance, strategic direction and
    prospects of Grey Wolf and the experience of Grey Wolf&#146;s
    management team and other employees. In view of the wide variety
    of factors considered in connection with its evaluation of the
    Merger, the Precision boards did not consider it practicable to,
    and did not attempt to, quantify or otherwise assign relative
    weights to the specific factors considered in reaching this
    determination. The Precision board of trustees viewed its
    position and recommendations as being based on all of the
    information and the factors presented to and considered by it.
    In addition, individual trustees may have given different
    weights to different information and factors.
</DIV>
<A name='252'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Opinion
    of Grey Wolf&#146;s Financial Advisor</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;24, 2008, at a meeting of the Grey Wolf board
    held to evaluate the Merger, UBS Securities LLC, or UBS,
    delivered to the Grey Wolf board an oral opinion, which opinion
    was confirmed by delivery of a written opinion dated
    August&#160;24, 2008, to the effect that, as of that date and
    based upon and subject to various assumptions, matters
    considered and limitations described in its opinion, the
    consideration, taken in the aggregate, to be received by holders
    of Grey Wolf common stock in the Merger was fair, from a
    financial point of view, to such holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The full text of UBS&#146; opinion describes the assumptions
    made, procedures followed, matters considered and limitations on
    the review undertaken by UBS. This opinion is attached as
    <B>Annex&#160;C </B>and is incorporated herein by reference.
    <B>UBS&#146; opinion was provided for the benefit of the Grey
    Wolf board in connection with, and for the purpose of, its
    evaluation of the consideration to be received by holders of
    Grey Wolf common stock in the Merger from a financial point of
    view and does not address any other aspect of the Merger. The
    opinion does not address the relative merits of the Merger as
    compared to other business strategies or transactions that might
    be available with respect to Grey Wolf or Grey Wolf&#146;s
    underlying business decision to effect the Merger. The opinion
    does not constitute a recommendation to any shareholder as to
    how to vote or make any election or otherwise act with respect
    to the Merger. Holders of shares of Grey Wolf common stock are
    encouraged to read UBS&#146; opinion carefully in its entirety.
    </B>The following summary of UBS&#146; opinion is qualified in
    its entirety by reference to the full text of UBS&#146; opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In arriving at its opinion, UBS, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewed certain publicly available business and financial
    information relating to Grey Wolf and Precision;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewed certain internal financial information and other data
    relating to Grey Wolf&#146;s business and financial prospects
    that were not publicly available, including financial forecasts
    and estimates prepared by Grey Wolf&#146;s management that the
    Grey Wolf board directed UBS to utilize for purposes of its
    analysis;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewed certain internal financial information and other data
    relating to Precision&#146;s business and financial prospects
    that were not publicly available, including financial forecasts
    and estimates prepared by Precision&#146;s management, as
    adjusted by Grey Wolf&#146;s management, that the Grey Wolf
    board directed UBS to utilize for purposes of its analysis;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewed certain estimates of synergies prepared by Grey
    Wolf&#146;s management that were not publicly available that the
    Grey Wolf board directed UBS to utilize for purposes of its
    analysis;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conducted discussions with members of Grey Wolf&#146;s and
    Precision&#146;s senior management concerning the businesses and
    financial prospects of Grey Wolf and Precision;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewed publicly available financial and stock market data with
    respect to certain other companies UBS believed to be generally
    relevant;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    61
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compared the financial terms of the Merger with the publicly
    available financial terms of certain other transactions UBS
    believed to be generally relevant;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewed current and historical market prices of Grey Wolf
    common stock and Precision trust units;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    considered certain pro forma effects of the Merger on
    Precision&#146;s financial statements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewed an August&#160;22, 2008 draft of the Merger
    Agreement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conducted such other financial studies, analyses and
    investigations, and considered such other information, as UBS
    deemed necessary or appropriate.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the request of the Grey Wolf board, UBS contacted third
    parties to solicit indications of interest in a possible
    transaction with Grey Wolf and held discussions with certain of
    these parties prior to August&#160;24, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with its review, with the consent of the Grey Wolf
    board, UBS assumed and relied upon, without independent
    verification, the accuracy and completeness in all material
    respects of the information provided to or reviewed by UBS for
    the purpose of its opinion. In addition, with the consent of the
    Grey Wolf board, UBS did not make any independent evaluation or
    appraisal of any of the assets or liabilities (contingent or
    otherwise) of Grey Wolf or Precision, and was not furnished with
    any such evaluation or appraisal. With respect to the financial
    forecasts, estimates, synergies and pro forma effects referred
    to above, UBS assumed, at the direction of the Grey Wolf board,
    that they had been reasonably prepared on a basis reflecting the
    best currently available estimates and judgments of the
    management of each of Grey Wolf and Precision as to the future
    financial performance of their respective company and such
    synergies and pro forma effects. In addition, UBS assumed, with
    the approval of the Grey Wolf board, that the financial
    forecasts and estimates, including synergies, referred to above
    would be achieved at the times and in the amounts projected. UBS
    also assumed, with the consent of the Grey Wolf board, that the
    Merger would qualify for US federal income tax purposes as a
    reorganization within the meaning of Section&#160;368(a) of the
    Code, and that Precision would satisfy all the requirements of
    the &#147;active trade or business test&#148; under
    <FONT style="white-space: nowrap">Section&#160;1.367(a)-3(c)(3)</FONT>
    of the regulations promulgated by the US Treasury Department
    under the Code at the consummation of the Merger. In addition,
    UBS assumed, with the consent of the Grey Wolf board, that
    Precision would constitute a business trust under the Canadian
    Tax Act until January&#160;1, 2011. UBS&#146; opinion was
    necessarily based on economic, monetary, market and other
    conditions as in effect on, and the information available to UBS
    as of, the date of its opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the direction of the Grey Wolf board, UBS was not asked to,
    nor did it, offer any opinion as to the terms, other than the
    consideration to be received by holders of Grey Wolf common
    stock in the Merger to the extent expressly specified in
    UBS&#146; opinion, of the Merger Agreement or the form of the
    Merger. In addition, UBS expressed no opinion as to the fairness
    of the amount or nature of any compensation to be received by
    any officers, directors or employees of any parties to the
    Merger, or any class of such persons, relative to the
    consideration to be received by holders of Grey Wolf common
    stock in the Merger. UBS expressed no opinion as to what the
    value of Precision trust units would be when issued pursuant to
    the Merger or the prices at which Precision trust units or Grey
    Wolf common stock would trade at any time. In rendering its
    opinion, UBS assumed, with the consent of the Grey Wolf board,
    that (i)&#160;the final executed form of the Merger Agreement
    would not differ in any material respect from the draft that UBS
    reviewed, (ii)&#160;the parties to the Merger Agreement would
    comply with all material terms of the Merger Agreement and
    (iii)&#160;the Merger would be consummated in accordance with
    the terms of the Merger Agreement without any adverse waiver or
    amendment of any material term or condition thereof. UBS also
    assumed that all governmental, regulatory or other consents and
    approvals necessary for the consummation of the Merger would be
    obtained without any material adverse effect on Grey Wolf,
    Precision or the Merger. Except as described above, the Grey
    Wolf board imposed no other instructions or limitations on UBS
    with respect to the investigations made or the procedures
    followed by UBS in rendering its opinion. The issuance of
    UBS&#146; opinion was approved by an authorized committee of UBS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with rendering its opinion to the Grey Wolf board,
    UBS performed a variety of financial and comparative analyses
    which are summarized below. The following summary is not a
    complete description
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    62
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of all analyses performed and factors considered by UBS in
    connection with its opinion. The preparation of a financial
    opinion is a complex process involving subjective judgments and
    is not necessarily susceptible to partial analysis or summary
    description. With respect to the selected public companies
    analysis and selected transactions analysis summarized below, no
    company or transaction used as a comparison was identical to
    Grey Wolf or Precision or the Merger. These analyses necessarily
    involved complex considerations and judgments concerning
    financial and operating characteristics and other factors that
    could affect the public trading or acquisition values of the
    companies concerned.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    UBS believes that its analysis and the summary below must be
    considered as a whole and that selecting portions of its
    analysis and factors or focusing on information presented in
    tabular format, without considering all analyses and factors or
    the full narrative description of the analyses, could create a
    misleading or incomplete view of the processes underlying
    UBS&#146; analyses and opinion. UBS did not draw, in isolation,
    conclusions from or with regard to any one factor or method of
    analysis for purposes of its opinion, but rather arrived at its
    ultimate opinion based on results of all analyses undertaken by
    it and assessed as a whole.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial forecasts and estimates of the future performance
    of Grey Wolf and Precision, as prepared by the respective
    managements of Grey Wolf and Precision (including, for
    Precision, as adjusted by Grey Wolf&#146;s management), and the
    financial forecasts and estimates of the future financial
    performance of Precision pro forma for the Merger, reflecting
    such financial forecasts and estimates, in or underlying
    UBS&#146; analyses are not necessarily indicative of future
    results or values, which may be significantly more or less
    favorable than those financial forecasts and estimates. In
    performing its analyses, UBS considered industry performance,
    general business and economic conditions and other matters, many
    of which were beyond the control of Grey Wolf or Precision.
    Estimates of the financial value of companies do not purport to
    be appraisals or necessarily reflect the prices at which
    companies may actually be sold.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consideration to be received by holders of Grey Wolf common
    stock in the Merger was determined through negotiation between
    Grey Wolf and Precision, and the decision by the Grey Wolf board
    to enter into the Merger Agreement was solely that of the Grey
    Wolf board. UBS&#146; opinion and financial analyses were only
    one of many factors considered by the Grey Wolf board in its
    evaluation of the Merger and should not be viewed as
    determinative of the views of the Grey Wolf board with respect
    to the Merger or the consideration to be received by holders of
    Grey Wolf common stock in the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a brief summary of the material financial
    analyses performed by UBS and reviewed with the Grey Wolf board
    on August&#160;24, 2008 in connection with UBS&#146; opinion
    relating to the Merger<B>. The financial analyses summarized
    below include information presented in tabular format. In order
    to fully understand UBS&#146; financial analyses, the tables
    must be read together with the text of each summary. The tables
    alone do not constitute a complete description of the financial
    analyses. Considering the data below without considering the
    full narrative description of the financial analyses, including
    the methodologies and assumptions underlying the analyses, could
    create a misleading or incomplete view of UBS&#146; financial
    analyses.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selected Public Companies Analysis.</I>&#160;&#160;UBS
    compared selected financial information, ratios and multiples
    for Grey Wolf to the corresponding data for the following
    publicly traded companies selected by UBS:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Nabors Industries Ltd.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Helmerich&#160;&#038; Payne, Inc.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Patterson-UTI Energy, Inc.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Ensign Energy Services Inc.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Unit Corporation
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Precision
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Parker Drilling Company
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    63
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Pioneer Drilling Company
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Union Drilling, Inc.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, UBS compared selected financial information,
    ratios, and multiples for Precision to the corresponding data
    for the following publicly traded companies selected by UBS:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Nabors Industries Ltd.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Helmerich&#160;&#038; Payne, Inc.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Patterson-UTI Energy, Inc.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Unit Corporation
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Grey Wolf
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Parker Drilling Company
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Pioneer Drilling Company
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Union Drilling, Inc.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Ensign Energy Services Inc.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Trinidad Drilling Ltd.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Savanna Energy Services Corp.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For each of the companies selected by UBS, UBS reviewed, among
    other information:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ratio of price per share or unit to estimated earnings per
    share or unit, or EPS(U), for fiscal years 2008 and 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ratio of price per share or unit to estimated cash flow per
    share or unit, or CFPS(U), for fiscal years 2008 and 2009,
    calculated as estimated earnings plus depreciation and deferred
    taxes per share or unit;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ratio of enterprise value, which was calculated as diluted
    equity value based on closing stock or unit prices on
    August&#160;22, 2008, plus the book value of debt, less cash and
    cash equivalents, as a multiple of EBITDA (earnings before
    interest, taxes, depreciation and amortization) for the last
    twelve-month period (&#147;LTM&#148;), and estimated EBITDA for
    fiscal years 2008 and 2009.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    UBS compared financial information and calculated various
    multiples and ratios with respect to the selected companies
    based on information it obtained from public filings for
    historical information and consensus estimates provided by
    Institutional Brokerage Estimate System, or IBES (a data service
    that compiles estimates issued by securities analysts), for
    forecasted information. The multiples and ratios of the selected
    companies were calculated using common stock or unit closing
    prices on August&#160;22, 2008. The multiples and ratios of Grey
    Wolf and Precision were calculated based on IBES consensus
    estimates and the financial forecasts and estimates of the
    respective managements of Grey Wolf and Precision referred to
    above, and in the case of Precision&#146;s management financial
    forecasts and estimates, as adjusted by Grey Wolf&#146;s
    management as described above. The multiples and ratios of Grey
    Wolf were calculated using (i)&#160;the $8.59 closing price per
    share of Grey Wolf common stock on August&#160;22, 2008 and
    (ii)&#160;the consideration of $9.02 per share of Grey Wolf
    common stock, composed of $5.00 in cash and 0.1883 of a
    Precision trust unit per share of Grey Wolf common stock
    calculated using the $21.35 closing price per Precision trust
    unit on August&#160;22, 2008, in each case assuming full
    conversion of the Grey Wolf convertible notes. We refer to such
    $5.00 in cash and 0.1883 of a Precision trust unit per share of
    Grey Wolf common stock herein as the &#147;Assumed Mixed
    Consideration.&#148; The multiples and ratios of Precision were
    calculated using the $21.35 closing price per Precision trust
    unit as reported on the New York Stock Exchange on
    August&#160;22, 2008.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    64
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The results of these analyses are summarized in the following
    tables:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; font-variant: SMALL-CAPS">Grey
    Wolf</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Enterprise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>EPS(U)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>CFPS(U)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Value/EBITDA<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(x)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(x)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(x)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>LTM</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009E</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Selected Companies</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    High
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Mean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Low
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Grey Wolf</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Management Estimates at August&#160;22, 2008 Closing Price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Management Estimates at Assumed Mixed Consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    IBES Consensus Estimates at August&#160;22, 2008 Closing Price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    IBES Consensus Estimates at Assumed Mixed Consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; font-variant: SMALL-CAPS">Precision</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Enterprise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>EPS(U)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>CFPS(U)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Value/EBITDA<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(x)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(x)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(x)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>LTM</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008E</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009E</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Selected Companies</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    High
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Mean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Low
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Precision</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Management Estimates (as adjusted by Grey Wolf) at
    August&#160;22, 2008 Closing Price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    IBES Consensus Estimates at August&#160;22, 2008 Closing Price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selected Transactions Analysis.</I>&#160;&#160;UBS analyzed
    certain publicly available financial information relating to the
    following selected transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="21%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date Announced</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Acquiror</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Target</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;12, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trinidad Energy Services Income Trust
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Axxis Drilling, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;19, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Hercules Offshore, Inc.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    TODCO
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;15, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Basic Energy Services, Inc.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Sledge Drilling Holding Corp.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    August&#160;28, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Blast Energy Services, Inc.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Eagle Domestic Drilling Operations, LLC
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November&#160;30, 2005
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trinidad Energy Services Income Trust
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Cheyenne Drilling L.P.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February&#160;1, 2005
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Oil States International, Inc.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Elenburg Exploration Company, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September&#160;17, 2001
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Nabors Industries Ltd.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Command Drilling Corporation
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    65
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the two selected transactions for which information was
    publicly available, which were the transactions announced on
    March&#160;19, 2007 and September&#160;17, 2001, and for the
    Merger, UBS calculated equity value as a multiple of LTM cash
    flow, estimated one-year forward cash flow, LTM net income and
    estimated one-year forward net income. For each of the selected
    transactions and for the Merger, UBS&#160;calculated, to the
    extent such information was publicly available, enterprise value
    as a multiple of LTM&#160;EBITDA, estimated one-year forward
    EBITDA, LTM earnings before interest and taxes, or EBIT, and
    estimated one-year forward EBIT. In each case, with respect to
    the Merger, the full conversion of the Grey&#160;Wolf
    convertible notes was assumed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Multiples for the selected transactions were calculated based on
    publicly available information at the time of the relevant
    transaction, data from John S. Herold, Inc. and IBES consensus
    estimates. Multiples for Grey&#160;Wolf were calculated based on
    the financial forecasts and estimates of Grey Wolf&#146;s
    management referred to above and were calculated using the
    Assumed Mixed Consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables summarize the results of this analysis:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Equity Value/</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>1-Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>1-Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>LTM<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forward<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>LTM<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forward<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cash Flow</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cash Flow</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Net Income</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Net Income</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Management Estimates at Assumed Mixed Consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="56%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Enterprise Value/</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>1-Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>1-Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>LTM<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forward<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forward<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>EBITDA</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>EBITDA</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>LTM EBIT</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>LTM EBIT</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Management Estimates at Assumed Mixed Consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Discounted
    Cash Flow Analysis</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Discounted Cash Flow Analysis-Grey Wolf.</I>&#160;&#160;UBS
    performed a discounted cash flow analysis of Grey&#160;Wolf on a
    standalone basis using the financial forecasts and estimates
    prepared by Grey Wolf&#146;s management referred to above for
    the second half of fiscal year 2008 and fiscal years 2009
    through 2013. UBS calculated a range of implied present values
    as of June&#160;30, 2008 of the stand-alone unlevered after-tax
    free cash flows that Grey Wolf was forecasted to generate from
    July&#160;1, 2008 through December&#160;31, 2013 using discount
    rates ranging from 10.5% to 12.5%. UBS also calculated estimated
    terminal values for Grey Wolf, as of December&#160;31, 2013,
    using terminal multiples ranging from 3.5 to 5.5 times estimated
    EBITDA for fiscal year 2013. The estimated terminal values were
    then discounted to present value as of June&#160;30, 2008 using
    discount rates ranging between 10.5% and 12.5%. For purposes of
    this analysis, UBS utilized the diluted shares of Grey&#160;Wolf
    common stock as of August&#160;22, 2008 calculated using the
    treasury method and assumed the full conversion of the Grey Wolf
    convertible notes. This discounted cash flow analysis resulted
    in a reference range of implied equity value per share of Grey
    Wolf common stock of approximately $7.00 to $9.75 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Discounted Cash Flow Analysis- Precision Pro Forma for the
    Merger.</I>&#160;&#160;UBS performed a discounted cash flow
    analysis of Precision pro forma for the Merger reflecting
    (i)&#160;the financial forecasts and estimates of the respective
    managements of Grey Wolf and Precision referred to above, and in
    the case of Precision&#146;s management financial forecasts and
    estimates, as adjusted by Grey Wolf&#146;s management as
    described above, for the second half of fiscal year 2008 and
    fiscal years 2009 through 2013 and (ii)&#160;estimates of annual
    pre-tax
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    66
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    synergies of $10&#160;million, as prepared by Grey Wolf
    management and referred to above. UBS calculated a range of
    implied present values as of June&#160;30, 2008 of the unlevered
    after-tax free cash flows that Precision pro forma for the
    Merger was forecasted to generate from July&#160;1, 2008 through
    December&#160;31, 2013 using discount rates ranging between 9.5%
    and 11.5%. UBS also calculated estimated terminal values for
    Precision pro forma for the Merger, as of December&#160;31,
    2013, using terminal multiples ranging from 4.75 to 6.75 times
    estimated EBITDA for fiscal year 2013. The estimated terminal
    values were then discounted to present value as of June&#160;30,
    2008 using discount rates ranging between 9.5% and 11.5%. This
    discounted cash flow analysis resulted in a reference range of
    implied equity value per Precision trust unit of approximately
    $26.50 to $40.25 per Unit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For each combination of discount rate and terminal multiple, UBS
    calculated an implied present value of equity, per share of Grey
    Wolf common stock, of Precision pro forma for the Merger,
    utilizing the Assumed Mixed Consideration for each share of Grey
    Wolf common stock. The implied present value of equity,
    per&#160;share of Grey Wolf common stock, of Precision pro forma
    for the Merger was calculated by multiplying the estimated
    discounted cash flow value per Precision trust unit pro forma
    for the Merger by 0.1883, the number of Precision trust units
    per share of Grey Wolf common stock in the Assumed Mixed
    Consideration, and adding $5.00, the cash consideration per
    share of Grey Wolf common stock in the Assumed Mixed
    Consideration. This analysis resulted in a reference range of
    implied equity value, per share of Grey Wolf common stock, of
    the Assumed Mixed Consideration of approximately $10 to $12.50.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Pro Forma Financial Analyses.</I>&#160;&#160;UBS reviewed the
    potential pro forma effect of the Merger on Precision&#146;s
    estimated distributable cash flow, calculated as cash flow from
    operations less maintenance capital expenditures, per Precision
    trust unit, or DCFPU, and estimated cash flow, calculated as net
    income plus depreciation expense and deferred taxes, per
    Precision trust unit, or CFPU.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    UBS considered the potential pro forma effect of the Merger on
    Precision&#146;s DCFPU and CFPU using the financial forecasts
    and estimates prepared by the respective managements of Grey
    Wolf and Precision referred to above, and in the case of
    Precision management&#146;s estimates, as adjusted by Grey
    Wolf&#146;s management as described above, for fiscal years 2009
    and 2010. Estimated synergies were not considered for the
    purposes of this analysis. This analysis indicated that the
    Merger would be accretive when compared to the estimated DCFPU
    and CFPU of Precision in fiscal year 2009 and dilutive when
    compared to estimated DCFPU and CFPU of Precision in fiscal year
    2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    UBS also considered the potential pro forma effect of the Merger
    on Precision&#146;s DCFPU and CFPU using financial forecasts and
    estimates for fiscal year 2009 of Grey Wolf and Precision based
    on IBES consensus estimates. For the purposes of considering the
    potential pro forma effect of the Merger on Precision&#146;s
    DCFPU, UBS used estimates of Precision&#146;s and Grey
    Wolf&#146;s respective maintenance capital expenditures as
    prepared by Grey Wolf&#146;s management and that the Grey Wolf
    board directed UBS to utilize for purposes of its analysis. This
    analysis indicated that the Merger would be accretive when
    compared to the estimated DCFPU and CFPU of Precision in fiscal
    year 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Miscellaneous</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of UBS&#146; engagement, Grey Wolf has agreed to
    pay UBS for its financial advisory services in connection with
    the Merger an aggregate fee of $15.6&#160;million, a portion of
    which was payable in connection with UBS&#146; opinion and a
    significant portion of which is contingent upon consummation of
    the Merger. Grey Wolf also agreed to pay UBS a fee if Grey Wolf
    receives a
    <FONT style="white-space: nowrap">break-up</FONT> or
    similar fee in connection with the termination of the Merger
    Agreement. In addition, Grey Wolf has agreed to reimburse UBS
    for its reasonable expenses, including fees, disbursements and
    other charges of its counsel, and to indemnify UBS and related
    parties against liabilities, including liabilities under federal
    securities laws, relating to, or arising out of, its engagement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the past, UBS provided investment banking services to Grey
    Wolf unrelated to the Merger, for which UBS received
    compensation, including having acted as financial advisor to
    Grey Wolf in connection with the Basic Merger. In addition, UBS
    or an affiliate provided a commitment for a proposed credit
    facility of Grey&#160;Wolf in connection with its proposed
    combination with Basic for which UBS or its affiliate received a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    67
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    fee. In the ordinary course of business, UBS and its affiliates
    may hold or trade, for their own accounts and the accounts of
    their customers, securities of Grey Wolf and Precision and,
    accordingly, may at any time hold a long or short position in
    such securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf selected UBS as its financial advisor in connection
    with the proposed transaction because UBS&#160;is an
    internationally recognized investment banking firm with
    substantial experience in similar transactions. UBS is
    continually engaged in the valuation of businesses and their
    securities in connection with mergers and acquisitions,
    leveraged buyouts, negotiated underwritings, competitive bids,
    secondary distributions of listed and unlisted securities and
    private placements.
</DIV>
<A name='253'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Financial
    Forecasts</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the course of discussions between Precision and
    Grey&#160;Wolf, Grey&#160;Wolf provided Grey&#160;Wolf&#146;s
    financial advisors selected, non-public, long-term financial
    forecasts prepared by Grey Wolf management. These summary
    forecasts for 2008 and 2009 are set forth below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf&#146;s internal financial forecasts are subjective in
    many respects. The forecasts reflect numerous and varying
    assumptions with respect to industry performance, general
    business, economic, market and financial conditions and other
    matters, all of which are difficult to predict and beyond Grey
    Wolf&#146;s control. The forecasts also reflect numerous
    estimates and assumptions related to the business of Grey Wolf
    (including with respect to the growth of certain segments of its
    business) that are inherently subject to significant economic,
    political, and competitive uncertainties, all of which are
    difficult to predict and many of which are beyond Grey
    Wolf&#146;s control. The assumptions made in preparing the
    forecasts may not prove accurate, and actual results may be
    materially greater or less than those set forth below. See
    &#147;Cautionary Statement Regarding Forward-Looking
    Statements&#148; beginning on page&#160;36.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE FORECASTS OF GREY WOLF INCLUDED IN THIS PROXY
    STATEMENT/PROSPECTUS HAVE BEEN PREPARED BY, AND ARE THE
    RESPONSIBILITY OF, GREY WOLF MANAGEMENT. THE ACCOMPANYING
    FORECASTS RELATED TO GREY WOLF WERE NOT PREPARED WITH A VIEW
    TOWARD PUBLIC DISCLOSURE OR WITH A VIEW TOWARD COMPLYING WITH
    THE GUIDELINES ESTABLISHED BY THE AMERICAN INSTITUTE OF
    CERTIFIED PUBLIC ACCOUNTANTS WITH RESPECT TO FORECASTS, BUT, IN
    THE VIEW OF GREY WOLF MANAGEMENT, WERE PREPARED ON A REASONABLE
    BASIS, REFLECT THE BEST ESTIMATES AND JUDGMENTS AVAILABLE AT THE
    TIME THE FORECASTS WERE PREPARED, AND PRESENT, TO GREY WOLF
    MANAGEMENT&#146;S KNOWLEDGE AND BELIEF AT THE TIME THE
    INFORMATION WAS PREPARED, THE EXPECTED COURSE OF ACTION AND THE
    EXPECTED FUTURE FINANCIAL PERFORMANCE OF GREY WOLF. HOWEVER,
    THESE FORECASTS ARE NOT FACT AND SHOULD NOT BE RELIED UPON AS
    BEING NECESSARILY INDICATIVE OF FUTURE RESULTS, AND READERS OF
    THIS PROXY STATEMENT/PROSPECTUS ARE CAUTIONED NOT TO PLACE UNDUE
    RELIANCE ON THE FORECASTS. NEITHER KPMG LLP NOR ANY OTHER
    INDEPENDENT ACCOUNTANTS HAVE COMPILED, EXAMINED OR PERFORMED ANY
    PROCEDURES WITH RESPECT TO THE FORECASTS CONTAINED HEREIN, NOR
    HAVE THEY EXPRESSED ANY OPINION OR ANY OTHER FORM&#160;OF
    ASSURANCE ON SUCH FORECASTS OR THEIR ACHIEVABILITY, AND ASSUME
    NO RESPONSIBILITY FOR, AND DISCLAIM ANY ASSOCIATION WITH, THE
    FORECASTS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE INCLUSION OF THE FORECASTS IN THIS PROXY
    STATEMENT/PROSPECTUS SHOULD NOT BE REGARDED AS AN INDICATION
    THAT GREY WOLF OR ITS OFFICERS AND DIRECTORS CONSIDER THE
    FORECASTS TO BE AN ACCURATE PREDICTION OF FUTURE EVENTS OR
    NECESSARILY ACHIEVABLE. IN LIGHT OF THE UNCERTAINTIES INHERENT
    IN FORWARD-LOOKING INFORMATION OF ANY KIND, GREY WOLF CAUTIONS
    YOU AGAINST RELYING ON THIS INFORMATION. NONE OF GREY WOLF OR
    ITS OFFICERS OR DIRECTORS INTEND TO UPDATE OR REVISE THE
    FORECASTS TO REFLECT CIRCUMSTANCES EXISTING AFTER THE DATE THEY
    WERE PREPARED OR TO REFLECT THE OCCURRENCE OF FUTURE EVENTS,
    EXCEPT TO THE EXTENT REQUIRED BY LAW. SEE &#147;CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS&#148; BEGINNING
    ON PAGE&#160;36.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    68
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf&#146;s Forecasts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf&#146;s forecasts are based on the following material
    underlying assumptions (US$):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the annual average number of its marketed rig fleet would be
    122&#160;rigs in 2008 and 125 rigs in 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the average number of rigs working would be 106&#160;rigs in
    2008 and 115&#160;rigs in 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the consolidated average dayrate would be $22,477 per rig day in
    2008 and $23,367 per rig day in&#160;2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the total cash operating costs would be $538.6&#160;million in
    2008&#160;and $616.1&#160;million in 2009; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    total capital expenditures would be $165.4&#160;million in 2008
    and $185.4&#160;million in 2009.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Forecasts
    of Grey Wolf&#146;s Results (US$ in millions)</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    869.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    984.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating Income:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    220.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    251.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Income:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    137.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    159.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<A name='254'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Material
    US Federal Income Tax Consequences of the Merger and of Owning
    Precision Trust&#160;Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the material US federal income tax
    consequences of the Merger applicable to a holder of Grey Wolf
    common stock that receives Precision trust units
    <FONT style="white-space: nowrap">and/or</FONT> cash
    in the Merger, as well as of the ownership of Precision trust
    units. This discussion is based on the Code, Treasury
    regulations, judicial authorities, published positions of the
    Internal Revenue Service (&#147;IRS&#148;), and other applicable
    authorities, all as currently in effect and all of which are
    subject to change or differing interpretations (possibly with
    retroactive effect). This discussion is limited to US Holders
    (as defined below) and Non-US Holders (as defined below) that
    hold their shares of Grey Wolf common stock (or Precision trust
    units, where applicable) as capital assets for US federal income
    tax purposes (generally, assets held for investment). This
    discussion does not address all of the tax consequences that may
    be relevant to a particular Grey Wolf shareholder or to Grey
    Wolf shareholders that are subject to special treatment under US
    federal income tax laws, such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    financial institutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    insurance companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax-exempt organizations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    S-corporations or other pass-through entities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dealers in securities or currencies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons whose functional currency is not the US dollar;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    traders in securities that elect to use a mark to market method
    of accounting;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons who are not citizens or residents of the US;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons that hold Grey Wolf common stock as part of a straddle,
    hedge, constructive sale or conversion transaction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    US Holders who acquired their shares of Grey Wolf common stock
    through the exercise of an employee stock option or otherwise as
    compensation;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    US persons who actually or constructively own 10&#160;percent or
    more of the total combined voting power of Precision voting
    securities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a partnership or other entity taxed as a partnership for US
    federal income tax purposes holds Grey&#160;Wolf common stock,
    the tax treatment of a partner in the partnership generally will
    depend upon the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    69
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    status of the partner and the activities of the partnership.
    Partnerships and partners in such a partnership should consult
    their tax advisers about the tax consequences of the Merger to
    them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This discussion does not address the tax consequences of the
    Merger under state, local or foreign tax laws. No assurance can
    be given that the IRS would not assert, or that a court would
    not sustain, a position contrary to any of the tax consequences
    set forth below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of Grey Wolf common stock should consult with their own
    tax advisors as to the tax consequences of the Merger in their
    particular circumstances, including the applicability and effect
    of the alternative minimum tax and any state, local or foreign
    and other tax laws and of changes in those laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this section, the term &#147;US Holder&#148;
    means a beneficial owner of Grey Wolf common stock (or Precision
    trust units, where applicable) that for US federal income tax
    purposes is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a citizen or resident of the US;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a corporation or other entity treated as a corporation for US
    federal income tax purposes, created or organized in or under
    the laws of the US or any State or the District of Columbia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an estate that is subject to US federal income tax on its income
    regardless of is source;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a trust, the substantial decisions of which are controlled by
    one or more US persons and which is subject to the primary
    supervision of a US court, or a trust that validly has elected
    under applicable Treasury regulations to be treated as a US
    person for US federal income tax purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this section, the term &#147;Non-US Holder&#148;
    means a beneficial owner of Grey Wolf common stock (or Precision
    trust units, where applicable) that is not a US Holder or a
    partnership (or other entity taxed as a partnership for US
    federal income tax purposes).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Treatment
    of Precision and Precision Trust&#160;Units</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision has elected to be classified as a corporation for US
    federal income tax purposes. For US federal income tax purposes,
    the Precision trust units will represent equity interests in a
    corporation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Tax
    Consequences of the Merger Generally</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and Grey Wolf have structured the Merger to qualify as
    a reorganization within the meaning of Section&#160;368(a) of
    the Code. It is a condition to Precision&#146;s obligation to
    complete the Merger that Precision receive an opinion of its
    counsel, Mayer Brown LLP, dated the closing date of the Merger,
    substantially to the effect that the Merger will be treated as a
    reorganization within the meaning of Section&#160;368(a) of the
    Code. It is a condition to Grey Wolf&#146;s obligation to
    complete the Merger that Grey Wolf receive an opinion of its
    counsel, Porter&#160;&#038; Hedges L.L.P., dated the closing
    date of the Merger, substantially to the effect that the Merger
    will be treated as a reorganization within the meaning of
    Section&#160;368(a) of the Code. In connection with the filing
    of the registration statement of which this document forms a
    part, Mayer Brown LLP has delivered an opinion to Precision to
    the same effect as the opinion from that firm described above.
    In rendering these opinions, counsel will require and rely upon
    reasonable assumptions and representations contained in letters
    and certificates to be received from Precision and Grey Wolf.
    None of the tax opinions given in connection with the Merger or
    the opinions described below will be binding on the IRS. Neither
    Precision nor Grey Wolf intends to request any ruling from the
    IRS as to the US federal income tax consequences of the Merger.
    Consequently, no assurance can be given that the IRS will not
    assert, or that a court would not sustain, a position contrary
    to any of those set forth below. In addition, if any of the
    representations or assumptions upon which those opinions are
    based is inconsistent with the actual facts, the US federal
    income tax consequences of the Merger could be adversely
    affected.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    70
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the Merger qualifying as a reorganization within
    the meaning of Section&#160;368(a) of the Code, no gain or loss
    will be recognized by Precision or Grey Wolf. The following
    material US federal income tax consequences will result from the
    Merger:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Fractional
    Units</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a US Holder receives cash in lieu of a fractional Precision
    trust unit, subject to the discussion below regarding possible
    dividend treatment, it will generally recognize capital gain or
    loss equal to the difference between the cash received in lieu
    of such fractional Precision trust unit and the portion of its
    adjusted tax basis in Grey Wolf common stock surrendered that is
    allocable to such fractional Precision trust unit. The capital
    gain or loss will be long-term capital gain or loss if the
    holding period for the Grey Wolf common stock exchanged for cash
    in lieu of the fractional Precision trust unit is more than one
    year as of the date of the Merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Exchange
    of Grey Wolf Common Stock Solely for Precision Trust
    Units</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the rules applicable to 5%-US Holders (defined
    below), for a US Holder who exchanges all of its shares of Grey
    Wolf common stock solely for Precision trust units in the
    Merger, no gain or loss will be recognized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Exchange
    of Grey Wolf Common Stock Solely for Cash</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a US Holder who exchanges all of its Grey Wolf common stock
    solely for cash in the Merger, a capital gain or loss equal to
    the difference between the amount of cash received and the
    holder&#146;s tax basis in the Grey Wolf common stock generally
    will be recognized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any capital gain or loss generally will be long-term capital
    gain or loss if the US Holder held the Grey&#160;Wolf common
    stock for more than one year at the time the Merger is
    completed. Long-term capital gain recognized by an individual
    generally is subject to a maximum US federal income tax rate of
    15%. Other capital gains generally are subject to a maximum US
    federal income tax rate of 35%. The deductibility of capital
    losses is subject to limitations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Exchange
    of Grey Wolf Common Stock for Combination of Precision Trust
    Units and Cash</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the rules applicable to 5%-US Holders, for a US
    Holder who exchanges shares of Grey Wolf common stock for a
    combination of Precision trust units and cash, a gain (but not
    loss) will be recognized, and the gain recognized will be equal
    to the lesser of (i)&#160;the excess, if any, of the amount of
    cash plus the fair market value of any Precision trust units
    received in the Merger, over such US Holder&#146;s tax basis in
    the shares of Grey Wolf common stock surrendered by the US
    Holder in the Merger, or (ii)&#160;the amount of cash received
    in the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a US Holder who acquired different blocks of Grey Wolf
    common stock at different times and at different prices,
    realized gain or loss generally must be calculated separately
    for each identifiable block of shares exchanged in the Merger,
    and a loss realized on the exchange of one block of shares
    cannot be used to offset a gain realized on the exchange of
    another block of shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a US Holder has differing bases or holding periods in respect
    of Grey Wolf common stock, the US&#160;Holder should consult its
    tax advisor prior to the exchange with regard to identifying the
    bases or holding periods of the particular Precision trust units
    received in the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any capital gain generally will be long-term capital gain if the
    US Holder held the Grey Wolf common stock for more than one year
    at the time the Merger is completed. Long-term capital gain of
    an individual generally is subject to a maximum US federal
    income tax rate of 15%. Other capital gains may be taxed at
    regular rates of up to 35%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In some cases, such as if the US Holder actually or
    constructively owns Precision trust units immediately before the
    Merger, such gain could be treated as having the effect of the
    distribution of a dividend, under the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    71
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    tests set forth in Section&#160;302 of the Code, in which case
    such gain would be treated as ordinary dividend income. These
    rules are complex and dependent upon the specific factual
    circumstances particular to each US&#160;Holder. Consequently,
    each US Holder that may be subject to those rules should consult
    its tax advisor as to the application of these rules to the
    particular facts relevant to such US Holder.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Treatment
    of 5%-US Holders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Special rules apply with respect to US Holders that are
    &#147;5%-US Holders,&#148; including additional requirements in
    order for such 5%-US Holders to qualify for the nonrecognition
    treatment described above. A 5%-US Holder for this purpose is
    any US Holder that directly or indirectly owns at least five
    percent of either the total voting power or the total value of
    Precision immediately after the Merger. Any US Holder that may
    be a 5%-US Holder should consult its tax advisor as to the
    application of these rules in its particular circumstances.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Treatment
    of Non-US Holders who Exchange Grey Wolf Common Stock in the
    Merger</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a Non-US Holder who exchanges its Grey Wolf common stock in
    the Merger, its tax consequences, including the computation of
    capital gain or loss, will generally be determined in the same
    manner as that of a US Holder, except as otherwise described
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Non-US Holder generally will not be subject to US federal
    income tax on any gain recognized with respect to the Merger
    unless (i)&#160;such gain is effectively connected with a trade
    or business of the
    <FONT style="white-space: nowrap">Non-US&#160;Holder</FONT>
    in the US (or, if certain income tax treaties apply, is
    attributable to a permanent establishment), (ii)&#160;Grey Wolf
    is a US real property holding corporation (as defined below) at
    any time within the shorter of the five-year period ending on
    the date on which the Merger is consummated or such
    <FONT style="white-space: nowrap">Non-US&#160;Holder&#146;s</FONT>
    holding period in its Grey Wolf common stock or (iii)&#160;the
    Non-US Holder is an individual who is present in the US for a
    period or periods aggregating 183 or more days in the taxable
    year of the exchange and certain other conditions are met. In
    such cases, a Non-US Holder will generally be subject to US
    federal income tax on such gain in the same manner as a US
    Holder. In addition, a Non-US Holder that is a corporation may
    be subject to a branch profits tax equal to 30% (or lesser rate
    under an applicable income tax treaty) on such effectively
    connected income (other than income that is effectively
    connected income solely by virtue of clause (ii), above).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, a corporation is a &#147;US real property holding
    corporation&#148; if the fair market value of its US real
    property interests, as defined in the Code and applicable
    Treasury regulations, equals or exceeds 50% of the aggregate
    fair market value of its worldwide real property interests and
    its other assets used or held for use in a trade or business.
    Grey Wolf does not believe that it is or has been a US real
    property holding corporation within the last five years and does
    not expect to become a US real property holding corporation
    prior to the date of closing the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, if a Non-US Holder receives a cash payment in the
    Merger in exchange for some or all of its Grey Wolf common stock
    that, as discussed above, has the effect of a distribution of a
    dividend for US federal income tax purposes, then such cash
    payment may be subject to 30% withholding unless (i)&#160;such
    Non-US Holder is eligible for a reduced rate of withholding with
    respect to dividend income under an applicable income tax treaty
    or (ii)&#160;amounts paid to the Non-US Holder in the Merger are
    effectively connected with the conduct of a US trade or
    business. If amounts paid to the Non-US Holder in the Merger are
    effectively connected with the conduct of a US trade or
    business, no such withholding will be required and such amounts
    will be taxed at the same graduated rates applicable to US
    persons, net of certain deductions and credits. In general, a
    Non-US Holder must furnish an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    in order to establish its eligibility for any of the foregoing
    exemptions or rate reductions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The rules relating to Non-US Holders are complex and dependent
    on the specific factual circumstances particular to each Non-US
    Holder. Consequently, each Non-US Holder should consult its tax
    advisor as to the US federal income tax consequences relevant to
    such Non-US Holder.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    72
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Treatment
    of Dissenters</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tax consequences to a Grey Wolf shareholder who exercises
    dissenters&#146; rights with respect to such shares and receives
    payment for its Grey Wolf common stock in cash generally will
    not depend on the qualification of the Merger as a
    reorganization for federal income tax purposes. A US Holder that
    receives cash pursuant to the exercise of dissenters&#146;
    rights generally will recognize a capital gain or loss for
    federal income tax purposes, measured by the difference between
    the holder&#146;s basis in such shares and the amount of cash
    received (other than the amount of cash received, if any, that
    is or is deemed to be interest for federal income tax purposes
    (which amount will be taxed as ordinary income)). In the case of
    a US Holder that is an individual, capital gain that is
    recognized in taxable years beginning before January&#160;1,
    2011 is generally taxed at a maximum rate of 15% if the Grey
    Wolf common stock was held for greater than one year. The
    deductibility of capital losses is subject to limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Non-US Holder receives cash pursuant to the exercise of
    dissenters&#146; rights, then, subject to the exceptions
    described above in the second paragraph under the heading
    &#147;&#151;&#160;Treatment of Non-US Holders Who Exchange Grey
    Wolf Common Stock in the Merger,&#148; that Non-US Holder
    generally will not be subject to US federal income tax on any
    gain recognized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Tax
    Basis and Holding Period</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A US Holder&#146;s aggregate tax basis in the Precision trust
    units received in the Merger will equal its aggregate tax basis
    in the Grey Wolf common stock surrendered in the Merger,
    increased by the amount of taxable gain or dividend income, if
    any, recognized in the Merger, and decreased by the amount of
    cash, if any, received in the Merger. The holding period for the
    shares of Precision trust units received in the Merger generally
    will include the holding period for the Grey Wolf common stock
    exchanged therefor.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting and Backup Withholding</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cash payments received in the Merger by a Grey Wolf shareholder
    may, under certain circumstances, be subject to information
    reporting and backup withholding at a rate of 28% of the cash
    payable to the holder, unless the holder provides proof of an
    applicable exemption or furnishes its taxpayer identification
    number (in the case of individuals, their social security
    number) or provides a certification of foreign status on IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or other appropriate form, and otherwise complies with all
    applicable requirements of the backup withholding rules. Any
    amounts withheld from payments to a holder under the backup
    withholding rules are not additional tax and will be allowed as
    a refund or credit against the Grey Wolf shareholder&#146;s
    US&#160;federal income tax liability, provided the required
    information is timely furnished to the IRS.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Reporting
    Requirements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Grey Wolf shareholder who receives Precision trust units as a
    result of the Merger will be required to retain records
    pertaining to the Merger. Each holder of Grey Wolf common stock
    who is required to file a US&#160;tax return and who is a
    &#147;significant holder&#148; that receives Precision trust
    units in the Merger will be required to file a statement with
    the shareholder&#146;s US federal income tax return setting
    forth such holder&#146;s basis in the Grey Wolf common stock
    surrendered and the fair market value of the Precision trust
    units and cash, if any, received in the Merger. A
    &#147;significant holder&#148; is a Grey Wolf shareholder who,
    immediately before the Merger, owned at least 5% of the
    outstanding stock of Grey Wolf.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to Qualify as a Reorganization</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Merger is not treated as a &#147;reorganization&#148;
    within the meaning of Section&#160;368(a) of the Code, then
    (i)&#160;each holder of Grey Wolf common stock will recognize
    gain or loss equal to the difference between the sum of the fair
    market value of the Precision trust units and the amount of cash
    received in the Merger (including cash received in lieu of
    fractional Precision trust units) and its tax basis in the Grey
    Wolf shares surrendered in exchange therefor, (ii)&#160;each US
    Holder generally will be subject to US federal income tax on
    such recognized gain, and (iii)&#160;subject to the exceptions
    described above in the second paragraph under the
</DIV>

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    heading &#147;&#151;&#160;Treatment of Non-US Holders who
    Exchange Grey Wolf Common Stock in the Merger.&#148;
    <FONT style="white-space: nowrap">Non-US&#160;Holders</FONT>
    generally will not be subject to US federal income tax on any
    gain recognized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, if the Merger is not treated as a
    &#147;reorganization&#148; within the meaning of
    Section&#160;368(a) of the Code, Grey Wolf will be subject to
    tax on the deemed sale of its assets to Merger Sub, with any
    gain or loss for this purpose measured by the difference between
    Grey Wolf&#146;s tax basis in its respective assets and the fair
    market value of the respective consideration deemed to be
    received therefor, or, in other words, the cash and Precision
    trust units conveyed in the Merger plus the amount of Grey
    Wolf&#146;s liabilities. This gain or loss would be reported on
    Grey Wolf&#146;s final tax returns, along with any other income
    or loss for that period and subject to the effect of any tax
    carryovers, and Merger Sub would become liable for any such tax
    liability by virtue of the Merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Ownership
    by US Holders of Precision Trust&#160;Units</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Dividends
    and Distributions</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the passive foreign investment company and controlled
    foreign corporation rules discussed below, US Holders of
    Precision trust units will include in gross income the gross
    amount of any distributions paid, before reduction for Canadian
    withholding taxes, by Precision out of its current or
    accumulated earnings and profits, as determined for US federal
    income tax purposes, as dividend income when the dividend is
    actually or constructively received by the US Holder.
    Distributions in excess of current and accumulated earnings and
    profits, as determined for US federal income tax purposes, will
    be treated as a return of capital to the extent of the US
    Holder&#146;s basis in its Precision trust units and thereafter
    as capital gain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Currently, dividends paid by a &#147;qualified foreign
    corporation&#148; to individual US Holders who also meet certain
    holding period requirements will be taxable at a maximum tax
    rate of 15% (5% for individuals in lower tax brackets).
    Precision expects that it will constitute a qualified foreign
    corporation for US federal income tax purposes and that
    distributions it makes to individual US Holders of Precision
    trust units that are treated as dividends for US federal income
    tax purposes will be treated as qualified dividend income
    eligible for such reduced maximum rates, provided the applicable
    holding period requirements are met. If distributions by
    Precision do not qualify for this reduced maximum rate, US
    Holders will be subject to tax on such distributions at ordinary
    income rates (currently at a maximum rate of 35%). In addition,
    under current law, the preferential tax rate for qualified
    dividend income will not be available for taxable years
    beginning after December&#160;31, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions by Precision that are treated as dividends for US
    federal income tax purposes generally will not be eligible for
    the dividends-received deduction generally allowed to
    US&#160;corporations in respect of dividends received from
    certain other corporations. The amount of such distributions
    included in income of a US&#160;Holder of Precision trust units
    will be the US dollar value of the Canadian dollar payments
    made, determined at the spot Canadian dollar/US dollar exchange
    rate on the date such distribution is included in the income of
    the US Holder, regardless of whether the payment is in fact
    converted into US dollars. Generally, any gain or loss resulting
    from currency exchange fluctuations during the period from the
    date such a distribution is included in income to the date such
    distribution is converted into US dollars will be treated as
    ordinary income or loss and will not be eligible for the special
    tax rate applicable to qualified dividend income. Such gain or
    loss will generally be income from sources within the US for
    foreign tax credit limitation purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions by Precision that are treated as dividends for US
    federal income tax purposes will be income from sources outside
    the US for foreign tax credit limitation purposes. Depending on
    the US Holder&#146;s circumstances, such dividends may be
    &#147;passive category&#148; or &#147;general category&#148;
    income for foreign tax credit limitation purposes. Subject to
    certain limitations, Canadian tax withheld with respect to
    distributions by Precision to a US Holder of Precision trust
    units and paid over to Canada will generally be creditable
    against the US Holder&#146;s US federal income tax liability. As
    discussed below, withholding of Canadian tax is imposed at a 25%
    rate (reduced to 15% for recipients that are residents of the US
    eligible for benefits under the Canada-US Tax Convention) both
    on cash and non-cash distributions by Precision to persons that
    are not Canadian residents. However, as any non-cash
    distributions by Precision generally will not be included in
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    income for US federal income tax purposes, such Canadian tax
    withholding may exceed a US Holder&#146;s allowable foreign tax
    credit for the taxable year of the distribution. To the extent a
    refund of the tax withheld is available to a US Holder under the
    laws of Canada or under the income tax treaty between the US and
    Canada, the amount of tax withheld that is refundable will not
    be eligible for credit against the US Holder&#146;s US federal
    income tax liability, whether or not the refund is actually
    obtained. The foreign tax credit limitation rules are complex
    and dependent on the specific factual circumstances particular
    to each US Holder of Precision trust units. Consequently, each
    US Holder of Precision trust units should consult its tax
    advisor as to the US federal income tax consequences relevant to
    such US Holder.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Transfers
    of Precision Trust&#160;Units</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the passive foreign investment company and controlled
    foreign corporation rules discussed below, a US Holder of
    Precision trust units that sells or otherwise disposes of
    Precision trust units generally will recognize capital gain or
    loss for US federal income tax purposes equal to the difference
    between the US&#160;dollar value of the amount realized and the
    holder&#146;s tax basis, determined in US dollars, in the
    Precision trust units. Any capital gain or loss generally will
    be long-term capital gain or loss if the US Holder had a holding
    period for the Precision trust units of more than one year at
    the time of the sale or other disposition. Long-term capital
    gain recognized by an individual generally is subject to a
    maximum US federal income tax rate of 15%. Other capital gains
    generally are subject to a maximum US federal income tax rate of
    35%. The deductibility of capital losses is subject to
    limitations. Gain realized by a US Holder from a sale or other
    disposition of Precision trust units will generally be treated
    as income from US sources for foreign tax credit limitation
    purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Additional
    US Federal Income Tax Considerations Under the Passive Foreign
    Investment Company Rules</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision believes that Precision trust units should not be
    treated as stock of a passive foreign investment company for US
    federal income tax purposes, but this conclusion is a factual
    determination made annually and thus may be subject to change.
    In general, Precision would be a passive foreign investment
    company with respect to a US Holder if, for any taxable year in
    which the US Holder held Precision trust units, at least 75% of
    the gross income of Precision for the taxable year is passive
    income or at least 50% of the value, determined on the basis of
    a quarterly average, of Precision&#146;s assets is attributable
    to assets that produce or are held for the production of passive
    income. If Precision were to be treated as a passive foreign
    investment company, then unless a US Holder makes a
    mark-to-market election, gain realized on the sale or other
    disposition of Precision trust units would in general not be
    treated as capital gain. Instead, a US Holder would be treated
    as if the holder had realized such gain and certain &#147;excess
    distributions&#148; ratably over the holder&#146;s holding
    period for the shares and would be taxed at the highest tax rate
    in effect for each such year to which the gain was allocated,
    together with an interest charge in respect of the tax
    attributable to each such year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Additional
    US Federal Income Tax Considerations Under the Controlled
    Foreign Corporation (&#147;CFC&#148;) Rules</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under certain circumstances, a US Holder who directly or
    indirectly owns 10% or more of the voting power of a foreign
    corporation that is a CFC (generally a foreign corporation in
    which 10% US shareholders own more than 50% of the voting power
    of the foreign corporation) for an uninterrupted period of
    30&#160;days or more during a taxable year and who holds any
    shares of the foreign corporation on the last day of the
    corporation&#146;s tax year must include in gross income for US
    federal income tax purposes its pro rata share of certain income
    of the CFC even if such share is not distributed to such US
    Holder. Precision believes that it will not be a CFC immediately
    after the Merger, but this could change in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Ownership
    by Non-US Holders of Precision Trust&#160;Units</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Non-US Holder generally will not be subject to US federal
    income tax on dividends received from Precision or on any gain
    recognized on a sale or other disposition of Precision trust
    units unless (i)&#160;such income is effectively connected with
    a trade or business of the Non-US Holder in the US (or, if
    certain income tax treaties apply, is attributable to a
    permanent establishment), or (ii)&#160;with respect to gain
    recognized on a sale or other disposition of Precision trust
    units, the Non-US Holder is an individual who is present in the
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    US&#160;for a period or periods aggregating 183 or more days in
    the taxable year of the exchange and certain other conditions
    are met. In such cases, a Non-US Holder generally will be
    subject to US federal income tax on such income in the same
    manner as a US Holder. In addition, a Non-US Holder that is a
    corporation may be subject to a branch profits tax equal to 30%
    (or lesser rate under an applicable income tax treaty) on such
    effectively connected income.
</DIV>
<A name='255'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Material
    Canadian Federal Income Tax Consequences of the Merger and of
    Owning Precision Trust Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary prepared by Felesky Flynn LLP,
    Canadian federal income tax counsel (&#147;Canadian Tax
    Counsel&#148;) for Precision of material Canadian federal income
    tax consequences under the Canadian Tax Act to holders of the
    Grey Wolf common stock who hold such Grey Wolf common stock as
    capital property, deal with Precision and Grey Wolf at
    arm&#146;s length, are not affiliated with Precision or
    Grey&#160;Wolf, and who will hold Precision trust units as
    capital property, all for purposes of the Canadian Tax Act and
    who dispose of their Grey Wolf common stock pursuant to the
    Merger and as consideration receive cash, Precision trust units
    or some combination of cash and Precision trust units. The
    implications of the Canadian Tax Act will be different for
    holders who are residents of Canada (&#147;Canadian
    Holders&#148;) and those who are not residents of Canada
    (&#147;Non-Canadian Holders&#148;) for purposes of the Canadian
    Tax Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, Grey Wolf common stock and Precision trust units
    should be considered capital property to a Canadian Holder
    provided the holder does not use or hold such common stock or
    trust units, as the case may be, in the course of carrying on a
    business of buying or selling securities and provided the holder
    does not acquire them in one or more transactions considered to
    be an adventure or concern in the nature of trade.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary is not applicable to a holder of Grey Wolf common
    stock that is a &#147;financial institution,&#148; a
    &#147;specified financial institution,&#148; nor is it
    applicable to a holder an interest in which would be a &#147;tax
    shelter investment,&#148; all as defined in the Canadian Tax Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary is based upon the facts set out in this proxy
    statement/prospectus, the provisions of the Canadian Tax Act and
    accompanying Regulations in force as of the date of proxy
    statement/prospectus, relevant specific proposals to amend the
    Canadian Tax Act that have been publicly announced by the
    Minister of Finance (Canada) prior to the date of this proxy
    statement/prospectus (&#147;Proposed Amendments&#148;) and
    Canadian Tax Counsel&#146;s understanding of the current
    published administrative and assessing the policies of the
    Canada Revenue Agency (&#147;CRA&#148;). This summary
    specifically assumes that Grey Wolf is a corporation that is not
    resident in Canada for purposes of the Canadian Tax Act and that
    materially less than 50% of Grey Wolf&#146;s assets have not
    been at any time in the 60&#160;months that ends at the time of
    the Merger, and at the time of the Merger will not be, any
    combination of real property situated in Canada, Canadian
    resource property or timber resource property for purposes of
    the Canadian Tax Act, nor will more than 50% of the fair market
    value of a Grey Wolf share be derived from such property. This
    summary is not exhaustive of all possible Canadian federal
    income tax consequences and, except for the Proposed Amendments,
    does not take into account or anticipate any changes in the law,
    whether by legislative, government or judicial actions or
    changes in the administrative and assessing practices of the
    CRA. This summary does not take into account provincial,
    territorial or foreign tax consideration, which may differ
    significantly from those discussed herein. No assurance can be
    given that the Proposed Amendments will be enacted as currently
    proposed or at all.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>This summary is of a general nature and is not intended to
    be, nor should it be construed to be, legal or tax advice or
    representations to any particular holder of Grey Wolf common
    stock or Precision trust units. Holders of Grey Wolf common
    stock and prospective holders of Precision trust units should
    consult their own tax advisors in respect of the consequences to
    them of the Merger and their acquisition and holding of
    Precision trust units having regard to their particular
    circumstances.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Canadian
    Holders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    Merger</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Merger, Canadian Holders of Grey Wolf common
    stock will dispose of such shares and receive cash, Precision
    trust units, or a combination of cash and Precision trust units
    as consideration for such
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf common stock. Canadian Holders of Grey Wolf common
    stock so disposed of will realize a capital gain (or capital
    loss) equal to the difference between (i)&#160;the sum of the
    cash consideration received in the Merger and the fair market
    value of the Precision trust units received in the Merger and
    (ii)&#160;the sum of the Canadian Holder&#146;s adjusted cost
    base for purposes of the Canadian Tax Act of the Grey Wolf
    common stock disposed of and any reasonable costs of
    disposition. The taxation of capital gains and capital losses is
    described below under &#147;Taxation of Capital Gains and
    Capital Losses of Canadian Holders.&#148; The cost (and adjusted
    cost base) to a Canadian Holder of the Precision trust units
    acquired as consideration for Grey Wolf common stock disposed of
    in the Merger will be the fair market value of a Precision trust
    unit at the time of the Merger, subject to being averaged with
    the cost (and adjusted cost base) to a Canadian holder of any
    Precision trust units held prior to the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Canadian federal income tax consequences to a Canadian
    Holder who exercises dissenters&#146; rights and disposes of
    Grey Wolf common stock and receives payment in cash, generally
    will be the same as a Canadian Holder that disposes of Grey Wolf
    common stock pursuant to the Merger, as outlined herein.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Trust&#160;Unit Distributions to Canadian Holders</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Income from Precision Trust&#160;Units Prior to Application
    of SIFT Legislation</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This portion of the summary describes the taxation of
    distributions on Precision trust units prior to the application
    of the SIFT legislation. For a discussion of how distributions
    would be taxed under the SIFT legislation, see below under the
    heading &#147;SIFT Legislation.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until the SIFT legislation begins to apply to Precision, income
    of a Canadian Holder from Precision trust units should be
    considered to be income from property for the purposes of the
    Canadian Tax Act and any loss of Precision for the purposes of
    the Canadian Tax Act cannot be allocated to and treated as a
    loss of a Canadian Holder. A Canadian Holder will generally be
    required to include in computing income for a particular
    taxation year the portion of the net income of Precision for a
    taxation year, including taxable dividends and net realized
    taxable capital gains, that is paid or payable to the Canadian
    Holder in that particular taxation year, whether such amount is
    payable in cash or in kind.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Provided that appropriate designations are made by Precision,
    such portions of its net taxable capital gains and taxable
    dividends as are paid or payable to a Canadian Holder will
    effectively retain their character and be treated as such in the
    hands of the Canadian Holder for purposes of the Canadian Tax
    Act. The non-taxable portion of net realized capital gains of
    Precision that is paid or payable to a Canadian Holder in a year
    will not be included in computing the holder&#146;s income for
    the year and will not reduce the adjusted cost base of the
    holder&#146;s trust units. Any other amount in excess of the net
    income of Precision that is paid or payable by Precision to a
    Canadian Holder in a year will generally not he included in the
    Canadian Holder&#146;s income for the year. However, where such
    an amount becomes payable to a Canadian Holder, other than as
    proceeds of disposition of a Precision trust unit, the adjusted
    cost base of trust units held by such Canadian Holder will
    generally be reduced by such amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Canadian Holder that throughout the relevant taxation year is
    a &#147;Canadian-controlled private corporation,&#148; as
    defined in the Canadian Tax Act, may be liable to pay an
    additional refundable tax of
    6<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    on certain investment income, including taxable capital gains
    and certain income from Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Income From Precision Trust&#160;Units on Application of SIFT
    Legislation</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the SIFT legislation, which is not expected to apply to
    Precision until January&#160;1, 2011 (provided Precision only
    experiences &#147;normal growth&#148; before then),
    distributions by Precision to Canadian Holders of
    Precision&#146;s income from non- portfolio properties (which is
    expected to comprise all or substantially all of the income of
    Precision) and taxable capital gains from dispositions of
    non-portfolio properties would be treated as eligible dividends
    from a taxable Canadian corporation. Therefore, in the case of
    an individual Canadian Holder, such distributions would qualify
    for the
    <FONT style="white-space: nowrap">gross-up</FONT> and
    dividend tax treatment applicable to eligible dividends received
    from taxable Canadian corporations, and in the case of a
    corporate Canadian Holder such distributions generally would be
    eligible for the inter-corporate dividend deduction. A Canadian
    Holder that is a &#147;private corporation&#148; or a
    &#147;subject corporation&#148; (as defined in the Canadian Tax
    Act) generally would be
</DIV>

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    <BR>
    77
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    required to pay a
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    refundable tax on such distributions under Part&#160;IV of the
    Canadian Tax Act to the extent such distributions were
    deductible in computing its taxable income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amounts distributed in excess of the income of Precision are not
    affected by the SIFT legislation, and will continue to not be
    included in the Canadian Holder&#146;s income and, except to the
    extent they constituted the non-taxable portion of any net
    realized capital gains of Precision, will reduce the adjusted
    cost base of the holder&#146;s Precision trust units.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Capital Gains and Capital Losses of Canadian
    Holders</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Canadian Tax Act, one half of any capital gain
    realized by a Canadian Holder will be included in such
    holder&#146;s income as a taxable capital gain. Subject to
    certain specific rules in the Canadian Tax Act, one half of any
    capital loss realized by a Canadian Holder generally is deducted
    from any taxable capital gains realized by such holder in the
    year of disposition and any excess may be deducted from taxable
    capital gains realized in the three preceding taxation years or
    in any subsequent taxation year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Canadian Holder that throughout the relevant taxation year is
    a &#147;Canadian-controlled private corporation,&#148; as
    defined in the Canadian Tax Act, may be liable to pay an
    additional refundable tax of
    6<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    on certain investment income, including taxable capital gains.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Canadian Holder that is a corporation or a corporation that is
    a member of a partnership or a beneficiary of a trust that
    directly or indirectly owns Grey Wolf common stock and that
    realize a capital loss should consult their own tax advisors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Minimum
    Tax</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Capital gains realized on the disposition of capital property
    such as Grey Wolf common stock may increase a Canadian
    Holder&#146;s liability for minimum tax if the holder is an
    individual.
</DIV>
<A name='256'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Non-Canadian
    Holders</FONT></I></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    Merger</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For Canadian federal income tax purposes, the Merger and the
    exercise of dissenters&#146; rights in respect thereof,
    generally should not be a taxable transaction for persons who
    are Non-Canadian Holders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Trust&#160;Unit Distributions to Non-Canadian
    Holders</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until the SIFT legislation begins to apply to Precision, all
    income of Precision determined in accordance with the Canadian
    Tax Act (except taxable capital gains) paid or credited by
    Precision in a taxation year to a Non-Canadian Holder will
    generally be subject to Canadian withholding tax at a rate of
    25%, subject to a reduction in such rate under an applicable tax
    treaty or convention, whether such income is paid or credited in
    cash or in Precision trust units. The rate of Canadian
    withholding tax generally is reduced to 15% in respect of
    amounts that are paid or credited by Precision to a Non-Canadian
    Holder that is a resident of the US for the purposes of the
    Canada-United States Income Tax Convention, (1980), as amended
    (the &#147;Canada-US Tax Convention&#148;). Under the SIFT
    legislation, commencing January 2011 (provided there has been
    only &#147;normal growth&#148; of Precision before then), such
    distributions will be characterized as taxable dividends and as
    such similarly will be subject to Canadian withholding tax at a
    rate of 25%, unless such rate is reduced under the provisions of
    an applicable treaty or convention. A Non-Canadian Holder that
    is a resident of the US who is entitled to claim the benefit of
    the Canada-US Tax Convention will generally be entitled to have
    the rate of withholding tax reduced to 15%, and to 0.0% for
    certain US tax exempt Non-Canadian Holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision is required to maintain a special &#147;TCP gains
    balance&#148; account to which it will add its capital gains
    from dispositions after March&#160;22, 2004 of &#147;taxable
    Canadian property&#148; (as defined in the Canadian Tax Act),
    and from which it will deduct its capital losses from
    dispositions of such property and the amount of all &#147;TCP
    gains distributions&#148; (as defined in the Canadian Tax Act)
    made by it in previous taxation years. If Precision pays an
    amount to a Non-Canadian Holder, makes a designation to treat
    that amount as a taxable
</DIV>

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    <BR>
    78
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    capital gain of the Non-Canadian Holder and the total of all
    such amounts designated by Precision in a taxation year to
    Non-Canadian Holders and any partnerships which are not
    &#147;Canadian partnerships&#148; for the purposes of the
    Canadian Tax Act exceeds 5% of all such designated amounts, such
    portion of that amount as does not exceed the Non-Canadian
    Holder&#146;s pro rata portion of Precision&#146;s &#147;TCP
    gains balance&#148; account (as defined in the Canadian Tax Act)
    for the taxation year effectively will be subject to the same
    Canadian withholding tax as described above for distributions of
    income (other than net realized capital gains).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Disposition of Precision Trust&#160;Units Held by
    Non-Canadian Holders</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Non-Canadian Holder will be subject to taxation in Canada in
    respect of a capital gain realized on the disposition of
    Precision trust units only if such units constitute
    &#147;taxable Canadian property,&#148; as defined in the
    Canadian Tax Act, and the Non-Canadian Holder is not afforded
    relief under an applicable income tax treaty or convention.
    Precision trust units normally should not be taxable Canadian
    property at the time of the disposition provided that:
    (i)&#160;the Non-Canadian Holder, persons with whom the Non-
    Resident Holder does not deal at arm&#146;s length (within the
    meaning of the Canadian Tax Act), or the Non-Canadian Holder
    together with such persons, did not own 25% or more of the
    issued Precision trust units at any time during the
    <FONT style="white-space: nowrap">60-month</FONT>
    period preceding the time of the disposition;
    (ii)&#160;Precision is a mutual fund trust at the time of the
    disposition; and (iii)&#160;Precision trust units are not
    otherwise deemed to be taxable Canadian property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Non-Canadian Holder whose Precision trust units constitute
    taxable Canadian property generally will realize a capital gain
    (or capital loss) on the redemption or disposition of such units
    equal to the amount by which the proceeds of disposition exceed
    (or are less than) the aggregate of: (i)&#160;such Non-Canadian
    Holder&#146;s adjusted cost base of its Precision trust units so
    disposed, determined immediately before the redemption or
    disposition; and (ii)&#160;any reasonable costs of disposition,
    and generally will be subject to tax under the Canadian Tax Act
    in respect of any such capital gain in the same manner as a
    Canadian Holder. See &#147;&#151;&#160;Taxation of Capital Gains
    and Capital Losses of Canadian Holders.&#148;
</DIV>
<A name='257'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anticipated
    Accounting Treatment</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision intends to account for the Merger as a purchase of
    Grey Wolf for both Canadian and US financial accounting
    purposes. Accordingly, the aggregate fair value of the
    consideration paid by Precision in connection with the Merger
    will be allocated to Grey Wolf&#146;s assets based on their fair
    values as of the completion of the Merger, and the results of
    operations of Grey Wolf will be included in Precision&#146;s
    consolidated results of operations only for periods subsequent
    to the completion of the Merger.
</DIV>
<A name='258'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Regulatory
    Matters</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the HSR Act and the rules that have been promulgated under
    that act, acquisitions of a sufficient size may not be
    consummated unless information has been furnished to the
    Antitrust Division of the DOJ and to the FTC and applicable
    waiting period requirements have been satisfied or early
    termination of the waiting period has been granted. The
    acquisition of Grey Wolf common stock pursuant to the Merger is
    subject to the HSR Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and Grey Wolf filed on September&#160;11, 2008 with
    the Antitrust Division of the DOJ and the FTC, a
    <FONT style="white-space: nowrap">Hart-Scott-Rodino</FONT>
    Notification and Report Form with respect to the acquisition of
    the Grey Wolf common stock by Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because Precision is a foreign corporation, the President of the
    United States has the authority to block the Merger if he
    determines that the Merger threatens to impair the national
    security of the United States. On September&#160;15, 2008,
    Precision and Grey Wolf jointly and voluntarily filed a
    notification to CFIUS, which examines proposed foreign
    acquisitions and makes recommendations to the President. The
    CFIUS process can, by statute, take up to 90&#160;days. We
    anticipate that CFIUS will conclude that the Merger does not
    threaten to impair the national security of the United States.
</DIV>

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    <BR>
    79
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='259'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Merger
    Fees, Costs and Expenses</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and Grey Wolf will incur significant transaction and
    Merger-related integration costs in connection with the Merger.
    Precision and Grey Wolf expect to pay transaction costs of
    approximately $110&#160;million in the aggregate, excluding both
    change of control severance payments to some of their departing
    employees and the $25&#160;million termination fee that Grey
    Wolf will be required to pay to Basic upon consummation of the
    Merger. These transaction fees include investment banking, legal
    and accounting fees and expenses, expenses associated with the
    financing of the Merger, SEC filing fees, printing expenses,
    mailing expenses and other related charges. These amounts are
    preliminary estimates that are subject to change. A portion of
    the transaction costs will be incurred regardless of whether the
    Merger is consummated. Precision and Grey Wolf will each pay its
    own transaction costs, except that they will share equally
    certain filing, printing, costs related to financing the Merger
    and other costs and expenses. Precision and Grey Wolf also
    expect to incur costs associated with integrating the operations
    of the two companies. Precision and Grey Wolf are in the early
    stages of assessing the magnitude of these integration costs. In
    addition, upon consummation of the Merger, pursuant to the terms
    of the Basic Merger Agreement, Grey Wolf will pay Basic
    $25&#160;million as the balance of the termination fee.
</DIV>
<A name='260'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Election
    and Exchange Procedures</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    Election</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that each Grey Wolf shareholder
    who makes a valid cash election will have the right to receive,
    in exchange for each share of Grey Wolf common stock for which a
    valid cash election is made (referred to as a &#147;Cash
    Election Share&#148;), an amount in cash equal to the Per Share
    Cash Consideration, subject to the adjustments described below.
    The &#147;Per Share Cash Consideration&#148; is an amount equal
    to $9.02 in cash.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Unit
    Election</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that each Grey Wolf shareholder
    who makes a valid unit election will have the right to receive,
    in exchange for each share of Grey Wolf common stock for which a
    valid unit election is made (referred to as a &#147;Unit
    Election Share&#148;), 0.4225 of a Precision trust unit, subject
    to the adjustments described below. We sometimes refer to the
    number of Precision trust units to be received with respect to
    each Unit Election Share (absent the adjustments described
    below) as the &#147;Per Share Unit Consideration.&#148; 0.4225
    of a Precision trust unit per share of Grey Wolf common stock is
    referred to as the &#147;Exchange Ratio.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">No
    Election</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders who do not make an election to receive cash or
    Precision trust units in the Merger will have the right to
    receive, in exchange for each share of Grey Wolf common stock
    with respect to which no election is made (referred to as a
    &#147;No Election Share&#148;), the Per Share Cash
    Consideration, the Per Share Unit Consideration or a combination
    thereof as described below. If you are a Grey Wolf shareholder
    and your elections are not received by the exchange agent by the
    election deadline, or if your form of election is improperly
    completed
    <FONT style="white-space: nowrap">and/or</FONT> are
    not signed, you will be deemed not to have made an election and
    your shares of Grey Wolf common stock will be considered No
    Election Shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Proration
    Adjustment if Cash Consideration is Oversubscribed</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The cash component of the total consideration (referred to as
    the &#147;Available Cash Consideration&#148;) to be paid by
    Precision in the Merger is approximately $1.12&#160;billion. If
    the aggregate amount of cash payable with respect to all Cash
    Election Shares (the &#147;Elected Cash Consideration&#148;) and
    in respect of Grey Wolf shareholders who exercise their
    dissenters&#146; rights (the &#147;Dissenting Cash
    Consideration&#148;) is greater than the Available Cash
    Consideration then:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each Unit Election Share and No Election Share will be converted
    into the right to receive the Per&#160;Share Unit
    Consideration;&#160;and
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    80
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each Cash Election Share will be converted into the right to
    receive (i)&#160;an amount in cash (without interest) equal to
    the product of (a)&#160;the Per Share Cash Consideration
    multiplied by (b)&#160;a fraction, the numerator of which will
    be the difference between the Available Cash Consideration and
    the Dissenting Cash Consideration and the denominator of which
    will be the Elected Cash Consideration (the &#147;Cash
    Fraction&#148;) and (ii)&#160;a number of Precision trust units
    equal to (x)&#160;the Exchange Ratio multiplied by (y)&#160;one
    minus the Cash Fraction.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Proration
    Adjustment if Cash Consideration is
    Undersubscribed</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the sum of the Elected Cash Consideration and the Dissenting
    Cash Consideration is less than the Available Cash Consideration
    (such difference referred to as the &#147;No Election Available
    Cash&#148;), then each Cash Election Share will be converted
    into the right to receive the Per Share Cash Consideration, and:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;</TD>
    <TD align="left">
    if the No Election Value (as described below) is less than the
    No Election Available Cash, then:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    each No Election Share will be converted into the right to
    receive the Per Share Cash Consideration;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    each Unit Election Share will be converted into the right to
    receive (i)&#160;an amount in cash (without interest) equal to
    (x)&#160;the difference between the No Election Available Cash
    and the No Election Value divided by (y)&#160;the number of Unit
    Election Shares and (ii)&#160;a number of Precision trust units
    equal to the product of (x)&#160;the Exchange Ratio and
    (y)&#160;one minus the quotient obtained by dividing the amount
    of cash payable under clause&#160;(i) of this paragraph by the
    Per Share Cash Consideration.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;</TD>
    <TD align="left">
    if the No Election Value (as described below) is greater than or
    equal to the No Election Available Cash, then:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    on a pro rata basis, a number of No Election Shares equal to
    (i)&#160;the No Election Available Cash divided by the Per Share
    Cash Consideration multiplied by (ii)&#160;a fraction, the
    numerator of which shall be the number of No Election
    Shares&#160;and the denominator of which shall be the number of
    No Election Shares plus the number of Notes Shares (as defined
    below) will be converted into the right to receive the Per Share
    Cash Consideration, with the remainder of No Election Shares
    being converted into the right to receive the Per Share Unit
    Consideration;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    each Unit Election Share will be converted into the right to
    receive the Per Share Unit Consideration.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;No Election Value&#148; is equal to the product of
    (i)&#160;the Per Share Cash Consideration multiplied by
    (ii)&#160;the number of No Election Shares plus the number of
    shares of Grey Wolf common stock underlying convertible notes
    which have not been converted by the election deadline (the
    &#147;Notes Shares&#148;).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Elections
    as to Form of Consideration; Form of Election</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf shareholders who wish to elect the type of
    consideration they will receive in the Merger, should carefully
    review and follow the instructions set forth in the letter of
    transmittal and form of election accompanying this proxy
    statement/prospectus. The letter of transmittal and form of
    election allows Grey Wolf shareholders to make a cash or stock
    election in respect of each share of Grey Wolf common stock that
    they hold. Grey&#160;Wolf shareholders may specify different
    elections with respect to different shares held by them. To make
    a valid election, each Grey Wolf shareholder must submit a
    properly completed letter of transmittal and form of election,
    together with stock certificates. If you do not return your
    letter of transmittal and form of election by the election
    deadline, you will be paid, in exchange for each No Election
    Share that you hold, the Per Share Cash Consideration, the Per
    Share Unit Consideration or a combination thereof as described
    above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise designated on the election form or agreed by
    Precision and Grey Wolf and publicly announced, the election
    deadline will be 5:00&#160;p.m., Houston, Texas time, on the
    second business day prior to the effective time of the Merger.
    Precision and Grey Wolf will publicly announce the anticipated
    election deadline at least 5 business days prior to the
    anticipated effective time of the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you wish to elect the type of Merger consideration you will
    receive in the Merger, you should carefully review and follow
    the instructions set forth in the letter of transmittal and form
    of election. If it is determined
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    81
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    that any purported cash election or unit election was not
    properly made, the purported election will be deemed to be of no
    force or effect and the holder making the purported election
    will be deemed not to have made an election for these purposes,
    unless a proper election is subsequently made on a timely basis.
    Grey&#160;Wolf shareholders who hold their shares of Grey Wolf
    common stock in &#147;street name&#148; or through a bank,
    broker or other nominee will be subject to the procedures
    established by, and should follow the instructions of, their
    bank, broker or other nominee for making an election with
    respect to such shares of Grey Wolf common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, an election may be revoked, but only by written
    notice received by the exchange agent prior to the election
    deadline. In addition, an election may be changed, but only upon
    receipt by the exchange agent prior to the election deadline of
    a properly completed and signed revised form of election. Grey
    Wolf shareholders will not be entitled to make, revoke or change
    any election following the election deadline. Shares of Grey
    Wolf common stock as to which the holder has not make a valid
    election prior to the election deadline, including as a result
    of revocation of an election, will be deemed to have made no
    election.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    of Shares; Exchange of Certificates</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion of Grey Wolf common stock into the right to
    receive the Merger consideration will occur automatically at the
    effective time of the Merger. After the effective time of the
    Merger, the exchange agent will exchange certificates
    representing shares of Grey Wolf common stock for the Merger
    consideration to be received in the Merger pursuant to the terms
    of the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accompanying this proxy statement/prospectus is a letter of
    transmittal and form of election. The letter of transmittal and
    form of election contains an election form with instructions on
    how to surrender certificates representing shares of Grey Wolf
    common stock in exchange for the consideration that the holder
    of such shares is entitled to receive under the Merger
    Agreement. A letter of transmittal and form of election will be
    properly completed only if accompanied by certificates
    representing all shares of Grey Wolf common stock covered by the
    letter of transmittal and form of election (or appropriate
    evidence as to the loss, theft or destruction, appropriate
    evidence as to the ownership of that certificate by the
    claimant, and appropriate and customary indemnification, as
    described in the letter of transmittal and form of election).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare Trust Company, N.A. will be the exchange agent in
    the Merger and will receive your letter of transmittal and form
    of election, exchange your Grey Wolf stock certificates for the
    Merger consideration and perform other duties as specified in
    the Merger Agreement. Precision will deposit, or cause to be
    deposited, with the exchange agent certificates representing the
    aggregate number of Precision trust units to be issued as Merger
    consideration pursuant to the Merger Agreement, the aggregate
    amount of cash to be paid as Merger consideration pursuant to
    the Merger Agreement and sufficient cash, when and as needed, to
    pay cash in lieu of fractional Precision trust units in
    accordance with the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon surrender of a certificate or transfer of uncertificated
    shares representing the Grey Wolf common stock for cancellation
    to the exchange agent, together with the letter of transmittal
    and form of election described above, duly executed and
    completed in accordance with the instructions that accompany the
    letter of transmittal and form of election, the holder will be
    entitled to receive (i)&#160;Precision trust units and/or
    (ii)&#160;a check representing the amount of cash consideration
    and cash in lieu of fractional Precision trust units, if any,
    and unpaid distributions, if any, the holder has the right to
    receive pursuant to the provisions of the Merger Agreement,
    after giving effect to any required withholding tax and other
    reductions. Surrendered certificates will then be canceled.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No interest will be paid or accrued on the cash consideration to
    be received in the Merger, cash in lieu of fractional trust
    units and unpaid distributions, if any, payable to holders of
    Grey Wolf common stock. Further, no other distributions declared
    or made after the effective time of the Merger with respect to
    Precision trust units with a record date after the effective
    time of the Merger will be paid to the holder of any shares of
    Grey&#160;Wolf common stock that have not been surrendered or
    transferred to the exchange agent with respect to the Precision
    trust units issuable upon the surrender or transfer until such
    surrender or transfer.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    82
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of a transfer of ownership of Grey Wolf common
    stock that is not registered in the transfer records of Grey
    Wolf, the proper number of Precision trust units, together with
    a check for the cash consideration and cash to be paid in lieu
    of fractional trust units and unpaid distributions, if any, may
    be issued to the transferee if the certificate or uncertificated
    share representing such Grey Wolf common stock is presented to
    the exchange agent, accompanied by all documents required to
    evidence and effect such transfer and to evidence that any
    applicable stock transfer taxes have been paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any former shareholders of Grey Wolf who have not surrendered
    their Grey Wolf common stock within one year after the effective
    time of the Merger should only look to Precision, not the
    exchange agent, for their Precision trust units, their cash
    consideration and cash in lieu of any fractional shares and for
    any unpaid distributions and distributions on the Precision
    trust units deliverable to those former shareholders pursuant to
    the Merger Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Withholding</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exchange agent will be entitled to deduct and withhold from
    the cash consideration the amounts it is required to deduct and
    withhold under any US federal, Canadian, state, local or foreign
    tax law. These amounts will be treated as having been paid to
    the Grey Wolf shareholders from whom they were withheld.
</DIV>
<A name='261'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Effect of
    Conversion of Grey Wolf Convertible Notes</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of Grey Wolf&#146;s convertible notes will be
    entitled to a special conversion privilege entitling them to
    convert the principal amount of their convertible notes into
    Grey Wolf common stock for a period beginning 15 business days
    prior to, and ending two business days prior to, the anticipated
    effective time of the Merger. If converted, the holders of Grey
    Wolf&#146;s convertible notes will be entitled to receive one
    share of Grey Wolf common stock for each $6.45 of principal
    amount of Grey Wolf&#146;s 3.75% convertible notes that is
    converted, and one share of Grey Wolf common stock for each
    $6.51 of principal amount of Grey Wolf&#146;s floating rate
    convertible notes that is converted.
</DIV>
<A name='262'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Treatment
    of Grey Wolf Stock Options</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of vested options granted under a Grey Wolf equity
    incentive plan can exercise their options any time prior to the
    Merger and will participate in the Merger in the same manner as
    other Grey Wolf shareholders. At the effective time of the
    Merger, all outstanding options, except for those granted under
    the Grey Wolf, Inc. 2003 Incentive Plan (&#147;2003 Incentive
    Plan&#148;), that have not been exercised will be cancelled.
    Each option granted under the 2003 Incentive Plan that is
    outstanding at the effective time of the Merger will be assumed
    by Precision and converted into a unit appreciation right
    pursuant to a plan to be adopted by Precision. Each unit
    appreciation right will have the same terms as the
    previously-held Grey Wolf stock option, including vesting and
    expiration, but will be settled in cash based upon the
    difference between the strike price (derived from the exercise
    price of the option as adjusted for the Merger) and the fair
    market value of the Precision trust unit on the date of exercise.
</DIV>
<A name='263'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Agreements</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the directors and executive officers of Grey Wolf
    entered into a voting agreement with Precision to vote his
    shares in favor of the approval of the Merger Agreement and not
    dispose of or pledge his shares of Grey Wolf common stock,
    except for existing pledges. The voting agreements will
    terminate if the Merger Agreement is terminated or upon mutual
    consent of that individual and Precision. This summary does not
    purport to be complete, and is qualified in its entirety by
    reference to the voting agreements, a form of which is included
    as <B>Annex&#160;B </B>to, and is incorporated by reference in,
    this proxy statement/prospectus. As this summary may not contain
    all of the information that is important to you, you are urged
    to carefully read the form of voting agreement in its entirety.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    83
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='264'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Appraisal
    Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Article&#160;5.12 of the TBCA grants dissenters&#146; rights to
    shareholders who are required, by the terms of a Merger, to
    accept any consideration other than shares of stock in the
    surviving company, shares of stock listed on a national
    securities exchange or cash received as payment for fractional
    shares. Because Grey Wolf shareholders may receive cash as part
    of their Merger consideration, Grey Wolf shareholders will have
    appraisal rights as a result of the Merger. The full text of
    Article&#160;5.12 of the TBCA is attached to this proxy
    statement/prospectus as <B>Annex&#160;D</B>.
</DIV>
<A name='265'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Interests
    of Grey Wolf Directors and Officers in the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should be aware that some Grey Wolf&#146;s directors and
    executive officers have interests in the Merger as directors or
    officers that are different from, or in addition to, the
    interests of other Grey Wolf shareholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Governance
    Structure and Management Positions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon consummation of the Merger, the board of directors of PDC,
    which is the administrator of Precision and has been delegated
    the responsibility for the management and general administration
    of the affairs of Precision, will be expanded to consist of
    twelve members, three of whom are current members of Grey
    Wolf&#146;s board of directors (Frank M. Brown, William T.
    Donovan and Trevor M. Turbidy). Precision is in discussions with
    certain executive officers of Grey Wolf regarding prospective
    positions as executive officers of PDC. More information
    regarding the directors and executive officers that have been
    designated or selected is set forth in &#147;Trustees, Directors
    and Executive Management of the Combined Companies&#160;&#151;
    Executive Management of PDC&#148; beginning on page&#160;106.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Change
    of Control Payments Under Executive Severance Plan and
    Employment Agreements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any Grey Wolf executive officer whose employment is terminated
    under certain circumstances after the effective time of the
    Merger will be entitled to severance benefits under his
    employment agreement. Similarly, the officers covered by the
    Grey Wolf Executive Severance Plan, established in November 2001
    (the &#147;Executive Severance Plan&#148;), shall be entitled to
    severance benefits under the Executive Severance Plan as
    described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purpose of the Executive Severance Plan is to provide those
    executive officers of Grey Wolf who have not entered into
    employment agreements with Grey Wolf economic protection in the
    event of termination of employment by the company without cause,
    or by the executive officer with good reason, within
    6&#160;months prior to or 12&#160;months after a &#147;Change in
    Control&#148; (as defined in the Executive Severance Plan). The
    Merger would be a change of control under the Executive
    Severance Plan. Pursuant to the terms of the Executive Severance
    Plan, in the event of such a termination a participant will
    receive a severance payment equal to one and one half times the
    sum of: (i)&#160;the participant&#146;s annual salary, plus
    (ii)&#160;a bonus equal to thirty percent of such annual salary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf is a party to employment agreements with Thomas P.
    Richards, David W. Wehlmann, David&#160;J.&#160;Crowley, Robert
    J. Proffit, Edward S. Jacob III, Forrest M. Conley,&#160;Jr.,
    Joseph C. Hopewell and Ronald G. Hale which contain provisions
    that provide for severance payments to the executive. If the
    employment of any of these executive officers is terminated by
    Grey Wolf during the one-year (two-year in the case of
    Mr.&#160;Richards) period immediately following the consummation
    of the Merger for any reason other than death, disability or
    &#147;cause,&#148; as defined below, or if the executive
    terminates his employment due to a &#147;constructive
    termination without cause,&#148; as defined below, the former
    officer will be entitled to receive the following from the
    surviving company:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a severance payment equal to the product of three times (three
    and three quarters times in the case of Mr.&#160;Richards) the
    sum of the executive&#146;s current base salary and a bonus
    equal to 50% (100% in the case of Mr.&#160;Richards) of the
    executive&#146;s base salary;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    84
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    for varying periods of time following the executive&#146;s date
    of termination (depending on the executive&#146;s age and years
    of service with Grey Wolf), medical and welfare benefits equal
    to those benefits which would have been provided to such
    executive if the executive&#146;s employment had not been
    terminated;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all stock options, restricted stock, restricted stock units or
    other stock-based awards held by the executive that are not
    vested, will vest (restricted stock held by executives vests on
    a change of control irrespective of termination);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the event any payment or distribution to the executive would
    be subject to the federal excise tax imposed by
    section&#160;4999 of the Code on &#147;excess parachute
    payments,&#148; the executive will be made whole by Grey Wolf
    for any such payments.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of these employment agreements, &#147;constructive
    termination without cause&#148; includes, in relevant part, the
    following events:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a failure to elect or reelect or to appoint or reappoint the
    executive to the office he currently holds with Grey Wolf or
    other material change of the executive&#146;s functions, duties
    or responsibilities which change would reduce the ranking or
    level, dignity, responsibility, importance or scope of the
    executive&#146;s position from the position and attributes he
    currently holds;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the assignment or reassignment of the executive to a location
    not within fifty miles of Grey Wolf&#146;s current location;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the liquidation, dissolution, consolidation or merger of Grey
    Wolf, or transfer of all or substantially all of its assets,
    other than a transaction in which a successor corporation with a
    net worth substantially the same as or greater than that of Grey
    Wolf assumes the executive&#146;s employment agreement and all
    obligations and undertakings of Grey Wolf thereunder;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a reduction in the executive&#146;s annual salary;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;change in control;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the failure of Grey Wolf to continue to provide the executive
    with office space, related facilities and secretarial assistance
    that are commensurate with the executive&#146;s responsibilities
    to and position with Grey Wolf;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the notification by Grey Wolf of Grey Wolf&#146;s intention not
    to observe or perform one or more of the obligations of Grey
    Wolf under the executive&#146;s employment agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the failure by Grey Wolf to indemnify, pay or reimburse the
    executive at the time and under the circumstances required by
    the executive&#146;s employment agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the occurrence of any other material breach of the
    executive&#146;s employment agreement by Grey Wolf or any of its
    subsidiaries;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the delivery of notice by the Company in accordance with the
    executive&#146;s employment agreement hereof that it desires to
    terminate the executive&#146;s employment agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of these change of control agreements, termination
    for &#147;cause&#148; includes, in relevant part, termination
    for any of the following reasons:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    chronic alcoholism or controlled substance abuse;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an act of proven fraud or dishonesty on the part of the
    executive with respect to Grey Wolf;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    knowing and material failure by the executive to comply with
    material applicable laws and regulations relating to the
    business of Grey Wolf;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the executive&#146;s material and continuing failure to perform
    (as opposed to unsatisfactory performance) his duties or a
    material breach by the executive of his employment agreement
    except, in each case,
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    85
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    where such failure or breach is caused by the illness or other
    similar incapacity or disability of the executive;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conviction of a crime involving moral turpitude or a felony.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Richards will not be continuing as an employee of
    Precision or its affiliates after the effective time of the
    Merger, and thus, in connection with the Merger,
    Mr.&#160;Richards will receive approximately $4.9&#160;million
    after the closing of the Merger. Also pursuant to his employment
    agreement, Mr. Richards will be entitled to a prorated portion
    of his 2008 bonus. In addition, all of his unvested options and
    restricted stock automatically will vest and any other
    conditions to these awards will be deemed satisfied upon closing
    of the Merger. Additionally, Mr.&#160;Richards and his spouse
    will be provided certain health care insurance benefits for each
    of their lives.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Consulting
    Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the insistence of Precision, Mr.&#160;Richards entered into a
    consulting agreement with Merger Sub which will be effective
    upon consummation of the Merger. Under the terms of the
    consulting agreement, he will be paid a consulting fee at a
    monthly rate of $25,000 for the first three months of the
    agreement. The agreement will terminate on the first anniversary
    of the effective time of the Merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Director
    Ownership Interests</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Steven A. Webster, a director of Grey Wolf, beneficially owns
    500 Precision trust units.
</DIV>
<A name='266'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Listing
    of Precision Trust&#160;Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is a condition to the consummation of the Merger that
    (i)&#160;the Toronto Stock Exchange shall have conditionally
    approved the additional listing of the Precision trust units to
    be issued pursuant to the Merger, and (ii)&#160;the New York
    Stock Exchange shall have approved the additional listing of the
    Precision trust units to be issued pursuant to the Merger,
    subject to official notice of issuance. The Toronto Stock
    Exchange has conditionally approved the additional listing of
    the Precision trust units to be issued pursuant to the Merger,
    subject to Precision fulfilling the requirements of such
    exchange. The New York Stock Exchange has approved the listing
    of the Precision trust units to be issued pursuant to the
    Merger, subject to official notice of issuance.
</DIV>
<A name='267'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Deregistration
    and Delisting of Grey Wolf Stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Merger is consummated, Grey Wolf will delist its common
    stock from the American Stock Exchange, and may deregister its
    common stock under the Exchange Act. The shareholders of Grey
    Wolf will become holders of Precision trust units, and their
    rights as unitholders will be governed by Alberta law and by
    Precision&#146;s Declaration of Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf may cease filing periodic reports pursuant to the
    Exchange Act with the SEC following deregistration of their
    common stock, subject to securities laws requirements and Grey
    Wolf&#146;s obligations under their respective debt instruments.
</DIV>
<A name='268'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf&#146;s Dividend Policy</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf has never declared a dividend on its common stock.
    Grey Wolf&#146;s bank credit facilities restrict its ability to
    declare or pay any dividend on, or make similar payments with
    respect to, its capital stock. In addition, the Merger Agreement
    prohibits Grey Wolf from declaring, setting aside or paying any
    dividend with respect to its capital stock while the Merger is
    pending.
</DIV>
<A name='269'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Precision&#146;s
    Distribution Policy</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s board of trustees has adopted a policy of
    making regular cash distributions on or about the 15th&#160;day
    following the end of each calendar month to holders of Precision
    trust units of record on the last
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    86
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

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    business day of each such calendar month or such other date as
    determined from time to time by the board of trustees. In
    addition, Precision&#146;s Declaration of Trust provides that,
    an amount equal to net income of Precision not already paid to
    holders of Precision trust units in the year will become payable
    on December 31 of each year, such that Precision will not be
    liable for ordinary income taxes for such year. Please refer to
    &#147;Certain Canadian Federal Income Tax
    Considerations&#160;&#151; Taxation of the Trust&#148; on pages
    46 and 47 of the 2005 Special Meeting Information Circular which
    is incorporated herein by reference to Exhibit&#160;4 of the
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    filed by Precision with the SEC on October&#160;5, 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s board of trustees reviews the Precision&#146;s
    distribution policy from time to time. The actual amount
    distributed is dependent on various economic factors and
    distributions are declared at the discretion of Precision&#146;s
    board of trustees. The actual cash flow available for
    distribution to holders of Precision trust units is a function
    of numerous factors, including Precision&#146;s, PDLP&#146;s and
    PDC&#146;s financial performance; debt covenants and
    obligations; working capital requirements; upgrade and expansion
    capital expenditure requirements for the purchase of property,
    plant and equipment; and the number of Precision trust units and
    exchangeable units of PDLP issued and outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the aforementioned factors, distributions may be
    increased, reduced or suspended entirely. The market value of
    Precision trust units may deteriorate if Precision decreases or
    suspends cash distributions in the future. Refer to the heading
    &#147;Risk Factors&#148; beginning on page&#160;25 hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of Precision&#146;s Declaration of Trust,
    Precision is required to make distributions to holders of
    Precision trust units in amounts at least equal to its taxable
    income. Distributions may be monthly or special and in cash or
    in Precision trust units (&#147;in-kind&#148;) at the discretion
    of Precision&#146;s board of trustees. To the extent that
    additional cash distributions are paid and capital expenditure
    or investment programs are not adjusted, debt levels may
    increase. In the event that a distribution in the form of
    Precision trust units is declared, the terms of Precision&#146;s
    Declaration of Trust requires that the outstanding trust units
    be consolidated immediately subsequent to the distribution. The
    number of outstanding Precision trust units would remain at the
    number outstanding immediately prior to the unit distribution
    and an amount equal to the distribution would be allocated to
    the holders of Precision trust units. For greater clarity,
    holders of Precision trust units do not receive additional trust
    units during an &#147;in-kind&#148; issuance and consolidation
    process.
</DIV>
<A name='270'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Resale of
    Precision Trust&#160;Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">US
    Resale Requirements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Precision trust units issuable under the terms of the Merger
    Agreement will not be subject to any restrictions on transfer
    arising under the Securities Act of 1933, as amended (the
    &#147;Securities Act&#148;), except for shares issued to any
    Grey Wolf shareholder who becomes an &#147;affiliate&#148; of
    Precision for purposes of Rule&#160;144 under the Securities
    Act. Persons who may be deemed affiliates of Precision for such
    purposes include individuals or entities that control, are
    controlled by, or are under common control with Grey Wolf and
    may include directors and executive officers of Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This document does not constitute a registration statement
    covering resales of shares by persons who are otherwise
    restricted from selling their shares under Rules&#160;144 and
    145 of the Securities Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Canadian
    Resale Requirements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Precision trust units to be issued to holders of Grey Wolf
    common stock under the Merger will be issued in reliance on
    exemptions from the prospectus and registration requirements of
    applicable Canadian securities laws, and the Precision trust
    units will generally be &#147;freely tradeable&#148; (other than
    as a result of any &#147;control block&#148; restrictions which
    may arise by virtue of the ownership thereof) under applicable
    Canadian securities laws.
</DIV>

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    <BR>
    87
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<A name='271'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    MERGER AGREEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following summary of the Merger Agreement is qualified in
    its entirety by reference to the complete text of the Merger
    Agreement, which is incorporated by reference and attached as
    <B>Annex&#160;A </B>to this proxy statement/prospectus. The
    rights and obligations of the parties are governed by the
    express terms and conditions of the Merger Agreement and not by
    this summary or any other information contained in this proxy
    statement/prospectus. We urge you to read the Merger Agreement
    carefully and in its entirety, as well as this proxy
    statement/prospectus, before making any decisions regarding the
    Merger.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The Merger Agreement has been included with this proxy
    statement/prospectus to provide you additional information
    regarding its terms. The Merger Agreement sets forth the
    contractual rights of Precision and Grey&#160;Wolf but is not
    intended to be a source of factual, business or operational
    information about Precision or Grey&#160;Wolf. That kind of
    information can be found elsewhere in this proxy
    statement/prospectus and in the other filings each of Precision
    and Grey Wolf makes with the SEC, which are available as
    described in &#147;Where You Can Find More Information.&#148;</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>As a shareholder, you are not a third party beneficiary of
    the Merger Agreement and therefore you may not directly enforce
    any of its terms or conditions. The parties&#146;
    representations, warranties and covenants were made as of
    specific dates and only for purposes of the Merger Agreement and
    are subject to important exceptions and limitations, including a
    contractual standard of materiality different from that
    generally relevant to investors. In addition, the
    representations and warranties may have been included in the
    Merger Agreement for the purpose of allocating risk between
    Precision and Grey Wolf, rather than to establish matters as
    facts. Certain of the representations, warranties and covenants
    in the Merger Agreement are qualified by information each of
    Precision and Grey Wolf filed with the SEC prior to the date of
    the Merger Agreement, as well as by disclosure letters each of
    Precision and Grey Wolf delivered to the other party in
    connection with the signing the Merger Agreement. The disclosure
    letters have not been made public because, among other reasons,
    they include confidential or proprietary information. The
    parties believe, however, that all information material to a
    shareholder&#146;s decision to approve the Merger is included or
    incorporated by reference in this document.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should also be aware that none of the representations or
    warranties has any legal effect among the parties to the Merger
    Agreement after the effective time of the Merger, nor will the
    parties to the Merger Agreement be able to assert the inaccuracy
    of the representations and warranties as a basis for refusing to
    close the transaction unless all such inaccuracies as a whole
    would give rise to the failure of certain closing conditions.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Furthermore, you should not rely on the covenants in the
    Merger Agreement as actual limitations on the respective
    businesses of Precision and Grey Wolf, because either party may
    take certain actions that are either expressly permitted in the
    confidential disclosure letters to the Merger Agreement or as
    otherwise consented to by the appropriate party, which may be
    given without prior notice to the public.</I>
</DIV>
<A name='272'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Execution
    of the Merger Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;24, 2008, Grey Wolf, Precision, PDC and Merger
    Sub entered into the Merger Agreement. Under the terms of the
    Merger Agreement, Grey Wolf will merge with and into Merger Sub,
    with Merger Sub continuing as the surviving corporation.
</DIV>
<A name='273'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Closing and the Effective Time of the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise agreed by the parties to the Merger Agreement,
    the closing of the Merger will take place in Houston, Texas at
    the offices of Mayer Brown LLP as soon as practicable after
    10:00&#160;a.m., local time, on the first business day
    immediately following the day on which all of the applicable
    conditions set forth in the Merger Agreement have been satisfied
    or waived, except for those conditions that by their nature
    cannot be satisfied until the closing, but subject to the
    satisfaction or waiver of those conditions or at such other time
    and place as Precision and Grey Wolf agree in writing. As soon
    as practicable following the satisfaction or waiver of such
    conditions, at the closing, the parties to the Merger Agreement
    shall cause a
</DIV>

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    <BR>
    88
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    properly executed certificate of merger and articles of merger
    (the &#147;Certificate of Merger&#148;) meeting the requirements
    of Article&#160;5.04 of the TBCA to be filed in accordance
    therewith. The Merger shall become effective upon the issuance
    of the Certificate of Merger under the TBCA, in each case by the
    Secretary of State of the State of Texas, or at such time
    thereafter as is agreed to by Precision and Grey Wolf and
    provided in the Certificate of Merger.
</DIV>
<A name='274'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Merger
    Consideration to be Received in the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Consideration
    to be Received in the Merger</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the Merger Agreement, shareholders of Grey
    Wolf may elect to receive either cash or Precision trust units
    in exchange for their Grey Wolf common stock. Each share of Grey
    Wolf common stock will be converted, at the option of the
    holder, into $9.02 in cash or 0.4225 Precision trust units,
    subject to proration. The maximum amount of cash to be paid by
    Precision will be approximately $1.12&#160;billion, and the
    maximum number of Precision trust units will be approximately
    42.0&#160;million. These amounts take into account shares of
    Grey Wolf common stock issuable upon the conversion of Grey
    Wolf&#146;s convertible debt securities and the exercise of Grey
    Wolf stock options, which, together with Grey Wolf&#146;s issued
    and outstanding common stock, totals approximately
    223&#160;million fully-diluted shares of Grey Wolf common stock.
    The consideration described herein represents approximately a
    4.5% increase in the aggregate number of Precision trust units
    offered to Grey Wolf shareholders since July&#160;9, 2008, the
    date of Precision&#146;s last public announcement of its
    intention to acquire Grey Wolf. Upon consummation of the Merger,
    shareholders of Grey&#160;Wolf will own approximately 25% of the
    combined company, assuming that all outstanding Grey Wolf
    convertible notes are converted into Grey Wolf common stock
    prior to the Merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adjustment
    to the Exchange Ratio</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, between the date of the Merger Agreement and the effective
    time of the Merger, the number of outstanding shares of Grey
    Wolf or the outstanding Precision trust units shall have been
    increased, decreased, changed into or exchanged for a different
    number of shares or trust units, whether by reason of any
    reclassification, recapitalization, stock or unit split,
    <FONT style="white-space: nowrap">split-up,</FONT>
    combination or exchange of shares or trust units or a stock or
    unit dividend or distribution or dividend or distribution
    payable in other securities shall be declared with a record date
    within such period, or any similar event shall have occurred,
    the Merger consideration shall be appropriately adjusted to
    provide to the holders of shares of Grey Wolf common stock the
    same economic effect as contemplated by the Merger Agreement.
</DIV>
<A name='276'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Covenants
    and Agreements</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interim
    Operations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of Precision and Grey Wolf has agreed to customary
    covenants that place restrictions on it and its subsidiaries
    until the effective time of the Merger. Except as set forth in
    the disclosure letters provided by each of Precision and Grey
    Wolf, as expressly permitted or contemplated by the Merger
    Agreement, as required by applicable laws or with the written
    consent of the other party, each of Precision and Grey Wolf has
    agreed that it will:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conduct its operations and cause each of its subsidiaries to
    conduct its operations in all material respects in the usual,
    regular and ordinary course in substantially the same manner as
    previously conducted;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    use its commercially reasonable efforts consistent with past
    practice to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    preserve intact its business organization and goodwill,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    keep available the services of its executive officers, directors
    and key employees,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    preserve their relationships with customers, suppliers, agents
    and creditors;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not amend or propose to amend its organizational documents;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    89
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not adjust, split, combine, reclassify or dispose of any of its
    equity securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not issue any shares or trust units of its capital stock or
    other equity securities, effect any stock split or otherwise
    change its capitalization as it existed on the date of the
    Merger Agreement, except pursuant to the exercise of options
    existing on the date of the Merger Agreement, pursuant to Grey
    Wolf&#146;s Rights Agreement, as amended, upon the conversion of
    any of Grey Wolf&#146;s outstanding convertible notes in
    accordance with their terms or pursuant to the grant or exercise
    of awards granted after the date of the Merger Agreement and
    expressly permitted (i)&#160;under the Merger Agreement,
    (ii)&#160;pursuant to Sections&#160;3.6 and 5.7 of
    Precision&#146;s Declaration of Trust and (iii)&#160;upon the
    exchange or redemption of the Exchangeable Trust units;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, grant any
    option, warrant, conversion right or other right not existing on
    the date of the Merger Agreement to acquire or otherwise with
    respect to shares of its capital stock or other equity
    securities, or grant or issue any restricted stock or
    securities, except for awards under the Precision or Grey Wolf
    benefit plans in existence as of the date of the Merger
    Agreement to any newly hired employees in the ordinary course of
    business consistent with past practices, as long as the vesting
    or exercisability of any award made after the date of the Merger
    Agreement does not accelerate as a result of the pendency,
    approval or consummation of the transactions contemplated by the
    Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not purchase, redeem or otherwise acquire any shares of its
    capital stock or the capital stock of any of its subsidiaries,
    except (i)&#160;by or among direct or indirect wholly-owned
    subsidiaries, (ii)&#160;pursuant to the terms of the Grey Wolf
    convertible notes (iii)&#160;pursuant to Article 6 of
    Precision&#146;s Declaration of Trust and (iv)&#160;shares
    withheld to satisfy tax withholding requirements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not liquidate,
    <FONT style="white-space: nowrap">wind-up,</FONT>
    dissolve or adopt any plan to liquidate,
    <FONT style="white-space: nowrap">wind-up</FONT> or
    dissolve;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, sell,
    lease, license or otherwise dispose of, any assets (including
    capital stock of subsidiaries) that are, individually or in the
    aggregate, material to it and its subsidiaries as a whole,
    except:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    sales of surplus or obsolete equipment,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    sales of other assets in the ordinary course of business or
    sales of assets pursuant to contractual rights existing as of
    the date of the Merger Agreement that were entered into in the
    ordinary course of business consistent with past practices,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    sales, leases or other transfers between itself and its wholly
    owned subsidiaries or between such subsidiaries,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    sales, dispositions or divestitures required by or in
    conformance with applicable laws in order to permit or
    facilitate the consummation of the Merger in accordance with the
    terms of the Merger Agreement;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not willfully or intentionally breach any representation or
    warranty set forth in the Merger Agreement or take any action
    that is reasonably likely to materially delay or impair the
    ability of the parties to the Merger Agreement to consummate the
    transactions contemplated by the Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not enter into any contract or obligation with respect to any of
    the foregoing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the mutual covenants of the parties, Grey Wolf
    has also agreed that it will:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not declare, set aside or pay any dividend on or make other
    distributions or payment with respect to any shares of its
    capital stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, amend or
    modify any option, warrant, conversion right or other right to
    acquire shares of its capital stock existing on the date of the
    Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, increase
    any compensation or benefits, award or pay any bonuses,
    establish any bonus plan or arrangement or enter into, amend or
    extend any employment
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    90
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    or consulting agreement with any former, present or future
    officers, directors or employees, except in the ordinary course
    of business consistent with past practices;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with respect only to Grey Wolf, not, and will not permit any of
    its subsidiaries to, adopt any new employee benefit plan or
    agreement (including any stock option, stock benefit or stock
    purchase plan) or amend any existing employee benefit plan in
    any material respect, except as expressly required or permitted
    by the Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, permit any
    holder of an option or other award to acquire Grey Wolf common
    stock to have shares withheld upon exercise, vesting or payment
    for tax purposes, in excess of the number of shares needed to
    satisfy the minimum federal and state tax withholding
    requirements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, sell,
    lease, license or otherwise dispose of, any assets (including
    capital stock of subsidiaries) that are, individually or in the
    aggregate, material to it and its subsidiaries as a whole,
    except arm&#146;s-length sales or transfers for aggregate
    consideration not exceeding $30&#160;million;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, acquire or
    agree to acquire by merging or consolidating with, or by
    purchasing an equity interest in or a substantial portion of the
    assets of, or by any other manner, any business or any
    corporation, partnership, association or other business
    organization or division thereof, except in each case for
    acquisitions that:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    with respect to Grey Wolf, are not in excess of $50&#160;million
    aggregate cash consideration less the aggregate amount of any
    unbudgeted capital expenditures made pursuant to the terms of
    the Merger Agreement,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    would not require historical or pro forma financial statements
    with respect to such acquisitions to be included in this proxy
    statement prospectus;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not make any loans, advances, capital contributions to or
    investments in any person, other than to its wholly-owned
    subsidiaries or from its wholly-owned subsidiaries, customer
    loans and advances to employees consistent with past practices
    or short-term investment of cash in the ordinary course of
    business in accordance with its cash management procedures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not terminate or amend any material contract or waive or assign
    any of its rights under a material contract in a manner that
    would be materially adverse to it, or enter into any material
    contract other than customer contracts entered into in the
    ordinary course of business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, incur any
    indebtedness in excess of $7.5&#160;million in the aggregate, or
    guarantee any such indebtedness, issue or sell any debt
    securities or warrants or rights to acquire any of its or its
    subsidiary&#146;s debt securities, or guarantee any debt
    securities of others, except for borrowings from its credit
    facility in the ordinary course of business, borrowings to repay
    or repurchase its other indebtedness or borrowings in respect of
    intercompany debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, create any
    material liens or encumbrances (other than certain permitted
    liens) on any of its property or, enter into any material
    leases, except in the ordinary course of business or with or
    between its subsidiaries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    make or rescind any material tax election,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    settle or compromise any material tax claim or
    controversy,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    materially change its methods of reporting relating to taxes
    from those employed in the preparation of its tax return for the
    most recent taxable year for which a return has been filed;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    91
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not incur or commit to any capital expenditures that in the
    aggregate exceed its capital expenditure budget by more than
    $50&#160;million in the aggregate less the aggregate amount
    actually spent on acquisitions as permitted by the Merger
    Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not enter into any material new line of business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not enter into any contract that subjects Precision or any of
    its subsidiaries to any material non-compete or similar
    agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will cause its subsidiaries not to, change any material
    accounting principle or practice used by it except as required
    by a change in generally accepted accounting principles;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    engage in any transaction or enter into any agreement with an
    affiliate of Grey Wolf;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not compromise, settle or grant any waiver or release related to
    any litigation or proceeding, other than settlements or
    compromises of such litigation or proceedings where the full
    amount to be paid is covered by insurance or where the amount to
    be paid does not exceed $3&#160;million individually or
    $7.5&#160;million in the aggregate.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the mutual covenants of the parties, Precision
    has also agreed that it will:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not cease or suspend making distributions (including
    corresponding distributions by PDLP) to the holders of Precision
    trust units (and holders of exchangeable Precision trust units)
    distributions by PDLP to Precision and payment of dividends and
    interest and repayment of outstanding indebtedness by PDC and
    PDLP, in each case in the ordinary course of business and
    consistent with past practices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, sell,
    lease, license or otherwise dispose of, any assets (including
    capital stock of subsidiaries) that are, individually or in the
    aggregate, material to it and its subsidiaries as a whole,
    except arm&#146;s-length sales or transfers for aggregate
    consideration not exceeding $120&#160;million;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, acquire or
    agree to acquire by merging or consolidating with, or by
    purchasing an equity interest in or a substantial portion of the
    assets of, or by any other manner, any business or any
    corporation, partnership, association or other business
    organization or division thereof, except in each case for
    acquisitions that:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    with respect to Precision, are not in excess of
    $120&#160;million aggregate cash consideration less the
    aggregate amount of any unbudgeted capital expenditures made
    pursuant to the terms of the Merger Agreement,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    would not require historical or pro forma financial statements
    with respect to such acquisitions to be included in this proxy
    statement prospectus;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, incur any
    indebtedness in excess of $30&#160;million in the aggregate, or
    guarantee any such indebtedness, issue or sell any debt
    securities or warrants or rights to acquire any of its or its
    subsidiary&#146;s debt securities, or guarantee any debt
    securities of others, except in connection with the financing to
    be put in place in connection with the Merger, for borrowings
    from its credit facility in the ordinary course of business not
    to exceed $25&#160;million, borrowings to repay or repurchase
    its other indebtedness or borrowings in respect of intercompany
    debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not, and will not permit any of its subsidiaries to, create any
    material liens or encumbrances (other than certain permitted
    liens) on any of its property, except in the ordinary course of
    business or with or between its subsidiaries;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not incur or commit to any capital expenditures that in the
    aggregate exceed its capital expenditure budget by more than
    $200&#160;million in the aggregate less the aggregate amount
    actually spent on acquisitions as permitted by the Merger
    Agreement.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    92
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Regulatory
    Filings and Related Matters</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Merger Agreement, Precision and Grey Wolf have
    also agreed to take all action and do all things necessary,
    appropriate or desirable under applicable law (including the HSR
    Act) so as to enable the closing to occur as soon as reasonably
    practicable including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    using commercially reasonable efforts to obtain all necessary
    waivers, consents and approvals;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    identifying and making any necessary regulatory filings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    using reasonable best efforts to avoid the entry of, or to have
    vacated or terminated, any decree, order, ruling or injunction
    that would restrain, prevent or delay the consummation of the
    Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    furnishing each other with information and reasonable assistance
    that the other party reasonably requests in connection with the
    preparation of necessary filings, registrations or submissions
    of information to any governmental authorities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    responding promptly to requests for additional information made
    by the FTC or the DOJ and causing the waiting periods under the
    HSR Act to terminate or expire at the earliest possible date
    after the initial HSR filing;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    promptly notifying each other of any communication from any
    authority concerning the Merger and permit the other party to
    review in advance any proposed communication to any authority
    concerning the Merger;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not participating or agreeing to participate in any meeting or
    discussion with any authority in respect to any filing,
    investigation or other inquiry about the Merger unless the other
    party is consulted in advance and, to the extent allowed, given
    the opportunity to attend and participate.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision, Grey Wolf, and their respective subsidiaries are not
    required to take or agree to dispose of any of their respective
    assets or to limit their freedom of action with respect to any
    of their businesses, to obtain any approvals or to remove any
    antitrust-related impediments to the Merger, except those
    actions, to which the other party agrees, that are conditioned
    upon the consummation of the Merger and that, individually or in
    the aggregate, do not have or cause and would not reasonably be
    expected to have or cause a material adverse effect on Precision
    after the Merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Additional
    Agreements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Merger Agreement, each of Precision and Grey
    Wolf also has agreed to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to the extent permitted by law, provide the other party
    reasonable access to its properties, records, files,
    correspondence, audits and other information;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to the extent permitted by law and applicable stock exchange
    listing arrangements, consult with one another before issuing
    any press releases and other announcements regarding the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    promptly prepare and file this proxy statement/prospectus,
    promptly respond to any comments made by the SEC and ensure that
    the information provided by each of them for inclusion in this
    proxy statement/prospectus will not include any untrue statement
    of a material fact or omit a material fact required to make the
    statements therein, in light of the circumstances under which
    they were made, not misleading, at the time of the mailing of
    this proxy statement/prospectus and at the time of the special
    meetings of the shareholders of Grey Wolf;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    use its commercially reasonable best efforts to have timely
    delivered to the other party &#147;comfort&#148; letters from
    its independent public accounting firm;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pay all costs and expenses incurred by them in connection with
    the Merger Agreement, regardless of whether the Merger is
    consummated, other than costs that are specified to be shared or
    reimbursed under the Merger Agreement.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    93
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Merger Agreement and in addition to the
    applicable covenants of Precision listed above, Precision and
    PDC have agreed:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to prepare and submit to the New York Stock Exchange and the
    Toronto Stock Exchange listing applications covering the
    Precision trust units issuable in connection with the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cause Merger Sub, for a period of six years after the
    effective time of the Merger, to indemnify, defend, hold
    harmless and advance expenses to, to the greatest extent
    permitted by law, each person who is, or has been at any time
    prior to the effective time of the Merger, an officer, director,
    employee, controlling shareholder or agent of Grey Wolf or its
    subsidiaries, from any damages based in or arising out of the
    fact that such person was serving in such capacity and
    pertaining to any matter existing or arising out of actions or
    omissions (or alleged actions or omissions) occurring at or
    prior to the effective time of the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cause Merger Sub to honor all indemnification agreements,
    advancement and expenses and exculpation agreements or other
    obligations of Grey Wolf with respect to any of the current or
    former officers and directors of Grey Wolf (including under Grey
    Wolf&#146;s certificate of incorporation or bylaws) in effect as
    of the date of the Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cause Merger Sub, for a period of at least six years after
    the effective time of the Merger, to use reasonable best efforts
    to maintain officers&#146; and directors&#146; liability
    insurance covering the individuals who are covered by Grey
    Wolf&#146;s existing officers&#146; and directors&#146;
    liability insurance policies at the effective time of the Merger
    on terms substantially no less advantageous to such individuals
    than the existing policies, provided that Merger Sub will not be
    required to pay an annual premium in excess of 250% of the last
    annual premium paid by Grey Wolf prior to the date of the Merger
    Agreement, but in such case will purchase as much coverage as
    reasonably obtainable for such amount;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cause Merger Sub, after the Merger, to continue the
    employment of all the Grey Wolf employees, and, until after
    December&#160;31, 2009, to provide each continuing employee with
    a salary or hourly wage rate (as the case may be), bonus
    opportunity, and employee benefits (excluding certain retiree
    medical benefits as well as stock options, equity award plans
    and similar benefits, except as otherwise provided in the Merger
    Agreement);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cause Precision and Merger Sub to administer and perform the
    Grey Wolf, Inc. Employee Severance Plan established on
    August&#160;8, 2008, without amending or terminating such plan
    prior to its expiration in any way that would negatively impact
    its beneficiaries prior to the first anniversary of the closing
    date of the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cause Merger Sub to credit, for each continuing employee, the
    appropriate period of employment and service (based on the
    employee&#146;s employment with Grey Wolf) for purposes of
    determining the continuing employee&#146;s eligibility to join,
    vesting and benefit accrual under certain corresponding employee
    benefit plans, programs, policies or similar arrangements of
    Merger Sub or its subsidiaries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cause Merger Sub to waive, for each continuing employee and
    his or her covered dependents, as well as use commercially
    reasonable best efforts to cause any relevant third parties to
    waive, any pre-existing medical condition limitations existing
    as of the date of the Merger, but only to the extent such
    pre-existing medical condition would have been covered by Merger
    Sub&#146;s group health plan if it were not a pre-existing
    medical condition, and only to the extent that such pre-existing
    medical condition limitations would not have applied under Grey
    Wolf&#146;s group health plan immediately prior to the
    Merger;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cause Merger Sub to use its commercially reasonable best
    efforts to offer each continuing employee coverage under a group
    health plan which credits each continuing employee towards the
    deductibles, co-insurance and maximum out of pocket provisions
    imposed under such group health plan, for the year of the
    Merger, with any applicable expenses already incurred during
    such year under Grey Wolf&#146;s group health plan.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    94
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">No
    Solicitation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that during the period from the
    date of the Merger Agreement until the effective time of the
    Merger or the earlier termination of the Merger Agreement,
    subject to limited exceptions described below, Grey Wolf will
    not, and will cause its subsidiaries and representatives not to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    solicit, initiate, encourage or facilitate (including by way of
    furnishing or disclosing non-public information) any inquiries,
    offers or proposals that constitute, or are reasonably likely to
    lead to, another acquisition proposal;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    engage in discussions or negotiations with, furnish or disclose
    any non-public information or data relating to itself or any of
    its subsidiaries to, or in response to a request, give access to
    the properties, assets or books and records of itself or any of
    its subsidiaries to, any person who has made or may be
    considering making another acquisition proposal or take any
    action that may otherwise lead to another acquisition proposal;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approve, endorse or recommend another acquisition
    proposal;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any agreement in principle, letter of intent,
    arrangement, understanding or other contract relating to another
    acquisition proposal.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as permitted below, each party is required to cease and
    terminate all solicitations, discussions, negotiations or other
    activity with any person with respect to another acquisition
    proposal or which could reasonably be expected to lead to
    another acquisition proposal and will inform its subsidiaries
    and representatives to do the same.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Nothing in the Merger Agreement prevents Grey Wolf, prior to
    obtaining its required shareholder approval of the Merger
    Agreement, from doing any of the following, subject to
    compliance with notifications to the other party with respect to
    the receipt of any third party acquisition proposal as described
    below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    engaging in discussions or negotiations with, furnishing or
    disclosing any information or data relating to itself or any of
    its subsidiaries to, or in response to a request therefore,
    giving access to the properties, assets or books and records of
    itself or its subsidiaries to, any third party who has made an
    unsolicited bona fide written acquisition proposal after the
    date of the Merger Agreement that did not result from a
    violation of its no solicitation covenant, provided that prior
    to doing any of the foregoing (i)&#160;its board of directors
    determines that the acquisition proposal is reasonably likely to
    result in a superior proposal (as defined in the Merger
    Agreement) and (ii)&#160;that such person has the financial and
    legal capacity to consummate such acquisition proposal and,
    provided further, that such party executes a confidentiality
    agreement with the third party with material terms that are no
    more favorable than those contained in the confidentiality
    agreement between Precision and Grey Wolf;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    withdrawing or amending (or publicly proposing to withdraw or
    amend) the approval, recommendation or declaration of
    advisability by its board of directors or any committee thereof
    of the Merger Agreement, the Merger or the other transactions
    contemplated by the Merger Agreement, provided that, if such
    withdrawal or amendment (i)&#160;does not involve a third party
    acquisition proposal, the board determines that the failure to
    take such actions is reasonably likely to be inconsistent with
    its fiduciary duties, or (ii)&#160;does involve a third party
    acquisition proposal, the board determines that such alternative
    proposal constitutes a superior proposal and it complies with
    the five business day renegotiation period described below;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    recommending, adopting or approving (or publicly proposing to
    recommend, adopt or approve) another acquisition proposal so
    long as the board determines that such alternative proposal
    constitutes a superior proposal and it complies with the
    five-business day renegotiation period described below;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    entering into any agreement, including any agreement in
    principle, which constitutes, relates to, is intended to lead to
    or could reasonably be expected to lead to another acquisition
    proposal so long as the board determines that such alternative
    proposal constitutes a superior proposal and complies with
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    95
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    the five-business day renegotiation period; and, provided
    further, that concurrently with entering into such an agreement,
    it terminates the Merger Agreement and pays the $64&#160;million
    termination fee.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon receipt of an acquisition proposal or an inquiry that is
    likely to lead to an acquisition proposal from a third party,
    Grey Wolf has agreed to inform Precision of the acquisition
    proposal within 24&#160;hours of receipt of the proposal, the
    identity of the third party making the acquisition proposal and
    the material terms and conditions of the acquisition proposal.
    Grey Wolf has agreed to promptly provide Precision with written
    notice of any changes in the price or form of consideration or
    other material changes in the status or terms of the acquisition
    proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf, upon a board determination that an acquisition
    proposal is a superior proposal, has agreed to notify Precision
    of such determination, at which time Precision has five business
    days to submit a revised offer to enable the transaction to
    proceed, and any amendments to the acquisition proposal in
    response to a revised offer triggers an additional
    three-business day renegotiation period for Precision to submit
    another revised offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Nothing contained in the no-solicitation provisions of the
    Merger Agreement prohibits Grey Wolf or its board of directors
    from taking and disclosing to their respective shareholders a
    position with respect to another acquisition proposal pursuant
    to
    <FONT style="white-space: nowrap">Rule&#160;14d-9</FONT>
    and <FONT style="white-space: nowrap">14e-2(a)</FONT>
    under the Exchange Act or from making any similar disclosure, in
    either case to the extent required by applicable law.
</DIV>
<A name='277'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Representations
    and Warranties</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision, PDC and Merger Sub, on the one hand, and Grey Wolf,
    on the other hand, have made customary representations and
    warranties in the Merger Agreement which are substantially
    reciprocal. The representations and warranties of each of Grey
    Wolf, Precision, PDC and Merger Sub have been made solely for
    the benefit of the other party or parties and such
    representations and warranties should not be relied on by any
    other person. In addition, such representations and warranties:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    are qualified in their entirety by the information filed by the
    applicable party with the SEC or the Canadian Securities
    Regulatory Authorities or SEDAR (and publicly available) prior
    to the date of the Merger Agreement, excluding any risk-factor
    disclosure, disclosure of risks in any &#147;forward-looking
    statements&#148; disclaimer and other statements that are
    predictive or forward looking in nature. Accordingly, the
    representations and warranties should be read with consideration
    given to the entirety of public disclosure regarding the parties
    as set forth in their respective SEC and Canadian Securities
    Regulatory Authorities filings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have been further qualified by information exchanged by the
    parties in connection with the execution of the Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    will not survive after the effective time of the Merger and
    cannot be the basis for any claims under the Merger Agreement by
    the other party or parties after termination of the Merger
    Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    are in certain cases subject to a materiality standard described
    in the Merger Agreement which may differ from what may be viewed
    as material by you;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    are in certain cases, qualified by the knowledge of the parties
    making such representations and warranties;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    were made only as of the date of the Merger Agreement or such
    other date as is specified in the Merger Agreement and are
    subject to more recent developments.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of Grey Wolf, Precision, PDC and Merger Sub has made
    representations and warranties regarding, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the organization, good standing and foreign qualification of the
    parties and the corporate authority to own, operate and lease
    their respective properties and to carry on their respective
    businesses as currently conducted;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    96
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the authorization, execution, delivery and enforceability of the
    Merger Agreement and related matters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    capitalization;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    subsidiaries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance with laws and possession of permits;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether each party&#146;s execution and delivery of the Merger
    Agreement or consummation of the transactions contemplated
    thereby causes any:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    conflict with such party&#146;s organizational documents or the
    organizational documents of its subsidiaries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    material agreements of such party or such party&#146;s
    subsidiaries being declared void;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    breach or default, or the creation of any liens, or otherwise
    result in a detriment to such party or such party&#146;s
    subsidiaries under any agreements of such party or such
    party&#146;s subsidiaries;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    violation of applicable law;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the documents and reports that the parties have filed with the
    SEC;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    litigation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether certain events, changes or effects have occurred from
    December&#160;31, 2007 to the date of the Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    taxes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    environmental matters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    intellectual property matters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    broker&#146;s fees and similar fees;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    beneficial ownership of the other party&#146;s capital stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the shareholder votes
    <FONT style="white-space: nowrap">and/or</FONT>
    director approval required in connection with the adoption of
    Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    undisclosed liabilities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    material contracts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    improper payments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    investment company status;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lack of orders suspending the sale or ceasing the trading of the
    parties&#146; securities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, Grey Wolf has made other representations and
    warranties about itself to Precision, PDC and Merger Sub
    regarding, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    employee benefit plans;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    labor matters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    insurance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    receipt of opinion from financial advisor;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    ownership and condition of assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amendment of certain agreements related to a certain rights
    plan of Grey Wolf;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Canadian assets and operations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    takeover statutes and rights plans.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    97
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, each of Precision, PDC and Merger Sub have made
    other representations and warranties to Grey Wolf regarding,
    among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reporting issuer status, listing;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    mutual fund trust status.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of these representations and warranties will survive after
    the effective time of the Merger.
</DIV>
<A name='278'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conditions
    to the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mutual
    Conditions to Each Party&#146;s Obligation to Effect the
    Merger</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The obligations of each of Precision, PDC, Grey Wolf and Merger
    Sub to complete the Merger are subject to the satisfaction or
    waiver of the following conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Grey Wolf has obtained its shareholders&#146; approval of the
    Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Precision has received written notice from CFIUS of its
    determination pursuant to the Exon-Florio Amendment not to
    undertake an investigation of the transaction contemplated by
    the Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any waiting period applicable to the completion of the Merger
    under the HSR Act has expired or been terminated;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    no governmental authority has taken any action that prohibits
    the consummation of the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    no decree, order or injunction of a governmental authority
    prohibits the consummation of the Merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the SEC has declared the registration statement, of which this
    proxy statement/prospectus forms a part, to be effective, and no
    stop order concerning the registration statement is in effect
    (and no similar action has been taken by any Canadian securities
    regulatory authority with respect to Precision or the Precision
    trust units), and all necessary approvals under state securities
    laws or applicable Canadian securities laws related to the
    issuances or trading of the Precision trust units to be issued
    in the Merger have been received;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the New York Stock Exchange and the Toronto Stock Exchange have
    authorized for listing the Precision trust units to be issued
    pursuant to the Merger, subject to official notice of issuance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the parties have obtained all required governmental consents,
    except where the failure to obtain any such consents has not had
    and would not reasonably be expected to have or cause a material
    adverse effect on Precision assuming the Merger has taken place.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the Merger Agreement, the term &#147;material
    adverse effect&#148; means, with respect to any party, a
    material adverse effect on the business, results of operations
    or condition (financial or otherwise) of such party and its
    subsidiaries, taken as a whole, except to the extent any such
    effect results from:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in the industry in which such person operates or in the
    economy or the financial, securities or credit markets in the US
    or elsewhere in the world, including any regulatory or political
    conditions or developments, or any outbreak or escalation of
    hostilities or declared or undeclared acts of war, terrorism,
    insurrection or natural disasters that do not disproportionately
    affect the business, results of operations or condition
    (financial or otherwise) of such person, relative to other
    industry participants, in any material respect;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in law, GAAP or the interpretation thereof (after the
    date of the Merger Agreement) that do not disproportionately
    affect the business, results of operations or condition
    (financial or otherwise) of such person, relative to other
    industry participants, in any material respect;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the execution or public disclosure of the Merger Agreement or
    the consummation or the pendency of the transactions
    contemplated by the Merger Agreement;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    98
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any change in the price or trading volume of the stock of such
    party (but not any change or effect underlying such change in
    prices or volume);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any legal proceedings made or brought by any of the current or
    former shareholders of such party arising out of or related to
    the Merger Agreement or the transactions contemplated
    thereby;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the failure of a party to meet any published analyst estimates
    or expectations regarding such person&#146;s revenue, earnings
    or other financial performance or results of operations for any
    period or any failure to meet internal budgets, plans or
    forecasts regarding its revenues, earnings or other financial
    performance or results of operations (but not any change or
    occurrence underlying such failure).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Additional
    Conditions to Each Party&#146;s Obligation to Effect the
    Merger</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the conditions described above, neither
    Precision, PDC or Merger Sub, on the one hand, nor Grey Wolf, on
    the other hand, is obligated to effect the Merger unless the
    following conditions are satisfied or waived by that party on or
    before the closing date:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    subject to certain materiality standards, the representations
    and warranties of the other party are true and correct as of the
    date of the Merger Agreement and as of the closing date (except
    to the extent such representations and warranties expressly
    relate to an earlier date, in which case as of such earlier
    date);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the other party has performed in all material respects its
    covenants and agreements under the Merger Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    since the date of the Merger Agreement, no event, occurrence or
    development has occurred that has had or caused or would
    reasonably be expected to have or cause a material adverse
    effect on the other party;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    such party&#146;s US tax counsel has provided the US tax opinion
    described under &#147;The Merger&#160;&#151; Material US Federal
    Income Tax Consequences of the Merger and of Owning Precision
    Trust&#160;Units&#148; beginning on page&#160;69.
</TD>
</TR>

</TABLE>
<A name='279'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Termination,
    Termination Fees and Expenses</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain qualifications set forth in the Merger
    Agreement, the Merger Agreement may be terminated by written
    notice at any time prior to the effective time of the Merger in
    any of the following ways:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    By mutual written consent.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    By either Grey Wolf or Precision if:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    the Merger has not been consummated by February&#160;28, 2009
    (through no fault of the terminating party);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    any governmental authority shall have issued an order or taken
    any other action permanently restraining, enjoining or otherwise
    prohibiting the consummation of the Merger or making
    consummation of the Merger illegal, and such order or other
    action shall have become final and nonappealable (through no
    fault of the terminating party);&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    the Merger Agreement shall not have been approved by the
    required vote of Grey Wolf shareholders in the manner required
    by the Merger Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    By Precision if:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    there has been a material breach by Grey Wolf of its
    representations and warranties in the Merger Agreement that is
    incapable of being cured within 30&#160;days following receipt
    of written notice from Precision of such breach;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    99
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    Grey Wolf has failed to comply in any material respect with any
    of its covenants or agreements contained in the Merger
    Agreement, which failure to comply is incapable of being cured
    within 30&#160;days following written notice from Precision of
    such failure;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    Grey Wolf shall have breached in any material respect any of its
    non-solicitation obligations (or certain related obligations)
    under the Merger Agreement, or Grey Wolf or the Grey Wolf board
    (or any committee thereof) publicly announces its intention to
    do any of the same;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    Grey Wolf shall have entered into any acquisition agreement or
    similar arrangement (excluding the Merger Agreement), which
    constitutes, relates to, is intended to lead to or could
    reasonably be expected to lead to an alternative acquisition
    proposal, or Grey Wolf or the Grey Wolf board (or any committee
    thereof) publicly announces its intention to do any of the same;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    the Grey Wolf Board withdraws (or amends or modifies in a manner
    adverse to Precision), or publicly proposes to so withdraw (or
    amend or modify), the approval, recommendation or declaration of
    advisability of the transactions contemplated by the Merger
    Agreement;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    the Grey Wolf Board recommends, adopts or approves, or publicly
    proposes to recommend, adopt or approve, an alternative
    acquisition proposal.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    By Grey Wolf if:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    there has been a material breach by Precision of its
    representations and warranties in the Merger Agreement that is
    incapable of being cured within 30&#160;days following receipt
    of written notice from Grey Wolf of such breach;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    Precision has failed to comply in any material respect with any
    of its covenants or agreements contained in the Merger
    Agreement, which failure to comply is incapable of being cured
    within 30&#160;days following receipt of written notice from
    Grey Wolf of such failure; or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#150;&#160;
</TD>
    <TD align="left">
    prior to the approval of the Merger by the required Grey Wolf
    shareholder vote in the manner required by the Merger Agreement,
    Grey Wolf elects to enter into an alternative acquisition
    agreement as permitted by (and not in violation of) the Merger
    Agreement; provided, however, that in order to so terminate
    (i)&#160;Grey Wolf must not have otherwise breached any of its
    non-solicitation or other related obligations under the Merger
    Agreement, (ii)&#160;Grey Wolf must simultaneously pay in full
    the termination payment required by the Merger Agreement and
    (iii)&#160;Grey Wolf must provide Precision with a written
    acknowledgment from each other relevant party that such party is
    aware of the amounts due Precision under the Merger Agreement
    and that such party irrevocably waives any right it may have to
    litigate, sue or bring any claim to contest such amounts.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf will pay to Precision a termination fee in the amount
    of $64&#160;million if the Merger Agreement is terminated
    (i)&#160;due to the Merger Agreement not being approved by the
    required vote of Grey Wolf shareholders, and prior to the
    applicable Grey Wolf shareholder meeting the Grey Wolf board
    makes a recommendation or other acquisition proposal that is
    inconsistent with the approval of the Merger Agreement,
    (ii)&#160;by Precision due to Grey Wolf&#146;s breach of any of
    its non-solicitation obligations (or certain related
    obligations) under the Merger Agreement, or (iii)&#160;by Grey
    Wolf due to Grey Wolf&#146;s election to enter into an
    alternative acquisition agreement as permitted by (and not in
    violation of) the Merger Agreement. Grey Wolf shall also be
    subject to such $64&#160;million termination fee if the Merger
    Agreement is terminated due to (a)&#160;the failure of the
    Merger Agreement to gain approval by the required vote of Grey
    Wolf shareholders, or (b)&#160;the non-consummation of the
    Merger Agreement by February&#160;28, 2009, so long as the
    following two conditions are met:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    prior to such termination, there has been a publicly announced
    acquisition proposal to acquire Grey&#160;Wolf;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    within 365&#160;days of such termination, any Grey Wolf company
    enters into any definitive agreement with respect to or
    consummates any acquisition proposal, regardless of whether such
    acquisition proposal is the same as was publicly announced prior
    to termination.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    100
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Should the Merger Agreement be terminated by either party due to
    the failure of the Merger Agreement to gain approval by the
    required vote of Grey Wolf shareholders, but such termination
    does not trigger the $64&#160;million termination fee, the
    Merger Agreement provides that Grey Wolf will pay to Precision
    $7.5&#160;million as a reasonable estimate of Precision&#146;s
    expenses.
</DIV>
<A name='280'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendment;
    Extensions and Waivers</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The parties may amend the Merger Agreement, by action taken or
    authorized by their boards of directors, at any time before or
    after approval of the Merger by the shareholders of Grey Wolf.
    After the shareholders approve the Merger Agreement, however, no
    amendment to the Merger Agreement may be made that by law
    requires the further approval of shareholders unless that
    further approval is obtained.
</DIV>
<A name='281'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Governing
    Law</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement is governed by and will be construed and
    enforced in accordance with the laws of the State of Texas
    without regard to the conflicts of law provisions of Texas law
    that would cause the laws of other jurisdictions to apply.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    101
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='282'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCING
    OF THE MERGER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with, but not as a condition to, the Merger, PDC
    has entered into a commitment letter with Royal Bank of Canada,
    RBC&#160;Capital Markets, Deutsche Bank AG Cayman Islands
    Branch, Deutsche Bank Securities Inc., HSBC Bank Canada, HSBC
    Bank USA, National Association and The Toronto-Dominion Bank
    that provides for (i)&#160;senior secured credit facilities (the
    &#147;Senior Secured Facilities&#148;) from certain financial
    institutions comprised of $800&#160;million of term loan
    facilities (the &#147;Term Loans&#148;) and a $400&#160;million
    revolving credit facility (the &#147;Revolving Facility&#148;)
    and (ii)&#160;$400&#160;million (reduced by the amount of Grey
    Wolf&#146;s convertible notes that PDC determines on or prior to
    the closing date of the Merger will not be converted or redeemed
    on or after the closing date) in cash proceeds from the issuance
    of debt securities in a Rule&#160;144A or other private
    placement or, if PDC is unable to issue the full amount of the
    debt securities at or prior to the closing date, from a senior
    unsecured facility (the &#147;Senior Unsecured Facility&#148;).
    The availability of the Senior Secured Facilities and the Senior
    Unsecured Facility to Precision and its subsidiaries is subject
    to the satisfaction of a number of customary conditions which
    Precision expects to be satisfied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Term Loans shall consist of (i)&#160;a five-year term loan
    facility in the amount of $400&#160;million (the loans
    thereunder, the &#147;Tranche&#160;A Term Loans&#148;) and
    (ii)&#160;a 5.75-year term loan facility in the amount of
    $400&#160;million (the loans thereunder, the
    &#147;Tranche&#160;B Term Loans&#148;). The Tranche&#160;A Term
    Loans shall be repayable in quarterly installments in aggregate
    annual amounts equal to 5% of the original principal amount
    thereof in the first year following the closing date, 10% of the
    original principal amount thereof in the second year following
    the closing date, 10% of the original principal amount thereof
    in the third year following the closing date and 15% of the
    original principal amount thereof in the fourth year following
    the closing date, with the balance payable on the final maturity
    date thereof. The Tranche&#160;B Term Loans shall be repayable
    in quarterly installments in an aggregate annual amount equal to
    1% of the original principal amount thereof, with the balance
    payable on the final maturity date thereof. The Term Loans shall
    also be subject to mandatory prepayments from proceeds of debt
    issuances and asset dispositions by Precision, PDC or their
    subsidiaries, subject to customary exceptions to be agreed upon
    and from a leverage-based portion of excess cash flow. The
    proceeds of the Term Loans shall be used to finance a portion of
    the Merger (including expenses related thereto and the
    refinancing of the convertible notes after the closing date).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Revolving Facility shall be a five-year revolving facility
    in the amount of $400&#160;million available on a revolving
    basis, including a portion available for letters of credit,
    during the period commencing on the closing date and ending on
    the date that is five years after the closing date. The proceeds
    of the Revolving Facility shall be used to finance the working
    capital needs and general corporate purposes of Precision, PDC,
    and their respective subsidiaries; provided, however, that not
    more than $100&#160;million (exclusive of any letters of credit
    that need to be issued on the closing date to replace any
    letters of credit of Grey Wolf), or such higher amount as may be
    agreed between PDC and the applicable financial institutions,
    plus any additional amounts necessary to finance any original
    issue discount in respect of the Term Loans, may be used to
    finance the Merger and the refinancing of indebtedness and
    payment of fees and expenses in connection therewith.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If PDC is unable to issue the full amount of the debt securities
    at or prior to the closing date, certain financial institutions
    have agreed to provide the Senior Unsecured Facility in the
    amount of $400&#160;million (reduced by the amount of the
    convertible notes that PDC determines on or before the closing
    date of the Merger will not be converted or redeemed on or after
    the closing date). The Senior Unsecured Facility will initially
    mature 12&#160;months following the closing date but the
    maturity may be extended to the eighth anniversary of the
    closing date subject to the compliance with certain conditions
    including no payment default under the Senior Unsecured Facility
    and no acceleration under the Senior Unsecured Facility, the
    Term Loans or the Revolving Facility. The Senior Unsecured
    Facility shall also be subject to mandatory prepayments from the
    net cash proceeds of debt issuances and asset sales, subject to
    customary exceptions to be agreed upon. Any proceeds of the
    Senior Unsecured Facility shall be used to finance a portion of
    the Merger (including the refinancing of the convertible notes
    after the closing date). In order to complete a successful
    syndication of the Senior Secured Facilities and the Senior
    Unsecured Facility, the financial institutions are entitled, in
    consultation with PDC, to change certain of the proposed terms
    of the facilities, including requiring the Senior Unsecured
    Facility (or the debt securities) to be secured by a second lien
    on the collateral securing the Senior Secured Facilities.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    102
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='283'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TRUSTEES,
    DIRECTORS AND EXECUTIVE MANAGEMENT OF</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE COMBINED COMPANIES</B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The board of trustees of Precision has delegated the management
    and general administration of the affairs of Precision to PDC
    pursuant to the terms of an administration agreement.
    Biographical information concerning members of Precision&#146;s
    board of trustees and PDC&#146;s board of directors and
    executive management of the combined companies is set forth
    below. Other information with respect to such persons is
    included in Precision&#146;s
    <FONT style="white-space: nowrap">Form&#160;40-F</FONT>
    for the year ended December&#160;31, 2007 and proxy circular for
    its 2007 annual meeting of unitholders and Grey Wolf&#146;s
    Form&#160;10-K for the year ended December&#160;31, 2007 and
    Definitive Proxy Statement for its 2008 Annual Meeting of
    Shareholders. See &#147;Where You Can Find More
    Information&#148; beginning on page&#160;132.
</DIV>
<A name='284'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board of
    Trustees of Precision</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Position with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Current<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Precision</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Affiliation</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert J.S. Gibson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    61
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Trustee
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Precision
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allen R. Hagerman, FCA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    57
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Trustee
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Precision
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patrick M. Murray
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Trustee
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Precision
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Robert J.S. Gibson </I>has been a trustee of Precision since
    September 2005. Mr.&#160;Gibson has been President of a private
    investment firm, Stuart&#160;&#038; Company Limited, since 1973
    and is also Managing Director of Alsten Holdings Ltd. He also
    serves on the board of Cash Store Financial Services Inc.
    Mr.&#160;Gibson also serves on the Board of Directors of PDC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allen R. Hagerman, FCA </I>has been a trustee of Precision
    since May 2007. Mr.&#160;Hagerman currently holds the position
    of Executive Vice President, Canadian Oil Sands Limited.
    Mr.&#160;Hagerman is a member of the Canadian Institute of
    Chartered Accountants. He also serves on the board of EPCOR
    Power LP and Absolute Completion Technologies Ltd.
    Mr.&#160;Hagerman also serves of the Board of Directors of PDC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Patrick M. Murray </I>has been a trustee of Precision since
    September 2005. Mr.&#160;Murray served as Chairman and CEO of
    Dresser Inc. from 2001 until retiring in May, 2007. For the
    period 1997 through 2000, Mr.&#160;Murray served as President of
    Halliburton Company&#146;s Dresser Equipment Group and Senior
    Vice President, Strategic Initiatives of Dresser Industries,
    Inc. Mr.&#160;Murray also serves on the Board of Harvest Natural
    Resources, Inc., Rancher Energy Corp., Wellstream International,
    PLC, the Maguire Energy Institute, the World Affairs Council of
    Dallas/Forth Worth, and the Board of Regents of Seton Hall
    University. He is also a member of the American Petroleum
    Institute and the Society of Petroleum Engineers.
    Mr.&#160;Murray also serves on the Board of Directors of PDC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    103
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='285'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board of
    Directors of PDC(1)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position with <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Current<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>PDC</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Affiliation(5)</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    W.C. (Mickey) Dunn(3)(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    55
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brian A. Felesky, CM, Q.C.(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    64
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert J.S. Gibson(2)(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    61
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allen R. Hagerman, FCA(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    57
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen J.J. Letwin(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    52
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patrick M. Murray(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frederick W. Pheasey(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert L. Phillips(3)(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    57
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director, Chairman<BR>
    of the Board
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kevin A. Neveu
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    48
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director, Chief<BR>
    Executive Officer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    PDC
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frank M. Brown
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    64
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Grey Wolf
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William T. Donovan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    56
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Grey Wolf
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Trevor M. Turbidy
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    40
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Grey Wolf
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Each director&#146;s term of office expires not later than the
    close of business at the next annual meeting of Precision, or
    until successors are appointed or directors vacate their office.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of the Audit Committee. Following the Merger, the
    committee is expected to have one member who is a Grey Wolf
    nominee to PDC&#146;s board of directors.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of the Compensation Committee. Following the Merger, the
    committee is expected to have one member who is a Grey Wolf
    nominee to PDC&#146;s board of directors.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of the Corporate Governance and Nominating Committee.
    Following the Merger, the committee is expected to have one
    member who is a Grey Wolf nominee to PDC&#146;s board of
    directors.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    None of the Grey Wolf directors is currently affiliated with
    Precision or any of its affiliates.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>W.C. (Mickey) Dunn </I>has been a director of PDC since
    September 1992. Mr.&#160;Dunn serves as the Chairman of the
    Board of True Energy Trust, was a founding shareholder and
    director of Cash Store Financial Services, Inc., and a director
    of Vero Energy Inc. Previously, Mr.&#160;Dunn was President and
    Chief Executive Officer of Cardium Service and Supply Limited,
    Cardium Tool Services Inc. and Colorado Silica Sand Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Brian A. Felesky, CM, Q.C.</I> has been a director of PDC
    since December 2005. Mr.&#160;Felesky is Counsel to Felesky
    Flynn LLP, a law firm specializing in tax and trust law, is a
    Co-Chair of , Homefront (a domestic abuse charitable
    organization), Vice-Chair of Canada West Foundation, a member of
    the Senate of Athol Murray College of Notre Dame, a board member
    of the Calgary Stampede Foundation and Awali (a teacher training
    program in East Africa). Mr.&#160;Felesky also serves on the
    board of Suncor Energy, Inc., EPCOR Power LP, Temple Energy and
    Resin Systems Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Robert J.S. Gibson </I>has been a director of PDC since June
    1996 and a trustee of Precision since November&#160;2005. See
    information regarding trustees of Precision set forth above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allen R. Hagerman, FCA </I>has been a director of PDC since
    December 2006 and a trustee of Precision since May 2007. See
    information regarding trustees of Precision set forth above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Stephen J.J. Letwin </I>has been a director of PDC since
    December 2006. Mr.&#160;Letwin currently holds the position of
    Managing Director, Enbridge Energy Partners and is Executive
    Vice President, Gas Transportation&#160;&#038; International of
    Enbridge Inc. From April 2003 to May 2006, he served Enbridge
    Inc. as Group Vice&#160;President, Gas Strategy&#160;&#038;
    Corporate Development. Prior thereto, Mr.&#160;Letwin served
    Enbridge as Group Vice President, Distribution&#160;&#038;
    Services since September 2000. Mr.&#160;Letwin also serves on
    the Board of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    104
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mancal&#160;Corporation, Gaz Metro LP, Enbridge Energy Company,
    Inc., Enbridge Energy Management, LLC, Alliance Pipeline, Vector
    Pipeline, Compania Logistrica de Hidro Carbons, C.L.H., S.A.,
    Spain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Patrick M. Murray </I>has been a director of PDC since July
    2002 and a trustee of Precision since November&#160;2005. See
    information regarding trustees of Precision set forth above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Frederick W. Pheasey </I>has been a director of PDC since
    July 2002. Mr.&#160;Pheasey is the founder and continues to be a
    director of Dreco Energy Services Ltd., which was acquired by
    National Oilwell, Inc. in 1997. Mr.&#160;Pheasey served as
    Executive Vice President and a director of National Oilwell,
    Inc. from 1997 to 2004 and continued to serve on the board of
    National Oilwell, Inc. to May 2005. Mr.&#160;Pheasey has been a
    Director of Precision since July 2002.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Robert L. Phillips </I>has been a director of PDC since May
    2004 and was appointed as Chairman of the Board of Directors in
    August 2007. Mr.&#160;Phillips was most recently President and
    Chief Executive Officer of BCR Group of Companies from 2001 to
    2004. Previously, he was Executive Vice President at MacMillan
    Bloedel Limited (1999&#160;&#151; 2001), President and Chief
    Executive Officer of PTI Group Inc. (1998&#160;&#151;
    1999)&#160;and President and Chief Executive Officer of Dreco
    Energy Services Ltd. (1994&#160;&#151; 1998). He also serves on
    the boards of several other major Canadian corporations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Kevin A. Neveu </I>is Chief Executive Officer of PDC and has
    been a director since August 2007. Mr.&#160;Neveu was previously
    President of the Rig Solutions Group of National Oilwell Varco
    in Houston, where he was responsible for the sales, service,
    design and manufacturing of drilling equipment and rig packages
    for land and offshore clients worldwide. Over the past
    25&#160;years, Mr.&#160;Neveu has held executive management
    positions with National Oilwell Varco and its predecessor
    companies in the oilfield services sector in London, Moscow,
    Houston, Edmonton and Calgary. Mr.&#160;Neveu is a graduate of
    the Faculty of Engineering at the University of Alberta.
    Mr.&#160;Neveu also serves on the Board of RigNet.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Frank M. Brown </I>has been a director of Grey Wolf since May
    2000. From January 2006, Mr.&#160;Brown has been a private
    consultant in the Alaskan oil and gas industry, and since
    October 2006, he has served as Chief Executive Office of ZRB
    Resources, LLC, a private exploration and production company in
    Alaska. From September
    <FONT style="white-space: nowrap">2000-2005,</FONT>
    Mr.&#160;Brown served as President of Fairweather International,
    Inc. He served as Senior Vice President of ARCO Alaska, Inc.
    from 1994 until his retirement in 1999. Prior to that,
    Mr.&#160;Brown was President of ARCO Long Beach Company from
    1992 to 1994 and served as President of THUMS Long Beach Company
    from 1990 to 1992. Mr.&#160;Brown was employed for 29&#160;years
    by ARCO and related companies, all of which were engaged in the
    exploration and production of oil and gas. He served as
    Co-Chairman of the Alaska Highway Natural Gas Policy Council
    from
    <FONT style="white-space: nowrap">2001-2002.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>William T. Donovan </I>has been a director of Grey Wolf since
    June 1997. Since April 2006, Mr.&#160;Donovan has served as
    Chairman of the Board of Rockland Industrial Holdings, LLC, a
    Wisconsin entity engaged in manufacturing wood flooring products
    for the truck trailer and domestic container industries. From
    1997 to 2005, Mr.&#160;Donovan served as President, Chief
    Executive Officer and was a director of Total Logistics, Inc., a
    Wisconsin corporation, which engaged in various operating and
    investment activities and as a director of various private
    industrial companies. Mr.&#160;Donovan previously served as
    President, Chief Financial Officer, and was a director, of
    Christiana Companies, Inc., prior to its merger with Weatherford
    International, Inc. in February 1999. From 1980 to 1998,
    Mr.&#160;Donovan was a Principal and Managing Director of
    Lubar&#160;&#038; Co., a private investment and venture capital
    firm. Prior to joining Lubar&#160;&#038; Co., Mr.&#160;Donovan
    was an officer with Manufacturers Hanover Trust&#160;Company
    from 1976 until 1980, where he specialized in merger and
    acquisition financing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Trevor M. Turbidy </I>has been a director of Grey Wolf since
    December 2005. Mr.&#160;Turbidy serves as an Energy Industry
    Advisor with Avista Capital Partners. Prior to joining Avista,
    Mr.&#160;Turbidy served as President and Chief Executive Officer
    of Trico Marine Services, Inc., a marine support and
    transportation company, from August 2005 until July 2007, and
    from August 2003 until August 2005, he served as Vice President
    and Chief Financial Officer of Trico. From November 2000 until
    May 2002, Mr.&#160;Turbidy served as a Director in the
    Investment Banking Department of Credit Suisse First Boston.
    From 1991 until November 2000, Mr.&#160;Turbidy held various
    positions in the Investment Banking Department of Donaldson,
    Lufkin&#160;&#038; Jenrette.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    105
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='286'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Management of PDC</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The executive officers of PDC serve at the pleasure of
    PDC&#146;s board of directors. PDC&#146;s executive officers are
    as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="39%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="54%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Age</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position with the Company</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kevin A. Neveu
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Executive Officer
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gene C. Stahl
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President &#038; Chief Operating Officer
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Douglas J. Strong
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Financial Officer
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Darren J. Ruhr
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President&#160;&#151;&#160;Corporate Services &#038;
    Corporate Secretary
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kenneth J. Haddad
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President, Business Development
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joanne L. Alexander
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President and General Counsel
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Kevin A. Neveu </I>is Chief Executive Officer of PDC. See
    information regarding directors of PDC set forth above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Gene C. Stahl </I>is President&#160;&#038; Chief Operating
    Officer of PDC. President&#160;&#038; Chief Operating Officer,
    Precision Drilling Corporation since 2005; Vice President,
    Precision Rentals
    <FONT style="white-space: nowrap">2003-2005;</FONT>
    General Manager, Ducharme Rentals/Big D Rentals
    <FONT style="white-space: nowrap">2002-2003.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Douglas J. Strong </I>is Chief Financial Officer of PDC.
    Chief Financial Officer, Precision Drilling Corporation since
    2005; Chief Financial Officer, Precision Diversified Services
    Ltd.
    <FONT style="white-space: nowrap">2001-2005,</FONT>
    Group Controller, Precision Drilling
    <FONT style="white-space: nowrap">2001-2005.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Darren J. Ruhr </I>is Vice President, Corporate
    Services&#160;&#038; Corporate Secretary. Vice President,
    Corporate Services&#160;&#038; Corporate Secretary, Precision
    Drilling Corporation since 2005; Director, Information
    Technology, Real Estate&#160;&#038; Travel, Precision Drilling
    Corporation
    <FONT style="white-space: nowrap">2003-2005;</FONT>
    Director, Information Technology, Precision Drilling Corporation
    <FONT style="white-space: nowrap">2000-2003.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Kenneth J. Haddad </I>is Vice President, Business Development
    of PDC. Vice President, Business Development, Precision Drilling
    Corporation since 2008; Director, Mergers&#160;&#038;
    Acquisitions, Halliburton Company,
    <FONT style="white-space: nowrap">2002-2008.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Joanne Alexander </I>is Vice President and General Counsel of
    PDC. Vice President and General Counsel, Precision Drilling
    Corporation since 2008; General Counsel, Marathon Oil Canada
    Corporation
    <FONT style="white-space: nowrap">2007-2008;</FONT>
    Vice President&#160;&#038; General Counsel, Western Oil Sands
    Inc. 2007; General Manager, Stakeholder Engagement&#160;&#038;
    Regulatory Affairs, ConocoPhillips Canada Ltd. 2006; Vice
    President, Legal and Regulatory Affairs, Burlington Resources
    Canada Ltd.
    <FONT style="white-space: nowrap">2000-2006.</FONT>
</DIV>
<A name='287'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    PROCEEDINGS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;4, 2008, Howard G. Ahrens filed a class action
    petition in a case <I>Howard G. Ahrens, On Behalf of Itself and
    All Others Similarly Situated vs. Grey Wolf, Inc., Frank M.
    Brown, William T. Donovan, Thomas P. Richards, Robert E. Rose,
    Trevor Turbidy, Steven A. Webster, and William R. Zeigler</I>
    (Cause
    <FONT style="white-space: nowrap">No.&#160;2008-53565),</FONT>
    in the District Court of Harris County, Texas
    127<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Judicial
    District. The petitioner alleges that he is a shareholder of
    Grey Wolf. This lawsuit alleges that Grey Wolf&#146;s board of
    directors breached their fiduciary duties owed to the Grey
    Wolf&#146;s shareholders in connection with the Merger by, among
    other things, failing to take steps to maximize the value of
    Grey Wolf to its public shareholders. Additionally, the
    plaintiff alleges that Grey Wolf aided and abetted the alleged
    breach of fiduciary duty by the Grey Wolf board of directors.
    The plaintiff seeks to enjoin the Merger and also asks for other
    relief, including an award of attorneys&#146; and experts&#146;
    fees. This litigation is in its very early stages; however
    Grey&#160;Wolf believes that this lawsuit is without merit and
    intends to defend the lawsuit vigorously.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, on September&#160;11, 2008, Charles J. Crane filed
    a shareholder derivative petition in a case styled <I>Charles J.
    Crane Derivatively On Behalf of Grey Wolf vs. Thomas P.
    Richards, William R. Ziegler, William T. Donovan, Steven A.
    Webster, Robert E. Rose, Frank M. Brown, Trevor M. Turbidy;
    Precision&#160;Drilling Trust, Precision Drilling Corporation,
    and Precision Lobos Corporation </I>(Cause
    <FONT style="white-space: nowrap">No.&#160;2008-55129),</FONT>
    in the 269th&#160;District
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    106
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Court of Harris County. The plaintiff asserts that he is a
    shareholder of Grey Wolf. This lawsuit alleges that Grey
    Wolf&#146;s directors breached their fiduciary duties owed to
    Grey Wolf&#146;s shareholders in connection with the Merger by,
    among other things, permitting Precision to attempt to eliminate
    the public shareholders&#146; equity interest in Grey Wolf
    pursuant to a defective sales process and permitting Precision
    to buy Grey Wolf for an unfair price. The plaintiff then alleges
    that Precision and Merger Sub aided and abetted this alleged
    breach of fiduciary duty by Grey Wolf&#146;s directors. The
    plaintiff seeks to enjoin the Merger and also asks for other
    relief, including an award of attorneys&#146; and experts&#146;
    fees. This litigation is in its very early stages as no
    defendant has been served or required to answer as yet; however
    Grey Wolf and Precision each believe that this lawsuit is
    without merit and each intend to defend the lawsuit vigorously.
</DIV>
<A name='288'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BENEFICIAL
    OWNERSHIP OF GREY WOLF SECURITIES</FONT></B>
</DIV>
</A>
<A name='289'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Management</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information regarding the
    beneficial ownership of the Grey Wolf common stock by
    (i)&#160;all directors of Grey Wolf, (ii)&#160;all executive
    officers of Grey Wolf, and (iii)&#160;all directors and
    executive officers as a group.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Shares Beneficially Owned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>at September&#160;22, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas P. Richards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,099,542
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William R. Ziegler
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,572,283
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frank M. Brown
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    154,000
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William T. Donovan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    710,938
</TD>
<TD nowrap align="left" valign="bottom">
    (5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert E. Rose
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    246,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Trevor M. Turbidy
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,000
</TD>
<TD nowrap align="left" valign="bottom">
    (7)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Steven A. Webster
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,550,773
</TD>
<TD nowrap align="left" valign="bottom">
    (8)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David J. Crowley
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    323,369
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David W. Wehlmann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    388,595
</TD>
<TD nowrap align="left" valign="bottom">
    (10)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Edward S. Jacob,&#160;III
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    445,012
</TD>
<TD nowrap align="left" valign="bottom">
    (11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert J. Proffit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133,223
</TD>
<TD nowrap align="left" valign="bottom">
    (12)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Donald J. Guedry, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,747
</TD>
<TD nowrap align="left" valign="bottom">
    (13)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Directors and Executive Officers as a group (12&#160;persons
    named above)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Indicates less than one percent.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Each person has sole voting and investment power with respect to
    the shares of Grey Wolf common stock listed, except as otherwise
    specified.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 108,857&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Richards, 488,272 restricted shares of Grey Wolf common
    stock as to which he has sole voting power but no dispositive
    power, 502,413&#160;shares of Grey Wolf common stock underlying
    currently exercisable options.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 1,352,949&#160;shares of Grey Wolf common stock owned
    by Mr.&#160;Ziegler, 44,334 restricted shares of Grey Wolf
    common stock as to which he has sole voting power but no
    dispositive power and 175,000&#160;shares of Grey Wolf common
    stock underlying currently exercisable options. All shares of
    Grey&#160;Wolf common stock owned by Mr.&#160;Ziegler are held
    in margin accounts.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 9,666&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Brown, 44,334 restricted shares of Grey&#160;Wolf
    common stock as to which he has sole voting power but no
    dispositive power and 100,000&#160;shares of Grey Wolf common
    stock underlying currently exercisable options.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 223,944&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Donovan, 44,334 restricted shares of Grey Wolf common
    stock as to which he has sole voting power but no dispositive
    power, 250,000&#160;shares of Grey Wolf common stock underlying
    currently exercisable options, 168,660&#160;shares of Grey Wolf
    common stock beneficially owned through Cambridge Associates,
    L.P., a Wisconsin limited partnership </TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    107
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    (&#147;Cambridge&#148;), of which Mr.&#160;Donovan is a general
    partner, 22,000&#160;shares of Grey Wolf common stock
    beneficially owned by family members living in the same
    household, and 2,000&#160;shares held in trust of which
    Mr.&#160;Donovan is the sole trustee. Mr.&#160;Donovan disclaims
    beneficial ownership of 114,056&#160;shares owned by Cambridge,
    22,000&#160;shares owned by family members and 2,000&#160;shares
    held by a trust.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 26,666&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Rose, 44,334 restricted shares of Grey&#160;Wolf common
    stock as to which he has sole voting power but no dispositive
    power and 175,000&#160;shares of Grey Wolf common stock
    underlying currently exercisable options.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 6,666&#160;shares of Grey Wolf common stocked owned by
    Mr.&#160;Turbidy, 44,334 restricted shares of Grey Wolf common
    stock as to which he has sole voting power but no dispositive
    power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 2,331,439&#160;shares of Grey Wolf common stock owned
    by Mr.&#160;Webster, 44,334 restricted shares of Grey Wolf
    common stock as to which he has sole voting power but no
    dispositive power and 175,000&#160;shares of Grey Wolf common
    stock underlying currently exercisable options.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 54,036&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Crowley and 269,333 restricted shares of Grey Wolf
    common stock as to which Mr.&#160;Crowley has sole voting power
    but no dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (10) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 62,656&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Wehlmann, 174,555 restricted shares of Grey Wolf common
    stock as to which he has sole voting power but no dispositive
    power and 151,384&#160;shares of Grey Wolf common stock
    underlying currently exercisable options.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (11) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 45,844&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Jacob, 130,650 restricted shares of Grey Wolf common
    stock as to which he has sole voting power but no dispositive
    power, 268,412&#160;shares of Grey Wolf common stock underlying
    currently exercisable options and 106&#160;shares of Grey Wolf
    common stock held in the 401(k) Plan.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (12) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 19,537&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Proffit, 86,733 restricted shares of Grey Wolf common
    stock as to which he has sole voting power but no dispositive
    power and 26,953&#160;shares of Grey Wolf common stock
    underlying currently exercisable options.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (13) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 22,930&#160;shares of Grey Wolf common stock owned by
    Mr.&#160;Guedry, 47,910 restricted shares of Grey Wolf common
    stock as to which he has sole voting power but no dispositive
    power, 43,588&#160;shares of Grey Wolf common stock underlying
    currently exercisable options and 2,319&#160;shares of Grey Wolf
    common stock held in the Grey Wolf 401(k) Plan.</TD>
</TR>

</TABLE>
<A name='290'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Shareholders of Grey Wolf</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information regarding the
    beneficial ownership of the Grey Wolf common stock by each
    person, other than Grey Wolf&#146;s directors and executive
    officers, who are known by Grey Wolf to beneficially own more
    than 5% of the outstanding shares of Grey Wolf common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="80%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>Shares Beneficially Owned <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name and Address of Beneficial<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>at September&#160;15, 2008</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Owner, Identity of Group</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FMR Corp.(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,035,947
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    82 Devonshire Street<BR>
    Boston, Massachusetts 02109
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Caxton International Limited(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,462,611
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    12 Church Street<BR>
    Hamilton HM11, Bermuda
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Black River Asset Management LLC(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,350,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    12700 Whitewater Drive<BR>
    Minnetonka, MN 55343
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Renaissance Technologies, LLC(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,171,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    800 Third Avenue<BR>
    New York, NY 10022
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    As reported on Schedule&#160;13G/A filed with the SEC on
    January&#160;10, 2008.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    As reported on Schedule&#160;13G/A filed with the SEC on
    September&#160;5, 2008.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    As reported on Schedule&#160;13G/A filed with the SEC on
    February&#160;14, 2008.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    As reported on Schedule&#160;13G filed with the SEC on
    February&#160;13, 2008.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    108
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='291'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BENEFICIAL
    OWNERSHIP OF PRECISION SECURITIES</FONT></B>
</DIV>
</A>
<A name='292'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Management</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information regarding the
    beneficial ownership of the Precision trust units by
    (i)&#160;all directors of PDC and trustees of Precision,
    (ii)&#160;the chief executive officer and each of the other
    executive officers of PDC, and (iii)&#160;all directors,
    trustees and executive officers as a group.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Trust Units Beneficially Owned at September&#160;23, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number(1)(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    W.C. (Mickey) Dunn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,590
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brian A. Felesky, CM, Q.C.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,396
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert J.S. Gibson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,184
</TD>
<TD nowrap align="left" valign="bottom">
    (5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allen R. Hagerman, FCA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,928
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen J.J. Letwin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,751
</TD>
<TD nowrap align="left" valign="bottom">
    (7)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patrick M. Murray
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,180
</TD>
<TD nowrap align="left" valign="bottom">
    (8)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frederick W. Pheasey
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56,867
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert L. Phillips
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,491
</TD>
<TD nowrap align="left" valign="bottom">
    (10)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kevin A. Neveu
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gene C. Stahl
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,091
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Douglas J. Strong
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Darren J. Ruhr
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kenneth J. Haddad
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joanne L. Alexander
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Directors and Executive Officers as a group (14&#160;persons
    named above)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    *&#160;Indicates less than one percent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Each person has sole voting and investment power with respect to
    the Precision trust units listed, except as otherwise specified.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    For addition information on Precision&#146;s deferred trust
    units, please see its Information Circular dated April&#160;4,
    2007, in
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    filed with the SEC on April&#160;16, 2007.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 2,990&#160;units of fully vested deferred Precision
    trust units as to which Mr.&#160;Dunn has no voting power and no
    dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 6,696&#160;units of fully vested deferred Precision
    trust units as to which Mr.&#160;Felesky has no voting power and
    no dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 4,984&#160;units of fully vested deferred Precision
    trust units as to which Mr.&#160;Gibson has no voting power and
    no dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 6,928&#160;units of fully vested deferred Precision
    trust units as to which Mr.&#160;Hagerman has no voting power
    and no dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 2,751&#160;units of fully vested deferred Precision
    trust units as to which Mr.&#160;Letwin has no voting power and
    no dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 1,180&#160;units of fully vested deferred Precision
    trust units as to which Mr.&#160;Murray has no voting power and
    no dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 6,867&#160;units of fully vested deferred Precision
    trust units as to which Mr.&#160;Pheasey has no voting power and
    no dispositive power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (10) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 2,991&#160;units of fully vested deferred Precision
    trust units as to which Mr.&#160;Phillips has no voting power
    and no dispositive power.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    109
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='293'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Unitholders of Precision</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;23, 2008, there were no persons who were
    known by Precision to beneficially own more than 5% of the
    outstanding Precision trust units.
</DIV>
<A name='294'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Description
    of Precision Capital Structure</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a discussion of Precision&#146;s capital structure please
    refer to page&#160;31 of Precision&#146;s Annual Information
    Form, which was filed with the SEC as an Annual Report on
    <FONT style="white-space: nowrap">Form&#160;40-F</FONT>
    on March&#160;28, 2008.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    110
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='296'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNAUDITED
    PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying unaudited pro forma condensed combined
    financial statements have been prepared by management of PDC,
    administrator of Precision, for inclusion in the registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;F-4</FONT>
    related to the acquisition of Grey Wolf to reflect the
    combination of Precision and Grey Wolf as further described in
    Note&#160;1&#160;&#151; Basis of presentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNAUDITED
    PRO FORMA CONDENSED COMBINED BALANCE SHEET AS AT JUNE 30,
    2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang2 -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Historical</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Precision</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Grey Wolf</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Combined</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(In thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="18" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>ASSETS</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    313,061
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (323,585
</TD>
<TD nowrap align="left" valign="bottom">
    )(5h)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,524
</TD>
<TD nowrap align="left" valign="bottom">
    (5i)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159,091
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    329,595
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,968
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,037
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD></TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    189,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    492,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (313,061
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    368,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD></TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non-current deferred tax asset
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, plant and equipment, net of depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,202,001
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    781,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    750,000
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,733,953
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    582,046
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    919,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,377
</TD>
<TD nowrap align="left" valign="bottom">
    )(5l)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other intangible assets, net of amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94,780
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other non-current assets, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,400
</TD>
<TD nowrap align="left" valign="bottom">
    )(5j)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73,198
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,000
</TD>
<TD nowrap align="left" valign="bottom">
    (5h)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD></TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL ASSETS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,786,285
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,304,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,155,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,247,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD></TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="18">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="18" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>LIABILITIES AND UNITHOLDERS&#146;/SHAREHOLDERS&#146;
    EQUITY</B>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable and accrued liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,955
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    122,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,500
</TD>
<TD nowrap align="left" valign="bottom">
    (5k)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    309,552
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,800
</TD>
<TD nowrap align="left" valign="bottom">
    (5j)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,816
</TD>
<TD nowrap align="left" valign="bottom">
    (5i)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,052
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,052
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion of long term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,000
</TD>
<TD nowrap align="left" valign="bottom">
    (5h)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD></TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    122,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    349,604
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD></TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term incentive plan payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    275,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    827,144
</TD>
<TD nowrap align="left" valign="bottom">
    (5h)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    930,185
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (275,000
</TD>
<TD nowrap align="left" valign="bottom">
    )(5n)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,605
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56,015
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred income tax
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,795
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    162,349
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    321,016
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    626,160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unitholders&#146; temporary equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,089,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    893,228
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,142,940
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159,956
</TD>
<TD nowrap align="left" valign="bottom">
    (5m)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19,819
</TD>
<TD nowrap align="left" valign="bottom">
    )(5l)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    399,619
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (399,619
</TD>
<TD nowrap align="left" valign="bottom">
    )(5l)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Treasury stock, at cost
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (124,550
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124,550
</TD>
<TD nowrap align="left" valign="bottom">
    (5l)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated other comprehensive income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66,412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66,412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Retained earnings (deficit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,639,877
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    430,628
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (430,628
</TD>
<TD nowrap align="left" valign="bottom">
    )(5l)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,799,833
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (159,956
</TD>
<TD nowrap align="left" valign="bottom">
    )(5m)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD></TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL LIABILITIES AND UNITHOLDERS&#146;/SHAREHOLDERS&#146; EQUITY
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,786,285
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,304,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,155,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,247,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD></TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    111
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNAUDITED
    PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>FOR THE SIX MONTHS ENDED JUNE 30, 2008</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Historical</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Precision</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Grey Wolf</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Combined</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(In thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    477,858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    418,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    896,087
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    260,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    243,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    503,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,499
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    (5a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,187
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30,630
</TD>
<TD nowrap align="left" valign="bottom">
    )(5b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,137
</TD>
<TD nowrap align="left" valign="bottom">
    (5c)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,378
</TD>
<TD nowrap align="left" valign="bottom">
    (5d)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Loss on sale of assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50
</TD>
<TD nowrap align="left" valign="bottom">
    )(5a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (159
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,478
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,637
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,046
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,046
</TD>
<TD nowrap align="left" valign="bottom">
    )(5e)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,436
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,467
</TD>
<TD nowrap align="left" valign="bottom">
    (5f)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,557
</TD>
<TD nowrap align="left" valign="bottom">
    (5f)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    139,616
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101,564
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (39,863
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    201,317
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax provision (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,303
</TD>
<TD nowrap align="left" valign="bottom">
    )(5g)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    63,621
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (26,560
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    162,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Basic income per unit/share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diluted income per unit/share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average units/shares outstanding:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175,886
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    219,687
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    112
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNAUDITED
    PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FOR THE
    YEAR ENDED DECEMBER 31, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Historical</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Precision</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Grey Wolf</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Combined</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(In thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    940,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    906,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,847,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    480,937
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    513,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    994,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,990
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,361
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (175
</TD>
<TD nowrap align="left" valign="bottom">
    )(5a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50,428
</TD>
<TD nowrap align="left" valign="bottom">
    )(5b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,700
</TD>
<TD nowrap align="left" valign="bottom">
    (5c)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,756
</TD>
<TD nowrap align="left" valign="bottom">
    (5d)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,182
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,439
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81,621
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Gain on sale of assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (175
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175
</TD>
<TD nowrap align="left" valign="bottom">
    (5a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (517
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,202
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,719
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,337
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,910
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,910
</TD>
<TD nowrap align="left" valign="bottom">
    )(5e)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,933
</TD>
<TD nowrap align="left" valign="bottom">
    (5f)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,429
</TD>
<TD nowrap align="left" valign="bottom">
    (5f)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    327,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265,397
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (89,480
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    503,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax provision (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,790
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (31,058
</TD>
<TD nowrap align="left" valign="bottom">
    )(5g)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,237
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income before discontinued operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    321,735
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    169,892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (58,422
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    433,205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gain on disposal of discontinued operations, net of tax
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,755
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,755
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    324,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    169,892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (58,422
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    435,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Basic income per unit/share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diluted income per unit/share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average units/shares outstanding:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    182,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,649
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    113
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRECISION
    DRILLING TRUST<BR>
    <BR>
    NOTES TO THE UNAUDITED PRO FORMA CONDENSED COMBINED<BR>
    FINANCIAL STATEMENTS<BR>
    As at and for the six months ended June&#160;30, 2008 and as at
    and for the year ended December&#160;31, 2007 (Thousands of
    US&#160;$, except per share amounts)</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Basis of
    presentation</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying unaudited pro forma condensed combined
    financial statements (&#147;Statements&#148;) have been prepared
    by management of Precision for inclusion in the registration
    statement on Form&#160;F4 related to the acquisition (the
    &#147;Grey Wolf Acquisition&#148;) of Grey Wolf as described in
    note&#160;2 below. The statements are prepared and reported in
    United States dollars in accordance with US GAAP. The accounting
    policies used in the compilation of the Statements are those
    described in Precision&#146;s audited consolidated financial
    statements as at and for the year ended December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The unaudited pro forma condensed combined Statements of
    Operations have been prepared assuming the Grey Wolf Acquisition
    had occurred on January&#160;1, 2007. The unaudited pro forma
    condensed combined Balance Sheet has been prepared assuming the
    Grey Wolf Acquisition occurred on June&#160;30, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Statements have been prepared using the following
    information:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Audited consolidated financial statements of Precision
    for the year ended December&#160;31, 2007;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Audited consolidated financial statements of Grey Wolf
    for the year ended December&#160;31, 2007;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Unaudited consolidated financial statements of
    Precision as at and for the six months ended June&#160;30, 2008
    including the related reconciliation of the unaudited interim
    financial statements to US&#160;GAAP;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Unaudited consolidated financial statements of Grey
    Wolf as at and for the six months ended June&#160;30, 2008;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;Such other supplementary information as was considered
    necessary to reflect the Grey Wolf Acquisition and related
    financing in the Statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Statements should be read in conjunction with the historical
    consolidated financial statements of Precision and Grey Wolf as
    at and for the six months ended June&#160;30, 2008 and as at and
    for the year ended December&#160;31, 2007. The financial
    statements of Precision are prepared in accordance with Canadian
    GAAP. However, Note&#160;16 to the audited financial statements
    of Precision for the year ended December&#160;31, 2007 includes
    a reconciliation of the Canadian GAAP financial statements to US
    GAAP. A reconciliation of Precision&#146;s Canadian GAAP
    unaudited interim financial statements as at and for the six
    months ended June&#160;30, 2008 to US GAAP has been filed with
    Canadian and US regulatory authorities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s consolidated financial statements are presented
    in Canadian dollars. The consolidated financial statements of
    Precision are reported in US&#160;dollars within the unaudited
    pro forma condensed combined financial statements. The
    presentation of Precision&#146;s consolidated financial
    statements in US&#160;dollars was applied retrospectively
    whereby Precision&#146;s assets and liabilities were converted
    to US&#160;dollars at the period end rate of exchange and the
    statements of earnings were converted at the average rate for
    the period. Exchange gains and losses in the translation were
    included in accumulated other comprehensive income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Statements do not include the anticipated financial benefits
    from such items as potential cost savings or synergies arising
    from the Grey Wolf Acquisition, nor are they necessarily
    indicative of the results of operations or the financial
    position that would have resulted had the Grey Wolf Acquisition
    been effected on the dates indicated, or the results that may be
    obtained in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Statements have been prepared for illustrative purposes
    only. Actual amounts recorded once the purchase price allocation
    is finalized will depend on a number of factors and may differ
    materially from those
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    114
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRECISION
    DRILLING TRUST<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    THE UNAUDITED PRO FORMA CONDENSED COMBINED<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    recorded in these Statements. Certain elements of Grey
    Wolf&#146;s consolidated financial statements have been
    reclassified to conform to Precision&#146;s US GAAP presentation
    (Note&#160;4).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Description
    of transaction</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;24, 2008, Precision and Grey Wolf entered into an
    agreement and plan of merger whereby Precision will acquire all
    the outstanding shares of common stock of Grey Wolf. Each share
    of Grey Wolf common stock will be converted, at the option of
    the holder, into $9.02 in cash or 0.4225 of a Precision trust
    unit, subject to proration. The maximum amount of cash to be
    paid by Precision translates to $5.00 in cash and 0.1883 of a
    Precision trust unit, for each share of Grey Wolf common stock.
    The pro forma statements have been prepared using the following
    significant assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    All of the Grey Wolf convertible notes will convert prior to
    acquisition resulting in approximately an additional
    42.0&#160;million shares of Grey Wolf common stock being
    outstanding.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    An estimated 223&#160;million shares of Grey Wolf common stock
    will be outstanding on the acquisition date, including the
    shares issued on conversion of the convertible senior notes and
    on the exercise of vested Grey Wolf options issued per the 1996
    plan. Grey Wolf stock options issued and outstanding per the
    2003 stock option plan are assumed to be converted into
    Precision stock appreciation rights. The pro forma financial
    statements have assumed that each Grey Wolf share will be
    acquired for $5.00 in cash and 0.1883 of a Precision trust unit
    which will result in cash consideration of $1.12&#160;billion.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The cash consideration paid by Precision, net of the cash
    acquired, will be financed by additional credit facilities with
    an estimated borrowing cost of approximately 8% per annum.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Accrual of approximately $64&#160;million of costs by Grey Wolf
    for severance, advisory, legal and other related costs
    immediately prior to the acquisition.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Significant
    accounting policies</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accounting policies used in the preparation of the
    Statements are those set out in Precision&#146;s audited
    consolidated financial statements as at and for the year ended
    December&#160;31, 2007. In the opinion of management, these
    statements include all adjustments necessary for fair
    presentation in accordance with US&#160;GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management of Precision has reviewed the accounting policies of
    Grey Wolf and believes that they are materially consistent with
    Precision&#146;s US&#160;GAAP accounting policies except for
    depreciation of drilling and related equipment. Grey Wolf
    depreciates drilling and related equipment on a straight line
    basis with estimated lives ranging from 3 to 15&#160;years.
    Precision depreciates drilling and related equipment on a unit
    of production basis over an estimated 5,000 operating days. An
    adjustment has been made in the Statements to adjust Grey Wolf
    depreciation expense on drilling equipment to be consistent with
    Precision.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    115
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRECISION
    DRILLING TRUST<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    THE UNAUDITED PRO FORMA CONDENSED COMBINED<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of preparing the unaudited pro forma condensed
    combined financial statements, Precision has prepared its
    financial statements in accordance with US GAAP. A
    reconciliation of Precision&#146;s Canadian dollar, Canadian
    GAAP balance sheet at June&#160;30, 2008 to US dollars and US
    GAAP is as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="51%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Precision&#160;&#151; As<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>US GAAP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Precision&#160;&#151; <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reported<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Adjustments<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Translation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>US GAAP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Cdn$)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Cdn$)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(US$)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(Thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,505
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    189,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other non-current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,055
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, plant and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,224,238
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (22,237
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,202,001
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangibles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    272
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    280,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,244
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    TOTAL ASSETS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,756,302
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,046
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,786,285
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,693
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,072
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term incentive plan payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,723
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (158
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,948
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,906
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    190,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (45,479
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,642
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,795
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (674
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Temporary equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,146,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (57,160
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,089,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unitholders&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,442,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,442,476
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contributed surplus
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    742
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (742
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (96,196
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,641,659
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,978
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,639,877
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated other comprehensive income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66,412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66,412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    TOTAL LIABILITIES AND UNITHOLDERS&#146; EQUITY
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,756,302
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,046
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,786,285
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A reconciliation of Precision&#146;s Canadian dollar, Canadian
    GAAP statements of earnings for the six months ended
    June&#160;30, 2008 and the year ended December&#160;31, 2007 to
    US dollars and US GAAP is as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Six Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net earnings as reported&#160;&#151; Canadian GAAP (Cdn$)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    345,776
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    US GAAP adjustments (Cdn$)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (283
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net earnings as reported&#160;&#151; US GAAP (Cdn$)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127,722
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    345,811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Translation adjustments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,006
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,321
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net earnings&#160;&#151;&#160;US GAAP (US$)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    324,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Pro forma
    purchase consideration</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf Acquisition will be accounted for using the
    purchase method of accounting. Accordingly, Grey Wolf&#146;s
    identifiable assets and liabilities will be measured at their
    estimated fair values on the date of acquisition and the
    difference between these fair values and the price paid for Grey
    Wolf will be recorded on the balance sheet as goodwill. The
    results of operations of Grey Wolf will be included in the
    consolidated
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    116
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRECISION
    DRILLING TRUST<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    THE UNAUDITED PRO FORMA CONDENSED COMBINED<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    financial statements of Precision from the date of acquisition.
    Certain adjustments have been reflected in the Statements to
    illustrate the effects of purchase accounting. The Statements
    account for the cost of the acquisition and allocation of
    proceeds as follows, according to management&#146;s preliminary
    estimate:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="88%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Consideration</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,117,729
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Trust units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    893,228
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisition costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,031,457</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Allocation of Consideration</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Working capital, including cash of $323&#160;million
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    309,451
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, plant and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,531,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94,780
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,198
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    582,046
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred income tax
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (483,365
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19,605
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,031,457</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Intangible assets are comprised of the estimated value
    associated with the acquired customer relationships, contracts
    and Grey Wolf brand.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The acquired working capital includes $11&#160;million of cash
    received on the exercise of Grey Wolf stock options (Note 5(i)),
    a $7&#160;million liability for the Grey Wolf stock options that
    are converted into cash settled trust unit appreciation awards
    (Note 5(i)) and a $64&#160;million liability for Grey Wolf
    transaction costs (Note&#160;5(j)).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In these statements, management has made a preliminary
    allocation to the fair value of the acquired assets and
    liabilities, this allocation could change materially when final
    purchase accounting is performed and the resulting differences
    could have a material impact on the financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, FASB issued SFAS&#160;141(R), <I>Business
    Combinations</I>. The new standard, which will be effective for
    business combinations occurring after December&#160;31, 2008,
    will require transaction costs to be expensed as incurred. If
    the acquisition is completed in subsequent to December&#160;31,
    2008, the allocation of the purchase consideration will be
    difference under SFAS&#160;141(R).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An independent appraisal firm has been engaged to assist in
    finalizing the allocation of the purchase price. The preliminary
    purchase price allocations are subject to change based on
    finalization of the fair values of the tangible and intangible
    assets acquired and liabilities assumed as described above. The
    estimated purchase price has been preliminarily assigned to the
    net tangible and intangible assets acquired and liabilities
    assumed as follows (in thousands of US dollars):
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Pro forma
    adjustments</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Statements incorporate the following adjustments:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adjustments
    to the statements of earnings</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    a.&#160;Reclassification of Grey Wolf&#146;s
    &#145;&#145;Gain/Loss on Sale of Assets&#146;&#146; to
    &#145;&#145;Depreciation and Amortization&#146;&#146; to provide
    consistency with Precision&#146;s presentation.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    117
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRECISION
    DRILLING TRUST<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    THE UNAUDITED PRO FORMA CONDENSED COMBINED<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    b.&#160;Record depreciation adjustments converting Grey
    Wolf&#146;s basis of depreciation for drilling equipment from
    straight line to unit of production, which is used by Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    c.&#160;Record depreciation associated with the increase in
    property, plant and equipment that resulted from the allocation
    of the purchase price consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    d.&#160;Record amortization associated with the acquired
    intangible assets on a straight line basis over their estimated
    lives. The estimated life of the intangible assets is
    2-10&#160;years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    e.&#160;Eliminate the interest expense recorded by Grey Wolf
    with respect to the convertible notes that are assumed to be
    converted prior to the acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    f.&#160;Record the interest expense related to additional debt
    assumed to finance the acquisition at an estimated rate of 8%
    per annum. In addition, record the amortization of the
    $57&#160;million of debt issue costs associated with the debt
    financing over an estimated 5&#160;years. If the interest rate
    on the debt increased by 0.125%, interest expense would increase
    by $1&#160;million per year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    g.&#160;Recognition of the current and future income tax effects
    of pro forma adjustments at an average rate of approximately 35%
    (combined Canadian and US effective tax rate).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adjustments
    to the balance sheet</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    h.&#160;Total debt was increased by $851&#160;million to finance
    the cash portion of the acquisition, net of the cash acquired of
    $313&#160;million and $11&#160;million of cash received on the
    exercise of Grey Wolf stock options. The current portion of the
    debt of $24&#160;million has been included in current
    liabilities. Debt issue costs of $57&#160;million are included
    in other assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    i.&#160;Vested Grey Wolf options issued under various plans were
    assumed to be exercised prior to the acquisition resulting in an
    additional 2&#160;million shares of Grey Wolf common stock being
    outstanding at the time of the acquisition. Included in the
    working capital acquired upon the acquisition is
    $11&#160;million of cash received upon the exercise of these
    options. Unvested options outstanding in Grey Wolf were assumed
    to be converted to Precision cash settled trust unit
    appreciation awards which resulted in the recognition of an
    additional $7&#160;million liability on the date of acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    j.&#160;Recognize the estimated Grey Wolf transaction costs of
    $64&#160;million which include severance, advisory, legal, the
    break up fee on a prior transaction and other related costs. In
    addition, deferred costs included in the other assets of Grey
    Wolf of $4&#160;million were not assigned value in the purchase
    price allocation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    k.&#160;Recognize the estimated Precision transaction costs of
    $21&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    l.&#160;Record the elimination of Grey Wolf&#146;s equity and
    pre-acquistion goodwill.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    m.&#160;Revalue the Trust units issued to Grey Wolf shareholders
    from $21.22, the amount used for accounting purposes in the
    purchase price allocation, to $25.02&#160;per unit representing
    the redemption amount as at the date of the balance sheet. This
    adjustment results in a $160&#160;million increase to temporary
    equity with a corresponding increase in the deficit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    n.&#160;The convertible debt in Grey Wolf is assumed to be
    converted into approximately 42.0&#160;million common shares of
    Grey Wolf common stock prior to the acquisition.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    118
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRECISION
    DRILLING TRUST<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    THE UNAUDITED PRO FORMA CONDENSED COMBINED<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Earnings
    per trust unit</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Six Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>June&#160;30, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2007</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom">
    <B>(Thousands, except per unit amounts)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro&#160;forma net earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    162,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    435,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average units outstanding in Precision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additional units issued upon acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro&#160;forma weighted average units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,758
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Pro&#160;forma net earnings per unit</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>0.97</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2.60</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diluted units outstanding in Precision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additional units issued upon acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pro&#160;forma diluted units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Pro&#160;forma diluted net earnings per unit</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>0.97</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2.60</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    119
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='295'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPARISON
    OF SHAREHOLDER RIGHTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The rights of holders of Grey Wolf common stock are currently
    governed by the laws of Texas and the articles of incorporation
    and bylaws of Grey Wolf, each as amended to date. As a result of
    the Merger, holders of Grey Wolf common stock who receive
    Precision trust units will have the rights and privileges of
    such units governed by Precision&#146;s Declaration of Trust,
    which governs the business and affairs of Precision and which is
    construed in accordance with the laws of the Province of Alberta
    and the federal laws of Canada. There is no statute, code, rule,
    regulation or policy of any governmental authority that
    regulates, in any material respect, the relationship between a
    trust such as Precision and its beneficiaries. As a result, the
    principal rights of the holders of Precision trust units are
    contained primarily in Precision&#146;s Declaration of Trust
    while aspects of the common law of the Province of Alberta and
    Canadian federal common law are also applicable. There are
    material differences in the rights and privileges of unitholders
    of an Alberta unincorporated open-ended investment trust such as
    Precision and those of shareholders of a Texas corporation such
    as Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the material differences between
    the rights of holders of Grey Wolf common stock and those of
    holders of Precision trust units as of the date hereof. These
    differences arise from differences between Texas law and
    Canadian law and between Grey Wolf&#146;s organizational
    documents and Precision&#146;s Declaration of Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary does not purport to be complete and is qualified in
    its entirety by reference to applicable Texas and Canadian law
    and the organizational documents of Grey Wolf and
    Precision&#146;s Declaration of Trust. Copies of the amended and
    restated articles of incorporation and bylaws of Grey Wolf and
    Precision&#146;s Declaration of Trust were previously filed with
    the SEC. See &#147;Where You Can Find More Information&#148;
    beginning on page&#160;132.
</DIV>
<A name='322'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limited
    Liability of Shareholders and Unitholders</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf, as a Texas corporation under the TBCA, is a unique
    legal entity separate and apart from those who own it. Under
    Texas law, the liability of a holder of Grey Wolf common stock
    for the debts or liabilities of Grey Wolf is generally limited
    to the amount of the shareholder&#146;s investment in Grey Wolf
    common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the <I>Income Trusts Liability Act </I>(Alberta), a holder
    of Precision trust units will not be, as a beneficiary, liable
    for any act, default, obligation or liability of the trustees of
    Precision. In addition, Precision&#146;s Declaration of Trust
    provides that no holder of Precision trust units will be subject
    to any liability in connection with the assets, obligations,
    activities or affairs of Precision or any actual or alleged act
    or omission of the trustees of Precision. The Precision
    Declaration of Trust provides that in the event that a court
    determines that holders of Precision trust units are subject to
    any such liabilities, the liabilities are to be satisfied out of
    that unitholder&#146;s share of the assets of Precision
    represented by the unitholder&#146;s Precision trust units.
</DIV>
<A name='323'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights Generally</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The TBCA generally requires the affirmative vote of the holders
    of a majority of the shares having voting power represented, in
    person or by proxy, at the meeting and voting for or against or
    expressly abstaining on any matter, to decide all matters,
    except for certain matters for which the TBCA default rules set
    a different voting requirement, such as the approval of a merger
    (discussed below). As permitted by Texas law, Grey Wolf&#146;s
    organizational documents reduce the affirmative vote required to
    authorize any action, including a merger, to a majority of the
    outstanding shares entitled to vote other than the election of
    directors. In accordance with the TBCA and Grey Wolf&#146;s
    organizational documents, Grey Wolf&#146;s directors are elected
    by a plurality of the votes cast by the holders of shares
    entitled to vote in the election of directors.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    120
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the TBCA, a quorum will be present with respect to
    any meeting of Grey Wolf&#146;s shareholders if the holders of a
    majority of the shares entitled to vote at the meeting are
    represented at the meeting in person or by proxy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To bring a matter before an annual meeting or to nominate a
    candidate for director, a shareholder&#146;s notice of the
    proposed matter or nomination must be received at Grey
    Wolf&#146;s principal executive office not less than 60 and not
    more than 120&#160;days prior to the anniversary date of the
    mailing to shareholders of the notice of meeting for the
    immediately preceding annual meeting. In the event that the date
    of the annual meeting is changed by more than 30&#160;days from
    the anniversary date of the immediately preceding annual
    meeting, the shareholder&#146;s notice must be received at Grey
    Wolf&#146;s principal executive office no later than the close
    of business on the 10th&#160;day following the earlier of the
    date on which a written statement setting forth the date of the
    meeting was mailed to shareholders or the date on which it is
    first disclosed to the public. In the case of a special meeting
    at which directors are to be elected, a shareholder nomination
    notice must be received at Grey Wolf&#146;s principal executive
    office not less than 50 nor more than 120&#160;days prior to the
    date of the meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless the board of directors requires a different vote, Texas
    law generally requires the affirmative vote of the holders of at
    least two-thirds of the outstanding shares entitled to vote to
    approve a merger, and if any class of shares is entitled to vote
    as a class on the approval of a merger, the affirmative vote of
    the holders of at least two-thirds of the shares in each class.
    Similar voting requirements apply for statutory share exchanges
    or conversions. Texas law does not require a vote by the
    shareholders of the surviving corporation of a merger under
    certain circumstances where, among other things, the number of
    shares to be issued is less than 20% of the outstanding shares
    prior to the transaction. In addition, Texas law does not
    require a vote by the shareholders of a corporation in
    connection with a merger with another corporation that owns at
    least 90% of each class of its capital stock. However, as
    discussed above, Grey Wolf&#146;s organizational documents
    specifically provide that the affirmative vote of a majority of
    the outstanding shares entitled to vote will decide all matters,
    including mergers, other than the election of directors, put
    before the Grey Wolf shareholders
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Precision trust unit entitles its holder to one vote on
    each resolution put forth at any meeting of the holders of
    Precision trust units or in respect of any written resolution of
    the holders of Precision trust units. Each proposal is
    classified as either an &#147;Ordinary Resolution&#148; or
    &#147;Special Resolution,&#148; and can be passed only as
    described below. Precision&#146;s Declaration of Trust allows
    for the creation of Precision special voting units which enables
    Precision to provide voting rights to holders of units, shares
    or other securities which are convertible into or exchangeable
    for Precision trust units. Holders of Precision special voting
    units are not entitled to any interest or share in the
    distributions or net assets of Precision and are only entitled
    to the number of votes at meetings of Precision trust
    unitholders as is equal to the number of Precision trust units
    into which the convertible or exchangeable securities to which
    their Precision special voting units relate are convertible or
    exchangeable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An &#147;Ordinary Resolution&#148; for purposes of
    Precision&#146;s Declaration of Trust is a resolution proposed
    to be passed as an ordinary resolution at a meeting of holders
    of Precision trust units duly convened for that purpose and
    passed by the affirmative vote of more than 50% of the votes
    cast on the resolution by unitholders represented at the
    meeting. Holders of Precision trust units are entitled to pass
    Ordinary Resolutions that bind Precision only with respect to
    (i)&#160;the election or removal of a trustee of Precision,
    (ii)&#160;the appointment or removal of auditors and
    (iii)&#160;the exercise of voting rights attached to the voting
    securities of the general partner of PDLP held by Precision as
    contemplated in Precision&#146;s Declaration of Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A &#147;Special Resolution&#148; for purposes of
    Precision&#146;s Declaration of Trust is a resolution proposed
    to be passed as a special resolution at a meeting of holders of
    Precision trust units duly convened for that purpose and passed
    by the affirmative vote of more than
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the votes cast on the resolution by unitholders represented
    at the meeting. Approval of the holders of Precision trust units
    by Special Resolution is required with respect to
    (i)&#160;amendments of Precision&#146;s Declaration of Trust,
    (ii)&#160;the termination of Precision, (iii)&#160;the sale of
    all or substantially all of the assets of Precision,
    (iv)&#160;the dissolution of Precision prior to the end of its
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    121
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    term and (v)&#160;the ratification of any trust unitholder
    rights plan, distribution reinvestment plan, trust unit purchase
    plan, trust unit option plan, incentive option plan or other
    compensation plan which requires the approval of the holders of
    the Precision trust units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Given that (i)&#160;PDLP is the sole shareholder of PDC and is
    entitled to appoint persons to the board of directors of PDC and
    (ii)&#160;Precision holds all of the voting shares of the
    general partner of PDLP, the holders of Precision trust units
    elect the board of directors of PDC by Ordinary Resolution at
    each annual meeting of the unitholders, and the trustees of
    Precision ensure that appropriate steps are taken by the general
    partner on behalf of PDLP to act upon the election by the
    holders of Precision trust units.
</DIV>
<A name='324'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Meetings
    of the Shareholders and Unitholders</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with the TBCA, the date, time and place of the
    Grey Wolf annual meeting is determined by the Grey Wolf board of
    directors, and notice of the Grey Wolf annual meeting must be
    mailed to the Grey Wolf shareholders no less than 10 and no more
    than 60&#160;days prior to the meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise required by law or Grey Wolf&#146;s articles
    of incorporation, special meetings of the Grey Wolf shareholders
    may be called by the Chairman of the Board, the Vice Chairman of
    the Board, the Chief Executive Officer, the President, by a
    resolution approved by a majority of the entire Grey Wolf board
    of directors or by the holders of at least 50% of all the shares
    entitled to vote at the meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s Declaration of Trust provides that meetings of
    the holders of Precision trust units must be called and held
    for, among other matters, the election of Precision&#146;s
    trustees, the appointment or removal of the auditors of
    Precision, the approval of all significant amendments to
    Precision&#146;s Declaration of Trust, the sale of all or
    substantially all of Precision&#146;s assets and the dissolution
    or termination of Precision. Annual meetings of the holders of
    Precision trust units are required to be held for, among other
    things, the election of Precision trustees and the appointment
    of the auditors of Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A meeting of Precision unitholders may be convened at any time
    and for any purpose by the trustees of Precision and must be
    convened, except in certain circumstances, if requisitioned by
    the holders of not less than 5% of all votes entitled to be
    voted at a meeting of the holders of Precision trust units. A
    requisition must, among other things, be in writing and state in
    reasonable detail the business purpose for which the meeting is
    to be called. Only Precision unitholders of record may attend
    and vote at meetings, but may do so either in person or by proxy
    (and a proxyholder need not be a holder of Precision trust
    units). Two persons present in person or represented by proxy
    and representing in the aggregate at least 5% of the votes
    attached to all outstanding Precision trust units constitute a
    quorum for the transaction of business at all such meetings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s Declaration of Trust contains provisions as to
    the notice required and other procedures with respect to the
    calling and holding of meetings of the holders of Precision
    trust units in accordance with the requirements of applicable
    laws. In particular, Precision&#146;s Declaration of Trust
    requires notice of all meetings of Precision unitholders to be
    provided by unregistered mail, postage prepaid, mailed at least
    21&#160;days and not more than 50&#160;days prior to the
    meeting. For the purpose of determining the holders of Precision
    trust units who are entitled to vote or act at any meeting, the
    trustees of Precision may fix a date not more than 60&#160;days
    and not less than 21&#160;days prior to the date of any meeting
    of Precision unitholders as a record date for the determination
    of Precision unitholders entitled to vote at the meeting, and
    any unitholder who was a unitholder at the time so fixed will be
    entitled to vote at the meeting even though that unitholder has
    since that time disposed of his or her Precision trust units,
    and no holder of Precision trust units who becomes a unitholder
    after that time will be entitled to vote at the meeting. In the
    event that the trustees of Precision do not fix a record date
    for any meeting of Precision unitholders, the record date for
    the meeting will be the business day immediately proceeding the
    date upon which notice of the meeting is given to the
    unitholders as provided by Precision&#146;s Declaration of Trust.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    122
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='325'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Action by
    Written Consent In Lieu of a Meeting</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As permitted by the TBCA, shareholders of Grey Wolf may act by
    written consent in lieu of a meeting of the shareholders so long
    as the written consent has been signed by the holder or holders
    of all the shares entitled to vote with respect to the action
    that is the subject of the consent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A resolution in writing executed by holders of Precision trust
    units holding more than
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the votes attached to outstanding Precision trust units at
    any time is valid and binding for all purposes of
    Precision&#146;s Declaration of Trust, as if the unitholders had
    exercised at that time all of the voting rights to which they
    were then entitled under Precision&#146;s Declaration of Trust
    in favor of the resolution at a meeting of Precision unitholders
    duly called for that purpose.
</DIV>
<A name='326'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendments
    to Governing Documents</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the TBCA, a corporation&#146;s board of directors and
    shareholders may amend the corporation&#146;s articles of
    incorporation if (i)&#160;the board of directors sets forth the
    proposed amendment in a resolution and directs that it be
    submitted to a vote at a meeting of shareholders, and
    (ii)&#160;the holders of a majority of the outstanding shares
    entitled to vote thereon approve it by an affirmative vote. Grey
    Wolf&#146;s articles of incorporation do not contain any special
    provisions regarding amendments, generally, except that:
    (i)&#160;the articles may not be amended in any manner which
    would materially and adversely alter the powers, preferences or
    special rights of the Series&#160;B Preferred Stock without the
    affirmative vote of the holders of at least
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the outstanding shares of Series&#160;B Preferred Stock
    voting as a single class and (ii)&#160;the provision in the
    articles of incorporation relating to amendments to Grey
    Wolf&#146;s bylaws cannot be amended without the affirmative
    vote of 75% of the holders of all shares of Grey Wolf stock
    entitled to vote, voting as a single class.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Grey Wolf board of directors is expressly and exclusively
    empowered to adopt, amend or repeal Grey Wolf&#146;s bylaws.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approval of the unitholders by Special Resolution is required to
    amend Precision&#146;s Declaration of Trust, provided, however,
    that Precision&#146;s trustees may, at any time and without the
    consent, approval or ratification of any of the Precision
    unitholders, amend Precision&#146;s Declaration of Trust
    (i)&#160;for the purpose of ensuring Precision&#146;s continuing
    compliance with applicable laws, regulations or policies of any
    governmental authority, (ii)&#160;in a manner which, in the
    opinion of the trustees of Precision, provides additional
    protection for the holders of Precision trust units,
    (iii)&#160;in a manner which, in the opinion of the trustees of
    Precision, is necessary or desirable in light of changes in
    Canadian tax laws, (iv)&#160;to remove any conflicts or
    inconsistencies in Precision&#146;s Declaration of Trust or to
    make minor corrections which are, in the opinion of the
    Precision trustees, necessary or desirable and not prejudicial
    to the holders of Precision trust units, or (v)&#160;to change
    the situs of, or the laws governing, Precision which, in the
    opinion of the Precision trustees, is desirable in order to
    provide Precision unitholders with the benefit of any
    legislation limiting their liability.
</DIV>
<A name='327'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dissenters&#146;/Appraisal
    Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the TBCA and Grey Wolf&#146;s organizational documents, a
    shareholder generally has the right to dissent from any merger
    to which Grey Wolf is a party, from any sale of all or
    substantially all of Grey Wolf&#146;s assets or from any plan of
    exchange, and to receive fair value for such shareholder&#146;s
    shares. However,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    123
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    dissenters&#146; rights are not available with respect to a plan
    of merger in which there is a single surviving corporation or
    with respect to any plan of exchange if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the shares held by the shareholder are part of a class, shares
    of which are listed on a national securities exchange or NASDAQ
    or held of record by not less than 2,000 holders on the record
    date fixed to determine the shareholders entitled to vote on the
    plan of merger or the plan of exchange;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the shareholder is not required by the terms of the plan of
    merger or plan of exchange to accept for the shareholder&#146;s
    shares any consideration that is different than the
    consideration (other than cash in lieu of fractional shares) to
    be provided to any other holder of shares of the same class or
    series held by the shareholder;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the shareholder is not required by the terms of the plan of
    merger or plan of exchange to accept for the shareholder&#146;s
    shares any consideration other than:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (i)&#160;&#160;&#160;
</TD>
    <TD align="left">
    shares of a corporation that, immediately after the effective
    time of the merger or exchange, will be part of a class of
    shares that are:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="4%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    listed, or authorized for listing upon official notice of
    issuance, on a national securities exchange,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="4%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    approved for quotation as a national market security on
    NASDAQ,&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="4%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    held of record by not less than 2,000 holders;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (ii)&#160;&#160;
</TD>
    <TD align="left">
    cash in lieu of fractional shares otherwise entitled to be
    received,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (iii)&#160;
</TD>
    <TD align="left">
    any combination of (i)&#160;and (ii).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Precision Declaration of Trust, the holders of
    Precision trust units have no dissenters&#146;, appraisal or
    similar rights in connection with a merger, a sale of all or
    substantially all of Precision&#146;s assets or from any plan of
    exchange.
</DIV>
<A name='328'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Derivative
    and Oppression Actions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Texas law, a Grey Wolf shareholder may not institute a
    derivative proceeding without first making a demand upon the
    corporation. A court will be required to dismiss the proceeding
    if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a majority of the independent and disinterested directors of the
    corporation constituting a quorum of the whole board;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a committee of the board consisting of two or more independent
    and disinterested directors;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    one or more persons who are independent and disinterested and
    appointed by the court at the recommendation of the corporation,
    determines in good faith, after conducting a reasonable inquiry,
    that the continuation of the derivative proceeding is not in the
    best interests of the corporation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of Precision trust units do not have the statutory
    rights normally associated with ownership of shares of a
    corporation, and thus do not have the statutory right to bring
    &#147;oppression&#148; or &#147;derivative&#148; actions under
    the <I>Canada Business Corporations Act </I>or the <I>Business
    Corporations Act </I>(Alberta) (&#147;ABCA&#148;).
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    124
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='329'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Payment
    of Dividends and Distributions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Texas law, the board of directors of a corporation may
    authorize, and the corporation may pay, dividends, or make other
    distributions, including redemptions or repurchases of stock.
    However, except in limited circumstances, no distribution may be
    made if after giving effect to the distribution, the corporation
    would be insolvent or the distribution exceeds the surplus of
    the corporation. Under Texas law, &#147;surplus&#148; means the
    excess of the net assets of a corporation over its stated
    capital. Grey Wolf has never declared a dividend on its common
    stock. Grey Wolf&#146;s bank credit facilities restrict its
    ability to declare or pay any dividend on, or make similar
    payments with respect to, its capital stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trustees of Precision have adopted a policy of making
    regular cash distributions on or about the 15th&#160;day
    following the end of each calendar month to the holders of the
    Precision trust units of record on the last business day of each
    calendar month. The actual amount distributed is dependent on
    various economic factors and distributions are declared at the
    discretion of the Precision trustees. Accordingly, distributions
    may be increased, reduced or suspended entirely. Distributions
    are paid from Precision&#146;s &#147;cash flow,&#148; which is
    defined in Precision&#146;s Declaration of Trust as the sum of
    (i)&#160;all cash amounts which are received by Precision for,
    or in respect of, any applicable distribution period, including,
    without limitation, interest, dividends, distributions, proceeds
    from the disposition of securities, returns of capital and
    repayments of indebtedness and (ii)&#160;the proceeds of any
    issuance of Precision trust units or any other securities, net
    of the expenses of distribution and, if applicable, the use of
    proceeds of any the issuance for the intended purpose, less the
    sum of (A)&#160;all amounts which relate to the redemption of
    Precision trust units and which have become payable in cash by
    Precision in the applicable distribution period and any expenses
    of Precision in the distribution period and (B)&#160;any other
    amounts (including taxes) required by law to be deducted,
    withheld or paid by Precision in the distribution period.
    Precision&#146;s Declaration of Trust also provides that an
    amount equal to net income of Precision not already paid to
    holders of Precision trust units in the year will become payable
    on December 31 of each year such that Precision will not be
    liable for ordinary Canadian federal income taxes for the year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event the trustees of Precision determine that Precision
    does not have available cash in an amount sufficient to make
    payment of the full amount of any distribution which has been
    declared to be payable on the due date for the payment, the
    payment may, at the option of the Precision trustees, include
    the issuance of additional Precision trust units, or fractions
    of trust units, if necessary, having a value equal to the
    difference between the amount of the distribution and the amount
    of cash which has been determined by the trustees to be
    available for the payment of the distribution. Immediately after
    any pro rata distribution of additional trust units to all
    holders of trust units in payment of all or any part of any
    distribution, the number of the outstanding trust units will
    automatically be consolidated such that each holder will hold
    after the consolidation the same number of trust units as the
    holder held before the distribution of additional trust units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Precision trustees may deduct or withhold from distributions
    payable to any holder of Precision trust units all amounts
    required by law to be withheld from the distribution, whether
    those distributions are in the form of cash, additional trust
    units or otherwise. In the event of a distribution in the form
    of additional trust units or property other than cash, the
    Precision trustees may sell trust units or other property of
    those Precision unitholders to pay those withholding taxes and
    to pay all of the Precision trustees&#146; reasonable expenses
    with regard thereto.
</DIV>
<A name='330'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Redemption&#160;Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Texas law does not grant any redemption rights, or require that
    any redemption rights be granted, to shareholders of a Texas
    corporation, and Grey Wolf shareholders have no such rights to
    redeem shares of Grey Wolf.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    125
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision trust units are redeemable at any time on demand upon
    delivery to Precision by a holder of Precision trust units of a
    duly completed and properly executed notice requesting
    redemption. Upon receipt of a notice to redeem trust units by
    Precision, the holder will cease to have any rights with respect
    to the trust units tendered for redemption (other than the right
    to receive the redemption payment therefor, unless the
    redemption payment is not made as required), including the right
    to receive any distributions which are declared payable on a
    date subsequent to the day of receipt by Precision of the
    applicable redemption notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon receipt by Precision of a notice to redeem Precision trust
    units, the tendering unitholder will thereafter be entitled to
    receive a price per trust unit equal to the lesser of:
    (i)&#160;90% of the &#147;market price&#148; per trust unit on
    the principal stock exchange on which the trust units are listed
    during the period of the last 10 trading days immediately prior
    to the date on which the trust units were tendered for
    redemption; and (ii)&#160;the &#147;closing market price&#148;
    on the principal stock exchange on which the trust units are
    listed on the date that the trust units were tendered for
    redemption. The aggregate redemption price payable by Precision
    in respect of the trust units surrendered for redemption during
    any calendar month will be satisfied by way of a cash payment on
    the last day of the calendar month following the month in which
    the applicable trust units were tendered for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of Precision trust units will not receive cash upon the
    redemption of their Precision trust units if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the total amount payable by Precision in respect of such trust
    units and all other trust units tendered for redemption in the
    same calendar month exceeds Cdn$50,000 (provided that the
    trustees of Precision may, in their sole discretion, waive such
    limitation in respect of all trust units tendered for redemption
    in any calendar month);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at the time such Precision trust units are tendered for
    redemption, the outstanding trust units are not listed for
    trading on the Toronto Stock Exchange or traded or quoted on any
    stock exchange or market which the Precision trustees consider,
    in their sole opinion, provides representative fair market value
    prices for the trust units;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the normal trading of Precision trust units is suspended or
    halted on any stock exchange on which the Precision trust units
    are listed for trading on the date that such trust units
    tendered for redemption were tendered to Precision for
    redemption or for more than five trading days during the
    10&#160;day trading period prior to the date on which such trust
    units were tendered for redemption;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the redemption of Precision trust units will result in the
    delisting of the trust units on the principal stock exchange on
    which the trust units are listed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a holder of Precision trust units is not entitled to receive
    cash upon the redemption of trust units as a result of one or
    more of the foregoing limitations, then each trust unit tendered
    for redemption will, subject to any applicable regulatory
    approvals, be redeemed by way of a distribution in specie of the
    assets held by Precision, which may include notes or other
    assets.
</DIV>
<A name='331'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fiduciary
    Duties of Directors and Trustees</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Texas law provides that a director&#146;s fiduciary obligation
    encompasses the duty of care, the duty of loyalty and the duty
    of obedience to the corporation. The TBCA expressly permits a
    director to consider the long-term as well as the short-term
    interests of a corporation and its shareholders when considering
    the best interests of the corporation, including, in the case of
    an acquisition proposal, the possibility that those interests
    may be best served by the continued independence of the
    corporation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trustees of Precision, in exercising the powers and
    authority conferred upon them under Precision&#146;s Declaration
    of Trust, are required to act honestly and in good faith with a
    view to the best interests of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    126
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and in connection therewith are required to exercise
    the degree of care, diligence and skill that a reasonably
    prudent person would exercise in comparable circumstances. The
    Precision Declaration of Trust provides that the duties and
    standard of care of the Precision trustees are intended to be
    similar to, and not to be any greater than, those imposed on a
    director of a corporation governed by the ABCA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a trustee or an officer of Precision is a party to a material
    contract or transaction or proposed material contract or
    transaction with Precision, or is a director or officer or
    employee of, or has a material interest in, any person who is a
    party to a material contract or transaction or proposed material
    contract or transaction with Precision, the trustee or officer
    of Precision, as the case may be, is required to disclose in
    writing to the Precision trustees or request to have entered in
    the minutes of meetings of trustees the nature and extent of
    such interest and refrain from voting on any resolution to
    approve the contract or transaction in question unless the
    contract or transaction is: (i)&#160;one relating primarily to
    his or her remuneration as a trustee, officer, employee or agent
    of Precision; (ii)&#160;one for indemnity or for the purchase of
    liability insurance; or (iii)&#160;one with any affiliate of
    Precision.
</DIV>
<A name='332'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Officers, Directors and Trustees</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to its articles of incorporation and bylaws, Grey Wolf
    is required to indemnify its officers and directors and may
    indemnify its employees and agents to the maximum extent allowed
    under Texas law. Under Texas law, Grey Wolf is permitted to
    provide advancement of expenses and indemnification against
    judgments, penalties, fines, settlement and reasonable expenses
    actually incurred by a person in connection with proceedings
    against such person because the person served as a director,
    officer employee or agent of Grey Wolf if it is determined in
    accordance with Article&#160;2.02 of the TBCA that the person
    (i)&#160;acted in good faith, (ii)&#160;reasonably believed that
    his conduct in his official capacity as director or officer was
    in Grey Wolf&#146;s best interest or, with respect to conduct in
    other capacities, was not opposed to Grey Wolf&#146;s best
    interest and (iii)&#160;in the case of any criminal proceeding,
    had no reasonable cause to believe his conduct was unlawful. In
    addition, indemnification is not permitted if the person is
    found liable to Grey Wolf or if the person is found liable on
    the basis that he received an improper personal benefit.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each trustee, former trustee, officer and former officer of
    Precision is entitled to be indemnified and reimbursed out of
    the assets of Precision in respect of any and all taxes,
    penalties or interest in respect of unpaid taxes or other
    governmental charges imposed upon the applicable trustee or
    officer (or former trustee or officer) as a result of the
    person&#146;s performance of his or her duties under
    Precision&#146;s Declaration of Trust and in respect of any and
    all costs, charges and expenses, including amounts paid to
    settle an action or satisfy a judgment, reasonably incurred in
    respect of any civil, criminal or administrative action or
    proceeding to which the trustee or officer (or former trustee or
    officer) is made a party by reason of being or having been a
    trustee or officer of Precision or, at the request of Precision,
    a director, trustee or officer of any subsidiary entity of
    Precision; provided that no trustee, former trustee, officer or
    former officer will be indemnified out of the assets of
    Precision in respect of unpaid taxes or other governmental
    charges or in respect of costs, charges and expenses that arise
    out of or as a result or in the course of his or her failure to
    act honestly and in good faith with a view to the best interests
    of Precision, or out of or as a result of or in the course of
    his or her failure to exercise that degree of care, diligence or
    skill that a reasonably prudent person would exercise in
    comparable circumstances or, in the case of a criminal or
    administrative action or proceeding that is enforced by monetary
    penalty, where such person did not have reasonable grounds for
    believing that his or her conduct was lawful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the administration agreement between Precision and
    PDC, PDC and any person who is serving or will have served as a
    director, officer or employee of PDC will be indemnified and
    saved harmless by Precision (in each case in relation to
    services provided in respect of or for the benefit of such
    party) from and against all losses, claims, damages,
    liabilities, obligations, costs and expenses (including
    judgments, fines, penalties amounts paid in settlement and
    counsel and accountants&#146; fees) of whatsoever kind and
    nature
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    127
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    incurred by, borne by or asserted against any of such
    indemnified parties in any way arising from or related in any
    manner to the administration agreement or the provision of
    services thereunder, unless such indemnified party is found
    liable for or guilty of fraud, willful default or gross
    negligence.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Liability
    of Directors, Officers, Employees and Trustees</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Texas law, a corporation has the power to indemnify and
    limit the liability of directors, officers, employees and agents
    of the corporation with respect to certain liabilities and to
    purchase and maintain liability insurance for those persons.
    Accordingly, no director of Grey Wolf will be liable to Grey
    Wolf or its shareholders for an act or omission in the
    director&#146;s capacity as director except for: (i)&#160;a
    breach of the director&#146;s duty of loyalty to Grey Wolf or
    its shareholders, (ii)&#160;an act or omission not in good faith
    that constitutes a breach of duty of the director to Grey Wolf
    or an act or omission that involves intentional misconduct or
    knowing violation of the law, (iii)&#160;a transaction from
    which the director received improper benefit, whether or not the
    benefit resulted from an action taken within the scope of the
    director&#146;s office or (iv)&#160;an act or omission for which
    the liability of a director is expressly provided by applicable
    statutes. If Texas law is amended to authorize corporate action
    further eliminating or limiting the personal liabilities of
    directors, then the liability of a director of Grey Wolf will be
    eliminated or limited to the fullest extent permitted by such
    laws, as so amended.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s Declaration of Trust contains a number of
    provisions limiting the liability of the trustees of Precision.
    The Precision trustees will not be liable to any Precision
    unitholder or any other person, in tort, contract or otherwise,
    for any action taken or not taken in good faith in reliance on
    any documents that are, prima facie, properly executed; for any
    depreciation of, or loss to, Precision incurred by reason of the
    sale of any asset or security; for the loss or disposition of
    money or securities; or any action or failure to act of any
    other person to whom the Precision trustees have delegated any
    of their duties under Precision&#146;s Declaration of Trust; or
    for any other action or failure to act (including failure to
    compel in any way any former trustee to redress any breach of
    trust or any failure by any person to perform his or her duties
    under or delegated to them, under Precision&#146;s Declaration
    of Trust), unless, in each case, such liabilities arise out of a
    breach of the Precision trustees&#146; standard of care,
    diligence and skill or breach of the restrictions on the
    trustees&#146; powers as set out in Precision&#146;s Declaration
    of Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the trustees of Precision have retained an appropriate
    expert, advisor or legal counsel with respect to any matter
    connected with their duties under Precision&#146;s Declaration
    of Trust, the trustees may act or refuse to act based on the
    advice of such expert, advisor or legal counsel, and the
    trustees will not be liable for and will be fully protected from
    any loss or liability occasioned by any action or refusal to act
    based on the advice of such expert, advisor or legal counsel. In
    the exercise of the powers, authorities or discretion conferred
    on the Precision trustees under Precision&#146;s Declaration of
    Trust, the trustees are and will be conclusively deemed to be
    acting as trustees of Precision&#146;s assets and will not be
    subject to any personal liability for any debts, liabilities,
    obligations, claims, demands, judgments, costs, charges or
    expenses against or with respect to Precision or
    Precision&#146;s assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the ABCA, PDC may indemnify a present or former director
    or officer or a person who acts or acted at PDC&#146;s request
    as a director or officer of a body corporate of which PDC is or
    was a shareholder or creditor, and his or her heirs and legal
    representatives, against all costs, charges and expenses,
    including an amount paid to settle an action or satisfy a
    judgment, reasonably incurred by him or her in respect of any
    civil, criminal or administrative action or proceeding to which
    he or she is made a party by reason of being or having been a
    director or officer of PDC or that body corporate, if the
    director or officer acted honestly and in good faith with a view
    to the best interests of PDC, and, in the case of a criminal or
    administrative action or proceeding that is enforced by a
    monetary penalty, had reasonable grounds for believing that his
    or her conduct was lawful. Such indemnification may be in
    connection with a derivative action only with court approval. A
    director or officer is entitled to indemnification from PDC as a
    matter of right if he or she was
</DIV>

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    <BR>
    128
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    substantially successful on the merits in the person&#146;s
    defense of the action or proceeding, fulfilled the conditions
    set forth above, and is fairly and reasonably entitled to
    indemnify. Moreover, as discussed above, in certain
    circumstances, Precision is obligated to hold harmless and
    indemnify directors, officers and employees of PDC pursuant to
    the terms of the administration agreement between PDC and
    Precision.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Applicable
    Anti-Takeover Laws and Provisions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The TBCA contains a provision limiting business combinations
    with affiliated shareholders but, as permitted by the TCBA, Grey
    Wolf elected not to be covered by such provision. Grey
    Wolf&#146;s shareholder rights plan expired by its terms on
    September 18, 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The laws of the Province of Alberta do not contain specific
    anti-takeover provisions with respect to business transactions.
    However, the policies of Canadian securities regulatory
    authorities contain certain requirements relating to takeover
    bids, mergers and interested shareholder transactions. In
    particular, Multilateral Instrument
    <FONT style="white-space: nowrap">61-101&#160;&#151;</FONT>
    <I>Protection of Minority Security Holders in Special
    Transactions </I>imposes certain requirements on, among other
    things, &#147;business combinations&#148; and &#147;related
    party transactions.&#148; Multilateral Instrument
    <FONT style="white-space: nowrap">61-101</FONT>
    requires detailed disclosure in any proxy material sent to
    security holders in connection with any transaction to which
    they relate, including, subject to certain exceptions, the
    inclusion of a formal valuation of the subject matter of the
    transaction and any non-cash consideration offered. Multilateral
    Instrument
    <FONT style="white-space: nowrap">61-101</FONT> also
    requires, subject to certain exceptions, that the minority
    shareholders of an issuer separately approve the transaction by
    a simple majority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s Declaration of Trust contains provisions to the
    effect that if a takeover bid is made for the Precision trust
    units and not less than 90% of the trust units (including trust
    units issuable upon the conversion, exercise or exchange of any
    securities exchangeable into trust units but not including any
    trust units held on the date of the take-over bid by or on
    behalf of, or issuable to, the offeror or an affiliate or
    associate of the offeror) are taken up and paid for by the
    offeror, the offeror will be entitled to acquire the Precision
    trust units held by unitholders who did not accept the take-over
    bid on the terms offered by the offeror.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Access to
    Corporate Records</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Texas law, any person who has been a Grey Wolf shareholder
    for at least six months immediately preceding such
    shareholder&#146;s demand, or is the holder of at least 5% of
    all the outstanding shares of Grey Wolf, upon written demand
    stating the purpose thereof, has the right to examine, in person
    or by agent, accountant, or attorney, at any reasonable time or
    times, for any proper purpose, Grey Wolf&#146;s relevant books
    and records of account, minutes and share transfer records, and
    to make extracts therefrom. Upon the written request of any
    shareholder of Grey Wolf, Grey Wolf is required to mail to such
    shareholder its annual statements for its last fiscal year
    showing in reasonable detail its assets and liabilities and the
    results of its operations and the most recent interim
    statements, if any, which have been filed in a public record or
    otherwise published. Grey Wolf is allowed a reasonable time to
    prepare such annual statements.
</DIV>

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<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each holder of Precision trust units has the right to obtain, on
    demand and without fee, from the head office of Precision a copy
    of Precision&#146;s Declaration of Trust and any amendments
    thereto relating to the Precision trust units held by that
    unitholder. Precision is required to send (or make available if
    sending is not required under applicable securities laws) to
    holders of Precision trust units the audited financial
    statements of Precision and the unaudited interim financial
    statements of Precision within the periods prescribed by
    securities legislation.
</DIV>

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    <BR>
    129
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    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    and Trustees Generally</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Texas law provides that the board of directors of a corporation
    must consist of at least one member, with the precise number of
    directors of a corporation fixed by or in the manner provided in
    the corporation&#146;s articles of incorporation or bylaws.
    Consistent with Texas law and Grey Wolf&#146;s articles of
    incorporation and bylaws, Grey Wolf currently has seven
    directors. The Grey Wolf bylaws provide that the number of
    directors can be increased or decreased from time to time by the
    board of directors of Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the rights of holders of preferred stock to elect
    additional directors under certain circumstances, there are
    three classes of Grey Wolf directors, designated Class&#160;I,
    Class&#160;II and Class&#160;III, as nearly equal in number as
    possible. One class of directors is elected each year, and the
    term of each class of directors expires at the third succeeding
    annual meeting of shareholders after their election by the
    shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the rights of the holders of any series of Grey Wolf
    preferred stock outstanding, vacancies and newly created
    directorships may be filled by the vote of a majority of the
    remaining directors in office, even though less than a quorum,
    or by the sole remaining director. As prescribed by the
    organizational documents of Grey Wolf in accordance with the
    TBCA, (i)&#160;a majority of the total number of Grey Wolf
    directors then in office constitutes a quorum at any meeting of
    directors, and (ii)&#160;the affirmative vote of a majority of
    directors present at meeting at which there is a quorum
    constitutes action by the Grey Wolf board of directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s Declaration of Trust provides for a board of
    trustees consisting of at least three and no more than 11
    trustees, with the number of trustees (which presently remains
    at three) within such range being fixed by resolution of the
    Precision trustees. A majority of the trustees must be residents
    of Canada (within the meaning of the <I>Income Tax Act
    </I>(Canada)). Precision&#146;s trustees are generally elected
    at each annual meeting of the holders of the Precision trust
    units, and may be elected at special meetings, to hold office
    for a term expiring at the close of the next annual meeting of
    Precision unitholders following such an election.
    Notwithstanding the foregoing, (i)&#160;if no trustees are
    elected at the annual meeting of the holders of Precision trust
    units held immediately before the term of office of the
    applicable trustees expires, the existing trustees will continue
    to hold office until successors have been elected or appointed
    or they cease to hold office, and (ii)&#160;the trustees of
    Precision may, between annual meetings of Precision unitholders,
    appoint one or more additional trustees for a term to expire
    (subject to further appointment) at the close of the next annual
    meeting of Precision unitholders, provided that the number of
    additional trustees so appointed will not at any time exceed
    one-third of the number of trustees who held office at the
    expiration of the immediately preceding annual meeting of
    Precision unitholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A quorum of Precision trustees may fill a vacancy among such
    trustees, except a vacancy resulting from an increase in the
    number of trustees or from a failure to appoint the minimum
    number of trustees fixed by or pursuant to the Declaration of
    Trust. If there is not a quorum of trustees, or if there has
    been a failure to elect or appoint the minimum number of
    trustees required by or pursuant to the Declaration of Trust,
    the trustees then in office are required to call a special
    meeting of Precision trust unitholders to fill the vacancy and,
    if they fail to call a meeting or if there are no trustees then
    in office, the meeting may be called by any unitholder. A
    Precision trustee elected or appointed to fill a vacancy holds
    office until the close of the next annual meeting of
    unitholders, subject to the trustee ceasing to hold office on an
    earlier date as provided in the Declaration of Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The quorum for the transaction of business at any meeting of the
    trustees of Precision is a majority of the number of trustees
    then holding office, provided that a majority of participating
    trustees are residents of Canada within the meaning of the
    <I>Income Tax Act </I>(Canada). Every question before the
    trustees of Precision is decided by a majority of the votes
    cast, and in cases of equality of votes, the chairman of the
    meeting is not entitled to a second or casting vote. The powers
    of the trustees may be exercised by resolution passed at a
</DIV>

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    <BR>
    130
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    meeting at which a quorum is present or by resolution in writing
    signed by all Precision trustees who would be entitled to vote
    on that resolution at a meeting of the trustees.
</DIV>
<A name='337'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Removal
    of Directors and Trustees</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Texas law, unless removed in accordance with the
    provisions of the bylaws or the articles of incorporation, a
    director holds office until his death or until his successor has
    been elected and qualified. A Grey Wolf director may be removed
    from office only for cause and then only by the affirmative vote
    of the holders of at least
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the voting power of all of the then-outstanding shares of
    capital stock of Grey Wolf entitled to vote generally in the
    election of directors, voting together as a single class;
    provided, however, these requirements do not apply to directors
    elected by holders of preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A trustee of Precision ceases to hold office when:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    he or she dies or resigns;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    he or she is removed in accordance with Precision&#146;s
    Declaration of Trust;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    he or she ceases to be duly qualified to act as a trustee as
    required by Precision&#146;s Declaration of Trust.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The resignation of a Precision trustee becomes effective on the
    later of (i)&#160;30&#160;days from the date a written
    resignation is received by Precision, and (ii)&#160;the date
    specified in the resignation. The holders of Precision trust
    units may remove any trustee or trustees from office by a
    resolution approved by a majority of the votes cast at a meeting
    of Precision unitholders called for that purpose. A vacancy
    created by the removal of a Precision trustee may be filled at
    the meeting at which the trustee is removed or, if not so
    filled, may, in certain circumstances, be filled by a quorum of
    Precision trustees.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    131
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='338'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GREY WOLF
    SHAREHOLDER PROPOSALS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Grey Wolf&#146;s bylaws, business transacted at the
    special meeting is limited to the purposes stated in the notice
    of the special meeting, which is provided at the beginning of
    this proxy statement/prospectus. If the Merger is completed,
    there will be no future meetings of Grey Wolf&#146;s
    shareholders. Pending consummation of the Merger, Grey Wolf does
    not intend to conduct any further annual meetings of
    shareholders. If the Merger is not consummated, Grey Wolf will
    promptly hold its 2008 annual meeting of shareholders. Pursuant
    to
    <FONT style="white-space: nowrap">Rule&#160;14a-8</FONT>
    of the Exchange Act, Grey Wolf shareholders who desire to submit
    a proposal for inclusion in Grey Wolf&#146;s proxy statement for
    its 2008 annual meeting, if held, should submit their proposal a
    reasonable time before Grey Wolf begins to print and send its
    proxy materials for such meeting. Pursuant to Grey Wolf&#146;s
    bylaws, a shareholder must provide notice to Grey Wolf at its
    principal executive office of their intention to bring business
    before the annual meeting not later than the close of business
    on the 10th&#160;day following the earlier of (i)&#160;the date
    on which a written statement setting forth the date of the 2008
    annual meeting was mailed to shareholders or (ii)&#160;the date
    on which the date of the 2008 annual meeting is publicly
    announced.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>
<A name='313'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of Precision as of
    December&#160;31, 2007 and 2006 and for each of the years in the
    three-year period ended December&#160;31, 2007, and the
    assessment of effectiveness of internal control over  financial
    reporting as of December&#160;31, 2007, incorporated in this
    proxy statement/prospectus by reference have been so
    incorporated in reliance on the reports of KPMG LLP, independent
    accountants, given on the authority of that firm as experts in
    accounting and auditing. KPMG LLP is, and during all the periods
    for which financial statements have been presented in this proxy
    statement/prospectus has acted as, auditor for Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements and schedule of Grey Wolf
    as of December&#160;31, 2007 and 2006, and for each of the years
    in the three-year period ended December&#160;31, 2007, and
    management&#146;s assessment of the effectiveness of internal
    control over financial reporting as of December&#160;31, 2007
    have been incorporated by reference herein in reliance upon the
    reports of KPMG LLP, independent registered public accounting
    firm, incorporated by reference herein, and upon the authority
    of said firm as experts in accounting and auditing. The audit
    report covering the December&#160;31, 2007 consolidated
    financial statements refers to a change in the method of
    accounting for income taxes as of January&#160;1, 2007, and
    accounting for stock-based compensation plans as of
    January&#160;1, 2006.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>
<A name='314'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the issuance of the Precision trust units to be
    issued pursuant to the Merger will be passed upon for Precision
    by Bennett Jones LLP, Calgary, Alberta, Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain US federal income tax consequences relating to the
    Merger will be passed upon for Grey Wolf by Porter&#160;&#038;
    Hedges, L.L.P., Houston, Texas, and for Precision by Mayer Brown
    LLP, Houston, Texas. Felesky Flynn LLP, Canadian tax counsel to
    Precision, will issue an opinion concerning certain Canadian
    income tax consequences of the Merger.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>
<A name='315'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and Grey Wolf file reports, proxy statements and other
    information with the Securities and Exchange Commission as
    required by the Exchange Act. Precision is a &#147;foreign
    private issuer&#148; and, under the rules adopted under the
    Exchange Act, is exempt from some of the requirements of that
    Act, including the proxy and information provisions of
    Section&#160;14 and the reporting and liability provisions
    applicable to officers, directors and significant shareholders
    under Section&#160;16 of that Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may read and copy reports, proxy statements and other
    information filed by Precision and Grey Wolf with the Securities
    and Exchange Commission at the Securities and Exchange
    Commission public reference room located at Judiciary Plaza,
    450&#160;Fifth Street, N.W., Room&#160;1024,
    Washington,&#160;D.C. 20549.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    132
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may obtain information on the operation of the Public
    Reference Room by calling the Securities and Exchange Commission
    at
    <FONT style="white-space: nowrap">1-800-SEC-0330.</FONT>
    You may also obtain copies of the materials described above at
    prescribed rates by writing to the Securities and Exchange
    Commission, Public Reference Section,
    450&#160;Fifth&#160;Street, N.W., Washington,&#160;D.C. 20549.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC maintains a website that contains reports, proxy
    statements and other information, including those filed by
    Precision and Grey Wolf, at
    <I><FONT style="white-space: nowrap">http://www.sec.gov</FONT></I>.
    You may also access the SEC filings and obtain other information
    about Precision and Grey Wolf through the websites maintained by
    Precision and Grey Wolf at
    <I><FONT style="white-space: nowrap">http://www.precisiondrilling.com</FONT>
    </I>and
    <I><FONT style="white-space: nowrap">http://www.gwdrilling.com</FONT></I>,
    respectively. The information contained in those websites is not
    incorporated by reference in, or in any way part of, this proxy
    statement/prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision files reports, statements and other information with
    the Canadian provincial and territorial securities regulatory
    authorities. Precision&#146;s filings are also electronically
    available to the public from the Canadian System for Electronic
    Document Analysis and Retrieval, the Canadian equivalent of the
    SEC&#146;s EDGAR system, at
    <I><FONT style="white-space: nowrap">http://www.sedar.com</FONT></I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the Merger, Precision will furnish to you the same
    periodic reports that it currently furnishes to Precision
    unitholders in the same manner, including audited annual
    consolidated financial statements and unaudited quarterly
    consolidated financial statements, unless you notify Precision
    or your bank, broker or other nominee, as the case may be, of
    your desire not to receive these reports, as well as proxy
    statements and related materials for annual and special meetings
    of unitholders. In addition, you will be able to request
    Precision&#146;s
    <FONT style="white-space: nowrap">Form&#160;40-F.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision has filed a registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-4</FONT>
    to register with the SEC the Precision trust units to be issued
    in the Merger. This document is a part of that registration
    statement and constitutes the prospectus of Precision in
    addition to being a proxy statement for the Grey Wolf
    shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As allowed by SEC rules, this proxy statement/prospectus does
    not contain all the information you can find in the registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;F-4</FONT>
    filed by Precision and the exhibits to the registration
    statement. In addition, the SEC allows us to &#147;incorporate
    by reference&#148; information into this proxy
    statement/prospectus, which means that we can disclose important
    information to you by referring you to other documents filed
    separately with the SEC. The information incorporated by
    reference is deemed to be part of this proxy
    statement/prospectus, except for any information superseded by
    information included directly in this proxy
    statement/prospectus. This proxy statement/prospectus
    incorporates by reference the documents set forth below that
    Precision and Grey Wolf have previously filed with the SEC.
    These documents contain important information about the
    companies and their financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Precision Filings with the SEC<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(File No. 1-14534)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Period and/or Filing Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;40-F</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    For the year ended December 31, 2007, as filed March 28, 2008
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Report of Foreign Issuer on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Filed September 19, 2007, October 3, 2007, October&#160;19,
    2007, October 25, 2007, November 9, 2007, November 20, 2007,
    December 19, 2007, January 22, 2008, January 23, 2008, January
    24, 2008, February 6, 2008, February 14, 2008, February&#160;19,
    2008, March 5, 2008, March 19, 2008, March 28, 2008 (2 filings),
    April 8, 2008, April 9, 2008, April 15, 2008, April 18, 2008,
    April 23, 2008, May 5, 2008, May 9, 2008 (2 filings), May 12,
    2008, May 21, 2008, June 10, 2008, June 17, 2008, June&#160;19,
    2008, June 25, 2008, June 30, 2008, July 7, 2008, July 10, 2008,
    July 18, 2008, July 22, 2008, July 23, 2008, August 8, 2008,
    August 20, 2008, August 25, 2008, August 29, 2008, September 2,
    2008, September&#160;10, 2008, September&#160;19, 2008 and
    September&#160;25, 2008
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    133
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Grey Wolf Filings with the SEC<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(File No. 1-08226)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Period and/or Filing Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    For the year ended December 31, 2007, as filed February 28, 2008
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    For the quarter ended March 31, 2008, as filed May&#160;6, 2008
    and for the quarter ended June 30, 2008, as filed August 6, 2008
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Filed March 4, 2008, April 2, 2008, April 22, 2008, May 1, 2008,
    June 6, 2008, June 10, 2008, June 12, 2008, June 17, 2008, June
    19, 2008, June 25, 2008, June 27, 2008, July 2, 2008, July 8,
    2008 (2 filings), July 9, 2008, July 15, 2008, August 1, 2008,
    August 27, 2008 and September&#160;24, 2008
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All documents filed by Precision and Grey Wolf under
    Sections&#160;13(a), 13(c), 14 or 15(d) of the Exchange Act from
    the date of this proxy statement/prospectus to the date of the
    Grey Wolf special meeting will also be deemed to be incorporated
    into this proxy statement/prospectus by reference. To the extent
    that any information contained in any such Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K,</FONT>
    or any exhibit thereto, was furnished to, rather than filed
    with, the SEC, such information or exhibit is specifically not
    incorporated by reference into this proxy/statement prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the description of the Precision trust units
    contained in Precision&#146;s registration statements under
    Section&#160;12 of the Exchange Act is incorporated by reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may also obtain copies of any document incorporated in this
    proxy statement/prospectus, without charge, by requesting them
    in writing or by telephone from the appropriate company at the
    following addresses:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="center" valign="top">
    Precision Drilling Trust<BR>
    4200,
    <FONT style="white-space: nowrap">150-6</FONT><SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Avenue
    S.W.<BR>
    Calgary, Alberta, Canada T2P 3Y7<BR>
    <FONT style="white-space: nowrap">(403)&#160;716-4500</FONT><BR>
    Attention: Investor Relations
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Grey Wolf, Inc.<BR>
    10370 Richmond Avenue, Suite 600<BR>
    Houston, Texas 77042<BR>
    (713) 435-6100<BR>
    Attention:   Investor Relations
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may also obtain documents incorporated by reference in this
    proxy statement/prospectus by requesting them in writing or by
    telephone from the information agent:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Georgeson, Inc.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    199 Water Street
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
    Floor
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York, N.Y. 10038
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Banks and Brokers call
    <FONT style="white-space: nowrap">(212)&#160;440-9800</FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf shareholders call toll-free
    <FONT style="white-space: nowrap">(800)&#160;561-3540</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>If you would like to request documents, please do so
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008 to receive them before the special
    meeting.</I>&#160;&#160;If you request any incorporated
    documents from us, we will mail them to you by first class mail,
    or another equally prompt means, within one business day after
    we receive your request.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither Precision nor Grey Wolf has authorized anyone to give
    any information or make any representation about the Merger that
    is different from, or in addition to, that contained in this
    proxy statement/prospectus or in any of the materials that are
    incorporated by reference in this proxy statement/prospectus.
    Therefore, if anyone does give you information of this sort, you
    should not rely on it. If you are in a jurisdiction where offers
    to exchange or sell, or solicitations of offers to exchange or
    purchase, the securities offered by this proxy
    statement/prospectus are unlawful, or if you are a person to
    whom it is unlawful to make these types of offers, then the
    offer presented in this proxy statement/prospectus does not
    extend to you. The information contained in this proxy
    statement/prospectus speaks only as of the date of this document
    unless the information specifically indicates that another date
    applies.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    134
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNEX&#160;A</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AGREEMENT
    AND PLAN OF MERGER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>BY AND AMONG</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION DRILLING TRUST,</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>GREY WOLF, INC.</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION DRILLING CORPORATION</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>AND</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION LOBOS CORPORATION</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DATED AUGUST 24, 2008</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="18%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="76%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE&#160;I&#160;DEFINITIONS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 1.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Defined Terms
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 1.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    References and Titles
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE&#160;II&#160;THE MERGER
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    The Merger
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Closing
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Governing Instruments of the Surviving Corporation
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.4
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Directors of the Surviving Corporation and PDC
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.5
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certain Officers of the Surviving Corporation
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.6
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Effect on Grey Wolf Equity Securities
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.7
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Election Procedures
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.8
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Effect on Grey Wolf Debt Securities
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.9
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Exchange of Certificates
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.10
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Adjustment of Exchange Ratio
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 2.11
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Withholding
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE&#160;III&#160;REPRESENTATIONS AND WARRANTIES OF GREY WOLF
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Corporate Existence; Good Standing; Corporate Authority
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Authorization, Validity and Effect of Agreements
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Capitalization
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.4
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Subsidiaries
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.5
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Compliance with Laws; Permits
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.6
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No Conflict; Consents
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.7
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    SEC Documents
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.8
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Litigation
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.9
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Absence of Certain Changes
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.10
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Taxes
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-27
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.11
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Benefit Plans
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-28
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.12
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Labor Matters
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-30
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.13
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Environmental Matters
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-30
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.14
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Intellectual Property
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.15
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Insurance
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.16
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    No Brokers
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.17
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Financial Advisor
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.18
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Precision Trust&#160;Unit Ownership
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.19
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Vote Required; Board of Director Approval
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.20
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Ownership and Condition of Assets
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.21
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Undisclosed Liabilities
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.22
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Material Contracts
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.23
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    State Takeover Statutes
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-33
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.24
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Improper Payments
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-33
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.25
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Grey Wolf Rights Agreement
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-33
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.26
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Canadian Assets and Operations
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-34
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="18%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="76%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.27
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    No Orders
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.28
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Investment Company Act
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 3.29
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No Other Representations or Warranties
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE&#160;IV&#160;REPRESENTATIONS AND WARRANTIES OF
    PRECISION, PDC AND LOBOS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Existence; Good Standing; Authority
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Authorization, Validity and Effect of Agreements
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Capitalization
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.4
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Subsidiaries
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.5
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Compliance with Laws; Permits
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.6
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No Conflict; Consents
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-37
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.7
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Securities Filings
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.8
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Litigation
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-39
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.9
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Absence of Certain Changes
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-39
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.10
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Taxes
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-39
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.11
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Environmental Matters
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.12
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Intellectual Property
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.13
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    No Brokers
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.14
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Grey Wolf Share Ownership
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.15
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Board Approval
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.16
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Undisclosed Liabilities
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.17
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Material Contracts
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.18
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Improper Payments
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.19
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Reporting Issuer Status, Listing
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.20
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Mutual Fund&#160;Trust&#160;Status
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.21
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    No Orders
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.22
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Investment Company Act
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 4.23
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No Other Representations or Warranties
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE&#160;V&#160;COVENANTS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Business in Ordinary Course
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conduct of Grey Wolf Business Pending Closing
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conduct of Precision Business Pending Closing
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-46
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.4
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Access to Assets, Personnel and Information
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-48
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.5
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No Solicitation by Grey Wolf
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-50
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.6
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Shareholders&#146; Meeting
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-52
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.7
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Registration Statement and Proxy Statement/Prospectus
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-52
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.8
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    NYSE and TSX Listing
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-54
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.9
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Regulatory Filings
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-54
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.10
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    Approval
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-55
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.11
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Taking of Necessary Action; Further Action
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-55
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.12
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Public Announcements
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-56
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.13
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Notification of Certain Matters
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-56
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.14
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Payment of Expenses
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-56
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.15
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Indemnification and Insurance
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-56
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="18%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="76%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.16
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Surviving Corporation Employee Matters
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-58
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.17
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Tax Matters
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-59
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.18
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Continuing Obligation to Call, Hold and Convene
    Shareholders&#146; Meeting; No Other Vote
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.19
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Control of Other Party&#146;s Business
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.20
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Financing
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 5.21
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Rights Agreement; State Takeover Laws
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE&#160;VI&#160;CONDITIONS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 6.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conditions to Each Party&#146;s Obligation to Effect the Merger
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 6.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conditions to Obligations of Precision, PDC and Lobos
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 6.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conditions to Obligation of Grey Wolf
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-62
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE&#160;VII&#160;TERMINATION
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-63
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 7.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Termination Rights
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-63
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 7.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Effect of Termination
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-64
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 7.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Fees and Expenses
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-64
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE&#160;VIII&#160;MISCELLANEOUS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Nonsurvival of Representations and Warranties
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Amendment
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Notices
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.4
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Counterparts
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-66
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.5
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Severability
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-66
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.6
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Entire Agreement; No Third Party Beneficiaries
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.7
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Applicable Law
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.8
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Jurisdiction
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.9
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Specific Performance
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.10
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No Remedy in Certain Circumstances
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.11
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Assignment
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.12
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Waivers
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.13
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Confidentiality Agreement
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.14
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Incorporation
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.15
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Acknowledgement
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-variant: SMALL-CAPS">Section</FONT> 8.16
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Time of Essence
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-68
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="13%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="85%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Exhibits</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exhibit 2.3(a)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Lobos Charter
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exhibit 2.3(b)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Lobos Bylaws
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exhibit 2.5
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certain Officers of the Surviving Corporation
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exhibit 3.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Grey Wolf Voting Agreements
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Schedules</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Schedule A
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Directors and Executive Officers Executing Voting Agreements
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-iii
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AGREEMENT
    AND PLAN OF MERGER</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Agreement and Plan of Merger (as amended, supplemented or
    modified from time to time, this <I>&#147;Agreement&#148;</I>),
    dated as of August&#160;24, 2008, is by and among PRECISION
    DRILLING TRUST, an Alberta unincorporated open-ended investment
    trust <I>(&#147;Precision&#148;)</I>, GREY WOLF, INC., a Texas
    corporation <I>(&#147;Grey Wolf&#148;)</I>, PRECISION DRILLING
    CORPORATION, a corporation amalgamated under the laws of the
    Province of Alberta and the administrator of Precision
    <I>(&#147;PDC&#148;)</I> and PRECISION LOBOS CORPORATION, a
    Texas corporation <I>(&#147;Lobos&#148;)</I> and a direct,
    wholly-owned subsidiary of Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, the board of trustees of Precision and the
    boards of directors of each of PDC, on behalf of PDC and on
    behalf of Precision in PDC&#146;s capacity as administrator of
    Precision, Lobos and Grey Wolf have approved this Agreement and
    the merger of Grey Wolf with and into Lobos, with Lobos
    continuing as the surviving corporation, upon the terms and
    subject to the conditions of this Agreement and the Texas
    Business Corporation Act, as amended, or any successor law
    thereto (the <I>&#147;TBCA&#148;</I>) and the Texas Corporation
    Law, as amended, or any successor law thereto (the
    <I>&#147;TCL&#148;</I>);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, the board of trustees of Precision and the
    boards of directors of each of PDC, on behalf of PDC and on
    behalf of Precision in PDC&#146;s capacity as administrator of
    Precision, Lobos and Grey Wolf have determined that this
    Agreement, the merger herein provided for, and the other
    transactions contemplated hereby are advisable and in the best
    interests of their respective companies and their unitholders
    and shareholders, respectively;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, for U.S.&#160;federal income Tax purposes, it is
    intended that the Merger qualify as a &#147;reorganization&#148;
    involving Precision and Grey Wolf within the meaning of
    <U>Section&#160;368(a)</U> of the Internal Revenue Code of 1986,
    as amended (the <I>&#147;Code&#148;</I>);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOW, THEREFORE</B>, for and in consideration of the foregoing
    and the representations, warranties, covenants and agreements
    set forth in this Agreement, the parties to this Agreement (each
    a <I>&#147;Party,&#148;</I> and collectively, the
    <I>&#147;Parties&#148;</I>) agree as follows:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;I<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">DEFINITIONS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;1.1&#160;&#160;</FONT><I>Defined
    Terms.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;As used in this Agreement, capitalized terms shall have
    the meanings set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Acquisition Proposal&#148;</I> means any Contract,
    proposal, offer or other inquiry or indication of interest
    (regardless of whether in writing and regardless of whether
    delivered to the shareholders) relating to any of the following
    (other than the transactions contemplated by this Agreement or
    the Merger): (a)&#160;any merger, reorganization, share
    exchange, take-over bid, tender offer, recapitalization,
    consolidation, liquidation, dissolution or other business
    combination, purchase or similar transaction or series of
    transactions, directly or indirectly, involving 20% or more of
    the assets, net revenues or net income of Grey Wolf and the Grey
    Wolf Subsidiaries, taken as a whole; (b)&#160;the sale, lease,
    exchange, transfer or other disposition, directly or indirectly,
    of any business or assets that generate 20% or more of the
    consolidated net revenues or net income, or of assets
    representing 20% or more of the book value of the consolidated
    assets, of Grey Wolf and the Grey Wolf Subsidiaries, taken as a
    whole, or any license, lease, exchange, mortgage, pledge or
    other agreement or arrangement having a similar economic effect,
    in each case in a single transaction or a series of related
    transactions; or (c)&#160;any direct or indirect acquisition of
    beneficial ownership (as defined in <U>Section&#160;13(d)</U> of
    the Exchange Act) or any direct or indirect acquisition of the
    right to acquire beneficial ownership (as defined in
    <U>Section&#160;13(d)</U> of the Exchange Act) by any Person or
    any &#147;group&#148; (as defined in the Exchange Act) of 20% or
    more of the shares of any class of the issued and outstanding
    Equity Interests of Grey Wolf, whether in a single transaction
    or a series of related transactions.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Administration Agreement&#148;</I> means that certain
    Administration Agreement between Precision and PDC dated as of
    November&#160;7, 2005, as amended on April&#160;22, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Affiliate&#148;</I> means, with respect to any Person,
    each other Person that, directly or indirectly, Controls, is
    Controlled by or is under common Control with such Person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;AMEX&#148;</I> means the American Stock Exchange LLC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Applicable Canadian Securities Laws&#148;</I> means,
    collectively, and as the context may require, the applicable
    securities legislation of each of the provinces and territories
    of Canada, and the rules, regulations, instruments, orders and
    policies published or promulgated thereunder, as such may be
    amended from time to time prior to the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Applicable Law&#148;</I> means with respect to any
    Person, any international, national, federal, state, provincial,
    territorial, local or foreign statute, code, ordinance, rule,
    regulation, by-law, consent, approval, judgment, Order,
    ordinance, protocol, directive or other authorization, treaty,
    convention, or governmental requirement of any Governmental
    Authority that is binding upon, or applicable to, such Person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Available Cash Consideration&#148;</I> means
    $1,115,380,707.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Beneficial Owner&#148;</I> means, with respect to a
    security, any Person who, directly or indirectly, through any
    contract, relationship or otherwise, has or shares (a)&#160;the
    power to vote, or to direct the voting of, such security,
    (b)&#160;the power to dispose of, or to direct the disposition
    of, such security or (c)&#160;the ability to profit or share in
    any profit derived from a transaction in such security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Benefit Plan&#148;</I> means any qualified or
    non-qualified employee benefit plan, program, policy, practice,
    agreement, Contract or other arrangement, regardless of whether
    written, regardless of whether
    <FONT style="white-space: nowrap">U.S.-based,</FONT>
    including any &#147;employee welfare benefit plan&#148; within
    the meaning of <U>Section&#160;3(1)</U> of ERISA (including
    post-retirement medical and life insurance), any &#147;employee
    pension benefit plan&#148; within the meaning of
    <U>Section&#160;3(2)</U> of ERISA (regardless of whether such
    plan is subject to ERISA), including any multiemployer plan (as
    defined in <U>Section&#160;3(37)</U> of ERISA) or multiple
    employer plan (within the meaning of <U>Section&#160;413(c)</U>
    of the Code), any employment or severance agreement or other
    arrangement, and any employee benefit, bonus, incentive,
    deferred compensation, profit sharing, vacation, stock, stock
    purchase, stock option, severance, change of control, fringe
    benefit or other plan, program, policy, practice, agreement,
    Contract, or other arrangement, regardless of whether subject to
    ERISA and regardless of whether funded.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Business Day&#148;</I> means any day other than a
    Saturday, Sunday or any day on which banks in (i)&#160;the State
    of New York are authorized or required by federal law to be
    closed in New York, New York, or (ii)&#160;the Province of
    Alberta are authorized or required by law to be closed in
    Calgary, Alberta.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Canadian GAAP&#148;</I> means generally accepted
    accounting principles, as recognized by the Canadian Institute
    of Chartered Accountants, applied on a consistent basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Canadian Securities Regulatory Authorities&#148;</I>
    means, collectively, the securities commission or similar
    regulatory authorities in each of the provinces or territories
    of Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Certificates&#148;</I> means certificates representing
    shares of Grey Wolf Common Stock or Precision Trust&#160;Units,
    as applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CFIUS&#148;</I> means The Committee on Foreign
    Investments in the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Competition Act&#148;</I> means the <I>Competition
    Act</I>, R.S.C. 1985, c. C-34, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Confidentiality Agreement&#148;</I> means the
    Confidentiality Agreement, dated as of February&#160;13, 2008,
    between Precision and Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Contract&#148;</I> means any agreement, arrangement,
    commitment or instrument, written or oral, including, without
    limitation, any loan or credit agreement or other agreement
    evidencing Indebtedness,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    promissory note, bond, mortgage, indenture, guarantee, permit,
    lease, sublease, license, agreement to render services, or other
    agreement, arrangement, commitment or instrument evidencing
    rights or obligations of any kind or nature, including all
    amendments, modifications, supplements and options relating
    thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Control&#148;</I> (and related terms) means the
    possession, directly or indirectly, of the power to direct or
    cause the direction of the management policies of a Person,
    whether through the ownership of stock, by contract, credit
    arrangement or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Disclosure Letter&#148;</I> means, as applicable, the
    Grey Wolf Disclosure Letter or the Precision Disclosure Letter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;DOJ&#148;</I> means the United States Department of
    Justice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Election Deadline&#148;</I> means 5:00&#160;p.m., local
    time in Houston, Texas, on the second Business Day prior to the
    Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Environmental, Health and Safety Laws&#148;</I> means
    any present or future Applicable Laws relating to
    (a)&#160;emissions, discharges, releases or threatened releases
    of Hazardous Materials into the environment, including into
    ambient air, soil, sediments, land surface or subsurface,
    buildings or facilities, surface water, groundwater,
    publicly-owned treatment works, or septic systems, (b)&#160;the
    generation, treatment, storage, disposal, use, handling,
    manufacturing, recycling, transportation or shipment of
    Hazardous&#160;Materials, (c)&#160;occupational health and
    safety, or (d)&#160;the pollution of the environment, solid
    waste handling, treatment or disposal, reclamation or
    remediation activities, or protection or restoration of, or
    damage to, the environment, environmentally sensitive areas or
    natural resources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Equity Interests&#148;</I> means (a)&#160;with respect
    to a corporation, any and all shares, interests, participation,
    phantom stock plans or arrangements or other equivalents
    (however designated) of corporate stock, including all common
    stock, preferred stock and other equity and voting interests,
    and warrants, options, calls, subscriptions or other convertible
    securities or other rights to acquire any of the foregoing,
    (b)&#160;with respect to a partnership, limited liability
    company, trust or similar Person, any and all units, membership
    or other interests, including rights to purchase, warrants,
    options, calls, subscriptions or other equivalents of, or other
    interests convertible into, any beneficial or legal ownership
    interest in such Person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;ERISA&#148;</I> means the Employee Retirement Income
    Security Act of 1974, as amended, and any regulations
    promulgated pursuant thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;ERISA Affiliate&#148;</I> means any trade or business,
    regardless of whether incorporated, which is required to be
    treated as a single employer together with an entity pursuant to
    <U>Section&#160;414(b)</U>, (c), (m)&#160;or (o)&#160;of the
    Code or <U>Section&#160;4001(b)(1)</U> of ERISA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Exchange Act&#148;</I> means the Securities Exchange
    Act of 1934, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Exchange Ratio&#148;</I> means 0.4225 Precision
    Trust&#160;Units per share of Grey Wolf Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Exon-Florio Amendment&#148;</I> means
    <U>Section&#160;721</U> of Title&#160;VII of the Defense
    Production Act of 1950, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FCPA&#148;</I> means the Foreign Corrupt Practices Act
    of 1977.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Financing&#148;</I> means the debt
    <FONT style="white-space: nowrap">and/or</FONT>
    equity financing(s) to be completed by Precision
    <FONT style="white-space: nowrap">and/or</FONT> the
    Precision Subsidiaries in connection with the transactions
    contemplated by this Agreement, including the debt financing set
    forth in the commitment letter dated August&#160;24, 2008, from
    Royal Bank of Canada, RBC Capital Markets, Deutsche Bank AG
    Cayman Islands Branch, Deutsche Bank Securities Inc.,
    HSBC&#160;Bank Canada, HSBC Bank USA National Association and
    Toronto-Dominion Bank, to provide senior secured credit
    facilities comprised of $800&#160;million of term loan
    facilities and a $400&#160;million
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-3
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    revolving credit facility as well as a $400&#160;million senior
    unsecured facility, as such commitment letter may be amended,
    supplemented or replaced from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FTC&#148;</I> means the United States Federal Trade
    Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Governmental Authority&#148;</I> means any national,
    state, provincial, territorial, regional, local, county, parish
    or municipal government, domestic or foreign, any agency, board,
    bureau, commission, court, tribunal, subdivision, department or
    other governmental or regulatory authority or instrumentality,
    or any arbitrator in any case that has jurisdiction over any of
    the Grey Wolf Companies or Precision Companies, as the case may
    be, or any of their respective properties or assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf 1996 Stock Plan&#148;</I> means the Grey
    Wolf, Inc. 1996 Employee Stock Option Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf 2003 Stock Plan&#148;</I> means the Grey
    Wolf, Inc. 2003 Incentive Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf 3.75%&#160;Notes Indenture&#148;</I> means
    the Indenture dated as of May&#160;7, 2003, between
    Grey&#160;Wolf, The Bank of New York Trust&#160;Company, N.A.
    and the guarantors party thereto pursuant to which Grey Wolf
    issued $150,000,000 principal amount of the Grey Wolf
    3.75%&#160;Notes, and all supplemental indentures thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Benefit Plan&#148;</I> means a Benefit Plan
    (a)&#160;providing benefits to (i)&#160;any current or former
    employee, officer or director of Grey Wolf or any of the Grey
    Wolf Subsidiaries or ERISA Affiliates or (ii)&#160;any
    beneficiary or dependent of any such employee, officer or
    director that is sponsored, maintained or contributed to by Grey
    Wolf or any of the Grey Wolf Subsidiaries or ERISA Affiliates or
    to which Grey Wolf or any of the Grey Wolf Subsidiaries or ERISA
    Affiliates is a party or is obligated to contribute, or
    (b)&#160;with respect to which Grey Wolf or any of the Grey Wolf
    Subsidiaries or ERISA Affiliates has any liability, whether
    direct or indirect, contingent or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Board&#148;</I> means the board of directors
    of Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Common Stock&#148;</I> means the common
    stock, par value $0.10 per share, of Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Companies&#148;</I> means Grey Wolf and each
    of the Grey Wolf Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Credit Agreement&#148;</I> means the
    Revolving Credit Agreement, dated as of January&#160;14, 1999,
    among Grey Wolf Drilling, LP (as borrower), Grey Wolf (as
    guarantor), The CIT Group/Business Credit, Inc. (as agent) and
    various financial institutions (as lenders), as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Derivative Security Holder&#148;</I> means
    the holder of a Grey Wolf Option or a Grey Wolf Convertible Note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Dissenting Shareholder&#148;</I> means any
    holder of shares of Grey Wolf Common Stock who does not vote in
    favor of the Merger (or consent thereto in writing) and who is
    entitled to demand and prior to the Grey Wolf Meeting files with
    Grey Wolf a written objection to the Merger, setting out that
    the right to dissent of such holder of shares of Grey Wolf
    Common Stock will be exercised if the Merger becomes effective,
    and otherwise complies in all respects with, the provisions of
    Article&#160;5.12 of the TBCA required to be complied with by
    such holder prior to the Grey Wolf Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Dissenting Shares&#148;</I> means any shares
    of Grey Wolf Common Stock held by a Grey Wolf Dissenting
    Shareholder as of the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Employees&#148;</I> means the individuals who
    are employed as employees by Grey Wolf or any of the Grey Wolf
    Subsidiaries immediately prior to the Effective Time who remain
    employed as employees of the Surviving Corporation or any of its
    Subsidiaries immediately after the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Floating Rate Notes Indenture&#148;</I> means
    the Indenture dated as of March&#160;31, 2004, between Grey
    Wolf, The Bank of New York Trust&#160;Company, N.A. and the
    guarantors party thereto pursuant to which Grey Wolf issued
    $125,000,000 principal amount of the Grey Wolf Floating Rate
    Contingent Convertible Senior Notes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Leased Real Property&#148;</I> means all real
    property leased by Grey Wolf or any of the Grey&#160;Wolf
    Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Material Adverse Effect&#148;</I> means a
    Material Adverse Effect with respect to Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Meeting&#148;</I> means a meeting of the
    shareholders of Grey Wolf duly called and held for the purposes
    set forth in the Proxy Statement/Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Options&#148;</I> means, collectively, Grey
    Wolf 1996 Options and Grey Wolf 2003 Options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Owned Real Property&#148;</I> means all real
    property owned by Grey Wolf or any of the Grey&#160;Wolf
    Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Preferred Stock&#148;</I> means shares of
    preferred stock, par value $1.00 per share, of Grey&#160;Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Proposal&#148;</I> means the proposal to
    approve this Agreement which proposal is to be presented to the
    shareholders of Grey Wolf in the Proxy Statement/Prospectus and
    voted on at the Grey&#160;Wolf Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Real Property&#148;</I> means Grey Wolf
    Leased Real Property and Grey Wolf Owned Real Property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Representative&#148;</I> means a
    Representative of Grey Wolf or the Grey Wolf Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Restricted Stock&#148;</I> means the shares
    of restricted Grey Wolf Common Stock issued pursuant to a Grey
    Wolf Stock Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Senior Notes Indentures&#148;</I> means the
    Grey Wolf 3.75%&#160;Notes Indenture and the Grey&#160;Wolf
    Floating Rate Notes Indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Stock Plans&#148;</I> means (a)&#160;the Grey
    Wolf 1996 Stock Plan and (b)&#160;the Grey Wolf 2003 Stock Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Subsidiary&#148;</I> means a Subsidiary of
    Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grey Wolf Subsidiary Charter Documents&#148;</I> means
    the certificate of incorporation, articles of incorporation,
    certificate of formation, certificate of limited partnership,
    bylaws, limited liability company agreement, operating
    agreement, partnership agreement or other governing or
    organizational documents of each of the Grey Wolf Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Hazardous Materials&#148;</I> means any chemical,
    pollutant, contaminant, material, waste or substance regulated
    by any Governmental Authority under Environmental, Health and
    Safety Law, including, but not limited to, any hazardous waste,
    hazardous substance, toxic substance, radioactive material
    (including any naturally occurring radioactive material),
    asbestos-containing materials in any form or condition,
    polychlorinated biphenyls in any form or condition, or
    petroleum, petroleum hydrocarbons, petroleum products or any
    fraction or byproducts thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Income Tax Act&#148;</I> means the <I>Income Tax Act
    </I>(Canada), R.S.C. 1985, c. 1
    (5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Supp.),
    as amended, including the regulations promulgated thereunder, as
    amended from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Indebtedness&#148;</I> of any Person means and includes
    any obligations consisting of (a)&#160;the outstanding principal
    amount of and accrued and unpaid interest on, and other payment
    obligations for, borrowed money, or payment obligations issued
    or incurred in substitution or exchange for payment obligations
    for borrowed money, (b)&#160;amounts owing as deferred purchase
    price for property or services, including &#147;earn out&#148;
    payments, (c)&#160;payment obligations evidenced by any
    promissory note, bond, debenture, mortgage or other debt
    instrument or debt security, (d)&#160;commitments or obligations
    by which such Person assures a creditor against loss, including
    contingent reimbursement obligations with respect to letters of
    credit, (e)&#160;payment obligations secured by a Lien, other
    than a Permitted Lien, on assets or properties of such
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Person, (f)&#160;obligations to repay deposits or other amounts
    advanced by and owing to third parties, (g)&#160;obligations
    under capitalized leases, (h)&#160;obligations under any
    interest rate, currency or other hedging agreement or
    derivatives transaction, (i)&#160;guarantees or other contingent
    liabilities with respect to any amounts of a type described in
    clauses&#160;(a) through (h)&#160;above, and (j)&#160;any change
    of control payments or prepayment premiums, penalties, charges
    or equivalents thereof with respect to any indebtedness,
    obligation or liability of a type described in clauses&#160;(a)
    through (i)&#160;above that are required to be paid at the time
    of, or the payment of which would become due and payable solely
    as a result of, the execution of this Agreement or the
    consummation of the transactions contemplated by this Agreement
    at such time, in each case determined in accordance with
    U.S.&#160;GAAP, or, in the case of Precision, Canadian GAAP;
    <U>provided</U>, <U>however</U>, that Indebtedness shall not
    include accounts payable to trade creditors and accrued expenses
    arising in the ordinary course of business consistent with past
    practices and shall not include the endorsement of negotiable
    instruments for collection in the ordinary course of business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Intellectual Property&#148;</I> means all United States
    and foreign (a)&#160;patents and patent applications and all
    reissues, renewals, divisions, extensions, provisionals,
    continuations and continuations in part thereof,
    (b)&#160;inventions (regardless of whether patentable),
    invention disclosures, trade secrets, proprietary information,
    industrial designs and registrations and applications, mask
    works and applications and registrations therefor,
    (c)&#160;copyrights and copyright applications and corresponding
    rights, (d)&#160;trade dress, trade names, logos, URLs, common
    law trademarks and service marks, registered trademarks and
    trademark applications, registered service marks and service
    mark applications, (e)&#160;domain name rights and
    registrations, (f)&#160;databases, customer lists, data
    collections and rights therein, and (g)&#160;confidentiality
    rights or other intellectual property rights of any nature, in
    each case throughout the world.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Joint Lead Arrangers&#148;</I> means Deutsche Bank
    Securities Inc. and RBC Capital Markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Lien&#148;</I> means any lien, mortgage, security
    interest, indenture, deed of trust, pledge, deposit,
    restriction, burden, license, lease, sublease, right of first
    refusal, right of first offer, charge, privilege, easement,
    right of way, reservation, option, preferential purchase right,
    right of a vendor under any title retention or conditional sale
    agreement, or other arrangement substantially equivalent
    thereto, in each case regardless of whether relating to the
    extension of credit or the borrowing of money.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Lobos Common Stock&#148;</I> means the common stock,
    par value $0.10 per share, of Lobos.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Material Adverse Effect&#148;</I> means, with respect
    to any Person, a material adverse effect on the business,
    results of operations, or condition (financial or otherwise) of
    such Person and its Subsidiaries, taken as a whole, except to
    the extent any such effect results from: (a)&#160;changes in the
    industry in which such Person or its Subsidiaries operate or in
    the economy or the financial, securities or credit markets in
    the U.S.&#160;or elsewhere in the world, including any
    regulatory or political conditions or developments, or any
    outbreak or escalation of hostilities or declared or undeclared
    acts of war, terrorism, insurrection or natural disasters, that
    do not disproportionately affect the business, results of
    operations or condition (financial or otherwise) of such Person
    and its Subsidiaries, taken as a whole, relative to other
    industry participants, in any material respect (b)&#160;the
    execution or public disclosure of this Agreement or the
    consummation or the pendency of the transactions contemplated
    hereby, (c)&#160;fluctuations in the price or trading volume of
    shares of any trading stock of such Person (<U>provided</U>,
    <U>however</U>, that the exception in this clause&#160;(c) shall
    not prevent or otherwise affect a determination that any fact,
    circumstance, event, change, effect or occurrence underlying
    such fluctuation has resulted in, or contributed to, a Material
    Adverse Effect), (d)&#160;changes in Applicable Law or in
    U.S.&#160;GAAP, or, in the case of Precision, Canadian GAAP, (or
    the interpretation thereof) after the date hereof that do not
    disproportionately affect the business, results of operations or
    condition (financial or otherwise) of such Person and its
    Subsidiaries, taken as a whole, relative to other industry
    participants, in any material respect, (e)&#160;any legal
    proceedings made or brought by any of the current or former
    holders of Equity Interests of such Person (or on their behalf
    or on behalf of such Persons) arising out of or related to this
    Agreement or any of the transactions contemplated hereby, or
    (f)&#160;any failure by such Person to meet any published
    analyst estimates or expectations regarding such Person&#146;s
    revenue, earnings or other financial performance or results of
</DIV>

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    <BR>
    A-6
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    operations for any period or any failure by such Person to meet
    its internal budgets, plans or forecasts regarding its revenues,
    earnings or other financial performance or results of operations
    (<U>provided</U>, <U>however</U>, that the exception in this
    clause&#160;(f) shall not prevent or otherwise affect a
    determination that any fact, circumstance, event, change, effect
    or occurrence underlying such failure has resulted in, or
    contributed to, a Material Adverse Effect with respect to such
    Person).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Notes Shares&#148;</I> means the number of shares of
    Grey Wolf Common Stock that the Grey Wolf Convertible Notes that
    have not been converted at least two Business Days before the
    Closing Date are convertible into following the Effective Time
    in accordance with the terms of the Grey Wolf Senior Notes
    Indentures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;NYSE&#148;</I> means the New York Stock Exchange, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Order&#148;</I> means any order, writ, fine,
    injunction, decree, judgment, award, ruling or enforceable
    determination of any Governmental Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;PDC Common Shares&#148;</I> means the common shares in
    the capital of PDC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;PDLP&#148;</I> means Precision Drilling Limited
    Partnership, a limited partnership formed under the laws of the
    Province of Manitoba.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;PDLP Exchangeable Units&#148;</I> means the
    Class&#160;B limited partnership units of PDLP that are
    exchangeable for Precision Trust&#160;Units on a one-for-one
    basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Per Share Cash Consideration&#148;</I> means $9.02.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Permitted Distributions&#148;</I> means
    (i)&#160;distributions by Precision (and the corresponding
    distributions by PDLP) to the holders of Precision
    Trust&#160;Units (and PDLP Exchangeable Units, respectively),
    (ii)&#160;distributions by PDLP to Precision and (iii)&#160;the
    payment of dividends and interest and the repayment of
    outstanding indebtedness by PDC to PDLP, in each case in the
    ordinary course of business and consistent with past practices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Permitted Liens&#148;</I> means (a)&#160;Liens for
    Taxes, assessments or other governmental charges or levies that
    are not yet due and payable or that are being contested in good
    faith by appropriate proceedings and for which adequate reserves
    in accordance with U.S.&#160;GAAP, or, in the case of Precision,
    Canadian GAAP, have been established and described in the
    applicable Disclosure Letter, (b)&#160;Liens in connection with
    workmen&#146;s compensation, unemployment insurance or other
    social security, old age pension or public liability obligations
    not yet due or which are being contested in good faith by
    appropriate proceedings and for which adequate reserves in
    accordance with U.S.&#160;GAAP, or, in the case of Precision,
    Canadian GAAP, have been established and described in the
    applicable Disclosure Letter, (c)&#160;operators&#146;,
    vendors&#146;, suppliers&#146;, carriers&#146;,
    warehousemen&#146;s, repairmen&#146;s, mechanics&#146;,
    workmen&#146;s, materialmen&#146;s, or construction Liens
    (during repair or upgrade periods) or other like Liens arising
    by operation of Applicable Law in the ordinary course of
    business or statutory landlord&#146;s Liens, each of which is in
    respect of obligations that have not been outstanding more than
    90&#160;days (so long as no action has been taken to file or
    enforce such Liens within said
    <FONT style="white-space: nowrap">90-day</FONT>
    period) or which are being contested in good faith, or
    (d)&#160;any other Lien, encumbrance or other imperfection of
    title that does not materially affect the value or use of the
    property subject thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Person&#148;</I> means any natural person, corporation,
    company, limited or general partnership, joint stock company,
    joint venture, association, limited liability company, trust,
    bank, trust company, land trust, business trust or other entity
    or organization.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Benefit Plan&#148;</I> means a Benefit Plan
    (a)&#160;providing any benefits to (i)&#160;any current or
    former employee, officer, director or trustee of Precision or
    any of the Precision Subsidiaries or (ii)&#160;any beneficiary
    or dependent of any such employee, officer, director or trustee
    that is sponsored, maintained or contributed to by Precision or
    any of the Precision Subsidiaries; or (b)&#160;with respect to
    which Precision or any of the Precision Subsidiaries has any
    liability, whether direct or indirect, contingent or otherwise.
</DIV>

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    <BR>
    A-7
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Board&#148;</I> means the board of trustees
    of Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Companies&#148;</I> means Precision and each
    of the Precision Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Declaration of Trust&#148;</I> means the
    declaration of trust of Precision dated as of September&#160;22,
    2005 between Robert J.S. Gibson, H. Garth Wiggins and Patrick M.
    Murray, as initial trustees, and Brian E. Roberts, as initial
    unitholder, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Leased Real Property&#148;</I> means all real
    property leased by Precision or any of the Precision
    Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Material Adverse Effect&#148;</I> means a
    Material Adverse Effect with respect to Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Owned Real Property&#148;</I> means all real
    property owned by Precision or any of the Precision Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Real Property&#148;</I> means the Precision
    Leased Real Property and the Precision Owned Real Property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Representatives&#148;</I> means a
    Representative of Precision or the Precision Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Special Voting Units&#148;</I> means the
    special voting units of Precision, as presently constituted,
    authorized and issued pursuant to the Precision Declaration of
    Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Subsidiary&#148;</I> means a Subsidiary of
    Precision. For the avoidance of doubt, PDC, PDLP and Lobos and
    each of their respective Subsidiaries shall be deemed to be a
    &#147;Precision Subsidiary.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Subsidiary Charter Documents&#148;</I> means
    the certificate of incorporation, articles of incorporation,
    certificate of formation, certificate of limited partnership,
    bylaws, limited liability company agreement, operating
    agreement, partnership agreement or other governing or
    organizational documents of each of the Precision Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Trust&#160;Units&#148;</I> means the trust
    units of Precision, as presently constituted, each representing
    an equal, undivided beneficial interest in Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Precision Unit Appreciation Rights&#148;</I> means unit
    appreciation rights that entitle the holder thereof to receive,
    in cash, a value equal to the product of (i)&#160;the difference
    between the per unit closing sales price of the Precision
    Trust&#160;Units on the NYSE on the date of exercise, as
    reported in the Wall Street Journal, and the exercise price of
    such unit appreciation right; and (ii)&#160;and the number of
    units specified in such unit appreciation right agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Proxy Statement/Prospectus&#148;</I> means a proxy
    statement in definitive form relating to the Grey Wolf Meeting,
    which proxy statement will be included in the prospectus
    contained in the Registration Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Registration Statement&#148;</I> means the Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;F-4</FONT>
    under the Securities Act and to be filed by Precision with
    respect to the Precision Trust&#160;Units issuable in the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Representative&#148;</I> means any trustee, director,
    officer, employee, agent, advisor (including legal, accounting
    and financial advisors) or other representative.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Responsible Officers&#148;</I> means (a)&#160;for
    Precision and PDC, each of the Chief Executive Officer,
    Chief&#160;Operating Officer and Chief Financial Officer of PDC,
    and (b)&#160;for Grey Wolf, each of the Chief Executive Officer,
    Chief Operating Officer and Chief Financial Officer of Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;SEC&#148;</I> means the United States Securities and
    Exchange Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Securities Act&#148;</I> means the Securities Act of
    1933, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;SEDAR&#148;</I> means the System for Electronic
    Document Analysis and Retrieval of the Canadian Securities
    Administrators.
</DIV>

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    <BR>
    A-8
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;SOX&#148;</I> means the Sarbanes-Oxley Act of 2002, as
    amended, and the rules and regulations promulgated thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Subsidiary&#148;</I> means for any Person at any time
    (a)&#160;any corporation of which such Person owns, either
    directly or through its Subsidiaries, more than 50% of the total
    combined voting power of all classes of voting securities of
    such corporation, or (b)&#160;any partnership, association,
    joint venture, limited liability company or other business
    organization, regardless of whether such constitutes a legal
    entity, in which such Person directly or indirectly owns more
    than 50% of the total Equity Interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Superior Proposal&#148;</I> means a bona fide written
    Acquisition Proposal (with all percentages used in the
    definition of Acquisition Proposal increased to 50% for purposes
    of this definition) made by a Third&#160;Party after the date of
    this Agreement through the Effective Time (or such earlier date
    that this Agreement is terminated in accordance with the terms
    set forth herein), if the Grey Wolf Board determines in good
    faith and after consultation with a financial advisor of
    national reputation, and taking into account all legal,
    financial, regulatory and other aspects of the Acquisition
    Proposal that such Acquisition Proposal (a)&#160;would, if
    consummated in accordance with its terms, be more favorable,
    from a financial point of view, to the holders of the Grey Wolf
    Common Stock than the transactions contemplated by this
    Agreement (taking into account any amounts payable pursuant to
    <U>Section&#160;7.3</U> and any Precision Revised Offer made
    under <U>Section&#160;5.5(e)</U>, as the case may be),
    (b)&#160;contains conditions which are all reasonably capable of
    being satisfied in a timely manner, and (c)&#160;is not subject
    to any financing contingency or, to the extent financing for
    such proposal is required, that such financing is then committed
    in writing by financially sound financial institutions of
    national reputation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Tax&#148;</I> or <I>&#147;Taxes&#148;</I> (including
    with correlative meaning, <I>&#147;Taxable&#148;</I>) means
    (a)&#160;any federal, foreign, state, provincial, territorial,
    municipal, or local tax, including any income, gross income,
    gross receipts, ad valorem, excise, sales, use, value added,
    admissions, business, occupation, license, franchise, margin,
    capital, net worth, customs, premium, real property, personal
    property, intangibles, capital stock, transfer, profits,
    windfall profits, environmental, severance, fuel, utility,
    payroll, social security, employment insurance, unemployment
    insurance, social insurance, pension plan, employment,
    withholding, disability, stamp, rent, recording, registration,
    alternative minimum, unclaimed property, add-on minimum, or
    other tax, assessment, duty, fee, levy, premium, contribution or
    other governmental charge of any kind whatsoever imposed by a
    Governmental Authority (a <I>&#147;Tax Authority&#148;</I>),
    together with and including, without limitation, any and all
    interest, fines, penalties, assessments and additions to tax
    resulting from, relating to, or incurred in connection with any
    such tax or any contest or dispute thereof, (b)&#160;any
    liability for the payment of any amount of the type described in
    the immediately preceding clause&#160;(a) as a result of being a
    member of a consolidated, affiliated, unitary or combined group
    with any other corporation or entity at any time prior to and
    through the Closing Date, and (c)&#160;any liability for the
    payment of any amount of the type described in the preceding
    clauses&#160;(a) or (b)&#160;as a result of a contractual
    obligation to any other Person or of transferee, successor or
    secondary liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Tax Law&#148;</I> means all Applicable Laws with
    respect to Taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Tax Return&#148;</I> means any report, return,
    estimate, election, designation, form, document, declaration or
    other information (including any attached schedules and any
    amendments to such report, return, document, declaration or
    other information) required to be supplied to or filed with any
    Tax Authority with respect to any Tax, including an information
    return and any document with respect to or accompanying
    payments, deposits or estimated Taxes, or with respect to or
    accompanying requests for the extension of time in which to file
    any such report, return, document, declaration or other
    information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Third Party&#148;</I> means a Person other than any of
    the Grey Wolf Companies or any of the Precision Companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Treasury Regulations&#148;</I> means the regulations
    promulgated by the United States Treasury Department under the
    Code.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;TSX&#148;</I> means the Toronto Stock Exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;U.S.&#148;</I> means the United States of America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;U.S.&#160;GAAP&#148;</I> means generally accepted
    accounting principles, as recognized by the U.S.&#160;Financial
    Accounting Standards Board (or any generally recognized
    successor) applied on a consistent basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Uncertificated Shares&#148;</I> means shares of Grey
    Wolf Common Stock that are held in book-entry form.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Term</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Section</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisition Agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.5(c)(ii)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisition Proposal Recommendation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.5(c)(ii)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adverse Recommendation Change
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.5(c)(ii)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Preamble
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Antitrust Laws
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.9(g)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Election Shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.7(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Fraction
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(a)(iv)(1)(B)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Certificate of Merger
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.1(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Claim
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.15(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Closing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.2
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Closing Date
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.2
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Code
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Recitals
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Continuing Employees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.16(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dissenting Cash Consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(a)(iv)(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Effective Time
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.1(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Elected Cash Consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(a)(iv)(1)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Election Form Record Date
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.7(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Election Form
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.7(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Election Period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.7(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exchange Agent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.9(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exchange Fund
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.9(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Preamble
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf 1996 Options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(d)(i)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf 2003 Options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(d)(ii)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf 1996 Plan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf 2003 Plan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf 3.75%&#160;Notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Bylaws
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.1
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Charter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.1
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Charter Documents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.1
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Convertible Notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Designated Director
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.4(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Disclosure Letter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Preamble to Article&#160;3
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Financial Statements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.7(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Floating Rate Notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.4(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Material Contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.22(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Permits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.5(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Regulatory Filings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.6(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Reports
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.7(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Rights
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Rights Agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Voting Agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(c)
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Term</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Section</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Grey Wolf Voting Debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    HSR Act
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.6(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Indemnified Parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.15(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    International Plans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.11(l)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    IRS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.11(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Junior Preferred Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.3(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Letter of Transmittal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.9(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lobos
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Preamble
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lobos Bylaws
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.3
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lobos Charter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.3
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lobos Charter Documents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.3
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mailing Date
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.7(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Merger
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.1(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Merger Consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    No Election Available Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(a)(iv)(2)(B)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    No Election Shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.7(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    No Election Value
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(a)(iv)(2)(B)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Notification and Report Forms
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.6(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Optionholder
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(d)(vi)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Recitals
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Party
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Recitals
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    PDC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Preamble
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    PDC Board
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.4(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    PDC Charter Documents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;4.1
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per Share Unit Consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.6(a)(i)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Preamble
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Disclosure Letter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Preamble to Article&#160;IV
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Financial Statements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;4.7(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.4(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Material Contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;4.17
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Permits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;4.5(b)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Regulatory Filings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;4.6(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Reports
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;4.7(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Revised Offer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.5(e)(ii)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision Voting Debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;4.3(b)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Regulatory Filings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;5.9(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Related Documents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.2(a)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Required Grey Wolf Vote
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;3.19
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Surviving Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.1(a)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TBCA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Recitals
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TCL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Recitals
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Termination Date
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;7.1(b)(i)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unit Election Shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Section&#160;2.7(b)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A-12
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;1.2</FONT>&#160;&#160;<I>References
    and Titles.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;All references in this Agreement to Exhibits,
    Schedules, Articles, Sections, subsections and other
    subdivisions refer to the corresponding Exhibits, Schedules,
    Articles, Sections, subsections and other subdivisions of or to
    this Agreement, unless expressly provided otherwise. Titles
    appearing at the beginning of any Articles, Sections,
    subsections or other subdivisions of this Agreement are for
    convenience only, do not constitute any part of this Agreement,
    and shall be disregarded in construing the language hereof. The
    words &#147;this Agreement,&#148; &#147;herein,&#148;
    &#147;hereby,&#148; &#147;hereunder&#148; and
    &#147;hereof,&#148; and words of similar import, refer to this
    Agreement as a whole and not to any particular Article, Section,
    subsection or subdivision unless expressly so limited. The words
    &#147;this Article&#148; and &#147;this Section,&#148; and words
    of similar import, refer only to the Article, Section or
    subsection hereof in which such words occur.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The word &#147;or&#148; is not exclusive, and the word
    &#147;including&#148; (in its various forms) means including
    without limitation. Pronouns in masculine, feminine or neuter
    genders shall be construed to state and include any other
    gender, and words, terms and titles (including terms defined
    herein) in the singular form shall be construed to include the
    plural and vice versa, unless the context otherwise requires.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;As used in the representations and warranties contained
    in this Agreement, the phrase &#147;to the knowledge&#148; of
    the representing Party or &#147;known&#148; to a representing
    Party shall mean to the actual knowledge (and not constructive
    or imputed knowledge) of one or more of the Responsible Officers
    of the representing Party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;The Parties have participated jointly in negotiating
    and drafting this Agreement. In the event an ambiguity or a
    question of intent or interpretation arises, this Agreement
    shall be construed as if drafted jointly by the Parties, and no
    presumption or burden of proof shall arise favoring or
    disfavoring any Party by virtue of the authorship of any
    provision(s) of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;All references to &#147;dollar&#148; or &#147;$&#148;
    shall mean U.S.&#160;dollars.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;II<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">THE MERGER
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;2.1&#160;&#160;</FONT><I>The
    Merger.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>The Merger.</I>&#160;&#160;Upon the terms and
    subject to the terms and conditions set forth in this Agreement,
    at the Effective Time, Grey Wolf shall be merged with and into
    Lobos (the <I>&#147;Merger&#148;</I>) in accordance with the
    provisions of this Agreement, and the separate corporate
    existence of Grey Wolf shall thereupon cease. Lobos shall be the
    surviving corporation in the Merger and, after the Merger, Lobos
    shall be referred to from time to time herein as the
    <I>&#147;Surviving Corporation.&#148;</I> The Merger shall have
    the effects specified herein, in the TBCA and in the TCL.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I>Filings for the Merger; Effective
    Time.</I>&#160;&#160;As soon as practicable following the
    satisfaction or waiver (subject to Applicable Laws) of the
    conditions set forth in this Agreement, at the Closing, the
    Parties hereto shall cause a properly executed certificate of
    merger and articles of merger meeting the requirements of
    Article&#160;5.04 of the TBCA and Section&#160;10.151 of the TCL
    (the <I>&#147;Certificate of Merger&#148;</I>) to be filed in
    accordance therewith. The Merger shall become effective (the
    <I>&#147;Effective Time&#148;</I>) upon the issuance of the
    Certificate of Merger under the TBCA and the acceptance of the
    filing of the Certificate of Merger under the TCL, in each case
    by the Secretary of State of the State of Texas, or at such time
    thereafter as is agreed to by Precision and Grey Wolf and
    provided in such Certificate of Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;2.2&#160;&#160;</FONT><I>Closing.</I>&#160;&#160;Subject
    to the terms and conditions of this Agreement, the closing of
    the Merger (the <I>&#147;Closing&#148;</I>) shall take place
    (a)&#160;at the offices of Mayer Brown LLP, 700 Louisiana,
    Suite&#160;3400, Houston Texas as soon as practicable after
    10:00&#160;A.M., local time, on the first Business Day
    immediately following the day on which all of the conditions set
    forth in <U>Article&#160;VI</U> have been satisfied or waived
    (by the party entitled to waive the condition) (except for those
    conditions that by their nature cannot be satisfied until the
    Closing,
</DIV>

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    <BR>
    A-13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    but subject to the satisfaction or waiver of those conditions)
    or (b)&#160;at such other time, date or place as Precision and
    Grey Wolf may agree in writing. The date on which the Closing
    occurs is hereinafter referred to as the <I>&#147;Closing
    Date.&#148;</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>2.3&#160;&#160;<I>Governing
    Instruments of the Surviving Corporation.</I>&#160;&#160;At the
    Effective Time, the certificate of formation of Lobos shall be
    in the form set forth on <U>Exhibit&#160;2.3(a)</U> (the
    <I>&#147;Lobos Charter&#148;</I>), and shall remain the
    certificate of formation of the Surviving Corporation until
    thereafter amended as provided by the TCL and the Lobos Charter.
    At the Effective Time, the bylaws of the Surviving Corporation
    shall be in the form set forth on <U>Exhibit&#160;2.3(b)</U>
    (the <I>&#147;Lobos Bylaws,&#148;</I> and together with the
    Lobos Charter, the <I>&#147;Lobos Charter Documents&#148;</I>),
    and shall remain the bylaws of Lobos until thereafter amended as
    provided by the TCL and the Lobos Charter Documents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;2.4&#160;&#160;</FONT><I>Directors
    of the Surviving Corporation and PDC.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The board of directors of Lobos immediately prior to
    the Effective Time shall continue to be the board of directors
    of the Surviving Corporation from the Effective Time until their
    respective successors have been duly elected or appointed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;At the Effective Time, the board of directors of PDC
    (the <I>&#147;PDC Board&#148;</I>) shall consist of twelve
    members that Precision and PDC shall cause to be comprised of
    three current members of the Grey Wolf Board designated by Grey
    Wolf (each a <I>&#147;Grey Wolf Designated Director&#148;</I>),
    after consultation with Precision and before mailing of the
    Proxy Statement/Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;If prior to the Effective Time, any Grey Wolf
    Designated Director is unwilling or unable to serve (or to
    continue to serve) as a director of PDC as a result of illness,
    death, resignation or any other reason, then, any replacement
    for such Person shall be selected by the Grey Wolf Board, after
    consultation with Precision, and such replacement shall
    constitute a Grey Wolf Designated Director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;At the Effective Time, one Grey Wolf Designated
    Director shall become a member of the Audit Committee, a second
    Grey Wolf Designated Director shall become a member of the
    Nominating and Corporate Governance Committee and a third Grey
    Wolf Designated Director shall become a member of the
    Compensation Committee of the PDC Board, as determined by the
    Nominating and Governance Committee of the PDC Board in light of
    the requirements of the PDC Board and the committees of the PDC
    Board, the qualifications and experience of the Grey Wolf
    Designated Directors, the recommendations of Grey Wolf and the
    requirements of Applicable Canadian Securities Laws, the TSX and
    the NYSE.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Precision shall ensure that appropriate steps are taken
    by the general partner of PDLP, on behalf of PDLP, to nominate
    the Grey Wolf Designated Directors for election to the PDC Board
    at the first annual meeting of the holders of Precision
    Trust&#160;Units held following the Closing Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;2.5&#160;&#160;</FONT><I>Certain
    Officers of the Surviving Corporation.</I>&#160;&#160;At the
    Effective Time, the individuals listed on
    <U>Exhibit&#160;2.5</U> hereto shall have the executive officer
    positions with the Surviving Corporation set forth opposite
    their respective names, and each such executive officer shall
    serve until such executive officer&#146;s successor shall be
    elected and qualified or such executive officer&#146;s earlier
    death, resignation, retirement, disqualification or removal. If,
    at or before the Effective Time, any such Person is unable or
    unwilling to serve as an executive officer of the Surviving
    Corporation in the capacity set forth on
    <U>Exhibit&#160;2.5</U>, then a substitute executive officer
    shall be selected by the board of directors of the Surviving
    Corporation after the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;2.6</FONT>&#160;&#160;<I>Effect
    on Grey Wolf Equity Securities</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Grey Wolf Common Stock.</I>&#160;&#160;At the
    Effective Time, subject to the provisions of this
    <U>Article&#160;II</U>, each share of Grey Wolf Common Stock
    issued and outstanding immediately prior to the Effective Time,
    or that is deemed to be issued and outstanding immediately prior
    to the Effective Time under the terms of the Grey&#160;Wolf
    Senior Notes Indentures in connection with the conversion
    procedures for the Grey Wolf Convertible Notes, and the Grey
    Wolf Options (other than Grey Wolf Dissenting Shares and shares
    of Grey
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-14
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    Wolf Common Stock to be cancelled without payment of any
    consideration therefor pursuant to <U>Section 2.6(c)</U>), shall
    represent the right to receive the following consideration
    (collectively, the <I>&#147;Merger Consideration&#148;</I>):
</DIV>

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    (i)&#160;each Unit Election Share shall be converted into the
    right to receive the number of Precision Trust&#160;Units equal
    to the Exchange Ratio (the <I>&#147;Per Share Unit
    Consideration&#148;</I>), subject to adjustment in accordance
    with this <U>Section&#160;2.6(a)</U> and
    <U>Section&#160;2.10</U>;
</DIV>

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    (ii)&#160;each Cash Election Share shall be converted into the
    right to receive the Per Share Cash Consideration in cash,
    without interest, subject to adjustment in accordance with this
    <U>Section 2.6(a)</U> and <U>Section&#160;2.10</U>;
</DIV>

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    (iii)&#160;each No Election Share shall be converted into the
    right to receive the Per Share Unit Consideration
    <FONT style="white-space: nowrap">and/or</FONT> the
    Per Share Cash Consideration in cash, without interest, as
    provided in this <U>Section 2.6(a)</U> below, subject to
    adjustment in accordance with <U>Section&#160;2.10</U>;
</DIV>

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    (iv)&#160;Notwithstanding the foregoing, if:
</DIV>

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    (1)&#160;the sum of (i)&#160;the product of (x)&#160;the total
    number of Cash Election Shares and (y)&#160;the Per Share Cash
    Consideration (such product being the <I>&#147;Elected Cash
    Consideration&#148;</I>) that would be paid upon conversion of
    the Cash Election Shares in the Merger plus (ii)&#160;the
    product of (x)&#160;the total number of Grey Wolf Dissenting
    Shares and (y)&#160;the Per Share Cash Consideration (the
    <I>&#147;Dissenting Cash Consideration&#148;</I>) exceeds the
    Available Cash Consideration, then:
</DIV>

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    (A)&#160;each Unit Election Share and each No Election Share
    shall be converted into the right to receive the Per Share Unit
    Consideration;&#160;and
</DIV>

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    (B)&#160;each Cash Election Share shall be converted into the
    right to receive (i)&#160;an amount of cash (without interest)
    equal to the product of (w)&#160;the Per Share Cash
    Consideration multiplied by (x)&#160;a fraction, the numerator
    of which shall be the difference between the Available Cash
    Consideration and the Dissenting Cash Consideration and the
    denominator of which shall be the Elected Cash Consideration
    (the fraction described in this clause&#160;(x) being referred
    to as the <I>&#147;Cash Fraction&#148;</I>) and (ii)&#160;a
    number of Precision Trust&#160;Units equal to the product of
    (y)&#160;the Exchange Ratio multiplied by (z)&#160;one
    (1)&#160;minus the Cash Fraction;&#160;or
</DIV>

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    (2)&#160;the sum of the Elected Cash Consideration and the
    Dissenting Cash Consideration is less than the Available Cash
    Consideration, then:
</DIV>

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    (A)&#160;each Cash Election Share shall be converted into the
    right to receive the Per Share Cash Consideration;
</DIV>

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    (B)&#160;if (a)&#160;the product of (x)&#160;the number of No
    Election Shares plus the number of the Notes Shares and
    (y)&#160;the Per Share Cash Consideration (the <I>&#147;No
    Election Value&#148;</I>) equals or exceeds (b)&#160;the
    difference between the Available Cash Consideration and the sum
    of the Elected Cash Consideration and the Dissenting Cash
    Consideration (the <I>&#147;No Election Available
    Cash&#148;</I>), then (i)&#160;on a pro rata basis, a number of
    No Election Shares equal to (1)&#160;the No Election Available
    Cash divided by the Per Share Cash Consideration multiplied by
    (2)&#160;a fraction the numerator of which shall be the number
    of No Election Shares and the denominator of which shall be the
    number of No Election Shares plus the number of Notes Shares
    shall each be converted into the right to receive the Per Share
    Cash Consideration, with the remainder of the No Election Shares
    each being converted into the right to receive the Per Share
    Unit Consideration and (ii)&#160;each Unit Election Share shall
    be converted into the right to receive the Per Share Unit
    Consideration;&#160;and
</DIV>

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    (C)&#160;if the No Election Value is less than the No Election
    Available Cash, then (i)&#160;each No Election Share shall be
    converted into the right to receive the Per Share Cash
    Consideration and (ii)&#160;each Unit Election Share shall be
    converted into the right to receive (a)&#160;an amount of cash
</DIV>

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    (without interest) equal to (x)&#160;the difference between the
    No Election Available Cash and the No Election Value divided by
    (y)&#160;the number of Unit Election Shares and (b)&#160;a
    number of Precision Trust&#160;Units equal to the product of
    (x)&#160;the Exchange Ratio and (y)&#160;one (1)&#160;minus the
    fraction determined by dividing the amount of cash determined
    pursuant to the preceding clause&#160;(a) by the Per Share Cash
    Consideration.
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    (3)&#160;the sum of the Elected Cash Consideration and the
    Dissenting Cash Consideration equals the Available Cash
    Consideration, then:
</DIV>

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    (A)&#160;each Cash Election Share shall be converted into the
    right to receive the Per Share Cash Consideration;&#160;and
</DIV>

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    (B)&#160;each Unit Election Share and No Election Share shall be
    converted into the right to receive the Per Share Unit
    Consideration;&#160;and
</DIV>

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    (v)&#160;notwithstanding the definition of Available Cash
    Consideration, Precision shall have the option, in its sole
    discretion, to increase the amount of the Available Cash
    Consideration to any amount up to and including the amount of
    the sum of the Elected Cash Consideration and the Dissenting
    Cash Consideration plus the product of (1)&#160;the No Election
    Shares and (2)&#160;the Per Share Cash Consideration;
    <U>provided</U> <U>that</U> Precision may not increase the
    Available Cash Consideration to an amount that, in the
    reasonable opinion of counsel to Precision and counsel to Grey
    Wolf, would cause such counsel to be unable to render the
    opinions described in <U>Section&#160;6.2(d) </U>and
    <U>Section&#160;6.3(d)</U>, respectively.
</DIV>

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    (b)&#160;From and after the Effective Time, the Grey Wolf Common
    Stock converted into the Merger Consideration pursuant to this
    <U>Article II</U> shall no longer remain outstanding and shall
    automatically be cancelled and shall cease to exist, and each
    holder of a Certificate previously representing any such Grey
    Wolf Common Stock or Uncertificated Shares shall thereafter
    cease to have any rights with respect to such securities, except
    the right to receive (i)&#160;the Merger Consideration to which
    such holder may be entitled pursuant to this
    <U>Section&#160;2.6</U>, (ii)&#160;any dividends and other
    distributions in accordance with <U>Section 2.9(c)</U> and
    (iii)&#160;any cash to be paid in lieu of any fractional
    Precision Trust&#160;Units in accordance with
    <U>Section&#160;2.9</U>(e).
</DIV>

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    (c)&#160;<I>Grey Wolf Treasury Stock.</I>&#160;&#160;At the
    Effective Time, all shares of Grey Wolf Common Stock that are
    held immediately prior to the Effective Time by Grey Wolf or any
    of the Grey Wolf Subsidiaries shall be cancelled and no payment
    shall be made in respect thereof.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I>Grey Wolf Stock Options</I>.
</DIV>

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    (i)&#160;All holders of Grey Wolf 1996 Options will be given the
    opportunity to exercise any such options, to the extent that the
    option is outstanding, for a reasonable period which is at least
    10&#160;days prior to the Effective Time. Any such holder who
    exercises an outstanding Grey Wolf 1996 Option prior to the
    Effective Time shall be eligible to participate in the Merger as
    a holder of record of Grey Wolf Common Stock in accordance with
    <U>Section&#160;2.7</U> and the other terms and conditions of
    this Agreement. Any Grey Wolf 1996 Options that are outstanding
    as of the Effective Time shall be terminated as of the Effective
    Time such that, as of the Effective Time, no Grey Wolf 1996
    Options shall be outstanding. Grey Wolf shall provide notice of
    the termination to each holder of a Grey Wolf 1996 Option and
    shall take all actions necessary to effect such termination. For
    purposes of this Agreement, <I>&#147;Grey Wolf 1996
    Options&#148;</I> means options to acquire shares of Grey Wolf
    Common Stock identified in <U>Section 3.3(b)</U> of the Grey
    Wolf Disclosure Letter that (A)&#160;were issued under the Grey
    Wolf 1996 Stock Plan or (B)&#160;that are nonqualified stock
    options issued pursuant to agreements with non-employee
    directors and not issued under either Grey Wolf Stock Plan.
</DIV>

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    (ii)&#160;All options to acquire shares of Grey Wolf Common
    Stock (A)&#160;identified in <U>Section 3.3(b)</U> of the Grey
    Wolf Disclosure Letter that were issued under the Grey Wolf 2003
    Stock Plan, (B)&#160;that are issued after the date hereof under
    the Grey Wolf 2003 Stock Plan or (C)&#160;that are otherwise
    issued after the date hereof, only if issued in accordance with
    <U>Section&#160;5.2(d)</U> (collectively, the <I>&#147;Grey Wolf
    2003 Options&#148;</I>) shall, in each case set forth in clauses
    (A), (B)&#160;and (C)&#160;of this paragraph, to the extent they
    are
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    outstanding as of the Effective Time, be converted into
    Precision Unit Appreciation Rights pursuant to the terms of
    <U>Section&#160;2.6(d)(iii).</U> Holders of Grey Wolf 2003
    Options who exercise outstanding Grey Wolf 2003 Options prior to
    the Effective Time shall be eligible to participate in the
    Merger as a holder of record of Grey Wolf Common Stock in
    accordance with <U>Section&#160;2.7</U> and the other terms and
    conditions of this Agreement.
</DIV>

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<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Grey Wolf 2003 Options that are not exercised prior
    to the Effective Time pursuant to <U>Section&#160;2.6(d)(ii)</U>
    and that remain outstanding as of the Effective Time shall be
    converted into Precision Unit Appreciation Rights pursuant to
    this <U>Section&#160;2.6(d)(iii).</U> Each Precision Unit
    Appreciation Right into which an outstanding Grey Wolf 2003
    Option is converted (A)&#160;shall be subject to the same term
    and vesting schedule as applied to the corresponding Grey Wolf
    2003 Option; (B)&#160;shall be settled in cash; (C)&#160;shall
    have an exercise price per unit equal to the exercise price per
    share of Grey Wolf Common Stock applicable under the
    corresponding Grey Wolf 2003 Option immediately prior to the
    Effective Time divided by the Exchange Ratio (the exercise price
    per unit determined by the foregoing being rounded up to the
    nearest whole cent); and (D)&#160;shall apply to that number of
    Precision Trust Units equal to the number of shares of Grey Wolf
    Common Stock subject to the corresponding Grey Wolf 2003 Option
    as of the Effective Time multiplied by the Exchange Ratio
    (rounded down to the nearest whole unit). Precision shall
    establish a plan pursuant to which the Precision Unit
    Appreciation Rights will be issued, which plan shall include
    terms and conditions that are substantially similar in all
    material respects to the terms and conditions of the Grey Wolf
    2003 Stock Plan as applied to the Grey Wolf 2003 Options taking
    into account the provisions of this <U>Section 2.6(d)(iii)</U>
    and the difference in the nature of the awards. Precision shall
    take all necessary actions to ensure that the plan is effective
    as of the Effective Time. It is intended that the conversion of
    Grey Wolf 2003 Options into Precision Unit Appreciation Rights
    shall be effected in a manner which is consistent with
    sections&#160;424(a) and 409A of the Code and such conversion
    shall be effected in such manner, including a reasonable good
    faith interpretation by Precision of guidance under
    section&#160;409A that the Precision Trust Units constitute
    service recipient stock within the meaning of section&#160;409A
    and applicable guidance, and the provisions of this
    <U>Section&#160;2.6(d)</U> shall be interpreted accordingly.
</DIV>

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<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;As soon as practicable following the Effective Time,
    Precision shall deliver to the holders of Grey Wolf 2003 Options
    to be converted into Precision Unit Appreciation Rights pursuant
    to this Section&#160;2.6(d) appropriate notices setting forth
    such holders&#146; rights with respect to such Precision Unit
    Appreciation Rights and the agreements evidencing the grants of
    such Precision Unit Appreciation Rights effective as of the
    Effective Time.
</DIV>

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<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;From and after the date of this Agreement, Grey Wolf
    and the Grey Wolf Subsidiaries shall not take any action to
    provide for (A)&#160;the acceleration of the exercisability of
    any Grey Wolf Option in connection with the Merger or otherwise,
    unless such acceleration is already provided for under the terms
    of such Grey Wolf Options or change in control agreements in
    existence on the date of this Agreement, or (B)&#160;the
    extension of the term or period of exercise of any Grey Wolf
    Option.
</DIV>

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    (vi)&#160;The holders of outstanding Grey Wolf Options (each an
    <I>&#147;Optionholder&#148;</I>) shall be given the ability to
    elect to exercise Grey Wolf Options contingent on the
    transactions contemplated by this Agreement. If an Optionholder
    elects to exercise a Grey Wolf Option contingent on the
    transactions contemplated by this Agreement, at the
    Optionholder&#146;s election, any Merger Consideration to which
    such Optionholder is otherwise entitled under this Agreement
    shall be reduced by the sum of (A)&#160;the aggregate exercise
    price of the Grey Wolf Options that are so exercised, and
    (B)&#160;the amount of any withholding taxes attributable to the
    such exercise, with any such reduction first being made from any
    Merger Consideration payable in cash and, if such cash Merger
    Consideration is not sufficient to satisfy the obligations, from
    any Merger Consideration payable in Precision Trust&#160;Units.
    Grey Wolf shall use commercially reasonable best efforts to
    encourage each holder of Grey Wolf Options who intends to
    exercise Grey Wolf Options prior to the Effective Time to
    deliver a notice of option exercise to Grey&#160;Wolf at least
    two Business Days prior to the Effective Time.
</DIV>

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    <BR>
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    (e)&#160;<I>Grey Wolf Restricted Stock.</I>&#160;&#160;At the
    Effective Time, each share of Grey Wolf Restricted Stock that is
    outstanding immediately prior to the Effective Time shall vest
    in full and the restrictions thereon shall lapse, and, as of the
    Effective Time, each share of Grey Wolf Common Stock that was
    formerly Grey Wolf Restricted Stock shall be entitled to receive
    the Merger Consideration determined in accordance with
    <U>Section&#160;2.6</U> based on the holder&#146;s election in
    accordance with <U>Section&#160;2.7</U>; <U>provided</U>,
    <U>however</U>, that, upon the lapsing of restrictions with
    respect to each share of Grey Wolf Restricted Stock, Grey Wolf
    shall be entitled to deduct and withhold such amounts as may be
    required to be deducted and withheld under the Code and any
    applicable state or local Tax Law with respect to the lapsing of
    such restrictions.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I>Grey Wolf Dissenting Shares.</I>&#160;&#160;Grey
    Wolf Dissenting Shares shall not be converted into or represent
    the right to receive any Merger Consideration, but instead shall
    represent only the right to receive the amount determined
    pursuant to the provisions of Article&#160;5.12 of the TBCA. At
    the Effective Time, any Grey Wolf Dissenting Shareholder shall
    not thereafter be entitled to vote or exercise any other rights
    of a shareholder except the right to receive payment for such
    Grey Wolf Dissenting Shareholder&#146;s Grey Wolf Dissenting
    Shares in accordance with Article&#160;5.12 of the TBCA. If a
    Grey Wolf Dissenting Shareholder has so failed to perfect or
    lost his right to receive, or has effectively withdrawn his
    demand for, the amount determined under Article&#160;5.12 of the
    TBCA, the shares of Grey Wolf Common Stock held by such holder
    shall cease to be Grey&#160;Wolf Dissenting Shares and shall
    entitle such holder to receive the Merger Consideration in
    respect of such shares as received by the No Election Shares
    pursuant to <U>Section&#160;2.6(a)</U>, and promptly following
    the occurrence of such event and upon the surrender of the
    Certificate(s) representing such shares, the Exchange Agent and
    the Surviving Corporation shall deliver to such holder the
    Merger Consideration in respect of such shares. Grey Wolf shall
    comply with those provisions of Article&#160;5.12 of the TBCA
    which are required to be performed by Grey Wolf prior to the
    Effective Time to the reasonable satisfaction of Precision. Grey
    Wolf shall give Precision (i)&#160;prompt notice of any written
    demands to exercise dissenter&#146;s rights and (ii)&#160;an
    opportunity to participate at its own expense in all
    negotiations and proceedings with respect to demands for fair
    value under the TBCA. Grey Wolf shall not, except with the prior
    written consent of Precision (such consent not to be
    unreasonably withheld, conditioned or delayed), voluntarily make
    any payment with respect to demands for fair value under the
    TBCA or offer to settle or settle any such claims.
</DIV>

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    <FONT style="font-variant: SMALL-CAPS">Section&#160;2.7&#160;&#160;</FONT><I>Election
    Procedures.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Not less than thirty (30)&#160;days prior to the
    anticipated Effective Time (the <I>&#147;Mailing
    Date&#148;</I>), an election form in such form as Precision
    shall specify and as shall be reasonably acceptable to Grey Wolf
    (the <I>&#147;Election Form&#148;</I>) shall be mailed to each
    holder of record of shares of Grey Wolf Common Stock as of five
    (5)&#160;Business Days prior to the Mailing Date (the
    <I>&#147;Election Form&#160;Record Date&#148;</I>) and Grey Wolf
    Derivative Security Holders with respect to Grey Wolf Derivative
    Securities that have not been exercised or converted, as
    applicable, as of the Election Form&#160;Record Date and which
    are exercisable prior to the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Each Election Form shall permit the holder (or the
    Beneficial Owner through appropriate and customary documentation
    and instructions) of Grey Wolf Common Stock and each Grey Wolf
    Derivative Security Holder to specify (i)&#160;the number of
    shares of such holder&#146;s Grey Wolf Common Stock with respect
    to which such holder elects to receive the Per Share Unit
    Consideration (the <I>&#147;Unit Election Shares&#148;</I>),
    (ii)&#160;the number of shares of such holder&#146;s Grey Wolf
    Common Stock with respect to which such holder elects to receive
    the Per Share Cash Consideration (the <I>&#147;Cash Election
    Shares&#148;</I>) or (iii)&#160;that such holder makes no
    election with respect to such holder&#146;s Grey Wolf Common
    Stock (the <I>&#147;No Election Shares&#148;</I>). Any Grey Wolf
    Common Stock with respect to which the Exchange Agent does not
    receive an effective, properly completed Election Form during
    the period from the Mailing Date to the Election Deadline (the
    <I>&#147;Election Period&#148;</I>) shall be deemed to be No
    Election Shares. Precision and Grey Wolf shall publicly announce
    the anticipated Election Deadline at least five
    (5)&#160;Business Days prior to the anticipated Effective Time.
    If the Effective Time is delayed to a subsequent date, the
    Election Deadline shall be similarly delayed to a subsequent
    date, and Precision shall promptly announce any such delay and,
    when determined, the rescheduled Election Deadline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Precision shall make available one or more Election
    Forms as may reasonably be requested from time to time by all
    Persons who become holders (or Beneficial Owners) of Grey Wolf
    Common Stock or
</DIV>

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    A-18
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey&#160;Wolf Stock Options during the Election Period, and
    Grey Wolf shall provide to the Exchange Agent all information
    reasonably necessary for it to perform as specified herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Any election made pursuant to this
    <U>Section&#160;2.7</U> shall have been properly made only if
    the Exchange Agent shall have actually received a properly
    completed Election Form during the Election Period. Any Election
    Form may be revoked or changed by the Person submitting such
    Election Form, by written notice received by the Exchange Agent
    during the Election Period. In the event an Election Form is
    revoked during the Election Period, the shares of Grey Wolf
    Common Stock represented by such Election Form shall become No
    Election Shares, except to the extent (if any) a subsequent
    election is properly made during the Election Period with
    respect to any or all of such shares of Grey Wolf Common Stock.
    Subject to the terms of this Agreement and of the Election Form,
    the Exchange Agent shall have reasonable discretion to determine
    whether any election, revocation or change has been properly or
    timely made and to disregard immaterial defects in the Election
    Forms, and any good faith decisions of the Exchange Agent
    regarding such matters shall be binding and conclusive. None of
    Precision or Grey Wolf or the Exchange Agent shall be under any
    obligation to notify any Person of any defect in an Election
    Form.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;2.8</FONT>&#160;&#160;<I>Effect
    on Grey Wolf Debt Securities.</I>&#160;&#160;Effective as of the
    Effective Time, Surviving Corporation shall execute and deliver
    supplemental indentures whereby it shall agree to be bound by
    the conversion provisions of each of the Grey Wolf Senior Notes
    Indentures and take all other action necessary, such that
    following the Effective Time, each outstanding Grey Wolf
    Convertible Note will be convertible into the kind and amount of
    Merger Consideration, in accordance with <U>Section&#160;2.6</U>
    and <U>Section&#160;2.7</U>, that a holder of such Grey Wolf
    Convertible Note would have had the right to receive had such
    Grey Wolf Convertible Note been converted into Grey Wolf Common
    Stock immediately prior to the Effective Time as No Election
    Shares. At or before the Effective Time, Grey Wolf shall comply
    with all other provisions of the Grey Wolf Senior Notes
    Indentures relating to the Merger and the assumption by the
    Surviving Corporation of the obligations under the Grey Wolf
    Senior Notes Indentures in connection with the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;2.9&#160;&#160;</FONT><I>Exchange
    of Certificates.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Prior to the Effective Time, Precision shall appoint a
    bank or trust company reasonably satisfactory to Precision and
    Grey Wolf to act as exchange agent (the <I>&#147;Exchange
    Agent&#148;</I>). Precision shall deposit, or cause to be
    deposited with the Exchange Agent, for the benefit of the
    holders of shares of Grey Wolf Common Stock for exchange in
    accordance with this <U>Article&#160;II</U>,
    (i)&#160;Certificates representing the aggregate number of
    Precision Trust&#160;Units to be issued as Merger Consideration
    pursuant to <U>Section&#160;2.6(a)</U> and
    <U>Section&#160;2.8</U> and delivered pursuant to this
    <U>Section&#160;2.9</U> in exchange for outstanding shares of
    Grey Wolf Common Stock (including shares of Grey Wolf Common
    Stock issued as a result of the exercise of Grey Wolf Stock
    Options prior to the Effective Time), the Grey Wolf Restricted
    Stock and the Grey Wolf Convertible Notes, (ii)&#160;cash in the
    aggregate amount of the cash portion of the Merger Consideration
    pursuant to <U>Section&#160;2.6(a)</U> and
    <U>Section&#160;2.8</U>, and (iii)&#160;when and as needed,
    Precision shall provide the Exchange Agent cash sufficient to
    pay cash in lieu of fractional Precision Trust&#160;Units (such
    cash and Certificates for Precision Trust&#160;Units, together
    with any dividends or distributions with respect thereto, being
    hereinafter referred to as the <I>&#147;Exchange Fund&#148;</I>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Promptly after the Effective Time, Precision shall
    cause the Exchange Agent to mail to each holder of shares of
    Grey Wolf Common Stock (including holders of shares of Grey Wolf
    Common Stock acquired as a result of the exercise of Grey Wolf
    Stock Options prior to the Effective Time) and the Grey Wolf
    Restricted Stock: (i)&#160;a letter of transmittal (the
    <I>&#147;Letter of Transmittal&#148;</I>), which shall specify
    that delivery shall be effected, and risk of loss and title
    shall pass, only upon delivery of the Certificates or transfer
    of the Uncertificated Shares to the Exchange Agent and shall be
    in such form and have such other provisions as Precision may
    reasonably specify, and (ii)&#160;instructions for use in
    effecting the surrender of the Certificates or transfer of the
    Uncertificated Shares in exchange for Precision
    Trust&#160;Units, the cash portion of the Merger Consideration,
    any unpaid dividends and distributions on Precision Trust Units
    in accordance with this <U>Section&#160;2.9</U> and cash in lieu
    of fractional Precision Trust&#160;Units in accordance with this
    <U>Section 2.9.</U> Upon surrender of a Certificate or transfer
    of the Uncertificated Shares for cancellation to the Exchange
    Agent together with such Letter of Transmittal, duly executed
    and completed in accordance with the instructions
</DIV>

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    <BR>
    A-19
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    thereto, the holder of such Grey Wolf Common Stock or Grey Wolf
    Restricted Stock shall be entitled to receive in exchange
    therefor (A)&#160;Precision Trust&#160;Units, and (B)&#160;a
    check representing the amount of cash (including the cash
    portion of the Merger Consideration and cash in lieu of
    fractional units, if any), and unpaid dividends and
    distributions (if any), which such holder has the right to
    receive pursuant to the provisions of this
    <U>Article&#160;II</U>, after giving effect to any required
    withholding tax and other reductions, and, if applicable, the
    Certificate so surrendered shall forthwith be cancelled. No
    interest will be paid or accrued on the cash portion of the
    Merger Consideration, cash in lieu of fractional shares and
    unpaid dividends and distributions, if any, payable to holders
    of Grey Wolf Common Stock. In the event of a transfer of
    ownership of Grey Wolf Common Stock that is not registered in
    the transfer records of Grey Wolf, the proper number of
    Precision Trust&#160;Units, together with a check for the cash
    portion of the Merger Consideration, as the case may be, and
    cash to be paid in lieu of fractional units and unpaid dividends
    and distributions (if any), may be issued to such a transferee
    if the Certificate or Uncertificated Share representing such
    Grey Wolf Common Stock is presented to the Exchange Agent,
    accompanied by all documents required to evidence and effect
    such transfer and to evidence that any applicable stock transfer
    taxes have been paid. The Precision Trust&#160;Units
    constituting part of the Merger Consideration shall be
    certificated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Notwithstanding any other provisions of this Agreement,
    no dividends or other distributions declared or made after the
    Effective Time with respect to Precision Trust&#160;Units with a
    record date after the Effective Time shall be paid to the holder
    of any unsurrendered Certificate or any Uncertificated Shares
    not transferred with respect to the Precision Trust&#160;Units
    issuable upon surrender of such Certificate or transfer of such
    Uncertificated Share as a result of the conversion provided in
    this <U>Article&#160;II</U> until such Certificate is
    surrendered or Uncertificated Share is transferred as provided
    herein. Following such surrender or transfer, there shall be
    paid, without interest, to the Person in whose name such
    Precision Trust&#160;Units have been registered,
    (i)&#160;promptly after the time of such surrender or transfer,
    the amount of any cash payable in lieu of fractional Precision
    Trust&#160;Units to which such Person is entitled pursuant to
    this <U>Section&#160;2.9</U> and the amount of all dividends or
    other distributions with a record date after the Effective Time
    and paid prior to the time of such surrender or transfer with
    respect to such Precision Trust&#160;Units, and (ii)&#160;at the
    appropriate payment date, the amount of all dividends or other
    distributions with a record date after the Effective Time and
    prior to the time of such surrender or transfer and with a
    payment date subsequent to the time of such surrender or
    transfer payable with respect to such Precision Trust&#160;Units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;After the Effective Time there shall be no transfers on
    the stock transfer books of Grey Wolf of the shares of Grey Wolf
    Common Stock which were outstanding immediately prior to the
    Effective Time. If, after the Effective Time, Certificates or
    Uncertificated Shares are presented to Precision, the presented
    Certificates or Uncertificated Shares shall be cancelled and
    exchanged for Precision Trust&#160;Units, the cash portion of
    the Merger Consideration, and cash in lieu of fractional units
    and unpaid dividends or distributions, if any, deliverable in
    respect thereof pursuant to this Agreement in accordance with
    the procedures set forth in this <U>Article&#160;II.</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;No fractional Precision Trust&#160;Units shall be
    issued pursuant to this Agreement. All fractional Precision
    Trust&#160;Units that a holder of shares of Grey Wolf Common
    Stock would otherwise be entitled to receive as a result of the
    Merger shall be aggregated and if a fractional share results
    from such aggregation, such holder shall be entitled to receive,
    in lieu thereof, an amount in cash without interest equal to
    such fraction of a Precision Trust&#160;Unit multiplied by the
    closing sale price of a Precision Trust&#160;Unit on the NYSE on
    the trading day immediately preceding the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Any portion of the Exchange Fund (including the
    proceeds of any investments thereof and any Certificates for
    Precision Trust&#160;Units) that remains undistributed to the
    former shareholders of Grey Wolf one year after the Effective
    Time shall be delivered to Precision. Any former shareholders of
    Grey Wolf who have not theretofore complied with this
    <U>Section&#160;2.9</U> shall thereafter look only to Precision
    for their Precision Trust&#160;Units, their cash portion of the
    Merger Consideration, and cash in lieu of fractional Precision
    Trust&#160;Units and for any unpaid dividends and distributions,
    if any, on the Precision Trust&#160;Units deliverable to such
    former shareholder pursuant to this Agreement.
</DIV>

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    <BR>
    A-20
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;None of Precision, Grey Wolf, the Exchange Agent or any
    other Person shall be liable to any Person for any portion of
    the Exchange Fund properly delivered to a public official
    pursuant to applicable abandoned property, escheat or similar
    laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;In the event any Certificate shall have been lost,
    stolen or destroyed, upon the making of an affidavit of that
    fact by the Person claiming such Certificate to be lost, stolen
    or destroyed and, if required by Precision, the posting by such
    Person of a bond in such reasonable amount as Precision may
    direct as indemnity against any claim that may be made against
    it with respect to such Certificate, the Exchange Agent will
    issue in exchange for such lost, stolen or destroyed
    Certificate, Precision Trust&#160;Units, the cash portion of the
    Merger Consideration, and cash in lieu of fractional Precision
    Trust&#160;Units and unpaid dividends and distributions, if any,
    on the Precision Trust&#160;Units, as provided in this
    <U>Section&#160;2.9</U>, deliverable in respect thereof pursuant
    to this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;If any portion of the cash portion of the Merger
    Consideration is to be paid to a Person other than the Person in
    whose name the surrendered Certificate is registered, it shall
    be a condition to such payment that (i)&#160;either such
    Certificate shall be properly endorsed or shall otherwise be in
    proper form for transfer and (ii)&#160;the Person requesting
    such payment shall pay to the Exchange Agent any transfer or
    other Taxes required as a result of such payment to a Person
    other than the registered holder of such Certificate or
    establish to the satisfaction of the Exchange Agent that such
    Tax has been paid or is not payable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>2.10&#160;&#160;<I>Adjustment
    of Exchange Ratio.</I>&#160;&#160;If, between the date of this
    Agreement and the Effective Time (and in each case, only as
    permitted by <U>Section&#160;5.2</U>), the outstanding shares of
    Grey Wolf Common Stock or the outstanding Precision
    Trust&#160;Units shall have been increased, decreased, changed
    into or exchanged for a different number of shares or units or
    different class, in each case, by reason of any
    reclassification, recapitalization, stock or unit split,
    <FONT style="white-space: nowrap">split-up,</FONT>
    combination or exchange of shares or units or a stock or unit
    dividend or distribution or dividend or distribution payable in
    other securities shall be declared with a record date within
    such period, or any similar event shall have occurred, the
    Merger Consideration (and as a result, the Exchange Ratio, the
    Per Share Unit Consideration, the Per Share Cash Consideration
    and any other similarly depending items) shall be appropriately
    adjusted to provide to the holders of Grey Wolf Common Stock the
    same economic effect as contemplated by this Agreement prior to
    such event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>2.11&#160;&#160;<I>Withholding.</I>&#160;&#160;Each
    of Precision and the Exchange Agent shall be entitled to deduct
    and withhold from the consideration otherwise payable pursuant
    to this Agreement to any Person pursuant to this
    <U>Article&#160;II</U> such amounts as are required to be
    deducted or withheld under the Code, the Income Tax Act or any
    provision of state, local or foreign Tax Law with respect to the
    making of such payment (including withholding Precision
    Trust&#160;Units). Any such withheld amounts shall be treated
    for all purposes of this Agreement as having been paid to such
    Person in respect of whom such deduction and withholding was
    made.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;III<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">REPRESENTATIONS
    AND WARRANTIES OF GREY WOLF
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As an inducement for Precision, PDC and Lobos to enter into this
    Agreement, Grey Wolf hereby makes the following representations
    and warranties to Precision, PDC and Lobos; <U>provided</U><I>,
    </I><U>however</U><I>, </I>that such representations and
    warranties shall be subject to and qualified by: (a)&#160;the
    disclosure letter delivered by Grey&#160;Wolf to Precision as of
    the date hereof (each section of which qualifies the
    correspondingly numbered representation and warranty or covenant
    to the extent specified therein) (the <I>&#147;Grey Wolf
    Disclosure Letter&#148;</I>) (it being understood that
    (i)&#160;the disclosure of any fact or item in any section of
    the Grey Wolf Disclosure Letter shall, should the existence of
    such fact or item be relevant to any other section, be deemed to
    be disclosed with respect to that other section to the extent
    that such disclosure is made in a manner that makes its
    relevance to the other section reasonably apparent and
    (ii)&#160;the disclosure of any matter or item in the Grey Wolf
    Disclosure Letter shall not be deemed to constitute an
    acknowledgement that such matter or item is required to be
    disclosed therein or is material to a representation or warranty
    set forth in this Agreement and shall not be used as a basis for
    interpreting the terms <I>&#147;material,&#148;
    &#147;materially,&#148; &#147;materiality,&#148; &#147;Grey Wolf
    </I>
</DIV>

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    <BR>
    A-21
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Material Adverse Effect&#148;</I> or any word or phrase of
    similar import and does not mean that such matter or item, alone
    or together with any other matter or item, would constitute a
    Grey Wolf Material Adverse Effect); and (b)&#160;information
    contained in the Grey Wolf Reports (excluding any exhibits
    thereto and excluding disclosures under <I>&#147;Risk
    Factors&#148;</I> and other forward-looking or predictive
    statements) filed with the SEC prior to the date hereof (but
    only to the extent that such disclosure on its face appears to
    constitute information that would reasonably be deemed a
    qualification or exception to the following representations and
    warranties).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>3.1&#160;&#160;<I>Corporate
    Existence; Good Standing; Corporate
    Authority.</I>&#160;&#160;Grey Wolf is a corporation duly
    incorporated, validly existing and in good standing under the
    Applicable Laws of the State of Texas. Grey Wolf is duly
    qualified to conduct business and is in good standing (to the
    extent such concept exists in the relevant jurisdiction) in each
    jurisdiction in which the ownership, operation or lease of its
    property or the nature of Grey Wolf&#146;s business requires
    such qualification, except for jurisdictions in which any
    failures to be so qualified or to be in good standing,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Grey Wolf
    Material Adverse Effect. Grey Wolf has all requisite corporate
    power and authority to own or lease and operate its properties
    and assets and to carry on its business as it is currently being
    conducted. Grey Wolf has delivered to Precision true, accurate
    and complete copies of the Amended and Restated Articles of
    Incorporation (including any and all Certificates of
    Designations), as amended to date (the <I>&#147;Grey Wolf
    Charter&#148;</I>), and the Amended and Restated Bylaws of Grey
    Wolf, as amended to date (the <I>&#147;Grey Wolf
    Bylaws,&#148;</I> and together with the Grey Wolf Charter, the
    <I>&#147;Grey Wolf Charter Documents&#148;</I>), and each Grey
    Wolf Charter Document is in full force and effect, has not been
    amended or modified and has not been terminated, superseded or
    revoked. Grey Wolf is not in violation of the Grey Wolf Charter
    Documents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.2&#160;&#160;</FONT><I>Authorization,
    Validity and Effect of Agreements</I>.&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Grey Wolf has the requisite corporate power and
    authority to execute and deliver this Agreement and all other
    agreements, instruments, certificates and documents contemplated
    hereunder (collectively, the <I>&#147;Related
    Documents&#148;</I>) to which it is, or will become, a party, to
    perform its obligations hereunder and thereunder and to
    consummate the Merger and all other transactions contemplated
    hereunder and thereunder, subject to the approval of the Grey
    Wolf Proposal by Grey Wolf&#146;s shareholders. The execution,
    delivery and performance of this Agreement and the Related
    Documents and the consummation of the Merger and the other
    transactions contemplated hereunder and thereunder have been
    duly authorized by all requisite corporate action on behalf of
    Grey Wolf, and no other corporate proceedings by Grey Wolf are
    necessary to authorize the execution and delivery of this
    Agreement or the Related Documents or to consummate the Merger
    and the other transactions contemplated hereunder or under the
    Related Documents, except for the approval of the Grey Wolf
    Proposal by Grey Wolf&#146;s shareholders, the filing of the
    Certificate of Merger pursuant to the TBCA and the TCL and the
    Governmental Authority applications and approvals described in
    <U>Section&#160;3.6(b).</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;This Agreement and each of the Related Documents to
    which Grey Wolf is a party have been or will be duly executed by
    Grey Wolf and, assuming the due authorization, execution and
    delivery hereof and thereof by Precision and Lobos to the extent
    a party hereof and thereof, constitute the valid and legally
    binding obligations of Grey Wolf, enforceable against Grey Wolf
    in accordance with their terms, subject to applicable
    bankruptcy, insolvency, reorganization, moratorium or other
    Applicable Laws relating to or affecting the rights and remedies
    of creditors generally and to general principles of equity
    (regardless of whether considered in a proceeding in equity or
    at law). Grey Wolf has taken all action necessary to render the
    restrictions set forth in Article&#160;13.03 of the TBCA
    inapplicable to this Agreement and the transactions contemplated
    hereby.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.3&#160;&#160;</FONT><I>Capitalization.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The authorized capital stock of Grey Wolf consists of
    500,000,000&#160;shares of Grey Wolf Common Stock and
    1,000,000&#160;shares of Grey Wolf Preferred Stock,
    200,000&#160;shares of which have been designated as Grey Wolf
    Convertible Redeemable Preferred Stock and 250,000&#160;shares
    of which have been designated as Series&#160;B Junior
    Participating Preferred Stock (the <I>&#147;Junior Preferred
    Stock&#148;</I>). As of the close of business on August&#160;21,
    2008, there were 198,271,783 issued and outstanding shares of
    Grey Wolf Common Stock (including 2,683,067&#160;shares of
</DIV>

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    <BR>
    A-22
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey&#160;Wolf Restricted Stock), 19,333,954&#160;shares of Grey
    Wolf Common Stock held by Grey Wolf in its treasury, and no
    issued or outstanding shares of Grey Wolf Preferred Stock. The
    shareholders of Grey Wolf previously approved a 1996 Employee
    Stock Option Plan, as amended (the <I>&#147;Grey Wolf 1996
    Plan&#148;</I>), and a 2003 Incentive Plan, as amended (the
    <I>&#147;Grey Wolf 2003 Plan&#148;</I>). As of August&#160;21,
    2008, 680,560&#160;shares of Grey Wolf Common Stock were
    reserved for future issuance pursuant to outstanding Grey Wolf
    1996 Options under the Grey Wolf 1996 Plan,
    2,619,838&#160;shares of Grey Wolf Common Stock were reserved
    for future issuance pursuant to outstanding Grey&#160;Wolf 2003
    Options granted under the Grey Wolf 2003 Plan,
    700,500&#160;shares of Grey Wolf Common Stock were reserved for
    future issuances pursuant to outstanding Grey Wolf Options not
    granted under a plan and 178,938&#160;shares of Junior Preferred
    Stock were reserved for future issuance pursuant to that certain
    Rights Agreement between Grey&#160;Wolf and American Stock
    Transfer and Trust dated September&#160;21, 1998 (the
    <I>&#147;Grey Wolf Rights Agreement&#148;</I>). Pursuant to the
    Grey Wolf Rights Agreement, each outstanding share of Grey Wolf
    Common Stock is accompanied by one Junior Preferred Stock
    Purchase Right (the <I>&#147;Grey Wolf Rights&#148;</I>)
    entitling the holder thereof to purchase, subject to the terms
    and conditions thereof, Equity Interests of Grey Wolf. As of
    August&#160;21, 2008, there were no shares of Grey Wolf Common
    Stock remaining available for the grant of awards under Grey
    Wolf 1996 Plan and 5,412,524&#160;shares of Grey Wolf Common
    Stock remaining available for the grant of awards under Grey
    Wolf 2003 Plan. There are no outstanding or authorized stock
    appreciation, phantom stock, profit participation or other
    similar rights with respect to Grey Wolf. All shares of Grey
    Wolf Common Stock are, and all shares of Grey Wolf Common Stock
    which may be issued and outstanding immediately prior to the
    Effective Time as permitted under this Agreement shall be when
    issued, duly authorized, validly issued, fully paid and
    nonassessable shares of Grey&#160;Wolf Common Stock and not
    subject to any preemptive rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Grey Wolf has no outstanding bonds, debentures,
    promissory notes or other Indebtedness that are convertible into
    or exercisable for Equity Interests, except for Grey Wolf&#146;s
    3.75% Contingent Convertible Senior Notes due 2023 (the
    <I>&#147;Grey Wolf 3.75%&#160;Notes&#148;</I>) and Grey
    Wolf&#146;s Floating Rate Contingent Convertible Senior Notes
    due 2024 (the <I>&#147;Grey Wolf Floating Rate Notes,&#148;</I>
    and together with the Grey Wolf 3.75%&#160;Notes, the
    <I>&#147;Grey Wolf Convertible Notes&#148;</I>). Grey Wolf has
    no outstanding bonds, debentures, promissory notes or other
    Indebtedness, the holders of which have the right to vote with
    the shareholders of Grey Wolf on any matter (collectively, the
    <I>&#147;Grey Wolf Voting Debt&#148;</I>). As of the date of
    this Agreement, except as set forth in this
    <U>Section&#160;3.3</U>, Grey Wolf and the Grey Wolf
    Subsidiaries have not issued, sold, granted or delivered, are
    not obligated to issue, sell, grant or deliver (or to cause to
    be issued, sold, granted or delivered), and are not a party to
    any Contract or other obligation to issue, sell, grant or
    deliver, any Equity Interest (including, without limitation, any
    securities, options, warrants, calls, rights, commitments,
    agreements, arrangements or undertakings of any kind pursuant to
    which a Person is entitled to acquire an Equity Interest) or
    Grey Wolf Voting Debt of any nature or any additional shares of
    capital stock or any other Equity Interest in Grey Wolf or any
    Grey Wolf Subsidiary. <U>Section&#160;3.3(b)</U> of the Grey
    Wolf Disclosure Letter sets forth a true, correct and complete
    list of all outstanding Grey Wolf Options and Grey Wolf
    Restricted Stock as of August&#160;21, 2008, including grantee
    name and exercise price (if any). Except under the respective
    terms of Grey Wolf Convertible Notes and the Grey Wolf Rights,
    there are no outstanding or authorized (i)&#160;contractual or
    other obligations of Grey&#160;Wolf or any of the Grey Wolf
    Subsidiaries to repurchase, redeem or otherwise acquire any
    Equity Interest of Grey Wolf or any of the Grey Wolf
    Subsidiaries or any such securities or agreements referred to in
    the prior sentence or (ii)&#160;voting trusts or similar
    agreements to which Grey Wolf or any of the Grey Wolf
    Subsidiaries is a party with respect to the voting of the
    capital stock of Grey Wolf or any of the Grey Wolf Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Grey Wolf has received from each of the directors and
    executive officers of Grey Wolf set forth on Schedule&#160;A an
    executed voting agreement substantially in the form attached
    hereto as Exhibit&#160;3.3 (the <I>&#147;Grey&#160;Wolf Voting
    Agreements&#148;</I>). Grey Wolf has delivered to Precision
    true, correct and complete executed copies of the Grey Wolf
    Voting Agreements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.4&#160;&#160;</FONT><I>Subsidiaries.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Each Grey Wolf Subsidiary is a corporation, limited
    partnership or other legal entity duly organized or constituted
    and validly existing under the Applicable Laws of its
    jurisdiction of incorporation, organization
</DIV>

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    <BR>
    A-23
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    or formation. Each Grey Wolf Subsidiary has all requisite
    corporate, limited liability company, partnership or other
    business power and authority to own or lease and operate its
    properties and assets and to carry on its business as currently
    conducted, except (with respect to foreign Grey Wolf
    Subsidiaries only) as would have an immaterial effect on Grey
    Wolf and the Grey Wolf Subsidiaries, taken as a whole. Each Grey
    Wolf Subsidiary is duly qualified to conduct business and is in
    good standing (to the extent such concept exists in the relevant
    jurisdiction) in each jurisdiction in which the ownership or
    lease and operation of its property or the nature of its
    business requires such qualification, except for jurisdictions
    in which any failures to be so qualified or to be in good
    standing, individually or in the aggregate, have not had or
    caused and would not reasonably be expected to have or cause a
    Grey Wolf Material Adverse Effect. All of the outstanding shares
    of capital stock of, or other Equity Interests in, each Grey
    Wolf Subsidiary are duly authorized, validly issued, fully paid
    and nonassessable and are owned, directly or indirectly, by Grey
    Wolf (except for Equity Interests representing an immaterial
    ownership required under the Applicable Laws of any foreign
    jurisdiction to be owned by others), free and clear of all
    Liens, except for Permitted Liens and Liens granted under the
    Grey&#160;Wolf Credit Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<U>Section&#160;3.4(b)</U> of the Grey Wolf Disclosure
    Letter sets forth all Grey Wolf Subsidiaries and the percentage
    Equity Interest of such Grey Wolf Subsidiary held, directly or
    indirectly, by Grey Wolf. Grey&#160;Wolf&#146;s Subsidiaries are
    not in violation of their respective Grey Wolf Subsidiary
    Charter Documents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.5&#160;&#160;</FONT><I>Compliance
    with Laws; Permits.</I>&#160;&#160;Except for such matters that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Grey Wolf
    Material Adverse Effect, and except for (x)&#160;matters
    relating to Taxes, which are treated exclusively in
    <U>Section&#160;3.10</U>, (y)&#160;matters relating to Grey Wolf
    Benefit Plans, which are treated exclusively under
    <U>Section&#160;3.11</U> and (z)&#160;matters arising under
    Environmental, Health and Safety Laws, which are treated
    exclusively in <U>Section&#160;3.13</U>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Neither Grey Wolf nor any Grey Wolf Subsidiary is in
    violation of any Applicable Law relating to the ownership or
    operation of any of its assets or businesses, and no Claim is
    pending or, to the knowledge of Grey Wolf, threatened with
    respect to any such matters;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Grey Wolf and each Grey Wolf Subsidiary hold all
    permits, licenses, certifications, variations, exemptions,
    Orders, franchises, registrations, filings, approvals,
    authorizations or other required grant of operating authority
    required by any Governmental Authority necessary for the conduct
    of their respective businesses (the <I>&#147;Grey Wolf
    Permits&#148;</I>). All Grey Wolf Permits are in full force and
    effect and there exists no default thereunder or breach thereof,
    and Grey Wolf has no notice or knowledge that such Grey Wolf
    Permits will not be renewed in the ordinary course after the
    Effective Time. No Governmental Authority has given, or to the
    knowledge of Grey Wolf, threatened to give, notice of any action
    to terminate, cancel or reform any Grey Wolf Permits;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Grey Wolf and each Grey Wolf Subsidiary possess all
    Grey Wolf Permits required for the present ownership or lease,
    as the case may be, and operation of all Grey Wolf Real
    Property, and there exists no default or breach with respect to,
    and no Person, including any Governmental Authority, has taken
    or, to the knowledge of Grey Wolf, threatened to take, any
    action to terminate, cancel or reform any such Grey&#160;Wolf
    Permit pertaining to Grey Wolf Real Property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.6&#160;&#160;</FONT><I>No
    Conflict; Consents.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Except as disclosed in Section&#160;3.6(a) of the Grey
    Wolf Disclosure Letter, the execution and delivery by Grey Wolf
    of this Agreement and the Related Documents, the performance of
    the obligations of Grey Wolf hereunder and thereunder and the
    consummation by Grey Wolf of the Merger and the other
    transactions contemplated hereby and thereby in accordance with
    the terms hereof and thereof will not (i)&#160;conflict with or
    result in a breach of any provisions of the Grey Wolf Charter
    Documents, (ii)&#160;conflict with or result in a breach of any
    provisions of the Grey Wolf Subsidiary Charter Documents,
    (iii)&#160;violate, conflict with, result in a breach of any
    provision of, constitute a default (or an event which, with
    notice or lapse of time or both, would constitute a default)
    under, impair Grey Wolf&#146;s rights under, alter the rights or
    obligations of third
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    parties under, result in the termination of or in a right of
    termination or cancellation of, give rise to a right of purchase
    under, or accelerate the performance required by, any Grey Wolf
    Material Contract or other Contract, (iv)&#160;result in the
    creation of any Lien (other than Permitted Liens) upon any of
    the properties or assets of Grey&#160;Wolf or the Grey Wolf
    Subsidiaries under any Grey Wolf Material Contract or by which
    Grey Wolf or the Grey Wolf Subsidiaries or any of their
    properties is bound or affected, (v)&#160;result in any Grey
    Wolf Material Contract being declared void, voidable, or without
    further binding effect, (vi)&#160;otherwise result in a
    detriment to Grey Wolf or any of the Grey Wolf Subsidiaries
    under any of the terms, conditions or provisions of any
    Grey&#160;Wolf Material Contract or other Contract by which Grey
    Wolf or any of the Grey Wolf Subsidiaries is bound or to which
    any of their properties is subject or (vii) (assuming that the
    consents and approvals referred to in <U>Section&#160;3.6(b)</U>
    are duly and timely made or obtained and that the Grey Wolf
    Proposal is approved by the requisite vote of the Grey Wolf
    shareholders) contravene, conflict with or constitute a
    violation of any provision of any Applicable Law binding upon or
    applicable to Grey Wolf or any of the Grey Wolf Subsidiaries,
    other than, in the cases of clauses&#160;(ii) through (vii), any
    such violations, conflicts, breaches, defaults, impairments,
    alterations, terminations, cancellations, purchase rights,
    accelerations, Liens, voidings or detriments that, individually
    or in the aggregate, have not had or caused and would not
    reasonably be expected to have or cause a Grey Wolf Material
    Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Neither the execution and delivery by Grey Wolf of this
    Agreement or any Related Document nor the consummation by Grey
    Wolf of the Merger and the other transactions contemplated
    hereby or thereby in accordance with the terms hereof or thereof
    will require any consent, approval or authorization of, notice
    to or filing or registration with any Governmental Authority,
    other than (i)&#160;the filing of the Certificate of Merger with
    the Secretary of State of the State of Texas and appropriate
    documents required to be filed as a result of the Merger with
    the relevant Governmental Authorities in the states and foreign
    jurisdictions in which Grey&#160;Wolf, Lobos or any other Grey
    Wolf Subsidiary is qualified to conduct business, (ii)&#160;the
    filing of the Proxy Statement/Prospectus with the SEC in
    accordance with the Exchange Act and the filing and
    effectiveness of the Registration Statement, (iii)&#160;filings
    required under the
    <FONT style="white-space: nowrap">U.S.&#160;Hart-Scott-Rodino</FONT>
    Antitrust Improvements Act of 1976, as amended (the <I>&#147;HSR
    Act&#148;</I>), including the filing of forms and other
    documents with the FTC and the Antitrust Division of the DOJ as
    required by the HSR Act <I>(&#147;Notification and Report
    Forms&#148;)</I>, (iv)&#160;filings required under federal and
    state securities or &#147;Blue Sky&#148; laws, applicable
    <FONT style="white-space: nowrap">non-U.S.&#160;laws</FONT>
    or the rules of the AMEX or NYSE and (v)&#160;any other
    applicable filings or notifications under the antitrust,
    competition or similar Applicable Laws of foreign jurisdictions
    ((i), (ii), (iii), (iv)&#160;and (v)&#160;collectively, the
    <I>&#147;Grey Wolf Regulatory Filings&#148;</I>), except for any
    failures to obtain any such consent, approval or authorization
    or to make any such filing, notification or registration that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Grey Wolf
    Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.7&#160;&#160;</FONT><I>SEC
    Documents.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Grey Wolf has filed with the SEC all documents required
    to be so filed by it since January&#160;1, 2007 pursuant to
    <U>Sections&#160;13(a)</U>, <U>14(a)</U> and <U>15(d)</U> of the
    Exchange Act, and has made available to Precision each
    registration statement, periodic or other report, proxy
    statement, schedule or information statement (other than
    preliminary materials) it has so filed, each in the form
    (including exhibits and any amendments thereto) filed with the
    SEC (collectively, the <I>&#147;Grey Wolf Reports&#148;</I>). As
    used in this <U>Section&#160;3.7</U>, the term &#147;file&#148;
    shall include any reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    furnished to the SEC. As of its respective date or, if amended
    by a subsequent filing prior to the date hereof, on the date of
    such filing, each Grey Wolf Report complied in all material
    respects with the applicable requirements of the Exchange Act,
    SOX and the rules and regulations thereunder and did not contain
    any untrue statement of a material fact or omit to state a
    material fact required to be stated therein or necessary to make
    the statements made therein, in the light of the circumstances
    under which they were made, not misleading. Each of the
    consolidated balance sheets included in or incorporated by
    reference into the Grey Wolf Reports (including the related
    notes and schedules) fairly presents in all material respects
    the consolidated financial position of Grey Wolf and the Grey
    Wolf Subsidiaries as of its date, and each of the consolidated
    statements of operations, cash flows and changes in
    shareholders&#146; equity included in or incorporated by
    reference into the Grey Wolf Reports (including any related
    notes and schedules) fairly presents in all material respects
    the results of operations, cash flows or changes in
    shareholders&#146; equity, as the
</DIV>

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    <BR>
    A-25
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    case may be, of Grey Wolf and the Grey Wolf Subsidiaries for the
    periods set forth therein (such consolidated balance sheets and
    consolidated statements of operations, cash flows and changes in
    shareholders&#146; equity, each including the notes and
    schedules thereto, the <I>&#147;Grey Wolf Financial
    Statements&#148;</I>). The Grey Wolf Financial Statements
    (i)&#160;complied as to form in all material respects with the
    published rules and regulations of the SEC and (ii)&#160;were
    prepared in accordance with U.S.&#160;GAAP consistently applied
    during the periods involved, except as may be noted in the Grey
    Wolf Financial Statements or as permitted by
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    or
    <FONT style="white-space: nowrap">Form&#160;8-K.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Grey Wolf has not entered into or modified any loans or
    arrangements with its officers and directors in violation of
    <U>Section 402</U> of SOX. Grey Wolf has established and
    maintains disclosure controls and procedures and internal
    controls over financial reporting (as such terms are defined in
    paragraphs (e)&#160;and (f), respectively, of
    <FONT style="white-space: nowrap">Rule&#160;13a-15</FONT>
    under the Exchange Act) as required by
    <FONT style="white-space: nowrap">Rule&#160;13a-15</FONT>
    under the Exchange Act. Grey Wolf&#146;s disclosure controls and
    procedures are reasonably designed to ensure that all material
    information required to be disclosed by Grey Wolf in the reports
    that it files under the Exchange Act are recorded, processed,
    summarized and reported within the time periods specified in the
    rules and forms of the SEC, and that all such material
    information is accumulated and communicated to the management of
    Grey Wolf as appropriate to allow timely decisions regarding
    required disclosure and to make the certifications required
    pursuant to <U>Sections&#160;302</U> and <U>906</U> of SOX. The
    management of Grey Wolf has completed its assessment of the
    effectiveness of Grey Wolf&#146;s internal controls over
    financial reporting in compliance with the requirements of
    <U>Section&#160;404</U> of SOX for the year ended
    December&#160;31, 2007, and such assessment concluded that such
    controls were effective. To the knowledge of Grey Wolf, it has
    disclosed, based on its most recent evaluations, to
    Grey&#160;Wolf&#146;s outside auditors and the audit committee
    of the Grey Wolf Board (i)&#160;all significant deficiencies in
    the design or operation of internal controls over financial
    reporting and any material weaknesses, which have more than a
    remote chance to materially adversely affect Grey Wolf&#146;s
    ability to record, process, summarize and report financial data
    (as defined in
    <FONT style="white-space: nowrap">Rule&#160;13a-15(f)</FONT>
    of the Exchange Act) and (ii)&#160;any fraud, regardless of
    whether material, that involves management or other employees
    who have a significant role in Grey Wolf&#146;s internal
    controls over financial reporting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Since January&#160;1, 2007, to the knowledge of Grey
    Wolf, neither Grey Wolf nor any of the Grey Wolf Subsidiaries
    nor any director, officer, employee, auditor, accountant or
    representative of Grey Wolf or any of the Grey Wolf Subsidiaries
    has received or otherwise had or obtained knowledge of any
    material complaint, allegation, assertion or Claim, whether
    written or oral, regarding the accounting or auditing practices,
    procedures, methodologies or methods of Grey Wolf or any of the
    Grey Wolf Subsidiaries, including any material complaint,
    allegation, assertion or Claim that Grey Wolf or any of the Grey
    Wolf Subsidiaries has a &#147;material weakness&#148; (as such
    terms are defined in the Public Accounting Oversight
    Board&#146;s Auditing Standard No.&#160;2, as in effect on the
    date hereof), in Grey Wolf&#146;s internal controls over
    financial reporting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.8&#160;&#160;</FONT><I>Litigation.</I>&#160;&#160;Except
    (a)&#160;matters relating to Tax matters, which are treated
    exclusively under <U>Section&#160;3.10</U>, (b)&#160;matters
    relating to Grey Wolf Benefit Plans, which are treated
    exclusively under <U>Section&#160;3.11</U> and (c)&#160;matters
    arising under Environmental, Health and Safety Laws, which are
    treated exclusively under <U>Section&#160;3.13</U>, there is no
    litigation, arbitration, mediation, action, suit, Claim,
    proceeding or investigation, whether legal or administrative,
    pending against Grey Wolf or any of the Grey Wolf Subsidiaries
    or, to Grey&#160;Wolf&#146;s knowledge, threatened against Grey
    Wolf or any of the Grey Wolf Subsidiaries or any of their
    respective assets, properties or operations, at Applicable Law
    or in equity, before or by any Governmental Authority or any
    Order of any Governmental Authority that, individually or in the
    aggregate, and taking into consideration the aggregate amounts
    reserved for any such matters in Grey Wolf&#146;s consolidated
    balance sheet at December&#160;31, 2007, has had or caused or
    would reasonably be expected to have or cause a Grey Wolf
    Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>3.9&#160;&#160;<I>Absence
    of Certain Changes.</I>&#160;&#160;From December&#160;31, 2007
    to the date of this Agreement, except as described in the Grey
    Wolf Reports, there has not been (a)&#160;any event or
    occurrence that has had or caused or would reasonably be
    expected to have or cause a Grey Wolf Material Adverse Effect,
    (b)&#160;any material change by Grey Wolf or any of the Grey
    Wolf Subsidiaries, when taken as a whole, in any of its
    accounting methods, principles or practices or any of its Tax
    methods, practices or elections, (c)&#160;any
</DIV>

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    <BR>
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    declaration, setting aside or payment of any dividend or
    distribution in respect of any capital stock or other Equity
    Interest of Grey Wolf or any redemption, purchase or other
    acquisition of any of its Equity Interests except for
    repurchases of Grey Wolf Common Stock pursuant to Grey
    Wolf&#146;s previously announced stock repurchase program and
    shares of Grey Wolf Common Stock that were withheld to satisfy
    federal withholding requirements upon vesting of Grey Wolf
    Restricted Stock, or (d)&#160;except in the ordinary course of
    business consistent with past practices, any increase in or
    establishment of any bonus, insurance, severance, deferred
    compensation, pension, retirement, profit sharing, stock option,
    stock purchase or other employee benefit plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.10&#160;&#160;</FONT><I>Taxes</I>.&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Except for such matters that, individually or in the
    aggregate, have not had or caused and would not reasonably be
    expected to have or cause a Grey Wolf Material Adverse Effect:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The Grey Wolf Companies have timely filed, or have
    caused to be timely filed on their behalf, all Tax Returns
    required to be filed by or on behalf of the Grey Wolf Companies
    (including any Tax Return required to be filed by an affiliated,
    consolidated, combined, unitary or similar group that included
    the Grey Wolf Companies) in the manner prescribed by Applicable
    Law. All such Tax Returns are complete and correct. The Grey
    Wolf Companies have timely paid (or Grey Wolf has paid on each
    Grey&#160;Wolf Subsidiary&#146;s behalf) all Taxes due and
    owing, and, in accordance with U.S.&#160;GAAP, the most recent
    Grey Wolf Financial Statements contained in the Grey Wolf
    Reports reflect a reserve (excluding any reserve for deferred
    Taxes established to reflect timing differences between book and
    Tax income) for all Taxes payable by the Grey Wolf Companies for
    all Taxable periods and portions thereof through the date of
    such Grey Wolf Financial Statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;No Tax Return of the Grey Wolf Companies is under
    audit or examination by any Tax Authority, and no written or, to
    the knowledge of Grey Wolf, unwritten notice of such an audit or
    examination has been received by the Grey Wolf Companies. There
    is no assessed deficiency, refund litigation, proposed
    adjustment or matter in controversy with respect to any Taxes
    due and owing by the Grey Wolf Companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Since December&#160;31, 2007, the Grey Wolf Companies
    have not made or rescinded any election relating to Taxes or
    settled or compromised any Claim, action, suit, litigation,
    proceeding, arbitration, investigation, audit or controversy
    relating to any Taxes, or, except as may be required by
    Applicable Law, made any change to any of their methods of
    reporting income or deductions for federal income Tax purposes
    from those employed in the preparation of their most recently
    filed federal Tax Returns.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;The Grey Wolf Companies do not have any liability for
    any Tax under Treasury Regulation
    <U><FONT style="white-space: nowrap">Section&#160;1.1502-6</FONT></U>
    or any similar provision of any other Tax Law, except for Taxes
    of the Grey Wolf Companies and the affiliated group of which
    Grey Wolf is the common parent, within the meaning of <U>Section
    1504(a)(1)</U> of the Code or any similar provision of any other
    Tax Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;There is no agreement or other document extending, or
    having the effect of extending, the period of assessment or
    collection of any material Taxes and no power of attorney with
    respect to any such Taxes has been executed or filed with any
    Tax Authority by or on behalf of the Grey Wolf Companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;Except for statutory Liens for Taxes not yet due, no
    Liens for Taxes exist with respect to any assets or properties
    of the Grey Wolf Companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;Except for any agreements or arrangements
    (A)&#160;with customers, vendors, lessors or similar persons
    entered into in the ordinary course of business or
    (B)&#160;among the Grey Wolf Companies, none of the Grey Wolf
    Companies is a party to or bound by any Tax sharing agreement,
    Tax indemnity obligation or agreement or arrangement with
    respect to Taxes (including any advance pricing agreement,
    closing agreement or other agreement relating to Taxes with any
    Tax Authority).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;The Grey Wolf Companies have complied with all
    Applicable Law relating to the payment and withholding of Taxes
    (including withholding of Taxes pursuant to
    <U>Sections&#160;1441</U>, <U>1442</U> and <U>3402</U> of
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the Code or similar provisions of any other Tax Law) and have,
    within the time and the manner prescribed by applicable Tax Law,
    withheld from and paid over to the proper Tax Authorities all
    amounts required to be so withheld and paid over under
    applicable Tax Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ix)&#160;None of the Grey Wolf Companies is or has been a
    United States real property holding corporation within the
    meaning of <U>Section 897(c)(2)</U> of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;None of the Grey Wolf Companies shall be required to
    include in a Taxable period ending after the Closing Date any
    item of income that accrued in a prior Taxable period but was
    not recognized in any prior Taxable period as a result of the
    installment method of accounting, the long-term contract method
    of accounting, the cash method of accounting or
    <U>Section&#160;481</U> of the Code or comparable provisions of
    any other Tax Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xi)&#160;None of the Grey Wolf Companies has participated in
    any &#147;reportable transaction&#148; as defined in Treasury
    Regulation
    <U><FONT style="white-space: nowrap">Section&#160;1.6011-4.</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Since December&#160;31, 2005, none of the Grey Wolf
    Companies has been a &#147;distributing corporation&#148; or a
    &#147;controlled corporation&#148; in connection with a
    distribution described in <U>Section&#160;355</U> of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;None of the Grey Wolf Companies knows of any fact,
    agreement, plan, or other circumstance, or has taken or failed
    to take any action, that would reasonably be expected to prevent
    the Merger from qualifying as a reorganization within the
    meaning of <U>Section&#160;368(a)</U> of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Grey Wolf will qualify as a corporation under the Code
    and applicable Treasury Regulations from the date hereof until
    the Effective Time of the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.11&#160;&#160;</FONT><I>Employee
    Benefit Plans.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<U>Section&#160;3.11(a)</U> of the Grey Wolf Disclosure
    Letter contains a list of all Grey Wolf Benefit Plans. Grey Wolf
    has provided or made available to Precision true and complete
    copies of the Grey Wolf Benefit Plans and, if applicable, all
    amendments thereto, the most recent trust agreements, the
    Forms&#160;5500 for the prior three years, the most recent
    Internal Revenue Service (the <I>&#147;IRS&#148;</I>)
    determination or opinion letters, summary plan descriptions, any
    summaries of material modifications provided to participants
    since the most recent summary plan descriptions, material
    notices to participants, funding statements, annual reports and
    actuarial reports, if applicable, and all correspondence with
    any Governmental Authority for each Grey Wolf Benefit Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;To the extent applicable, the Grey Wolf Benefit Plans
    comply in all material respects with the requirements of ERISA
    and the Code or with the Applicable Laws and regulations of any
    applicable jurisdiction, and any Grey Wolf Benefit Plan intended
    to be qualified under <U>Section 401(a)</U> of the Code has
    received a favorable determination letter from the IRS (or, if
    applicable, an opinion letter) and such letter has not been
    revoked; all required amendments since the issuance of such
    favorable determination letter from the IRS have been made and
    no amendments have been made which would reasonably be expected
    to result in the disqualification of any of such Grey Wolf
    Benefit Plans; the Grey Wolf Benefit Plans have been maintained
    and operated in compliance in all material respects with their
    terms; to Grey Wolf&#146;s knowledge, there are no breaches of
    fiduciary duty in connection with the Grey Wolf Benefit Plans
    for which Grey Wolf could be liable; there are no pending or, to
    Grey Wolf&#146;s knowledge, threatened Claims against or
    otherwise involving any Grey Wolf Benefit Plan that,
    individually or in the aggregate, have had or caused or would
    reasonably be expected to have or cause a Grey Wolf Material
    Adverse Effect, and no suit, action or other litigation
    (excluding claims for benefits incurred in the ordinary course
    of the Grey Wolf Benefit Plan activities) has been brought
    against or with respect to any such Grey Wolf Benefit Plan for
    which Grey Wolf could be liable that, individually or in the
    aggregate, have had or caused or would reasonably be expected to
    have or cause a Grey Wolf Material Adverse Effect; all material
    contributions required to be made as of the date hereof to Grey
    Wolf Benefit Plans have been made or have been properly accrued
    and are reflected in the Grey Wolf Financial Statements as of
    the date thereof.
</DIV>

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    <BR>
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Neither Grey Wolf nor any of the Grey Wolf Subsidiaries
    or ERISA Affiliates contributes to, or has an obligation to
    contribute to, and has not within six years prior to the
    Effective Time contributed to, or had an obligation to
    contribute to or has any material liability, contingent or
    otherwise, with respect to, (i)&#160;a &#147;multiemployer
    plan&#148; within the meaning of <U>Section&#160;3(37)</U> of
    ERISA, (ii)&#160;any plan that is covered by Title&#160;IV of
    ERISA, (iii)&#160;any plan subject to Section&#160;412 of the
    Code or (iv)&#160;any plan funded by a &#147;voluntary
    employees&#146; benefits association&#148; within the meaning of
    <U>Section&#160;501(c)(9)</U> of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Except for the Grey Wolf Benefits Plans set forth in
    <U>Section 3.11(d)</U> of the Grey Wolf Disclosure Letter, no
    Grey Wolf Benefit Plan maintained by the Grey Wolf Companies
    provides medical, surgical, hospitalization, death or similar
    benefits (regardless of whether insured) for employees or former
    employees of Grey Wolf or any Grey Wolf Subsidiary for periods
    extending beyond their retirement or other termination of
    service other than coverage mandated by Applicable Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;All accrued material obligations of Grey Wolf and the
    Grey Wolf Subsidiaries, whether arising by operation of
    Applicable Law, Contract, or past custom, for compensation and
    benefits, including, but not limited to, bonuses and accrued
    vacation, and benefits under Grey Wolf Benefit Plans, have been
    paid or adequate accruals for such obligations are reflected on
    the Grey Wolf Financial Statements as of the date thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<U>Section&#160;3.11(f)</U> of the Grey Wolf Disclosure
    Letter sets forth an accurate and complete list of each Grey
    Wolf Benefit Plan (and the particular circumstances described in
    this <U>Section&#160;3.11(f)</U> relating to such Grey Wolf
    Benefit Plan) under which the execution and delivery of this
    Agreement or the consummation of the transactions contemplated
    hereby could (either alone or in conjunction with any other
    event, such as termination of employment), result in, cause the
    accelerated vesting, funding or delivery of, or increase the
    amount or value of, any payment or benefit to any employee,
    officer or director of Grey Wolf or any of the Grey Wolf
    Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;<U>Section&#160;3.11(g)</U> of the Grey Wolf Disclosure
    Letter contains a description that is accurate and correct in
    all material respects of all amounts estimated to be paid or
    payable (whether in cash, in property, or in the form of
    benefits, accelerated cash, property, or otherwise) in
    connection with the transactions contemplated hereby (solely as
    a result thereof) that were or will be an &#147;excess parachute
    payment&#148; within the meaning of <U>Section&#160;280G</U> of
    the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;Each Grey Wolf Benefit Plan which is or reasonably
    could be determined to be an arrangement subject to
    <U>Section&#160;409A</U> of the Code has been operated in good
    faith compliance with <U>Section&#160;409A</U> of the Code since
    January&#160;1, 2005 and has been, or may be, timely amended
    with the consent of the participant, if necessary, to comply in
    good faith with <U>Section&#160;409A</U> of the Code and any
    applicable guidance, whether proposed or final, issued by the
    IRS with respect thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;No Grey Wolf Benefit Plan is a multiple employer plan
    within the meaning of <U>Section&#160;413(c)</U> of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;No Grey Wolf Benefit Plan that is not subject to ERISA
    has any material liabilities thereunder which are not otherwise
    fully funded, if applicable, or properly accrued and reflected
    under the Grey Wolf Financial Statements as of the date thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;No Grey Wolf Benefit Plan holds any &#147;qualifying
    employer securities&#148; or &#147;qualifying employer real
    estate&#148; within the meaning of ERISA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;With respect to all Grey Wolf Benefit Plans subject to
    the Applicable Laws of any jurisdiction outside the
    U.S.&#160;<I>(&#147;International Plans&#148;)</I>, (i)&#160;to
    Grey Wolf&#146;s knowledge, the International Plans have been
    maintained in all material respects in accordance with all
    Applicable Law, (ii)&#160;if intended to qualify for special Tax
    treatment, the International Plans meet the requirements for
    such treatment in all material respects, (iii)&#160;if intended
    to be funded
    <FONT style="white-space: nowrap">and/or</FONT>
    book-reserved, the International Plans are fully funded
    <FONT style="white-space: nowrap">and/or</FONT>
    book-reserved based upon reasonable actuarial assumptions, and
    (iv)&#160;no liability which would be material to Grey Wolf and
    the Grey Wolf Subsidiaries, taken as a whole, exists or
    reasonably could be imposed upon the assets of
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey&#160;Wolf or any of the Grey Wolf Subsidiaries by reason of
    such International Plans, other than to the extent reflected on
    Grey Wolf&#146;s balance sheet as contained in Grey Wolf&#146;s
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.12&#160;&#160;</FONT><I>Labor
    Matters.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Except as disclosed in <U>Section&#160;3.12</U> of the
    Grey Wolf Disclosure Letter, as of the date of this Agreement,
    (i)&#160;neither Grey Wolf nor any of the Grey Wolf Subsidiaries
    is a party to, or bound by, any collective bargaining agreement
    or similar Contract, agreement or understanding with a labor
    union or similar labor organization and (ii)&#160;to Grey
    Wolf&#146;s knowledge, there are no organizational efforts with
    respect to the formation of a collective bargaining unit
    presently being made or threatened.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Except for such matters that, individually or in the
    aggregate, have not had or caused and would not reasonably be
    expected to have or cause a Grey Wolf Material Adverse Effect,
    (i)&#160;neither Grey Wolf nor any Grey Wolf Subsidiary has
    received any written complaint of any unfair labor practice or
    other unlawful employment practice or any written notice of any
    material violation of any federal, state or local statutes,
    Applicable Laws, ordinances, rules, regulations, Orders or
    directives with respect to the employment of individuals by, or
    the employment practices of, Grey Wolf or any Grey Wolf
    Subsidiary, or the work conditions, terms and conditions of
    employment, wages or hours of their respective businesses,
    (ii)&#160;there are no unfair labor practice charges or other
    employee related complaints against Grey Wolf or any Grey Wolf
    Subsidiary pending or, to the knowledge of Grey Wolf threatened,
    before any Governmental Authority by or concerning the employees
    working in their respective businesses, and (iii)&#160;there is
    no labor dispute, strike, slowdown or work stoppage against Grey
    Wolf or any of the Grey Wolf Subsidiaries or, to the knowledge
    of Grey Wolf, pending or threatened against Grey Wolf or any of
    the Grey Wolf Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.13&#160;&#160;</FONT><I>Environmental
    Matters.</I>&#160;&#160;Except for such matters that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Grey Wolf
    Material Adverse Effect:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Grey Wolf and each Grey Wolf Subsidiary has been and is
    in compliance with all applicable Environmental, Health and
    Safety Laws and possesses and is in compliance with any permits
    or licenses required under Environmental, Health and Safety
    Laws. To the knowledge of Grey Wolf, there are no past or
    present facts, conditions or circumstances that interfere with
    or preclude, or could interfere with or preclude if known to a
    Governmental Authority, the conduct of any of their respective
    businesses as now conducted or which interfere with continued
    compliance with applicable Environmental, Health and Safety Laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;No proceedings or investigations brought by any
    Governmental Authority or other Person are pending or, to the
    knowledge of Grey Wolf, threatened against Grey Wolf or the Grey
    Wolf Subsidiaries that allege the violation of, or seek to
    impose liability pursuant to any Environmental, Health and
    Safety Laws, or seek to revoke or modify any permit or license
    issued to Grey Wolf or a Grey Wolf Subsidiary, and, to the
    knowledge of Grey Wolf, there are no past or present facts,
    conditions or circumstances at, on or arising out of, or
    otherwise associated with, any current (or former) businesses,
    assets or properties of Grey Wolf or any Grey Wolf Subsidiary,
    including, but not limited to, any
    <FONT style="white-space: nowrap">on-site</FONT> or
    off-site disposal, release or spill of any Hazardous Materials,
    which constitute a material violation of, or liability pursuant
    to, Environmental, Health and Safety Laws or are reasonably
    likely to give rise to (i)&#160;costs, expenses, liabilities or
    obligations for any investigation, cleanup, remediation,
    disposal or corrective action under any Environmental, Health
    and Safety Laws, (ii)&#160;claims arising for personal injury,
    property damage or damage to natural resources,
    (iii)&#160;fines, penalties or injunctive relief, or
    (iv)&#160;an action to revoke or modify any permit or license
    issued to Grey Wolf or a Grey Wolf Subsidiary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Neither Grey Wolf nor any of the Grey Wolf Subsidiaries
    has (i)&#160;received any written notice of noncompliance with,
    violation of, or liability or potential liability under any
    Environmental, Health and Safety Laws or (ii)&#160;entered into
    or become subject to any consent decree, Order or agreement with
    any Governmental Authority or other Persons pursuant to any
    Environmental, Health and Safety Laws or
</DIV>

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    <BR>
    A-30
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    relating to the investigation, cleanup, remediation or disposal
    of, or the taking of corrective action in relation to, any
    Hazardous Materials.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.14&#160;&#160;</FONT><I>Intellectual
    Property.</I>&#160;&#160;Except for such matters that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Grey Wolf
    Material Adverse Effect, (a)&#160;the products, services and
    operations of Grey Wolf and the Grey Wolf Subsidiaries do not
    infringe upon, violate or misappropriate the Intellectual
    Property of any Third Party, (b)&#160;Grey Wolf and the Grey
    Wolf Subsidiaries own or possess valid licenses or other valid
    rights to use the Intellectual Property that Grey Wolf and the
    Grey Wolf Subsidiaries use, exercise or exploit in, or that may
    be necessary or desirable for, their businesses as currently
    being conducted, free and clear of all Liens (other than
    Permitted Liens), and (c)&#160;to the knowledge of Grey Wolf,
    there is no infringement of any Intellectual Property owned by
    or licensed by or to Grey Wolf or any of the Grey Wolf
    Subsidiaries. To Grey Wolf&#146;s knowledge, there is no
    unauthorized use, disclosure, infringement or misappropriation
    of any Intellectual Property of Grey Wolf or any Grey Wolf
    Subsidiary by any Person, including, without limitation, any
    employee or independent contractor (present or former) of Grey
    Wolf or any Grey Wolf Subsidiary, that, individually or in the
    aggregate, has had or caused or would reasonably be expected to
    have or cause a Grey Wolf Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.15</FONT>&#160;&#160;<I>Insurance.</I>&#160;&#160;Except
    for such matters that, individually or in the aggregate, have
    not had or caused and would not reasonably be expected to have
    or cause a Grey Wolf Material Adverse Effect:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Grey Wolf and the Grey Wolf Subsidiaries maintain and
    will maintain through the Closing Date the insurance coverages
    summarized in its Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007, except for certain
    changes in such coverages since December&#160;31, 2007 as set
    forth in <U>Section&#160;3.15(a)</U> of the Grey Wolf Disclosure
    Letter. In addition, there is no material default with respect
    to any provision contained in any such policy or binder, and
    none of the Grey Wolf Companies has failed to give any notice or
    present any claim under any such policy or binder in a timely
    fashion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;To the knowledge of Grey Wolf, no event relating
    specifically to Grey Wolf or the Grey Wolf Subsidiaries (as
    opposed to events affecting the drilling service industry in
    general) has occurred that is reasonably likely, after the date
    of this Agreement, to result in an upward adjustment in premiums
    under any insurance policies they maintain. Neither Grey Wolf
    nor any of the Grey Wolf Subsidiaries have received notice from
    any insurer or agent of such insurer that substantial capital
    improvements or other expenditures will have to be made in order
    to continue such insurance policies. Excluding insurance
    policies that have expired and been replaced in the ordinary
    course of business, no excess liability or protection and
    indemnity insurance policy has been cancelled by the insurer
    within one year prior to the date hereof, and to Grey
    Wolf&#146;s knowledge, no threat in writing has been made to
    cancel (excluding cancellation upon expiration or failure to
    renew) any current insurance policy of Grey Wolf or any
    Grey&#160;Wolf Subsidiary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.16&#160;&#160;</FONT><I>No
    Brokers.</I>&#160;&#160;Neither Grey Wolf nor any of the Grey
    Wolf Subsidiaries has entered into any Contract with any Person
    that may result in the obligation of Grey Wolf, Precision or any
    of their respective Subsidiaries to pay any finder&#146;s fees,
    brokerage or other like payments in connection with the
    negotiations leading to this Agreement or the consummation of
    the transactions contemplated hereby, except that Grey Wolf has
    retained UBS Securities LLC as its financial advisor, the fee
    and expense reimbursement arrangements with which have been
    disclosed in writing to Precision prior to the date hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>3.17&#160;&#160;<I>Opinion
    of Financial Advisor.</I>&#160;&#160;The Grey Wolf Board has
    received the opinion of UBS Securities LLC, dated the date of
    this Agreement, to the effect that, as of such date and based
    upon and subject to various assumptions, matters considered and
    limitations described in the opinion, the Merger Consideration
    to be received by holders of Grey Wolf Common Stock, taken in
    the aggregate, is fair, from a financial point of view, to such
    holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>3.18&#160;&#160;<I>Precision
    Trust&#160;Unit Ownership.</I>&#160;&#160;Neither Grey Wolf nor
    any of the Grey Wolf Subsidiaries owns any Precision
    Trust&#160;Units or any other securities convertible into or
    otherwise exercisable to acquire Precision Trust&#160;Units.
</DIV>

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    <BR>
    A-31
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>3.19&#160;&#160;<I>Vote
    Required; Board of Director Approval.</I>&#160;&#160;Under Texas
    law and the rules of the AMEX, the only vote of the holders of
    any class or series of Grey Wolf Equity Interests necessary to
    approve the Grey&#160;Wolf Proposal is the affirmative vote in
    favor of the Merger by the holders of a majority of the issued
    and outstanding shares of Grey Wolf Common Stock (the
    <I>&#147;Required Grey Wolf Vote&#148;</I>). As of or prior to
    the date of this Agreement, the Grey Wolf Board has, by
    resolutions duly and unanimously adopted at a meeting of all
    directors on the Grey Wolf Board, which meeting was duly called
    and held, (a)&#160;determined that the Merger is advisable and
    in the best interests of Grey Wolf and Grey Wolf&#146;s
    shareholders, (b)&#160;approved the Merger and this Agreement
    and (c)&#160;recommended that the shareholders of Grey Wolf
    approve this Agreement and directed that the Grey Wolf Proposal
    be submitted to the shareholders of Grey Wolf at the Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.20&#160;&#160;</FONT><I>Ownership
    and Condition of Assets</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;As of the date hereof, Grey Wolf or a Grey Wolf
    Subsidiary has good and valid title to the assets of the Grey
    Wolf Companies including the drilling rigs listed in
    <U>Section&#160;3.20(a)</U> of the Grey Wolf Disclosure Letter,
    other than defects or irregularities of title that do not
    materially impair the ownership or operation of such assets and
    in each case free and clear of all Liens, except for Permitted
    Liens, Liens securing the Grey&#160;Wolf Credit Agreement or
    Liens that have not had or caused and would not reasonably be
    expected to have or cause a Grey Wolf Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The assets of the Grey Wolf Companies are in good
    operating condition except for: (i)&#160;normal maintenance and
    repair requirements and normal wear and tear,
    (ii)&#160;warm-stacked rigs or cold-stacked rigs identified as
    such as of the date of this Agreement in <U>Section 3.20(b)</U>
    of the Grey Wolf Disclosure Letter, and (iii)&#160;as would not,
    when taken together with the matters described in the
    immediately preceding clauses&#160;(i) and (ii), have a Grey
    Wolf Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.21&#160;&#160;</FONT><I>Undisclosed
    Liabilities.</I>&#160;&#160;Neither Grey Wolf nor any of the
    Grey Wolf Subsidiaries has any liabilities or obligations of any
    nature, regardless of whether fixed, accrued, contingent or
    otherwise, except liabilities and obligations that (a)&#160;are
    fully reflected or reserved against in the Grey Wolf Financial
    Statements included in the Grey Wolf Reports or described in the
    Grey Wolf Reports filed prior to the date hereof,
    (b)&#160;liabilities and obligations arising under this
    Agreement and the transaction contemplated by this Agreement,
    (c)&#160;liabilities or obligations incurred in the ordinary
    course of business consistent with past practices since
    December&#160;31, 2007, and (d)&#160;liabilities and obligations
    that, individually or in the aggregate, have not had or caused
    and would not reasonably be expected to have or cause a Grey
    Wolf Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.22
    </FONT><I>&#160;&#160;Material Contracts</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<U>Section&#160;3.22(a)</U> of the Grey Wolf Disclosure
    Letter contains a list of all of the following Contracts or
    agreements (other than those set forth on an exhibit index in
    the Grey Wolf Reports filed prior to the date of this Agreement)
    to which Grey Wolf or any Grey Wolf Subsidiary is a party or by
    which any of them is bound as of the date of this Agreement
    (other than this Agreement or any Related Document):
    (i)&#160;any non-competition agreement or non-solicitation
    agreement or non-hire agreement that purports to limit the
    manner in which, or the localities in which, all or any portion
    of their respective businesses are conducted or would purport to
    bind Grey Wolf, Precision or any of their Affiliates;
    (ii)&#160;any hedging agreements by which any of the assets of
    Grey Wolf or any Grey Wolf Subsidiary are bound, in an aggregate
    amount in excess of $1&#160;million; (iii)&#160;any Contract
    granting any Person registration or other purchase or sale
    rights with respect to any Equity Interest in Grey Wolf or any
    Grey Wolf Subsidiary; (iv)&#160;any voting agreement relating to
    any Equity Interest of Grey Wolf or any Grey Wolf Subsidiary;
    (v)&#160;any Contract outside the ordinary course to which Grey
    Wolf or any Grey Wolf Subsidiary is a party that entitles the
    other party or parties thereto to receive the benefits thereof
    without incurring the obligation to pay for same within sixty
    days after services are provided; (vi)&#160;any Contract outside
    the ordinary course between Grey Wolf or any Grey Wolf
    Subsidiary and any current or former Affiliate of Grey Wolf;
    (vii)&#160;any drilling rig construction or conversion Contract
    with respect to which the drilling rig has not been delivered
    and paid for; (viii)&#160;any drilling Contracts of one year or
    greater in remaining duration; (ix)&#160;any Contract or
    agreement for the borrowing of money with a
</DIV>

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    <BR>
    A-32
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    borrowing capacity or outstanding Indebtedness of
    $2&#160;million or more; or (x)&#160;any &#147;material
    contract&#148; (as such term is defined in Item&#160;601(b)(10)
    of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    of the SEC) (all Contracts or agreements of the types described
    in clauses&#160;(i) through (x), regardless of whether listed in
    <U>Section&#160;3.22(a)</U> of the Grey Wolf Disclosure Letter
    and regardless of whether in effect as of the date of this
    Agreement, being referred to herein as <I>&#147;Grey Wolf
    Material Contracts&#148;</I>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;As of the date of this Agreement, each of the Grey Wolf
    Material Contracts is, to the knowledge of Grey Wolf, in full
    force and effect. Except for such matters that, individually or
    in the aggregate, have not had or caused and would not
    reasonably be expected to have or cause a Grey Wolf Material
    Adverse Effect, neither Grey Wolf nor any of the Grey Wolf
    Subsidiaries knows of, or has received written notice of, any
    breach or violation of, or default under (nor, to the knowledge
    of Grey Wolf and the Grey Wolf Subsidiaries, does there exist
    any condition which with the passage of time or the giving of
    notice or both would result in such a violation or default
    under) any Grey Wolf Material Contract, or has received written
    notice of the desire of the other party or parties to any such
    Grey Wolf Material Contract to exercise any rights such party
    has to cancel, terminate or repudiate such Contract or exercise
    remedies thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.23
    </FONT><I>&#160;&#160;State Takeover
    Statutes.</I>&#160;&#160;Grey Wolf has, or will have prior to
    the Effective Time, taken all necessary action so that, assuming
    compliance by Precision with its obligations hereunder and the
    accuracy of the representations and warranties made by Precision
    herein, no &#147;business combination,&#148;
    &#147;moratorium,&#148; &#147;fair price,&#148; &#147;control
    share acquisition,&#148; or other state antitakeover statute or
    regulation, nor any takeover-related provision in the Grey Wolf
    Charter Documents, would apply to this Agreement, any Related
    Documents or the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.24&#160;&#160;</FONT><I>Improper
    Payments.</I>&#160;&#160;Except for such matters that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Grey Wolf
    Material Adverse Effect: (a)&#160;no funds, assets or properties
    of Grey Wolf or its Affiliates have been used or offered for
    illegal purposes; (b)&#160;no accumulation or use of any funds,
    assets or properties of Grey Wolf or its Affiliates has been
    made without being properly accounted for in the financial books
    and records of Grey Wolf or its Affiliates; (c)&#160;all
    payments by or on behalf of Grey Wolf or its Affiliates have
    been duly and properly recorded and accounted for in their
    financial books and records and such books and records
    accurately and fairly reflect all transactions and dispositions
    of the assets of Grey Wolf and its Affiliates; (d)&#160;Grey
    Wolf has devised and maintained systems that provide reasonable
    assurances that transactions are and have been executed in
    accordance with management&#146;s general or specific
    authorization; (e)&#160;neither Grey Wolf nor any of its
    Affiliates, nor any director, officer, agent, employee or other
    Person associated with or acting on behalf of Grey Wolf or its
    Affiliates, has (i)&#160;used any corporate funds for any
    unlawful contribution, gift, entertainment or payment of
    anything of value relating to political activity, (ii)&#160;made
    any direct or indirect unlawful payment to any employee, agent,
    officer, director, representative or shareholder of a
    Governmental Authority or political party, or official or
    candidate thereof, or any immediate family member of the
    foregoing, (iii)&#160;violated or is in violation of any
    provision of the FCPA or any similar Applicable Laws or
    (iv)&#160;made any bribe, unlawful rebate, payoff, influence
    payment, kickback or other unlawful payment in connection with
    the conduct of Grey&#160;Wolf&#146;s or its Affiliates&#146;
    businesses; (f)&#160;none of Grey Wolf, any of its Affiliates or
    any agent of any of them has received any bribes, kickbacks or
    other improper payments from vendors, suppliers or other
    Persons; and (g)&#160;Grey Wolf has no knowledge that any
    payment made to a Person would be or has thereafter been
    offered, given or provided to any foreign official, political
    party or official thereof, or to any candidate for public office.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.25&#160;&#160;</FONT><I>Amendment
    to Grey Wolf Rights Agreement.</I>&#160;&#160;Grey Wolf has
    amended or taken other action under the Grey Wolf Rights
    Agreement so that (i)&#160;all changes to the Grey Wolf Rights
    Plan implemented by Amendment No.&#160;1 thereto have been
    rescinded and (ii)&#160;none of the execution and delivery of
    this Agreement or any Related Document or the consummation of
    the Merger or any other transaction contemplated hereby or by a
    Related Document will cause the Grey Wolf Rights to become
    exercisable under the Grey Wolf Rights Agreement and will
    terminate the Grey Wolf Rights Agreement at the Closing.
</DIV>

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    <BR>
    A-33
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey&#160;Wolf has delivered to Precision a true, accurate and
    complete copy of the Grey Wolf Rights Agreement, as amended to
    date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.26&#160;&#160;</FONT><I>Canadian
    Assets and Operations.</I>&#160;&#160;As of December&#160;31,
    2007, the Grey Wolf Companies did not have (i)&#160;assets in
    Canada with an aggregate value in excess of Cdn.$50&#160;million
    or (ii)&#160;gross revenues from sales in or from Canada
    generated from the assets in Canada described in (i)&#160;above
    in excess of Cdn.$50&#160;million, in each case as determined in
    accordance with the Competition Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.27&#160;&#160;</FONT><I>No
    Orders.</I>&#160;&#160;No Order having the effect of suspending
    the sale of, or ceasing the trading of, the Grey Wolf Common
    Stock or any other securities of Grey Wolf has been issued by
    any Governmental Authority and is continuing in effect and no
    proceedings for that purpose have been instituted, are pending
    or, to the knowledge of Grey Wolf, are contemplated or
    threatened under any Applicable Laws or by any other
    Governmental Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.28&#160;&#160;</FONT><I>Investment
    Company Act.</I>&#160;&#160;Grey Wolf is not registered and is
    not required to be registered as an investment company pursuant
    to the United States Investment Company Act of 1940, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;3.29&#160;&#160;</FONT><I>No
    Other Representations or Warranties.</I>&#160;&#160;Except for
    the representations and warranties contained in this
    <U>Article&#160;III</U>, neither Grey Wolf nor any other Person
    makes any other express or implied representation or warranty on
    behalf of Grey Wolf or any of its Affiliates in connection with
    this Agreement or the transactions contemplated hereby.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;IV
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    REPRESENTATIONS AND WARRANTIES OF PRECISION, PDC AND LOBOS
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As an inducement for Grey Wolf to enter into this Agreement,
    Precision, PDC and Lobos hereby jointly and severally make the
    following representations and warranties to Grey Wolf;
    <U>provided</U><I>, </I><U>however</U>, that such
    representations and warranties shall be subject to and qualified
    by: (a)&#160;the disclosure letter delivered by Precision and
    PDC to Grey Wolf as of the date hereof (each section of which
    qualifies the correspondingly numbered representation and
    warranty or covenant to the extent specified therein) (the
    <I>&#147;Precision Disclosure Letter&#148;</I>) (it being
    understood that (i)&#160;the disclosure of any fact or item in
    any section of the Precision Disclosure Letter shall, should the
    existence of such fact or item be relevant to any other section,
    be deemed to be disclosed with respect to that other section to
    the extent that such disclosure is made in a manner that makes
    its relevance to the other section reasonably apparent and
    (ii)&#160;the disclosure of any matter or item in the Precision
    Disclosure Letter shall not be deemed to constitute an
    acknowledgement that such matter or item is required to be
    disclosed therein or is material to a representation or warranty
    set forth in this Agreement and shall not be used as a basis for
    interpreting the terms <I>&#147;material,&#148;
    &#147;materially,&#148; &#147;materiality,&#148; &#147;Precision
    Material Adverse Effect&#148;</I> or any word or phrase of
    similar import and does not mean that such matter or item, alone
    or together with any other matter or item, would constitute a
    Precision Material Adverse Effect) and (b)&#160;information
    contained in the Precision Reports (excluding any exhibits
    thereto and excluding disclosures under <I>&#147;Risk
    Factors&#148;</I> and other forward-looking or predictive
    statements) filed with the SEC or the Canadian Securities
    Regulatory Authorities or SEDAR prior to the date hereof (but
    only to the extent that such disclosure on its face appears to
    constitute information that would reasonably be deemed a
    qualification or exception to the following representations and
    warranties).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.1&#160;&#160;</FONT><I>Existence;
    Good Standing; Authority.</I>&#160;&#160;Precision is an
    unincorporated open-ended investment trust duly formed and
    validly existing under the Applicable Laws of the Province of
    Alberta, Canada. Precision has all requisite trust power and
    authority, to own or lease and operate its properties and assets
    and to carry on its business as it is currently being conducted.
    Precision has delivered to Grey Wolf a true, accurate and
    complete copy of the Precision Declaration of Trust and the
    Precision Declaration of Trust is in full force and effect, has
    not been amended or modified and has not been terminated,
    superseded or revoked. Lobos has delivered to Grey Wolf true,
    accurate and complete copies of the Lobos Charter Documents.
    Each Lobos Charter Document is in full force and effect, has not
    been amended or modified and
</DIV>

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    <BR>
    A-34
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    has not been terminated, superseded or revoked. PDC has
    delivered to Grey Wolf a true, accurate and complete copy of the
    PDC Articles of Amalgamation and the Bylaws, each as amended to
    the date hereof (the <I>&#147;PDC Charter Documents&#148;</I>)
    and each PDC Charter Document is in full force and effect, has
    not been amended or modified and has not been terminated,
    superseded or revoked. Precision and PDC have delivered to Grey
    Wolf a true, accurate and complete copy of the Administration
    Agreement and the Administration Agreement is in full force and
    effect, has not been amended or modified and has not been
    terminated, superseded or revoked. Precision is not in violation
    of the Precision Declaration of Trust or the Administration
    Agreement. Lobos is not in violation of the Lobos Charter
    Documents. PDC is not in violation of the PDC Charter Documents
    or the Administration Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.2&#160;&#160;</FONT><I>Authorization,
    Validity and Effect of Agreements</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Each of Precision, PDC and Lobos has the requisite
    trust or corporate power and authority, as the case may be, to
    execute and deliver this Agreement and the Related Documents to
    which it is, or will become, a party, to perform its obligations
    hereunder and thereunder and to consummate the Merger and all
    other transactions contemplated hereunder and thereunder. The
    execution, delivery and performance of this Agreement and the
    Related Documents and the consummation of the Merger and the
    other transactions contemplated hereunder and thereunder have
    been duly authorized by all requisite trust or corporate action,
    as the case may be, on behalf of Precision, PDC and Lobos, and
    no other trust or corporate proceedings, as the case may be, by
    Precision, PDC or Lobos are necessary to authorize the execution
    and delivery of this Agreement or the Related Documents or to
    consummate the Merger and the other transactions contemplated
    hereunder or under the Related Documents, except for, the filing
    of the Certificate of Merger pursuant to the TBCA and the TCL
    and the Governmental Authority applications and approvals
    described in <U>Section&#160;4.6(b).</U> No vote or consent of
    the unitholders or shareholders of Precision or any other
    Precision Subsidiary (as the case may be), other than Lobos
    (which has been obtained on or before the date of this
    Agreement), is required under Applicable Law or the rules of the
    NYSE or TSX for the execution, delivery and performance of this
    Agreement and the consummation of the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;This Agreement and each of the Related Documents to
    which each of Precision, PDC and Lobos is a party have been or
    will be duly executed by or on behalf of each of Precision, PDC
    and Lobos and, assuming the due authorization, execution and
    delivery hereof and thereof by Grey Wolf to the extent a party
    hereof and thereof, constitute the valid and legally binding
    obligations of Precision, PDC and Lobos enforceable against each
    of Precision, PDC and Lobos, in accordance with their terms,
    subject to applicable bankruptcy, insolvency, reorganization,
    moratorium or other Applicable Laws relating to or affecting the
    rights and remedies of creditors generally and to general
    principles of equity (regardless of whether considered in a
    proceeding in equity or at law).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.3&#160;&#160;</FONT><I>Capitalization.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The aggregate number of Precision Trust&#160;Units and
    Precision Special Voting Units authorized to be issued by
    Precision is unlimited. As of the close of business on
    August&#160;22, 2008, there were 125,597,641 issued and
    outstanding Precision Trust&#160;Units and 160,283 issued and
    outstanding Precision Special Voting Units. There are no
    outstanding or authorized securities convertible into Precision
    Trust&#160;Units. All Precision Trust&#160;Units and all
    Precision Special Voting Units are, and all Precision
    Trust&#160;Units and Precision Special Voting Units which may be
    issued and outstanding immediately prior to the Effective Time
    as permitted under this Agreement shall be when issued, duly
    authorized and validly issued as fully paid and nonassessable
    Precision Trust&#160;Units or Precision Special Voting Units, as
    the case may be, and are not subject to any preemptive rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Precision has no outstanding bonds, debentures,
    promissory notes or other Indebtedness (i)&#160;the holders of
    which have the right to vote with the unitholders of Precision
    on any matter or (ii)&#160;that are convertible into or
    exercisable for Equity Interests whose holders have the right to
    vote (collectively, the <I>&#147;Precision Voting
    Debt&#148;</I>). As of the date of this Agreement, except as set
    forth in this <U>Section&#160;4.3</U>, Precision and the
    Precision Subsidiaries have not issued, sold, granted or
    delivered, are not obligated to issue, sell, grant
</DIV>

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    <BR>
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    or deliver (or to cause to be issued, sold, granted or
    delivered), and are not a party to any Contract or other
    obligation to issue, sell, grant or deliver, any Equity Interest
    (including, without limitation, any securities, options,
    warrants, calls, rights, commitments, agreements, arrangements
    or undertakings of any kind pursuant to which a Person is
    entitled to acquire an Equity Interest) or Precision Voting Debt
    of any nature or any additional shares of capital stock or any
    other Equity Interest in Precision or any Precision Subsidiary.
    As of the date hereof, there are 160,283 issued and outstanding
    PDLP Exchangeable Units which are exchangeable into Precision
    Trust&#160;Units on the basis of one Precision Trust&#160;Unit
    for each PDLP Exchangeable Unit. Except as set forth in
    Article&#160;6 of the Precision Declaration of Trust or the
    Precision Disclosure Letter, there are no outstanding or
    authorized (i)&#160;contractual or other obligations of
    Precision or any of the Precision Subsidiaries to repurchase,
    redeem or otherwise acquire any Equity Interest of Precision or
    any of the Precision Subsidiaries or any such securities or
    agreements referred to in the prior sentence or (ii)&#160;voting
    trusts or similar agreements to which Precision or any of the
    Precision Subsidiaries is a party with respect to the voting of
    the Precision Trust&#160;Units or any of the Precision
    Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;159,535,972 PDC Common Shares representing one hundred
    percent (100%) of the issued and outstanding capital of PDC is
    owned directly by PDLP. Immediately prior to the Effective Time,
    no shares of Equity Interests of PDC will be issued and
    outstanding other than 159,535,972 PDC Common Shares that will
    be held by PDLP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;1,000&#160;shares of Lobos Common Stock representing
    one hundred percent (100%) of the issued and outstanding capital
    stock of Lobos are owned directly by Precision. Lobos has been
    formed solely for the purpose of engaging in the transactions
    contemplated hereby and, as of the Effective Time, will not have
    engaged in any activities other than in connection with the
    transactions contemplated by this Agreement. Except as disclosed
    in <U>Section 5.3</U> of the Precision Disclosure Letter,
    immediately prior to the Effective Time, no shares of Equity
    Interests of Lobos will be issued and outstanding other than
    1,000&#160;shares of Lobos Common Stock that will be held by
    Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.4&#160;&#160;</FONT><I>Subsidiaries.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Each Precision Subsidiary is a corporation, limited
    partnership or other legal entity duly organized or constituted
    and validly existing under the Applicable Laws of its
    jurisdiction of incorporation, amalgamation, organization or
    formation. Each Precision Subsidiary has all requisite
    corporate, limited liability company, partnership or other
    business power and authority to own or lease and operate its
    properties and assets and to carry on its business as currently
    conducted. Each Precision Subsidiary is duly qualified to
    conduct business and is in good standing (to the extent such
    concept exists in the relevant jurisdiction) in each
    jurisdiction in which the ownership or lease and operation of
    its property or the nature of its business requires such
    qualification, except for jurisdictions in which any failures to
    be so qualified or to be in good standing individually or in the
    aggregate, have not had or caused and would not reasonably be
    expected to have or cause a Precision Material Adverse Effect.
    All of the outstanding shares in the capital of, or other Equity
    Interests in, each Precision Subsidiary (other than the PDLP
    Exchangeable Units) are duly authorized, validly issued, fully
    paid and nonassessable and are owned, directly or indirectly, by
    Precision, free and clear of all Liens except for Permitted
    Liens.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<U>Section&#160;4.4(b)</U> of the Precision Disclosure
    Letter sets forth all of the Precision Subsidiaries and the
    percentage Equity Interest of such Precision Subsidiary held,
    directly or indirectly, by Precision. The Precision Subsidiaries
    are not in violation of their respective Precision Subsidiary
    Charter Documents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.5&#160;&#160;</FONT><I>Compliance
    with Laws; Permits.</I>&#160;&#160;Except for such matters that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Precision
    Material Adverse Effect, and except for (x)&#160;matters
    relating to Taxes, which are treated exclusively in
    <U>Section&#160;4.10</U> and
</DIV>

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    <BR>
    A-36
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (y)&#160;matters arising under Environmental, Health and Safety
    Laws, which are treated exclusively in <U>Section&#160;4.11</U>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Neither Precision nor any Precision Subsidiary is in
    violation of any Applicable Law relating to the ownership or
    operation of any of its assets or businesses, and no Claim is
    pending or, to the knowledge of Precision or PDC, threatened
    with respect to any such matters;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Precision and each Precision Subsidiary hold all
    permits, licenses, certifications, variations, exemptions,
    Orders, franchises, registrations, filings, approvals,
    authorizations or other required grant of operating authority
    required by any Governmental Authority necessary for the conduct
    of their respective businesses (the <I>&#147;Precision
    Permits&#148;</I>). All Precision Permits are in full force and
    effect and there exists no default thereunder or breach thereof,
    and Precision or PDC has no notice or knowledge that such
    Precision Permits will not be renewed in the ordinary course
    after the Effective Time. No Governmental Authority has given,
    or to the knowledge of Precision or PDC, threatened to give,
    notice of any action to terminate, cancel or reform any
    Precision Permits;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Precision and each Precision Subsidiary possess all
    Precision Permits required for the present ownership or lease,
    as the case may be, and operation of all Precision Real
    Property, and there exists no default or breach with respect to,
    and no Person, including any Governmental Authority, has taken
    or, to the knowledge of Precision or PDC, threatened to take,
    any action to terminate, cancel or reform any such Precision
    Permit pertaining to Precision Real Property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.6&#160;&#160;</FONT><I>No
    Conflict; Consents.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The execution and delivery by each of Precision, PDC
    and Lobos of this Agreement and the Related Documents, the
    performance of the obligations of Precision, PDC and Lobos
    hereunder and thereunder and the consummation by Precision, PDC
    and Lobos of the Merger and the other transactions contemplated
    hereby and thereby in accordance with the terms hereof and
    thereof will not (i)&#160;conflict with or result in a breach of
    any provisions of the Precision Declaration of Trust, the PDC
    Charter Documents or the Lobos Charter Documents,
    (ii)&#160;conflict with or result in a breach of any provisions
    of the Precision Subsidiary Charter Documents,
    (iii)&#160;violate, conflict with, result in a breach of any
    provision of, constitute a default (or an event which, with
    notice or lapse of time or both, would constitute a default)
    under, impair Precision&#146;s rights under, alter the rights or
    obligations of third parties under, result in the termination of
    or in a right of termination or cancellation of, give rise to a
    right of purchase under, or accelerate the performance required
    by, any Precision Material Contract, (iv)&#160;result in the
    creation of any Lien (other than Permitted Liens) upon any of
    the properties or assets of Precision or the Precision
    Subsidiaries under any Precision Material Contract or by which
    Precision or the Precision Subsidiaries or any of their
    properties is bound or affected, (v)&#160;result in any
    Precision Material Contract being declared void, voidable, or
    without further binding effect, or (vi) (assuming that the
    consents and approvals referred to in <U>Section&#160;4.6(b)</U>
    are duly and timely made or obtained), contravene, conflict with
    or constitute a violation of any provision of any Applicable Law
    binding upon or applicable to Precision or any of the Precision
    Subsidiaries, other than, in the cases of clauses&#160;(ii)
    through (vii), any such violations, conflicts, breaches,
    defaults, impairments, alterations, terminations, cancellations,
    purchase rights, accelerations, Liens, voidings or detriments
    that, individually or in the aggregate, have not had or caused
    and would not reasonably be expected to have or cause a
    Precision Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Neither the execution and delivery by Precision, PDC or
    Lobos of this Agreement or any Related Document nor the
    consummation by Precision, PDC or Lobos of the Merger and the
    other transactions contemplated hereby or thereby in accordance
    with the terms hereof or thereof will require any consent,
    approval or authorization of, notice to or filing or
    registration with any Governmental Authority, other than
    (i)&#160;the filing of the Certificate of Merger with the
    Secretary of State of the State of Texas and the appropriate
    documents required to be filed as a result of the Merger with
    the relevant Governmental Authorities in the states and foreign
    jurisdictions in which Precision, Lobos or any other Precision
    Subsidiary is qualified to conduct business, (ii)&#160;the
    filing of the Proxy Statement/Prospectus with the SEC in
    accordance with the Exchange Act and the filing and
    effectiveness of the Registration Statement, (iii)&#160;filings
    required under the
</DIV>

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    <BR>
    A-37
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    HSR Act, including the filing of Notification and Report Forms
    with the FTC and the Antitrust Division of the DOJ as required
    by the HSR Act, (iv)&#160;filings required under federal and
    state securities or &#147;Blue Sky&#148; laws, applicable
    <FONT style="white-space: nowrap">non-U.S.&#160;laws</FONT>
    or the rules of the NYSE or TSX, and (v)&#160;any other
    applicable filings or notifications under the antitrust,
    competition or similar Applicable Laws of foreign jurisdictions
    ((i), (ii), (iii), (iv), and (v)&#160;collectively, the
    <I>&#147;Precision Regulatory Filings&#148;</I>), except for any
    failures to obtain any such consent, approval or authorization
    or to make any such filing, notification or registration that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Precision
    Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.7&#160;&#160;</FONT><I>Securities
    Filings.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Precision and PDLP have filed with the SEC all
    documents required to be so filed by them since January&#160;1,
    2007 pursuant to <U>Sections&#160;13(a)</U>, <U>14(a)</U> and
    <U>15(d)</U> of the Exchange Act and with the Canadian
    Securities Regulatory Authorities all documents required to be
    filed since January&#160;1, 2007 under Applicable Canadian
    Securities Laws, and have made available to Grey Wolf each
    registration statement, periodic or other report, proxy
    statement, schedule or information statement (other than
    preliminary materials) they have so filed, each in the form
    (including exhibits and any amendments thereto) filed with the
    SEC or the Canadian Securities Regulatory Authorities, as the
    case may be (collectively, the <I>&#147;Precision
    Reports&#148;</I>). As used in this <U>Section&#160;4.7</U>, the
    term &#147;file&#148; shall include any reports on Form
    <FONT style="white-space: nowrap">6-K.</FONT> As of
    its respective date or, if amended by a subsequent filing prior
    to the date hereof, on the date of such filing, each Precision
    Report complied in all material respects with the applicable
    requirements of the Exchange Act, SOX, Applicable Canadian
    Securities Laws, and the rules and regulations thereunder and
    did not contain any untrue statement of a material fact or omit
    to state a material fact required to be stated therein or
    necessary to make the statements made therein, in the light of
    the circumstances under which they were made, not misleading.
    Each of the consolidated balance sheets included in or
    incorporated by reference into the Precision Reports (including
    the related notes and schedules) fairly presents in all material
    respects the consolidated financial position of Precision and
    the Precision Subsidiaries as of its date, and each of the
    consolidated statements of operations, cash flows and changes in
    unitholders&#146; equity included in or incorporated by
    reference into the Precision Reports (including any related
    notes and schedules) fairly presents in all material respects
    the results of operations, cash flows or changes in
    unitholders&#146; equity, as the case may be, of Precision and
    the Precision Subsidiaries for the periods set forth therein
    (such consolidated balance sheets and consolidated statements of
    operations, cash flows and changes in unitholders&#146; equity,
    each including the notes and schedules thereto, the
    <I>&#147;Precision Financial Statements&#148;</I>). The
    Precision Financial Statements (i)&#160;complied as to form in
    all material respects with the published rules and regulations
    of the SEC, the applicable Canadian Securities Regulatory
    Authorities, the applicable accounting requirements and the
    published rules and regulations of the SEC or the applicable
    Canadian Securities Regulatory Authorities with respect thereto
    (except, in the case of unaudited statements, as permitted by
    the rules of the Canadian Securities Regulatory Authorities) and
    (ii)&#160;were prepared in accordance with Canadian GAAP
    consistently applied during the periods involved, except as may
    be noted in the Precision Financial Statements or as permitted
    by
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    or
    <FONT style="white-space: nowrap">Form&#160;6-K.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Precision has not entered into or modified any loans or
    arrangements with its officers or trustees or the directors or
    officers of PDC in violation of <U>Section&#160;402</U> of SOX.
    Precision has established and maintains disclosure controls and
    procedures and internal controls over financial reporting
    (within the meaning
    <FONT style="white-space: nowrap">Rules&#160;13a-15(e)</FONT>
    and
    <FONT style="white-space: nowrap">15d-15(e)</FONT> of
    the Exchange Act and the applicable Canadian Securities
    Regulatory Authorities). Precision&#146;s disclosure controls
    and procedures are reasonably designed to ensure that all
    material information required to be disclosed by Precision in
    the reports that it files under the Exchange Act or Applicable
    Canadian Securities Laws are recorded, processed, summarized and
    reported within the time periods specified in the rules and
    forms of the SEC or the applicable Canadian Securities
    Regulatory Authorities and that all such material information is
    accumulated and communicated to the management of Precision as
    appropriate to allow timely decisions regarding required
    disclosure and to make the certifications required pursuant to
    <U>Sections&#160;302</U> and <U>906</U> of SOX and Applicable
    Canadian Securities Laws. The management of PDC, on behalf of
    Precision, has completed its assessment of the effectiveness of
    Precision&#146;s internal controls over financial reporting in
    compliance with the requirements of <U>Section&#160;404</U> of
    SOX and the
</DIV>

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    <BR>
    A-38
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Applicable Canadian Securities Laws for the year ended
    December&#160;31, 2007, and such assessment concluded that such
    controls were effective. To the knowledge of Precision or PDC,
    Precision has disclosed, based on its most recent evaluations,
    to Precision&#146;s outside auditors and the audit committee of
    the PDC Board (i)&#160;all significant deficiencies in the
    design or operation of internal controls over financial
    reporting and any material weaknesses, which have more than a
    remote chance to materially adversely affect Precision&#146;s
    ability to record, process, summarize and report financial data
    (as defined in
    <FONT style="white-space: nowrap">Rule&#160;13a-15(f)</FONT>
    of the Exchange Act and the Applicable Canadian Securities Laws)
    and (ii)&#160;any fraud, regardless of whether material, that
    involves management or other employees who have a significant
    role in Precision&#146;s internal controls over financial
    reporting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Since January&#160;1, 2007, to the knowledge of
    Precision or PDC, neither Precision nor any of the Precision
    Subsidiaries nor any trustee, director, officer, employee,
    auditor, accountant or representative of Precision or any of the
    Precision Subsidiaries has received or otherwise had or obtained
    knowledge of any material complaint, allegation, assertion or
    Claim, whether written or oral, regarding the accounting or
    auditing practices, procedures, methodologies or methods of
    Precision or any of the Precision Subsidiaries, including any
    material complaint, allegation, assertion or Claim that
    Precision or any of the Precision Subsidiaries has a
    &#147;material weakness&#148; (as such terms are defined in the
    Public Accounting Oversight Board&#146;s Auditing Standard
    No.&#160;2, as in effect on the date hereof), in
    Precision&#146;s internal controls over financial reporting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.8&#160;&#160;</FONT><I>Litigation.</I>&#160;&#160;Except
    (a)&#160;matters relating to Tax matters, which are treated
    exclusively under <U>Section&#160;4.10</U> and (b)&#160;matters
    arising under Environmental, Health and Safety Laws, which are
    treated exclusively under <U>Section&#160;4.11</U>, there is no
    litigation, arbitration, mediation, action, suit, Claim,
    proceeding or investigation, whether legal or administrative,
    pending against Precision or any of the Precision Subsidiaries
    or, to Precision&#146;s or PDC&#146;s knowledge, threatened
    against Precision or any of the Precision Subsidiaries or any of
    their respective assets, properties or operations, at Applicable
    Law or in equity, before or by any Governmental Authority or any
    Order of any Governmental Authority that, individually or in the
    aggregate, and taking into consideration the aggregate amounts
    reserved for any such matters in Precision&#146;s consolidated
    balance sheet at December&#160;31, 2007, has had or caused or
    would reasonably be expected to have or cause a Precision
    Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.9&#160;&#160;</FONT><I>Absence
    of Certain Changes.</I>&#160;&#160;From December&#160;31, 2007,
    to the date of this Agreement, except as described in the
    Precision Reports and in Section&#160;4.9 of the Precision
    Disclosure Letter, there has not been (a)&#160;any event or
    occurrence that has had or caused or would reasonably be
    expected to have or cause a Precision Material Adverse Effect,
    (b)&#160;any material change by Precision or any of the
    Precision Subsidiaries, when taken as a whole, in any of its
    accounting methods, principles or practices or any of its Tax
    methods, practices or elections, (c)&#160;any declaration,
    setting aside or payment of any dividend or distribution in
    respect of any capital stock or other Equity Interest of
    Precision or any redemption, purchase or other acquisition of
    any of its Equity Interests, or (d)&#160;except in the ordinary
    course of business consistent with past practices, any increase
    in or establishment of any bonus, insurance, severance, deferred
    compensation, pension, retirement, profit sharing, stock option,
    stock purchase or other employee benefit plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.10&#160;&#160;</FONT><I>Taxes</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Except as disclosed in <U>Section&#160;4.10</U> of the
    Precision Disclosure Letter and for such matters that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Precision
    Material Adverse Effect:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The Precision Companies have timely filed, or have
    caused to be timely filed on their behalf, all Tax Returns
    required to be filed by or on behalf of the Precision Companies
    (including any Tax Return required to be filed by an affiliated,
    consolidated, combined, unitary or similar group that included
    the Precision Companies) in the manner prescribed by Applicable
    Law. All such Tax Returns are complete and correct. The
    Precision Companies have timely paid (or Precision has paid on
    each Precision Subsidiary&#146;s behalf) all Taxes due and
    owing, and, in accordance with Canadian GAAP, the most recent
</DIV>

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    <BR>
    A-39
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision Financial Statements contained in the Precision
    Reports reflect a reserve (excluding any reserve for deferred
    Taxes established to reflect timing differences between book and
    Tax income) for all Taxes payable by the Precision Companies for
    all Taxable periods and portions thereof through the date of
    such Precision Financial Statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;No Tax Return of the Precision Companies is under
    audit or examination by any Tax Authority, and no written or, to
    the knowledge of Precision or PDC, unwritten notice of such an
    audit or examination has been received by the Precision
    Companies. There is no assessed deficiency, refund litigation,
    proposed adjustment or matter in controversy with respect to any
    Taxes due and owing by the Precision Companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Since December&#160;31, 2007, the Precision Companies
    have not made or rescinded any election relating to Taxes or
    settled or compromised any Claim, action, suit, litigation,
    proceeding, arbitration, investigation, audit or controversy
    relating to any Taxes, or, except as may be required by
    Applicable Law, made any change to any of their methods of
    reporting income or deductions for federal income Tax purposes
    from those employed in the preparation of their most recently
    filed federal Tax Returns.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;The Precision Companies do not have any liability for
    any Tax under Treasury Regulation
    <U><FONT style="white-space: nowrap">Section&#160;1.1502-6</FONT></U>
    or any similar provision of any other Tax Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;There is no agreement or other document extending, or
    having the effect of extending, the period of assessment or
    collection of any material Taxes and no power of attorney with
    respect to any such Taxes has been executed or filed with any
    Tax Authority by or on behalf of the Precision Companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;Except for statutory Liens for Taxes not yet due, no
    Liens for Taxes exist with respect to any assets or properties
    of the Precision Companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;Except for any agreements or arrangements
    (A)&#160;with customers, vendors, lessors or similar persons
    entered into in the ordinary course of business or
    (B)&#160;among the Precision Companies, none of the Precision
    Companies is a party to or bound by any Tax sharing agreement,
    Tax indemnity obligation or agreement or arrangement with
    respect to Taxes (including any advance pricing agreement,
    closing agreement or other agreement relating to Taxes with any
    Tax Authority).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;The Precision Companies have complied with all
    Applicable Law relating to the payment and withholding of Taxes
    (including withholding of Taxes pursuant to
    <U>Sections&#160;1441</U>, <U>1442</U> and <U>3402</U> of the
    Code or similar provisions of any other Tax Law) and have,
    within the time and the manner prescribed by applicable Tax Law,
    withheld from and paid over to the proper Tax Authorities all
    amounts required to be so withheld and paid over under
    applicable Tax Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ix)&#160;None of the Precision Companies shall be required to
    include in a Taxable period ending after the Closing Date any
    item of income that accrued in a prior Taxable period but was
    not recognized in any prior Taxable period as a result of the
    installment method of accounting, the long-term contract method
    of accounting, the cash method of accounting or
    <U>Section&#160;481</U> of the Code or comparable provisions of
    any other Tax Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;None of the Precision Companies has participated in any
    &#147;reportable transaction&#148; as defined in Treasury
    Regulation
    <U><FONT style="white-space: nowrap">Section&#160;1.6011-4.</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Since December&#160;31, 2005, none of the Precision
    Companies has been a &#147;distributing corporation&#148; or a
    &#147;controlled corporation&#148; in connection with a
    distribution described in <U>Section&#160;355</U> of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;None of the Precision Companies knows of any fact,
    agreement, plan, or other circumstance, or has taken or failed
    to take any action, that would reasonably be expected to prevent
    the Merger from qualifying as a reorganization within the
    meaning of <U>Section&#160;368(a)</U> of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Precision satisfies and has satisfied all the
    requirements of the &#147;active trade or business test&#148;
    under Treasury Regulation &#167;1.367(a)-3(c)(3) up to and
    through the Effective Time. There are no facts known to
    Precision
</DIV>

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    <BR>
    A-40
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    or any of its Subsidiaries which, individually or in the
    aggregate, could compromise, impair or prevent the application
    of the conditions contained in clauses (i), (ii)&#160;or
    (iv)&#160;of Treasury Regulation &#167;1.367(a)-3(c)(1). None of
    Precision, PDC or Lobos is a &#147;passive foreign investment
    company&#148; within the meaning of <U>Section 1297</U> of the
    Code. None of Precision, PDC or Lobos is a &#147;controlled
    foreign corporation&#148; within the meaning of
    <U>Section&#160;957</U> of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Each of Precision and Lobos will qualify as a
    corporation and the Precision Trust&#160;Units will qualify as
    common stock under the Code and applicable Treasury Regulations
    from the date hereof until after the Effective Time of the
    Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Precision is, and expects to be at all times after the
    Merger, a &#147;qualified foreign corporation&#148; under Code
    <U>Section&#160;1(h)</U> and the applicable Treasury Regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.11&#160;&#160;</FONT><I>Environmental
    Matters.</I>&#160;&#160;Except as set forth in
    <U>Section&#160;4.11</U> of the Precision Disclosure Letter and
    for such matters that, individually or in the aggregate, have
    not had or caused and would not reasonably be expected to have
    or cause a Precision Material Adverse Effect:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Precision and each Precision Subsidiary has been and is
    in compliance with all applicable Environmental, Health and
    Safety Laws and possesses and is in compliance with any permits
    or licenses required under Environmental, Health and Safety
    Laws. To the knowledge of Precision or PDC, there are no past or
    present facts, conditions or circumstances that interfere with
    or preclude, or could interfere with or preclude if known to a
    Governmental Authority, the conduct of any of their respective
    businesses as now conducted or which interfere with continued
    compliance with applicable Environmental, Health and Safety Laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;No proceedings or investigations brought by any
    Governmental Authority or other Person are pending or, to the
    knowledge of Precision or PDC, threatened against Precision or
    the Precision Subsidiaries that allege the violation of, or seek
    to impose liability pursuant to any Environmental, Health and
    Safety Laws, or seek to revoke or modify any permit or license
    issued to Precision or a Precision Subsidiary, and, to the
    knowledge of Precision or PDC, there are no past or present
    facts, conditions or circumstances at, on or arising out of, or
    otherwise associated with, any current (or former) businesses,
    assets or properties of Precision or any Precision Subsidiary,
    including, but not limited to, any
    <FONT style="white-space: nowrap">on-site</FONT> or
    off-site disposal, release or spill of any Hazardous Materials,
    which constitute a material violation of, or liability pursuant
    to, Environmental, Health and Safety Laws or are reasonably
    likely to give rise to (i)&#160;costs, expenses, liabilities or
    obligations for any investigation, cleanup, remediation,
    disposal or corrective action under any Environmental, Health
    and Safety Laws, (ii)&#160;claims arising for personal injury,
    property damage or damage to natural resources,
    (iii)&#160;fines, penalties or injunctive relief, or
    (iv)&#160;an action to revoke or modify any permit or license
    issued to Precision or a Precision Subsidiary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Neither Precision nor any of the Precision Subsidiaries
    has (i)&#160;received any written notice of noncompliance with,
    violation of, or liability or potential liability under any
    Environmental, Health and Safety Laws or (ii)&#160;entered into
    or become subject to any consent decree, Order or agreement with
    any Governmental Authority or other Persons pursuant to any
    Environmental, Health and Safety Laws or relating to the
    investigation, cleanup, remediation or disposal of, or the
    taking of any corrective action in relation to any Hazardous
    Materials.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.12&#160;&#160;</FONT><I>Intellectual
    Property.</I>&#160;&#160;Except as set forth in
    <U>Section&#160;4.12</U> of the Precision Disclosure Letter and
    for such matters that, individually or in the aggregate, have
    not had or caused and would not reasonably be expected to have
    or cause a Precision Material Adverse Effect, (a)&#160;the
    products, services and operations of Precision and the Precision
    Subsidiaries do not infringe upon, violate or misappropriate the
    Intellectual Property of any Third Party, (b)&#160;Precision and
    the Precision Subsidiaries own or possess valid licenses or
    other valid rights to use the Intellectual Property that
    Precision and the Precision Subsidiaries use, exercise or
    exploit in, or that may be necessary or desirable for, their
    businesses as currently being conducted, free and clear of all
    Liens (other than Permitted Liens), and (c)&#160;to the
    knowledge of Precision or PDC, there is no infringement of any
    Intellectual Property owned by or licensed by or to Precision or
    any of the Precision
</DIV>

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    <BR>
    A-41
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subsidiaries. To Precision&#146;s or PDC&#146;s knowledge, there
    is no unauthorized use, disclosure, infringement or
    misappropriation of any Intellectual Property of Precision or
    any Precision Subsidiary by any Person, including, without
    limitation, any employee or independent contractor (present or
    former) of Precision or any Precision Subsidiary, that,
    individually or in the aggregate, has had or caused or would
    reasonably be expected to have or cause a Precision Material
    Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.13&#160;&#160;</FONT><I>No
    Brokers.</I>&#160;&#160;Neither Precision nor any of the
    Precision Subsidiaries has entered into any Contract with any
    Person that may result in the obligation of Grey Wolf, Precision
    or any of their respective Subsidiaries to pay any finder&#146;s
    fees, brokerage or other like payments in connection with the
    negotiations leading to this Agreement or the consummation of
    the transactions contemplated hereby, except that Precision has
    retained Deutsche Bank Securities Inc. and RBC Dominion
    Securities Inc. as its financial advisors, the fee and expense
    reimbursement arrangements with which have been disclosed in
    writing to Grey Wolf prior to the date hereof.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.14&#160;&#160;</FONT><I>Grey
    Wolf Share Ownership.</I>&#160;&#160;Neither Precision nor any
    of the Precision Subsidiaries owns any shares of the capital
    stock of Grey Wolf or any other securities convertible into or
    otherwise exercisable to acquire shares of capital stock of Grey
    Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.15&#160;&#160;</FONT><I>Board
    Approval.</I>&#160;&#160;The Precision Board and the PDC Board,
    on behalf of PDC and on behalf of Precision in PDC&#146;s
    capacity as administrator of Precision, have by duly adopted
    unanimous resolutions (i)&#160;approved this Agreement, the
    Merger and the other transactions contemplated hereunder, and
    (ii)&#160;authorized the issuance of Precision Trust&#160;Units
    and the payment of the cash portion of the Merger Consideration
    pursuant to <U>Section&#160;2.6.</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.16&#160;&#160;</FONT><I>Undisclosed
    Liabilities.</I>&#160;&#160;Neither Precision nor any of the
    Precision Subsidiaries has any liabilities or obligations of any
    nature, regardless of whether fixed, accrued, contingent or
    otherwise, except liabilities and obligations that (a)&#160;are
    fully reflected or reserved against in the Precision Financial
    Statements included in the Precision Reports or described in the
    Precision Reports filed prior to the date hereof,
    (b)&#160;liabilities and obligations arising under this
    Agreement and the transaction contemplated by this Agreement,
    (c)&#160;liabilities or obligations incurred in the ordinary
    course of business consistent with past practices since
    December&#160;31, 2007, and (d)&#160;liabilities and obligations
    that, individually or in the aggregate, have not had or caused
    and would not reasonably be expected to have or cause a
    Precision Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.17&#160;&#160;</FONT><I>Material
    Contracts.</I>&#160;&#160;There are no agreements material to
    the conduct of the Precision Companies&#146; businesses or
    affairs, as applicable, except for those agreements
    (a)&#160;filed on SEDAR with the applicable Canadian Securities
    Regulatory Authorities, (b)&#160;disclosed in writing to Grey
    Wolf, (c)&#160;entered into in the ordinary course of business
    or (d)&#160;listed in <U>Section&#160;4.17</U> of the Precision
    Disclosure Letter and all such material agreements are valid and
    subsisting except for such matters that, individually or in the
    aggregate, have not had or caused and would not reasonably be
    expected to have or cause a Precision Material Adverse Effect
    and the Precision Company that is a party thereto is not in
    default under any such material agreements (collectively, all
    such Contracts and agreements being referred to as the
    <I>&#147;Precision Material Contracts&#148;</I>). For the
    avoidance of doubt, the Parties agree that the following
    Contracts shall constitute Precision Material Contracts: the
    Administration Agreement, the Precision Declaration of Trust and
    the Precision Drilling Limited Partnership Limited Partnership
    Agreement dated as of September&#160;28, 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.18&#160;&#160;</FONT><I>Improper
    Payments.</I>&#160;&#160;Except for such matters that,
    individually or in the aggregate, have not had or caused and
    would not reasonably be expected to have or cause a Precision
    Material Adverse Effect: (a)&#160;no funds, assets or properties
    of Precision or its Affiliates have been used or offered for
    illegal purposes; (b)&#160;no accumulation or use of any funds,
    assets or properties of Precision or its Affiliates has been
    made without being properly accounted for in the financial books
    and records of Precision or its Affiliates; (c)&#160;all
    payments by or on behalf of Precision or its Affiliates have
    been duly and properly recorded and accounted for in their
    financial books and records and such books and records
    accurately and fairly reflect all transactions and dispositions
    of the assets of Precision and its Affiliates;
    (d)&#160;Precision has devised and
</DIV>

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    <BR>
    A-42
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    maintained systems that provide reasonable assurances that
    transactions are and have been executed in accordance with
    management&#146;s general or specific authorization;
    (e)&#160;neither Precision nor any of its Affiliates, nor any
    trustee, director, officer, agent, employee or other Person
    associated with or acting on behalf of Precision or its
    Affiliates, has (i)&#160;used any corporate funds for any
    unlawful contribution, gift, entertainment or payment of
    anything of value relating to political activity, (ii)&#160;made
    any direct or indirect unlawful payment to any employee, agent,
    officer, director, representative or shareholder of a
    Governmental Authority or political party, or official or
    candidate thereof, or any immediate family member of the
    foregoing, (iii)&#160;violated or is in violation of any
    provision of the FCPA or any Applicable Laws, or (iv)&#160;made
    any bribe, unlawful rebate, payoff, influence payment, kickback
    or other unlawful payment in connection with the conduct of
    Precision&#146;s or its Affiliates&#146; businesses;
    (f)&#160;none of Precision, any of its Affiliates or any agent
    of any of them has received any bribes, kickbacks or other
    improper payments from vendors, suppliers or other Persons; and
    (g)&#160;Precision or PDC has no knowledge that any payment made
    to a Person would be or has thereafter been offered, given or
    provided to any foreign official, political party or official
    thereof, or to any candidate for public office.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.19&#160;&#160;</FONT><I>Reporting
    Issuer Status, Listing.</I>&#160;&#160;Each of Precision and
    PDLP is a &#147;reporting issuer&#148; in each province of
    Canada and is in material compliance with all Applicable
    Canadian Securities Laws therein and the Precision
    Trust&#160;Units are listed and posted for trading on each of
    the TSX and NYSE and Precision is in compliance, in all material
    respects, with all applicable rules and policies of the TSX and
    NYSE.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.20&#160;&#160;</FONT><I>Mutual
    Fund&#160;Trust&#160;Status.</I>&#160;&#160;Precision is, and at
    all times since its formation has been, a &#147;mutual fund
    trust&#148; and a &#147;unit trust&#148; and Precision is not a
    &#147;SIFT&#148; trust, all within the meaning of the Income Tax
    Act. PDLP is, and at all times since its formation has been a
    &#147;Canadian partnership&#148; and PDLP is not a &#147;SIFT
    partnership&#148;, each within the meaning of the Income Tax
    Act. The completion of the Merger shall not cause Precision to
    cease to be a &#147;mutual fund trust&#148; and a &#147;unit
    trust&#148; or to become a &#147;SIFT&#148; trust, or cause PDLP
    to cease to be a &#147;Canadian partnership&#148; or to become a
    &#147;SIFT partnership&#148;, all within the meaning of the
    Income Tax Act. To the best of the information, knowledge and
    belief of Precision or PDC, after due inquiry, non-residents of
    Canada (as such term is defined in the Income Tax Act)
    beneficially own, or exercise control or direction over, less
    than 50% of the aggregate issued and outstanding Precision
    Trust&#160;Units and none of the PDLP Exchangeable Units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.21&#160;&#160;</FONT><I>No
    Orders.</I>&#160;&#160;No Order having the effect of suspending
    the sale of, or ceasing the trading of, the Precision
    Trust&#160;Units or any other securities of Precision has been
    issued by any Governmental Authority and is continuing in effect
    and no proceedings for that purpose have been instituted, are
    pending or, to the knowledge of Precision or PDC, are
    contemplated or threatened under any Applicable Laws or by any
    other Governmental Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.22&#160;&#160;</FONT><I>Investment
    Company Act.</I>&#160;&#160;Precision is not registered and is
    not required to be registered as an investment company pursuant
    to the United States Investment Company Act of 1940, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;4.23&#160;&#160;</FONT><I>No
    Other Representations or Warranties.</I>&#160;&#160;Except for
    the representations and warranties contained in this
    <U>Article&#160;IV</U>, neither Precision nor any other Person
    makes any other express or implied representation or warranty on
    behalf of Precision or any of its Affiliates in connection with
    this Agreement or the transactions contemplated hereby.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ARTICLE&#160;V
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    COVENANTS
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.1&#160;&#160;</FONT><I>Business
    in Ordinary Course.</I>&#160;&#160;Except as permitted or
    contemplated by the terms of this Agreement, and except as
    provided in <U>Section&#160;5.1</U> of the Grey Wolf Disclosure
    Letter or the Precision Disclosure Letter (as the case may be),
    unless with the prior written consent of the other Party hereto
    (which consent shall not be unreasonably withheld, conditioned
    or delayed), during the period from the date hereof and
    continuing until the earlier of the termination of this
    Agreement pursuant to its terms or the Effective Time, each of
    Precision and Grey Wolf shall, and shall cause each of their
    respective Subsidiaries, to carry on
</DIV>

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    <BR>
    A-43
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    its business in all material respects in the usual, regular and
    ordinary course, in substantially the same manner as heretofore
    conducted, and use their respective commercially reasonable best
    efforts consistent with past practices and policies to
    (a)&#160;preserve intact their respective present business
    organizations and goodwill, (b)&#160;keep available the services
    of their respective present executive officers, trustees,
    directors and key employees and (c)&#160;preserve their
    relationships with customers, suppliers, agents, and creditors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.2&#160;&#160;</FONT><I>Conduct
    of Grey Wolf Business Pending Closing.</I>&#160;&#160;Without
    limiting the generality of <U>Section&#160;5.1</U>, except as
    permitted or contemplated by the terms of this Agreement, and
    except as provided in <U>Section&#160;5.2</U> of the Grey Wolf
    Disclosure Letter or as required by Applicable Law or
    Governmental Authority, during the period from the date hereof
    and continuing until the earlier of the termination of this
    Agreement pursuant to its terms or the Effective Time, Grey Wolf
    shall not, and Grey Wolf shall not permit any of the Grey Wolf
    Subsidiaries to do any of the following without the prior
    written consent of Precision:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;except to the extent required to comply with amendments
    to the Grey Wolf Charter and Grey&#160;Wolf Bylaws to be
    consummated at the Effective Time pursuant to
    <U>Section&#160;2.3</U>, amend or propose to amend its
    certificate or articles of incorporation, bylaws, certificate of
    formation, certificate of organization, certificate of limited
    partnership, limited liability company agreement, operating
    agreement, partnership agreement, declaration of trust or other
    governing or organizational documents;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;adjust, split, combine, reclassify or dispose of any of
    its outstanding Equity Interests (other than dispositions by or
    among direct or indirect wholly owned Subsidiaries and
    cancellations of stock or unit options or restricted stock or
    unit grants forfeited in accordance with the terms of a Benefit
    Plan in existence on the date of this Agreement or related stock
    option or restricted stock grant agreements);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;declare, set aside or pay any dividends or other
    distributions (whether payable in cash, property or Equity
    Interests) with respect to its Equity Interests (other than by
    or among direct or indirect wholly owned Subsidiaries);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;(i)&#160;issue any Equity Interests, effect any stock
    split or otherwise change its capitalization as it existed on
    the date of this Agreement, except pursuant to (A)&#160;the
    exercise of Grey Wolf Options disclosed in this Agreement or the
    Grey Wolf Disclosure Letter, (B)&#160;pursuant to the conversion
    of any Grey Wolf Convertible Notes in accordance with the terms
    thereof, (C)&#160;pursuant to the grant or exercise of awards
    granted after the date of this Agreement and expressly permitted
    under this Agreement, or (D)&#160;pursuant to the Grey Wolf
    Rights Agreement in accordance with the terms thereof,
    (ii)&#160;grant, confer or award any option, warrant, conversion
    right or other right not existing on the date of this Agreement
    to acquire or otherwise with respect to any shares of its
    capital stock or other equity securities, or grant or issue any
    restricted stock or securities, except in each case for awards
    under the Grey Wolf Stock Plans in existence as of the date
    hereof (and as required or permitted to be amended by this
    Agreement) to any newly-hired employees in the ordinary course
    of business consistent with past practices, following
    consultation with PDC, but in no event greater than
    200,000&#160;shares of Grey Wolf Common Stock; provided,
    however, that the vesting or exercisability of any award made
    after the date of this Agreement as permitted by this
    clause&#160;(ii) shall not accelerate as a result of the
    pendency, approval or consummation of the transactions
    contemplated by this Agreement, (iii)&#160;amend or otherwise
    modify any option, warrant, conversion right or other right to
    acquire any shares of its capital stock or units existing on the
    date of this Agreement, except as expressly required or
    permitted by this Agreement, (iv)&#160;with respect to any of
    its former, present or future non-executive officers or
    employees, increase any compensation or benefits, award or pay
    any bonuses, establish any bonus plan or arrangement or enter
    into, amend or extend (or permit the extension of) any
    employment or consulting agreement, except in each case, in the
    ordinary course of business consistent with past practices,
    (v)&#160;with respect to any of its former, present or future
    officers, trustees, directors or employees, increase any
    compensation or benefits, award or pay any bonuses, establish
    any bonus plan or arrangement or enter into, amend or extend (or
    permit the extension of) any employment or consulting agreement,
    except (A)&#160;with respect to employees who are not officers
    or directors, in the ordinary course of business consistent with
    past practices, or (B)&#160;as expressly required or permitted
    by this Agreement or as disclosed in the Grey Wolf Disclosure
    Letter, (vi)&#160;adopt any new
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    employee benefit plan or agreement (including any stock option,
    stock benefit or stock purchase plan) or amend any existing
    employee benefit plan in any material respect, except in each
    case as expressly required or permitted under this Agreement or
    as disclosed in the Grey Wolf Disclosure Letter,
    (vii)&#160;except with respect to the exercise of Grey Wolf
    Options, permit any holder of an option or other award
    pertaining to shares of Grey Wolf Common Stock to have shares
    withheld upon exercise, vesting or payment for tax purposes, in
    excess of the number of shares needed to satisfy the minimum
    statutory withholding requirements for federal and state tax
    withholding or any other withholding required under Applicable
    Law or (viii)&#160;with respect to any of its former, present or
    future executive officers, (A)&#160;grant, confer or award any
    option, warrant, conversion right or other right not existing on
    the date of this Agreement to acquire or otherwise with respect
    to any shares of its capital stock or other equity securities,
    or grant or issue any restricted stock or securities pursuant to
    the Grey Wolf Stock Plans or otherwise, (B)&#160;increase any
    compensation or benefits, award or pay any bonuses, establish
    any bonus plan or arrangement or enter into, amend or extend (or
    permit the extension of) any employment or consulting agreement
    or (C)&#160;grant any dividends in connection with any Equity
    Interests;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;purchase, redeem or otherwise acquire any of its
    outstanding Equity Interests, except (i)&#160;by or among direct
    or indirect wholly-owned Subsidiaries, (ii)&#160;pursuant to the
    terms of the Grey Wolf Convertible Notes, or (iii)&#160;Equity
    Interests purchased or withheld to satisfy Tax withholding
    obligation in connection with the vesting, lapse of forfeiture
    restrictions or exercise (as applicable) of stock options,
    restricted stocks and similar awards by the grantees thereof;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;sell, lease, license, or otherwise dispose of, or enter
    into a contract to sell, lease, license or otherwise dispose of,
    any of its assets (including capital stock of Subsidiaries)
    which are, individually or in the aggregate, material to it and
    its Subsidiaries, taken as a whole, except for (i)&#160;sales of
    surplus or obsolete equipment, (ii)&#160;sales of other assets
    in the ordinary course of business or sales of assets pursuant
    to contractual rights existing as of the date of this Agreement
    that were entered into the ordinary course of business
    consistent with past practices, (iii)&#160;sales, leases or
    other transfers between such party and its wholly owned
    Subsidiaries or between those Subsidiaries, (iv)&#160;sales,
    dispositions or divestitures as may be required by or in
    conformance with Applicable Laws in order to permit or
    facilitate the consummation of the transactions contemplated by
    this Agreement in accordance with <U>Section&#160;5.9</U>, or
    (v)&#160;arm&#146;s-length sales or other transfers not
    described in clauses&#160;(i) through (iv)&#160;above for
    aggregate consideration not exceeding $30&#160;million;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;liquidate,
    <FONT style="white-space: nowrap">wind-up,</FONT>
    dissolve or adopt any plan to liquidate,
    <FONT style="white-space: nowrap">wind-up</FONT> or
    dissolve (or suffer any liquidation or dissolution) (other than
    direct or indirect wholly owned Subsidiaries);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;acquire or agree to acquire by merger, consolidation or
    otherwise (including by purchase of Equity Interests or all or
    substantially all of the assets) the business of any Person or a
    division thereof, other than acquisitions of the business,
    assets or Equity Interests of another Person: (i)&#160;which are
    paid for in cash and do not exceed $50&#160;million in the
    aggregate (including contingent cash consideration), <I>less
    </I>the aggregate unbudgeted expenditures actually made pursuant
    to <U>Section&#160;5.2(m)</U>; and (ii)&#160;under the published
    rules of the SEC and published interpretations of the staff of
    the SEC would not require historical or proforma financial
    statements with respect to such acquisitions (either
    individually or in the aggregate) to be included in the Proxy
    Statement/Prospectus;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;make any loans, advances or capital contributions to,
    or investments in, any Person (other than (i)&#160;loans,
    advances or capital contributions to a wholly owned Subsidiary
    or loans or advances from such a Subsidiary, (ii)&#160;customer
    loans and advances to employees consistent with past practices
    or (iii)&#160;short-term investments of cash in the ordinary
    course of business in accordance with the cash management
    procedures of Grey Wolf or its Subsidiaries);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;terminate or amend any Grey Wolf Material Contract or
    waive or assign any of its rights under any Grey Wolf Material
    Contract, in each case in a manner that would be materially
    adverse to
</DIV>

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    <BR>
    A-45
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey&#160;Wolf, or enter into any Grey Wolf Material Contract
    other than customer Contracts entered into in the ordinary
    course of business;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;(i)&#160;incur any Indebtedness (including Indebtedness
    in connection with acquisitions permitted by
    <U>Section&#160;5.2(h)</U>) in excess of $7.5&#160;million, in
    the aggregate, or guarantee any such indebtedness or issue or
    sell any debt securities or warrants or rights to acquire any of
    its debt securities or any of its Subsidiaries or guarantee any
    debt securities of others, other than (A)&#160;borrowings from
    that party&#146;s or its Subsidiary&#146;s revolving credit
    facility in the ordinary course of business in an amount not in
    excess of $5&#160;million, (B)&#160;borrowings the proceeds of
    which are used to repay or repurchase other indebtedness of that
    party or its Subsidiaries, (C)&#160;borrowings in respect of
    intercompany debt, or (ii)&#160;enter into any material lease
    (whether such lease is an operating or capital lease) or create
    any material Liens (other than Permitted Liens) on its property
    including any Equity Interests in its Subsidiaries except in the
    ordinary course of business or with or between its Subsidiaries;
    <U>provided</U><I>, </I><U>however</U>, that for purposes of
    this <U>Section 5.2(k)</U>, neither the incurrence of
    Indebtedness to finance, directly or indirectly, acquisitions of
    the business, assets or Equity Interests of another Person nor
    the incurrence of Indebtedness for capital expenditures shall be
    considered to be &#147;in the ordinary course of business&#148;;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;make or rescind any material election relating to
    Taxes, including any election for any and all joint ventures,
    partnerships, limited liability companies or other investments;
    settle or compromise any material Claim, action, litigation,
    proceeding, arbitration or investigation relating to Taxes; or
    change in any material respect any of its methods of reporting
    any items for Tax purposes from those employed in the
    preparation of its Tax Returns for the most recent Taxable year
    for which a Tax Return has been filed;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (m)&#160;make or commit to make capital expenditures that in the
    aggregate exceed its capital expenditure budget as disclosed in
    the Grey Wolf Disclosure Letter by more than $50&#160;million in
    the aggregate, <I>less</I> the aggregate amount actually spent
    pursuant to the exception set forth in
    <U>Section&#160;5.2(h)</U>;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (n)&#160;enter into any new line of business material to it and
    its Subsidiaries taken as a whole;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (o)&#160;enter into any Contract that subjects or will subject
    Precision or its Subsidiaries to any non-compete or similar
    restriction on any Precision Company or Grey Wolf Company
    business following the Effective Time;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (p)&#160;except as may be required as a result of a change in
    U.S.&#160;GAAP, change any of the material accounting
    principles, estimates, or practices used by the Grey Wolf
    Companies;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (q)&#160;compromise, settle or grant any waiver or release
    related to any litigation or proceeding, other than settlements
    or compromises of such litigation or proceedings where the full
    amount to be paid is covered by insurance or where the amount to
    be paid does not exceed $3&#160;million individually or
    $7.5&#160;million in the aggregate;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (r)&#160;engage in any transaction (other than pursuant to
    agreements in effect as of the date of this Agreement and that
    are disclosed in the Grey Wolf Disclosure Letter and
    transactions between or among Grey Wolf and its Subsidiaries in
    the ordinary course of business consistent with past practices)
    or enter into any agreement with any Affiliate (<U>provided</U>
    that for the purpose of this clause&#160;(r) only, the term
    <I>&#147;Affiliate&#148;</I> shall not include any employee of
    Grey Wolf or its Subsidiaries (as the case may be) other than
    directors and executive officers thereof and any employees who
    share the same household as any such directors and executive
    officers);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (s)&#160;willfully or intentionally breach any representation or
    warranty set forth in this Agreement or take any action that is
    reasonably likely to materially delay or impair the ability of
    the Parties hereto to consummate the transactions contemplated
    by this Agreement;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (t)&#160;enter into any Contract or obligation to take any
    actions prohibited above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.3&#160;&#160;</FONT><I>Conduct
    of Precision Business Pending Closing.</I>&#160;&#160;Without
    limiting the generality of <U>Section&#160;5.1</U>, except as
    permitted or contemplated by the terms of this Agreement, and
    except as provided in
</DIV>

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    A-46
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <U>Section&#160;5.3</U> of the Precision Disclosure Letter or as
    required by Applicable Law or Governmental Authority, during the
    period from the date hereof and continuing until the earlier of
    the termination of this Agreement pursuant to its terms or the
    Effective Time, Precision and PDC shall not, and Precision and
    PDC shall not permit any of the Precision Subsidiaries to do any
    of the following without the prior written consent of
    Grey&#160;Wolf:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;amend or propose to amend its certificate or articles
    of incorporation, bylaws, certificate of formation, certificate
    of organization, certificate of limited partnership, limited
    liability company agreement, operating agreement, partnership
    agreement, declaration of trust or other governing or
    organizational documents;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;adjust, split, combine, reclassify or dispose of any of
    its outstanding Equity Interests (other than dispositions by or
    among direct or indirect wholly owned Subsidiaries and
    cancellations of stock or unit options or restricted stock or
    unit grants forfeited in accordance with the terms of a
    Precision Benefit Plan in existence on the date of this
    Agreement or related stock option or restricted stock grant
    agreements);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;cease or suspend making Permitted Distributions or
    declare, set aside or pay any dividends or other distributions
    (whether payable in cash, property or Equity Interests) with
    respect to its Equity Interests (other than by or among direct
    or indirect wholly owned Subsidiaries) other than Permitted
    Distributions;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;(i)&#160;issue any Equity Interests, effect any stock
    split or otherwise change its capitalization as it existed on
    the date of this Agreement, except pursuant to (A)
    <U>Sections&#160;3.6</U> and <U>5.7</U> of the Precision
    Declaration of Trust, (B)&#160;the exchange or redemption of
    PDLP Exchangeable Units or (C)&#160;the grant or exercise of
    awards granted after the date of this Agreement and expressly
    permitted under this Agreement, (ii)&#160;grant, confer or award
    any option, warrant, conversion right or other right not
    existing on the date of this Agreement to acquire or otherwise
    with respect to any shares of its capital stock or other equity
    securities, or grant or issue any restricted stock or
    securities, except in each case for awards under the Precision
    Benefit Plans in existence as of the date hereof;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;purchase, redeem or otherwise acquire any of its
    outstanding Equity Interests, except (i)&#160;pursuant to
    Article&#160;6 of the Precision Declaration of Trust,
    (ii)&#160;by or among direct or indirect wholly-owned
    Subsidiaries or (iii)&#160;Equity Interests purchased or
    withheld to satisfy Tax withholding obligation in connection
    with the vesting, lapse of forfeiture restrictions or exercise
    (as applicable) of stock options, restricted stocks and similar
    awards by the grantees thereof;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;sell, lease, license, or otherwise dispose of, or enter
    into a contract to sell, lease, license or otherwise dispose of,
    any of its assets (including capital stock of Subsidiaries)
    which are, individually or in the aggregate, material to it and
    its Subsidiaries, taken as a whole, except for (i)&#160;sales of
    surplus or obsolete equipment, (ii)&#160;sales of other assets
    in the ordinary course of business or sales of assets pursuant
    to contractual rights existing as of the date of this Agreement
    that were entered into the ordinary course of business
    consistent with past practices, (iii)&#160;sales, leases or
    other transfers between such party and its wholly owned
    Subsidiaries or between those Subsidiaries, (iv)&#160;sales,
    dispositions or divestitures as may be required by or in
    conformance with Applicable Laws in order to permit or
    facilitate the consummation of the transactions contemplated by
    this Agreement in accordance with <U>Section&#160;5.9</U>, or
    (v)&#160;arm&#146;s-length sales or other transfers not
    described in clauses&#160;(i) through (iv)&#160;above for
    aggregate consideration not exceeding $120&#160;million;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;liquidate,
    <FONT style="white-space: nowrap">wind-up,</FONT>
    dissolve or adopt any plan to liquidate,
    <FONT style="white-space: nowrap">wind-up</FONT> or
    dissolve (or suffer any liquidation or dissolution) (other than
    direct or indirect wholly owned Subsidiaries);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;acquire or agree to acquire by merger, consolidation or
    otherwise (including by purchase of Equity Interests or all or
    substantially all of the assets) the business of any Person or a
    division thereof, other than acquisitions of the business,
    assets or Equity Interests of another Person: (i)&#160;which are
    paid for in cash and do not exceed $120&#160;million in the
    aggregate (including contingent cash consideration), <I>less </I>
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the aggregate unbudgeted expenditures actually made pursuant to
    <U>Section&#160;5.3(j)</U>; and (ii)&#160;under the published
    rules of the SEC or the Canadian Securities Regulatory
    Authorities and published interpretations of the staff of the
    SEC or the Canadian Securities Regulatory Authorities would not
    require historical or proforma financial statements with respect
    to such acquisitions (either individually or in the aggregate)
    to be included in the Proxy Statement/Prospectus;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;(i)&#160;incur any Indebtedness (excluding Indebtedness
    in connection with acquisitions permitted by
    <U>Section&#160;5.3(h)</U>) in excess of $30&#160;million, in
    the aggregate, or guarantee any such indebtedness or issue or
    sell any debt securities or warrants or rights to acquire any of
    its debt securities or any of its Subsidiaries or guarantee any
    debt securities of others, other than (A)&#160;Indebtedness
    incurred in connection with the Financing, (B)&#160;borrowings
    from that party&#146;s or its Subsidiary&#146;s revolving credit
    facility in the ordinary course of business in an amount not in
    excess of $25&#160;million, (C)&#160;borrowings the proceeds of
    which are used to repay or repurchase other indebtedness of that
    party or its Subsidiaries, (D)&#160;borrowings in respect of
    intercompany debt, or (ii)&#160;create any material Liens (other
    than Permitted Liens) on its property including any Equity
    Interests in its Subsidiaries except in the ordinary course of
    business or with or between its Subsidiaries;
    <U>provided</U><I>, </I><U>however</U>, that for purposes of
    this <U>Section&#160;5.3(i)</U>, neither the incurrence of
    Indebtedness to finance, directly or indirectly, acquisitions of
    the business, assets or Equity Interests of another Person nor
    the incurrence of Indebtedness for capital expenditures shall be
    considered to be &#147;in the ordinary course of business&#148;;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;make or commit to make capital expenditures that in the
    aggregate exceed its capital expenditure budget as disclosed in
    the Precision Disclosure Letter by more than $200&#160;million
    in the aggregate, <I>less </I>the aggregate amount actually
    spent pursuant to the exception set forth in
    <U>Section&#160;5.3(h)</U>;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;willfully or intentionally breach any representation or
    warranty set forth in this Agreement or take any action that is
    reasonably likely to materially delay or impair the ability of
    the Parties hereto to consummate the transactions contemplated
    by this Agreement;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;enter into any Contract or obligation to take any
    actions prohibited above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>5.4&#160;&#160;<I>Access
    to Assets, Personnel and Information.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Upon reasonable notice and subject to Applicable Law
    relating to the exchange of information, from the date hereof
    until the Effective Time, Precision and PDC shall:
    (i)&#160;afford to the Grey Wolf Representatives, at Grey
    Wolf&#146;s sole risk and expense, reasonable access during
    normal business hours to any and all of the assets, books and
    records, files, data, correspondence, Contracts, permits, audits
    and all other information relating to the Precision
    Companies&#146; financial position, business, employees,
    representatives, agents, facilities and assets, whether written
    or computerized that are within the possession or control of any
    of the Precision Companies (the <I>&#147;Precision
    Information&#148;</I>); and (ii)&#160;upon request during normal
    business hours, furnish promptly to Grey Wolf (at Grey
    Wolf&#146;s expense) a copy of any Precision Information. Grey
    Wolf agrees to conduct such investigation in a manner that does
    not interfere unreasonably with the Precision Companies&#146;
    operations and with the prompt discharge by such Precision
    Companies&#146; employees of their duties. Grey Wolf agrees to
    indemnify and hold the Precision Companies harmless from any and
    all Claims and liabilities, including costs and expenses for the
    loss, injury to or death of any Representative of the Grey Wolf
    Companies, and any loss or destruction of any property owned by
    the Precision Companies or others (including Claims or
    liabilities for use of any property) resulting directly or
    indirectly from the action or inaction of any of the Grey Wolf
    Companies or their Representatives during any visit to the
    business or property sites of the Precision Companies prior to
    the completion of the Merger, whether pursuant to this
    <U>Section&#160;5.4</U> or otherwise. No Precision Company shall
    be required to provide access to or to disclose Precision
    Information where such access or disclosure would constitute a
    violation of attorney/client privilege or violate any Applicable
    Law. In such circumstances, the Parties will use commercially
    reasonable best efforts to make reasonable and appropriate
    substitute disclosure arrangements. None of the Grey Wolf
    Companies or their Representatives shall conduct any
    environmental testing or sampling on any business or property
    sites of the Precision Companies prior to completion of the
    Merger without the prior written consent of Precision.
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Upon reasonable notice and subject to Applicable Law
    relating to the exchange of information, from the date hereof
    until the Effective Time, Grey Wolf shall: (i)&#160;afford to
    the Precision Representatives, at Precision&#146;s sole risk and
    expense, reasonable access during normal business hours to any
    and all of the assets, books and records, files, data,
    correspondence, Contracts, permits, audits and all other
    information relating to the Grey Wolf Companies&#146; financial
    position, business, employees, representatives, agents,
    facilities and assets, whether written or computerized, that are
    within the possession or control of any of the Grey Wolf
    Companies (the <I>&#147;Grey Wolf Information&#148;</I>); and
    (ii)&#160;upon request during normal business hours, furnish
    promptly to Precision (at Precision&#146;s expense) a copy of
    any Grey Wolf Information. Precision agrees to conduct such
    investigation in a manner that does not interfere unreasonably
    with the Grey Wolf Companies&#146; operations and with the
    prompt discharge by such Grey Wolf Companies&#146; employees of
    their duties. Precision agrees to indemnify and hold the Grey
    Wolf Companies harmless from any and all Claims and liabilities,
    including costs and expenses for the loss, injury to or death of
    any Representative of the Precision Companies, and any loss or
    destruction of any property owned by the Grey Wolf Companies or
    others (including Claims or liabilities for use of any property)
    resulting directly or indirectly from the action or inaction of
    any of the Precision Companies or their Representatives during
    any visit to the business or property sites of the Grey Wolf
    Companies prior to the completion of the Merger, whether
    pursuant to this <U>Section&#160;5.4</U> or otherwise. None of
    the Grey Wolf Companies shall be required to provide access to
    or to disclose Grey Wolf Information where such access or
    disclosure would constitute a violation of attorney/client
    privilege or violate any Applicable Law. In such circumstances,
    the Parties will use commercially reasonable best efforts to
    make reasonable and appropriate substitute disclosure
    arrangements. None of the Precision Companies or their
    Representatives shall conduct any environmental testing or
    sampling on any business or property sites of the Grey Wolf
    Companies prior to completion of the Merger without the prior
    written consent of Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;From the date hereof until the Effective Time, each of
    Precision and Grey Wolf shall: (i)&#160;furnish to the other,
    promptly upon receipt or filing (as the case may be), a copy of
    each communication between such Party and the SEC or the
    Canadian Securities Regulatory Authorities, as the case may be,
    after the date hereof relating to the Merger or the Registration
    Statement and each report, schedule, registration statement or
    other document filed by such Party with the SEC or the Canadian
    Securities Regulatory Authorities after the date hereof relating
    to the Merger or the Registration Statement, unless such
    communication, report, schedule, registration statement or other
    document is otherwise readily available through the SEC&#146;s
    EDGAR system or SEDAR, in which case Precision or Grey Wolf (as
    the case may be) shall provide notice to the other of such
    availability; and (ii)&#160;promptly advise the other of the
    substance of any oral communications between such Party and the
    SEC or the Canadian Securities Regulatory Authorities relating
    to the Merger or the Registration Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Grey Wolf will not (and will cause Grey Wolf
    Subsidiaries and Grey Wolf Representatives not to), and
    Precision will not (and will cause the Precision Subsidiaries
    and the Precision Representatives not to), use any information
    obtained pursuant to this <U>Section&#160;5.4</U> for any
    purpose unrelated to the consummation of the transactions
    contemplated by this Agreement. Any information obtained by the
    Grey Wolf Companies or the Precision Companies or their
    respective Representatives under this <U>Section&#160;5.4</U>
    shall be subject to the confidentiality and use restrictions set
    forth in the Confidentiality Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Notwithstanding anything in this
    <U>Section&#160;5.4</U> to the contrary: (i)&#160;Grey Wolf
    shall not be obligated under the terms of this
    <U>Section&#160;5.4</U> to disclose to Precision or the
    Precision Representatives, or grant Precision or the Precision
    Representatives access to, information that is within the
    possession or control of any of the Grey Wolf Companies but
    subject to a valid and binding confidentiality agreement with a
    Third Party without first obtaining the consent of such Third
    Party, and Grey Wolf, to the extent requested by Precision, will
    use its reasonable commercial efforts to obtain any such
    consent; and (ii)&#160;Precision shall not be obligated under
    the terms of this <U>Section&#160;5.4</U> to disclose to Grey
    Wolf or Grey Wolf Representatives, or grant Grey Wolf or Grey
    Wolf Representatives access to, information that is within the
    possession or control of any of the Precision Companies but
    subject to a valid and binding confidentiality agreement with a
    Third Party without first obtaining the consent of such Third
    Party, and Precision, to the extent requested by Grey Wolf, will
    use reasonable commercial efforts to obtain any such consent.
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;No investigation by Precision or Grey Wolf or their
    respective Representatives shall affect the representations,
    warranties, covenants or agreements of the other set forth in
    this Agreement, and no Party shall be deemed to have made any
    representation or warranty to the other Party except as
    expressly set forth in this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>5.5&#160;&#160;<I>No
    Solicitation by Grey Wolf.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;From the date of this Agreement until the first to
    occur of the Effective Time and the termination of this
    Agreement in accordance with <U>Article&#160;VII</U>, except as
    specifically permitted in <U>Section 5.5(c)</U>,
    <U>Section&#160;5.5(d)</U> or <U>Section&#160;5.5(e)</U>, Grey
    Wolf agrees that neither it nor any of the Grey Wolf
    Subsidiaries or Representatives will, directly or indirectly:
    (i)&#160;solicit, initiate, encourage or facilitate (including
    by way of furnishing or disclosing non-public information) any
    inquiries, offers or proposals that constitute, or are
    reasonably likely to lead to, an Acquisition Proposal, and upon
    becoming aware of any violation of this <U>Section
    5.5(a)(i)</U>, Grey Wolf shall, and shall cause the Grey Wolf
    Subsidiaries and Representatives to, stop soliciting,
    initiating, encouraging, facilitating (including by way of
    furnishing or disclosing non-public information) or taking any
    action designed to facilitate, directly or indirectly, any
    inquiry, offer or proposal that constitutes, or is reasonably
    likely to lead to, an Acquisition Proposal; (ii)&#160;engage in
    discussions or negotiations with, furnish or disclose any
    non-public information or data relating to the Grey Wolf
    Companies to, or in response to a request therefor, give access
    to the properties, assets or books and records of the
    Grey&#160;Wolf Companies to, any Person who has made or may be
    considering making an Acquisition Proposal or take any action
    which may otherwise lead to an Acquisition Proposal;
    (iii)&#160;approve, endorse or recommend any Acquisition
    Proposal; or (iv)&#160;enter into any agreement in principle,
    letter of intent, arrangement, understanding or other Contract
    relating to any Acquisition Proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Except as specifically permitted in
    <U>Section&#160;5.5(c)</U> and <U>Section&#160;5.5(d)</U>, Grey
    Wolf shall, and shall cause each of the Grey Wolf Subsidiaries
    and Representatives to, immediately cease and terminate any
    existing solicitations, discussions, negotiations or other
    activity with any Person with respect to any Acquisition
    Proposal or which could reasonably be expected to lead to an
    Acquisition Proposal, and shall inform the Grey&#160;Wolf
    Subsidiaries and Representatives which are engaged in any such
    solicitations, discussions, negotiations or other activity of
    Grey Wolf&#146;s obligations under this <U>Section&#160;5.5.</U>
    Grey Wolf shall promptly inform its Representatives who have
    been involved with or otherwise providing assistance in
    connection with the negotiation of this Agreement and the
    transactions contemplated by this Agreement of Grey Wolf&#146;s
    obligations under this <U>Section&#160;5.5.</U> Grey Wolf shall
    promptly demand that any Person (and the Representatives of any
    such Person) who has heretofore executed a confidentiality
    agreement with or for the benefit of any of the Grey Wolf
    Companies with respect to such Person&#146;s consideration of a
    possible Acquisition Proposal promptly return or destroy (and
    Grey Wolf shall use commercially reasonable best efforts to
    cause any such destruction to be certified in writing by any
    such Person to Grey Wolf) all confidential information
    heretofore furnished by the Grey Wolf Companies or any of their
    Representatives to such Person or any of its Representatives in
    accordance with the terms of the confidentiality agreement with
    such Person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Notwithstanding anything in this Agreement to the
    contrary, prior to obtaining the Required Grey&#160;Wolf Vote,
    nothing in this Agreement shall prevent Grey Wolf or the Grey
    Wolf Board from:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;after the date of this Agreement, engaging in
    discussions or negotiations with, furnishing or disclosing any
    information or data relating to the Grey Wolf Companies to, or
    in response to a request therefor, giving access to the
    properties, assets or books and records of the Grey Wolf
    Companies to, any Person who has made an unsolicited, bona fide,
    written Acquisition Proposal after the date hereof that did not
    result from a violation by the Grey Wolf Companies of this
    <U>Section&#160;5.5</U>; <U>provided</U>, <U>however</U>, that
    prior to engaging in discussions or negotiations with,
    furnishing or disclosing any information or data relating to the
    Grey Wolf Companies to, or giving access to the properties,
    assets or books and records of the Grey Wolf Companies to, such
    Person, (A)&#160;the Grey Wolf Board, acting in good faith, has
    determined (I)&#160;after consultation with its outside legal
    counsel and financial advisors and based on such other matters
    as it deems relevant, that such Acquisition Proposal is
    reasonably likely to result in a Superior Proposal and
    (II)&#160;that such Person has the financial and legal capacity
    to consummate such Superior Proposal and
</DIV>

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<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;Grey Wolf (I)&#160;enters into a confidentiality
    agreement with such Person with use and disclosure limitations
    and other material terms that are no more favorable to such
    Person than those contained in the Confidentiality Agreement;
    <U>provided</U> that such confidentiality agreement shall not
    contain any provision preventing Grey Wolf from complying with
    its required disclosure to Precision pursuant to this
    <U>Section&#160;5.5</U> and (II)&#160;has complied with
    <U>Section&#160;5.5(d)</U>;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;subject to compliance by Grey Wolf with
    <U>Section&#160;5.5(e)</U>, (A)&#160;withdrawing (or amending or
    modifying in a manner adverse to Precision), or publicly
    proposing to withdraw (or to amend or modify in a manner adverse
    to Precision), the approval, recommendation or declaration of
    advisability by the Grey&#160;Wolf Board or any committee
    thereof (as the case may be) of this Agreement, the Merger or
    the transactions contemplated hereby (the actions referred to in
    this clause&#160;(A) being collectively referred to herein as an
    <I>&#147;Adverse Recommendation Change&#148;</I>),
    (B)&#160;recommending, adopting or approving, or proposing
    publicly to recommend, adopt or approve, any Acquisition
    Proposal (the actions referred to in this clause (B)&#160;being
    collectively referred to as an <I>&#147;Acquisition
    Proposal&#160;Recommendation&#148;</I>), or (C)&#160;entering
    into any agreement, including any agreement in principle, letter
    of intent or understanding, acquisition or merger agreement,
    option agreement, joint venture agreement, partnership agreement
    or similar agreement, arrangement or understanding which
    constitutes, relates to, is intended to lead to or could
    reasonably be expected to lead to an Acquisition Proposal (other
    than a confidentiality agreement contemplated by <U>Section
    5.5(c)(i)(B)(I))</U> (each an <I>&#147;Acquisition
    Agreement&#148;</I>); <U>provided</U><I>, </I><U>however</U><I>,
    </I>that (X)&#160;in the case of an Adverse Recommendation
    Change not involving an Acquisition Proposal, the Grey&#160;Wolf
    Board, acting in good faith, has previously determined, after
    consultation with its outside legal counsel, that the failure to
    take such action is reasonably likely to be inconsistent with
    its fiduciary obligations to the shareholders of Grey Wolf under
    Applicable Law, (Y)&#160;in the case of an Adverse
    Recommendation Change involving an Acquisition Proposal, an
    Acquisition Proposal Recommendation or an entry into an
    Acquisition Agreement, the Grey&#160;Wolf Board, acting in good
    faith, has previously determined, after consultation with its
    outside legal counsel and financial advisors and based on such
    other matters as it deems relevant, that such Acquisition
    Proposal or Acquisition Agreement constitutes a Superior
    Proposal and (Z)&#160;in the case of entry into an Acquisition
    Agreement, Grey Wolf concurrently terminates this Agreement
    pursuant to and after complying with the provisions of
    <U>Section&#160;7.1(d)(iii)</U> and
    <U>Section&#160;5.5(e)(ii).</U> Grey Wolf acknowledges and
    agrees that the taking of any action inconsistent with any of
    the restrictions set forth in this <U>Section 5.5</U> by any of
    the Grey&#160;Wolf Companies or their Representatives shall be
    deemed a breach of this <U>Section&#160;5.5</U> by Grey Wolf.
    For the avoidance of doubt, the Parties acknowledge and agree
    that an Adverse Recommendation Change may or may not involve an
    Acquisition Proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;If Grey Wolf or any Grey Wolf Representative receives a
    request for information from a Person who has made an
    unsolicited, bona fide, written Acquisition Proposal, and Grey
    Wolf is permitted to provide such Person with information
    pursuant to this <U>Section&#160;5.5</U>, Grey Wolf will provide
    to Precision a copy of the confidentiality agreement with such
    Person promptly upon its execution and provide to Precision a
    list of, and copies of, all information provided to such Person
    as promptly as practicable after its delivery to such Person and
    promptly provide Precision with access to all information to
    which such Person was provided access, in each case only to the
    extent not previously provided to Precision. Grey Wolf shall
    promptly provide notice to Precision, in writing, of the receipt
    of any Acquisition Proposal or any inquiry with respect to or
    that is likely to lead to an Acquisition Proposal (but in no
    event more than twenty-four hours after the receipt thereof),
    which notice shall include the identity of the Person or group
    requesting such information or making such inquiry or
    Acquisition Proposal and the material terms and conditions of
    any such Acquisition Proposal. Grey&#160;Wolf shall promptly
    provide Precision with copies of any written changes to any
    Acquisition Proposal and shall promptly provide Precision
    written notice of any changes (whether oral or in writing) in
    the price or form of consideration or other material changes in
    the status or terms of such Acquisition Proposal.
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Notwithstanding anything herein to the contrary, the
    Grey Wolf Board shall not (i)&#160;make an Adverse
    Recommendation Change, (ii)&#160;make an Acquisition
    Proposal&#160;Recommendation or (iii)&#160;enter into any
    Acquisition Agreement relating to an Acquisition Proposal,
    unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Grey Wolf complies with the terms of
    <U>Section&#160;5.5(c)(ii)</U> and
    <U>Section&#160;5.5(d)</U>;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;In the case of an Acquisition Proposal, promptly upon
    a determination by the Grey Wolf Board that an Acquisition
    Proposal constitutes a Superior Proposal, Grey Wolf immediately
    notifies, in writing, Precision of such determination and
    describes in reasonable detail the material terms and conditions
    of such Superior Proposal and the identity of the Person making
    such Superior Proposal and provides Precision with a copy of the
    Acquisition Agreement, if any, associated with such Superior
    Proposal. Precision shall have five Business Days after delivery
    of such written notice to submit an offer to engage in an
    alternative transaction or to modify the terms and conditions of
    this Agreement such that Grey Wolf may proceed with this
    Agreement (a <I>&#147;Precision Revised Offer&#148;</I>). During
    such five Business Day period, Grey Wolf and its financial and
    legal advisors shall negotiate in good faith exclusively with
    Precision to enable Precision to submit a Precision Revised
    Offer. Any amendment to the price or any other material term of
    a Superior Proposal shall require a new notice from Grey Wolf
    and an additional three Business Day period within which
    Precision may negotiate a Precision Revised Offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Nothing contained in this <U>Section&#160;5.5</U> shall
    prohibit Grey Wolf or the Grey Wolf Board from taking and
    disclosing to the shareholders of Grey Wolf a position with
    respect to an Acquisition Proposal pursuant to
    <FONT style="white-space: nowrap">Rule&#160;14d-9</FONT>
    and <FONT style="white-space: nowrap">14e-2(a)</FONT>
    promulgated under the Exchange Act or from making any similar
    disclosure, in either case to the extent required by Applicable
    Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;All notices to be given by the Parties under this
    <U>Section 5.5</U> shall be given by facsimile transmission in
    accordance with <U>Section&#160;8.3</U> (which notice shall be
    considered delivered effective as of the day of transmission if
    transmitted on or before 5:00&#160;p.m.&#160;U.S.&#160;Central
    Standard Time on the date of transmission, otherwise the next
    day after transmission).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.6&#160;&#160;</FONT><I>Shareholders&#146;
    Meeting.</I>&#160;&#160;Promptly after the Registration
    Statement is declared effective under the Securities Act, Grey
    Wolf shall take all necessary action, in accordance with
    Applicable Law, the rules and regulations of the AMEX and Grey
    Wolf Charter Documents, to properly give notice of and hold a
    meeting of its shareholders for the purpose of voting on the
    Merger. Subject to <U>Section&#160;5.5</U> and
    <U>Article&#160;VII</U>, the Grey Wolf Board shall unanimously
    recommend approval of the Merger. Grey Wolf, through its board
    of directors, shall use its commercially reasonable best efforts
    to take all lawful actions to solicit approval by its
    shareholders of the Merger, including timely mailing the Proxy
    Statement/Prospectus to the shareholders of Grey Wolf. Grey Wolf
    shall use commercially reasonable best efforts to hold its
    shareholders&#146; meeting within 45&#160;days after the date
    the Registration Statement is declared effective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.7&#160;&#160;</FONT><I>Registration
    Statement and Proxy Statement/Prospectus</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Precision and Grey Wolf shall cooperate and promptly
    prepare the Registration Statement and the Proxy
    Statement/Prospectus and Precision shall file the Registration
    Statement in which the Proxy Statement/Prospectus will be
    included as a prospectus with the SEC as soon as practicable
    after the date hereof, and Precision and Grey Wolf shall
    cooperate to promptly respond to any comments made by the SEC
    and otherwise use their respective commercially reasonable best
    efforts to cause the Registration Statement to be declared
    effective under the Securities Act as promptly as practicable
    after filing. Precision and Grey Wolf will provide each other
    with any information which may be required to prepare and file
    the Proxy Statement/Prospectus and the Registration Statement.
    Grey Wolf will cause the Proxy Statement/Prospectus to be mailed
    to its shareholders at the earliest practicable time after the
    Registration Statement is declared effective by the SEC. If at
    any time prior to the Effective Time any event occurs which is
    required to be set forth in an amendment or supplement to the
    Proxy Statement/Prospectus or the Registration Statement,
    Precision or Grey&#160;Wolf, as applicable, will promptly inform
    the other of such occurrence, and Precision and Grey Wolf will
    cooperate in filing such amendment or supplement with the SEC,
    use their respective commercially reasonable best efforts to
    cause such amendment to become effective as promptly as possible
    and, if required,
</DIV>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    mail such amendment or supplement to the shareholders of Grey
    Wolf. Precision shall use its commercially reasonable best
    efforts, and Grey Wolf shall cooperate with Precision, to obtain
    any and all necessary state securities laws or &#147;blue
    sky&#148; permits, approvals and registrations in connection
    with the issuance of the Precision Trust&#160;Units pursuant to
    the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Precision will cause the Registration Statement (and to
    the extent Grey Wolf is to provide information to be contained
    in the Proxy Statement/Prospectus, Grey Wolf will cause the
    Proxy Statement/Prospectus), at the time it becomes effective
    under the Securities Act, to comply as to form in all material
    respects with the applicable provisions of the Securities Act,
    the Exchange Act and the rules and regulations of the SEC
    thereunder. Precision and Grey Wolf shall be responsible for
    furnishing to each other true, accurate and complete information
    regarding themselves and their respective shareholders or
    unitholders, as the case may be, for inclusion in the Proxy
    Statement/Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Precision hereby covenants and agrees with Grey Wolf
    that: (i)&#160;the Registration Statement (at the time it
    becomes effective under the Securities Act through the Effective
    Time) will not contain an untrue statement of a material fact or
    omit to state a material fact required to be stated therein or
    necessary to make the statements therein not misleading
    (<U>provided</U>, <U>however</U>, that this clause&#160;(i)
    shall apply only to information included or incorporated by
    reference in the Registration Statement that was supplied by
    Precision for inclusion therein); and (ii)&#160;the Proxy
    Statement/Prospectus (at the time it is first mailed to
    shareholders of Grey Wolf, through the time of Grey Wolf
    Meeting, and until the Effective Time) will not contain an
    untrue statement of a material fact or omit to state a material
    fact required to be stated therein or necessary in order to make
    the statements therein, in light of the circumstances under
    which they are made, not misleading (<U>provided</U>,
    <U>however</U><I>, </I>that this clause&#160;(ii) shall apply
    only to information included or incorporated by reference in the
    Proxy Statement/Prospectus that was supplied by Precision for
    inclusion therein). If, at any time prior to the Effective Time,
    any event with respect to Precision, or with respect to other
    information supplied by Precision for inclusion in the
    Registration Statement or the Proxy Statement/Prospectus, occurs
    and such event is required to be described in an amendment or
    supplement to the Registration Statement or the Proxy
    Statement/Prospectus, Precision shall promptly notify Grey Wolf
    of such occurrence and Precision shall cooperate with Grey Wolf
    in the preparation, filing and dissemination of such amendment
    or supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Grey Wolf hereby covenants and agrees with Precision
    that: (i)&#160;the Registration Statement (at the time it
    becomes effective under the Securities Act and until the
    Effective Time) will not contain an untrue statement of a
    material fact or omit to state a material fact required to be
    stated therein or necessary to make the statements therein not
    misleading (<U>provided</U>, <U>however</U>, that this
    clause&#160;(i) shall apply only to any information included or
    incorporated by reference in the Registration Statement that was
    supplied by Grey Wolf for inclusion therein); and (ii)&#160;the
    Proxy Statement/Prospectus (at the time it is first mailed to
    shareholders of Grey Wolf, through the time of the Grey Wolf
    Meeting, and until the Effective Time) will not contain an
    untrue statement of a material fact or omit to state a material
    fact required to be stated therein or necessary in order to make
    the statements therein, in light of the circumstances under
    which they are made, not misleading (<U>provided</U>,
    <U>however</U>, that this clause&#160;(ii) shall apply only to
    any information included or incorporated by reference in the
    Proxy Statement/Prospectus that was supplied by Grey Wolf for
    inclusion therein). If, at any time prior to the Effective Time,
    any event with respect to Grey Wolf, or with respect to other
    information included in the Registration Statement with respect
    to Grey Wolf, occurs and such event is required to be described
    in an amendment or supplement to the Registration Statement or
    the Proxy Statement/Prospectus, Grey Wolf shall promptly notify
    Precision of such occurrence and Grey Wolf shall cooperate with
    Precision in the preparation, filing and dissemination of such
    supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;None of the Registration Statement, the Proxy
    Statement/Prospectus or any amendment or supplement thereto will
    be filed or disseminated to the shareholders of Grey Wolf
    without the approval of both Precision and Grey Wolf, such
    approval not to be unreasonably withheld, conditioned or
    delayed. Each Party shall advise the other Parties promptly
    after it receives notice thereof, of the time when the
    Registration Statement has become effective under the Securities
    Act, the issuance of any stop order with respect to the
    Registration Statement, the suspension of the qualification of
    the Precision Trust&#160;Units issuable in connection with the
</DIV>

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    <BR>
    A-53
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Merger for offering or sale in any jurisdiction, or any comments
    or requests for additional information by the SEC with respect
    to the Registration Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Precision shall use its commercially reasonable best
    efforts to cause to be delivered to Grey Wolf two comfort
    letters from KPMG LLP, Precision&#146;s independent auditors,
    one dated on the date on which the Registration Statement shall
    become effective, and one bring-down letter dated on the Closing
    Date, each addressed to Grey Wolf and customary in scope and
    substance for letters delivered by independent auditors in
    connection with public offerings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;Grey Wolf shall use its commercially reasonable best
    efforts to cause to be delivered to Precision two comfort
    letters from KPMG LLP, Grey Wolf&#146;s independent auditors,
    one dated on the date on which the Registration Statement shall
    become effective, and one bring-down letter dated on the Closing
    Date, each addressed to Precision and customary in scope and
    substance for letters delivered by independent auditors in
    connection with public offerings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.8&#160;&#160;</FONT><I>NYSE
    and TSX Listing.</I>&#160;&#160;Precision shall prepare and
    submit to the NYSE and TSX listing applications covering the
    Precision Trust&#160;Units issued or issuable (a)&#160;in the
    Merger, and (b)&#160;upon conversion of the Grey Wolf
    Convertible Notes. Grey Wolf will promptly cooperate with
    Precision in preparing and submitting such NYSE and TSX listing
    applications and in responding to comments and inquiries from
    the NYSE and TSX with respect thereto. Each of Precision and
    Grey Wolf shall use their respective commercially reasonable
    best efforts to enable Precision to obtain, prior to the
    Effective Time, approval of the NYSE and TSX for the listing of
    all Precision Trust&#160;Units covered by such application,
    subject to official notice of issuance, under the trading symbol
    &#147;PDS&#148; on the NYSE and &#147;PD.UN&#148; on the TSX.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.9&#160;&#160;</FONT><I>Regulatory
    Filings</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Subject to the terms and conditions herein provided,
    each of Grey Wolf and Precision shall take, or cause to be
    taken, all action and shall do, or cause to be done, all things
    necessary, appropriate or desirable under any Applicable Law
    (including the HSR Act) or under applicable Contracts so as to
    enable the Closing to occur as soon as reasonably practicable,
    including using its commercially reasonable best efforts to
    obtain all necessary waivers, consents and approvals, remove all
    impediments to the Closing, and to identify and make all
    Precision Regulatory Filings and Grey Wolf Regulatory Filings
    (the <I>&#147;Regulatory Filings&#148;</I>). Precision and Grey
    Wolf each will cause all documents it is responsible for filing
    with any Governmental Authority under this
    <U>Section&#160;5.9</U> to comply with all Applicable Laws. For
    the avoidance of doubt, the Parties agree that their respective
    obligations and rights with respect to filings with the SEC or
    the Canadian Securities Regulatory Authorities and the
    application of securities laws in connection with the
    transactions contemplated hereby shall be governed only by
    <U>Section&#160;5.7</U> and not this <U>Section&#160;5.9(a).</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Each of Precision and Grey Wolf shall furnish the other
    Party with such information and reasonable assistance as such
    other Party and its respective affiliates may reasonably request
    in connection with their preparation of any Regulatory Filings
    with any Governmental Authorities; <U>provided</U>,
    <U>however</U>, that if the provisions of the HSR Act would
    prevent a Party from disclosing such information to the other
    Party, then such information may be disclosed to such
    Party&#146;s counsel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Each of Precision and Grey Wolf shall promptly give
    voluntary notice to CFIUS under the
    <FONT style="white-space: nowrap">Exon-Florio</FONT>
    Amendment of the transactions contemplated by this Agreement,
    and, in connection therewith, provide CFIUS with such
    information concerning the transactions contemplated by this
    Agreement as is reasonably necessary or desirable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Each of Precision and Grey Wolf shall take, or cause to
    be taken, all action or shall do, or cause to be done, all
    things necessary, appropriate or desirable to cause the
    covenants and conditions applicable to the transactions
    contemplated hereby to be performed or satisfied as soon as
    practicable, including responding promptly to requests for
    additional information made by the DOJ or the FTC, and to cause
    the waiting periods under the HSR Act to terminate or expire at
    the earliest possible date after the date of filing.
</DIV>

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    A-54
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Each of Precision and Grey Wolf shall use its
    commercially reasonable best efforts to avoid the entry of, or
    to have vacated or terminated, any Order or injunction that
    would restrain, prevent or delay the Closing. Furthermore, if
    any Governmental Authority shall have issued any Order or
    injunction, or taken any other action, that would have the
    effect of restraining, enjoining or otherwise prohibiting,
    delaying or preventing the consummation of the transactions
    contemplated hereby, each of Precision and Grey Wolf shall use
    its commercially reasonable best efforts to have such Order or
    injunction or other action declared ineffective as soon as
    practicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Precision and Grey Wolf shall promptly notify each
    other of any communication concerning this Agreement or the
    Merger from any Governmental Authority and, subject to
    Applicable Law, permit the other Party to review in advance any
    proposed communication to any Governmental Authority concerning
    this Agreement or the Merger. In addition, Precision and Grey
    Wolf shall not agree to participate in any substantive meeting
    or discussion with any Governmental Authority in respect of any
    filings, investigation or another inquiry concerning this
    Agreement or the Merger, or enter into any agreements with any
    Governmental Authority, including, without limitation, extending
    any antitrust waiting periods, unless it consults with the other
    Party in advance and, to the extent permitted by such
    Governmental Authority, gives the other Party the opportunity to
    attend and participate thereat. Precision and Grey Wolf shall
    furnish counsel to the other Party with copies of all
    correspondence, filings and communications (and memoranda
    setting forth the substance thereof) between them and their
    affiliates and their respective representatives on the one hand,
    and any Governmental Authorities or members of their respective
    staffs on the other hand, relating to this Agreement and the
    Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;Notwithstanding the foregoing, nothing contained in
    this Agreement shall be construed to require Precision or Grey
    Wolf or their respective Subsidiaries or Affiliates to dispose
    of any of its assets or to limit its freedom of action with
    respect to any of their businesses, or to consent to any
    disposition of their assets or limits on their freedom of action
    with respect to any of their businesses, whether prior to or
    after the Effective Time, or to commit or agree to any of the
    foregoing, to obtain any consents, approvals, permits or
    authorizations or to remove any impediments to the Merger
    relating to the HSR Act, or other antitrust, competition,
    pre-merger notification, trade regulation or similar Applicable
    Laws (collectively, <I>&#147;Antitrust Laws&#148;</I>) or to
    avoid the entry of, or to effect the dissolution of, any
    injunction, temporary restraining order or other Order in any
    suit or proceeding relating to Antitrust Laws or
    <FONT style="white-space: nowrap">non-U.S.&#160;Antitrust</FONT>
    Laws, other than such dispositions, limitations or consents,
    commitments or agreements that in each such case may be
    conditioned upon the consummation of the Merger and the
    transactions contemplated hereby and that in each such case,
    individually or in the aggregate, do not have or cause and would
    not be reasonably be expected to have or cause a Precision
    Material Adverse Effect after the Merger; <U>provided</U>,
    <U>however</U>, that neither Precision on the one hand or Grey
    Wolf on the other hand shall take or agree to any action
    required or permitted by this <U>Section&#160;5.9(g)</U> without
    the prior written consent of the other Party (which consent
    shall not be unreasonably withheld, conditioned or delayed).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.10&#160;&#160;</FONT><I><FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    Approval.</I>&#160;&#160;Prior to the Closing, Precision and
    Grey Wolf, and their respective board of trustees and board of
    directors, as applicable and required, or committees thereof,
    shall use their commercially reasonable best efforts to take all
    actions to cause any dispositions of Grey Wolf Common Stock
    (including derivative securities with respect to Grey Wolf
    Common Stock) resulting from the transactions contemplated
    hereby by each individual who is subject to the reporting
    requirements of <U>Section&#160;16(a)</U> of the Exchange Act to
    be exempt from <U>Section&#160;16(b)</U> of the Exchange Act
    under
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    promulgated under the Exchange Act in accordance with the terms
    and conditions set forth in no-action letters issued by the SEC
    in similar transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.11&#160;&#160;</FONT><I>Taking
    of Necessary Action; Further Action.</I>&#160;&#160;Subject to
    the terms and conditions of this Agreement, each of the Parties
    shall use its commercially reasonable best efforts to take all
    actions as may be necessary or appropriate in order to
    effectuate the Merger under the TBCA and the TCL as promptly as
    commercially practicable. In addition, the Parties agree to
    execute and deliver any additional instruments necessary to
    consummate the transactions contemplated by this Agreement.
</DIV>

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    A-55
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.12&#160;&#160;</FONT><I>Public
    Announcements.</I>&#160;&#160;On the date this Agreement is
    executed (or if executed after the close of business, no later
    than the first to occur of the opening of the NYSE, TSX or AMEX
    on the next day), Precision and Grey Wolf shall issue a joint
    press release with respect to the execution hereof and the
    transactions contemplated hereby. Except in respect of a public
    announcement as may be required by Applicable Law or any listing
    agreement with or rule of any Governmental Authority, Precision
    and Grey&#160;Wolf shall consult with each other before issuing
    any press release, making any other public statement or
    scheduling any press conference or conference call with
    investors or analysts with respect to this Agreement or the
    transactions contemplated by this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.13&#160;&#160;</FONT><I>Notification
    of Certain Matters.</I>&#160;&#160;Each Party shall give prompt
    notice to the other Parties of any of the following for which it
    becomes aware: (i)&#160;any representation or warranty made by
    it becoming untrue or inaccurate if such untruth or inaccuracy
    would reasonably be expected to cause any condition set forth in
    <U>Article&#160;VI</U> not to be satisfied, (ii)&#160;the
    occurrence of any event or development that would cause (or
    would reasonably be expected to cause) any representation or
    warranty by it herein to be untrue or inaccurate if such untruth
    or inaccuracy would reasonably be expected to cause any
    condition set forth in <U>Article&#160;VI</U> not to be
    satisfied, or (iii)&#160;any failure by it to comply with or
    satisfy in all material respects any covenant, condition, or
    agreement to be complied with or satisfied by it hereunder;
    <U>provided</U><I>, </I><U>however</U><I>, </I>that no such
    notification shall affect the representations, warranties,
    covenants or agreements of any Party hereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.14&#160;&#160;</FONT><I>Payment
    of Expenses.</I>&#160;&#160;Whether or not the Merger is
    consummated, and except as provided in <U>Section&#160;7.3</U>,
    each Party shall pay its own expenses incident to preparing for,
    entering into and carrying out this Agreement and the
    consummation of the transactions contemplated hereby, regardless
    of whether the Merger is consummated, except that Precision and
    Grey Wolf shall equally share the following: (a)&#160;all fees
    and expenses, other than attorneys&#146;, accountants&#146;,
    financial advisers&#146; and consultants&#146; fees and expenses
    (which shall be paid by the Party incurring same), incurred in
    relation to the filing with the SEC and printing of the Proxy
    Statement/Prospectus, including preliminary materials related
    thereto, and the Registration Statement, including financial
    statements and exhibits and any amendments and supplements
    thereto, (b)&#160;the filing fees for the Registration Statement
    and the Notification and Report Forms filed with the FTC and DOJ
    under the HSR Act and (c)&#160;the fees and expenses (other than
    attorneys&#146; fees) associated with the NYSE and TSX listing
    applications referred to in <U>Section&#160;5.8</U> above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.15&#160;&#160;</FONT><I>Indemnification
    and Insurance</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;From and after the Effective Time, Precision and PDC
    shall cause the Surviving Corporation to, and the Surviving
    Corporation shall, subject to Applicable Law; honor all
    indemnification, advancement and expenses and exculpation
    agreements or other obligations of Grey Wolf with respect to
    their respective current or former officers and directors
    including those agreements or obligations included in the Grey
    Wolf Charter Documents, and any Contract of Grey Wolf with its
    current or former officers or directors, or arising under
    Applicable Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;From and for a period of six years after the Effective
    Time, Precision and PDC shall cause the Surviving Corporation
    to, and the Surviving Corporation shall, indemnify, defend, hold
    harmless and advance expenses to each Person who is now, has
    been at any time prior to the date of this Agreement, or becomes
    prior to the Effective Time, an officer, director, employee or
    agent of any of the Grey Wolf Companies (collectively, the
    <I>&#147;Indemnified Parties&#148;</I>) to the fullest extent
    permitted by Applicable Law against all losses, expenses
    (including reasonable outside attorneys&#146; fees), claims,
    damages, fines, costs, liabilities or amounts that are paid in
    settlement with the approval of the indemnifying Party (which
    approval shall not be unreasonably withheld, conditioned or
    delayed) resulting from, or otherwise arising in connection
    with, any threatened or actual claim, action, suit, proceeding
    or investigation (a <I>&#147;Claim&#148;</I>), based in whole or
    in part on, or arising in whole or in part out of, the fact that
    the Indemnified Party (or the Person controlled by the
    Indemnified Party) is or was a director, officer, employee or
    agent of any of the Grey Wolf Companies and pertaining to any
    matter existing, or arising out of actions or omissions or
    alleged actions or omissions occurring, at or prior to the
    Effective Time (including any Claim arising out of this
    Agreement or any of the transactions contemplated hereby),
    whether asserted or claimed prior to, at or after the Effective
    Time.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision and PDC shall cause the Surviving Corporation to, and
    the Surviving Corporation shall, pay any expenses to each
    Indemnified Party, as incurred, in advance of the final
    disposition of any such Claim to the fullest extent permitted
    under Applicable Law. Each Indemnified Party will be entitled to
    receive such advances from the Surviving Corporation within ten
    Business Days of receipt by the Surviving Corporation from the
    Indemnified Party of a request therefor; <U>provided</U>
    <U>that</U> any Person to whom expenses are advanced provides an
    undertaking, if and only to the extent required by Applicable
    Law, to repay such advances if it is ultimately determined that
    such Person is not entitled to indemnification. Without limiting
    the foregoing, in the event any such Claim is brought against
    any Indemnified Party (whether arising before or after the
    Effective Time): (i)&#160;the Surviving Corporation shall have
    the right to control the defense of such matter with the
    Surviving Corporation&#146;s regularly engaged legal counsel or
    other counsel selected by the Surviving Corporation and
    reasonably satisfactory to the Indemnified Party, and Precision
    and PDC shall cause the Surviving Corporation to, and the
    Surviving Corporation shall, pay all reasonable fees and
    expenses of such counsel; and (ii)&#160;the Indemnified Party
    will cooperate with the Surviving Corporation, at the Surviving
    Corporation&#146;s expense, in the defense of any such matter.
    Neither Precision, PDC nor the Surviving Corporation shall
    settle, compromise or consent to the entry of any judgment in
    any Claim for which indemnification could be sought by any
    Indemnified Party hereunder, unless such settlement, compromise
    or consent includes an unconditional release of such Indemnified
    Party from all liability arising out of such Claim and does not
    include any finding of fact admission or stipulation with
    respect to fault, intent or culpability of the Indemnified
    Party, or such Indemnified Party otherwise consents. In the
    event of any Claim, any Indemnified Party wishing to claim
    indemnification shall promptly notify the Surviving Corporation
    thereof (<U>provided</U> <U>that</U> failure to so notify the
    Surviving Corporation will not affect the obligations of
    Precision or the Surviving Corporation except to the extent that
    the Surviving Corporation shall have been materially prejudiced
    as a result of such failure) and shall deliver to the Surviving
    Corporation any undertaking required by Applicable Law, but
    without any requirement for the posting of a bond. Without
    limiting the foregoing, in the event any Claim is brought
    against any of the Indemnified Parties, Precision and PDC shall
    cause the Surviving Corporation to, and the Surviving
    Corporation shall, be required to retain only one counsel (plus
    one local counsel, if necessary) to represent all such
    Indemnified Parties with respect to each such matter unless the
    use of one counsel to represent the Indemnified Parties would
    present such counsel with a conflict of interest, or the
    representation of all of the Indemnified Parties by the same
    counsel would be inappropriate due to actual or apparent
    differing interests between them, in which case such additional
    counsel as may be required (as shall be reasonably determined by
    the Indemnified Parties and the Surviving Corporation) may be
    retained by the Indemnified Parties at the cost and expense of
    Precision or the Surviving Corporation and Precision and PDC
    shall cause the Surviving Corporation to, and the Surviving
    Corporation shall, pay all reasonable fees and expenses of such
    counsel for such Indemnified Parties. Notwithstanding the
    foregoing, nothing contained in this <U>Section&#160;5.15</U>
    shall be deemed to grant any right to any Indemnified Party
    which is not permitted to be granted to an officer, director,
    employee, controlling shareholder or agent of Grey Wolf under a
    non-waivable provision of Applicable Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;From and for not less than six years after the
    Effective Time, Precision shall cause the Surviving Corporation
    to, and the Surviving Corporation shall use its commercially
    reasonable best efforts to maintain in effect directors&#146;
    and officers&#146; liability insurance policies covering those
    persons who are covered by Grey&#160;Wolf&#146;s directors&#146;
    and officers&#146; liability insurance policies as of the
    Effective Time on terms substantially no less advantageous to
    such Persons than such existing insurance with respect to Claims
    arising from facts or events that occurred on or prior to the
    Effective Time; <U>provided</U>, <U>however</U>, that
    (i)&#160;the Surviving Corporation may substitute therefor
    policies, issued by an insurance carrier with the same or better
    credit rating as the Surviving Corporation&#146;s current
    insurance carrier, of at least the same coverage containing
    terms and conditions which are no less advantageous than Grey
    Wolf&#146;s current policy, <U>provided</U> <U>that</U> such
    substitution shall not result in gaps or lapses in coverage with
    respect to matters occurring prior to the Effective Time; and
    (ii)&#160;the Surviving Corporation shall not be required to pay
    an annual premium in excess of 250% of the last annual premium
    paid by Grey Wolf (whichever premium was higher) prior to the
    date hereof. In the event that the annual premium for such
    insurance exceeds such maximum amount, the Surviving Corporation
    shall purchase as much coverage per policy year as reasonably
    obtainable for such maximum amount.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;This covenant is intended to be for the benefit of, and
    shall be enforceable by, each of the Indemnified Parties and
    their respective heirs and legal representatives. The
    indemnification and advancement of expenses provided for herein
    shall not be deemed exclusive of any other rights to which an
    Indemnified Party is entitled, whether pursuant to Applicable
    Law, Contract or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;In the event that the Surviving Corporation, or any of
    its respective successors or assigns, (i)&#160;consolidates with
    or merges into any other Person and shall not be the continuing
    or surviving corporation or entity of such consolidation or
    merger or (ii)&#160;transfers or conveys all or substantially
    all of its and its subsidiaries&#146; properties and assets
    (taken as a whole) to any Person, then, and in each such case,
    proper provision shall be made by the Surviving Corporation so
    that the successors and assigns of the Surviving Corporation, as
    the case may be, shall succeed to the obligations set forth in
    this <U>Section&#160;5.15.</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;</FONT>5.16&#160;&#160;<I>Surviving
    Corporation Employee Matters</I><B>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;At the Effective Time, the Surviving Corporation shall,
    or shall cause its Subsidiaries to, continue employment of all
    the employees who are employed by Grey Wolf or any of the Grey
    Wolf Subsidiaries as of the day immediately prior to the
    Effective Time. The Grey Wolf Employees so employed are
    collectively referred to herein as the <I>&#147;Continuing
    Employees.&#148;</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;During the period from the Effective Time to and
    including December&#160;31, 2009 the Surviving Corporation and
    its Subsidiaries shall provide each Continuing Employee with an
    annual salary rate, bonus opportunity and hourly wage rate, as
    applicable, that is not less favorable to such Continuing
    Employee than the annual salary rate, bonus opportunity or
    hourly wage rate provided to such Continuing Employee by
    Grey&#160;Wolf or the applicable Grey Wolf Subsidiary
    immediately prior to the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;During the period from the Effective Time to and
    including December&#160;31, 2009, the Surviving Corporation and
    its Subsidiaries shall provide medical, dental, pharmaceutical
    and vision benefits and other employee benefits that with
    respect to Continuing Employees shall be, no less favorable, in
    the aggregate, than those provided by Grey Wolf or the Grey Wolf
    Subsidiaries immediately prior to the Effective Time.
    Notwithstanding anything herein to the contrary, nothing herein
    shall require the Surviving Corporation to provide or continue
    any stock option plans, restricted stock grant plans or other
    equity award or purchase plans of Grey Wolf, except as otherwise
    provided in <U>Article&#160;II</U> hereof, or to assume or
    provide retiree medical benefits to any Continuing Employee,
    except as described in <U>Section&#160;5.16</U> of the Grey Wolf
    Disclosure Letter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;With respect to each Continuing Employee, the Surviving
    Corporation shall credit, or cause its Subsidiaries to credit,
    the period of employment and service recognized by Grey Wolf or
    the applicable Grey&#160;Wolf Subsidiary (including their
    respective affiliates and their predecessors if applicable) for
    such Continuing Employee immediately prior to the Effective Time
    under the Grey Wolf Benefit Plans for purposes of determining
    the Continuing Employee&#146;s eligibility to join (subject to
    satisfaction of all non-service related eligibility criteria),
    vesting and benefit accrual (but not benefit accrual for any
    purpose other than vacation pay, severance and termination pay
    and sick leave, and vesting in employer contributions under a
    401(k) or profit sharing arrangement that is tax qualified under
    Code <U>Section&#160;401</U>) under the corresponding employee
    benefit plans, programs, policies or similar employment-related
    arrangements of the Surviving Corporation and its Subsidiaries
    in which the Continuing Employee is eligible to participate as
    if such period of employment and service had been employment and
    service with the Surviving Corporation and its Subsidiaries. No
    such period of employment and service credit shall be provided
    to the extent that it will result in a duplication of credit or
    employment benefits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;The Surviving Corporation and its Subsidiaries shall
    waive, and the extent necessary to effect the terms hereof,
    shall use their commercially reasonable best efforts to cause
    the relevant insurance carriers and other third parties to
    waive, any pre-existing condition limitations for medical
    conditions existing as of the Effective Time of each Continuing
    Employee and the Continuing Employee&#146;s dependents who are
    covered immediately prior to the Effective Time under a group
    health plan maintained by Grey Wolf, but only to the extent such
    pre-existing medical condition would have been covered by the
    Surviving Corporation&#146;s group health plan if it were not a
    pre-existing medical condition and only to the extent that such
    pre-existing medical
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    condition limitations would not have applied to such Continuing
    Employee or the Continuing Employee&#146;s dependents (as the
    case may be) under Grey Wolf&#146;s group health plan, as
    applicable, immediately prior to the Effective Time.
    Additionally, the Surviving Corporation shall use its
    commercially reasonable best efforts to offer, or cause its
    Subsidiaries to offer, at the Effective Time to each Continuing
    Employee coverage under a group health plan (as defined in
    <U>Section&#160;5000(b)(1)</U> of the Code) which credits such
    Continuing Employee towards the deductibles, co-insurance and
    maximum out of pocket provisions imposed under such group health
    plan, for the year during which the Effective Time occurs, with
    any applicable expenses already incurred during such year under
    Grey Wolf&#146;s group health plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Nothing in this Agreement shall be considered a
    contract between Precision, PDC, Grey Wolf, the Surviving
    Corporation, or any of their respective Subsidiaries and any
    Continuing Employee or consideration for, or inducement with
    respect to, any such Continuing Employees&#146; continued
    employment with the Surviving Corporation and, without
    limitation, all such Continuing Employees are and will continue
    to be considered employees at will pursuant to the applicable
    employment at will laws or doctrine, subject to any express
    written agreement to the contrary with such Continuing Employee.
    For the avoidance of doubt and without limiting the generality
    of <U>Section&#160;8.6</U>, nothing in this <U>Section 5.16</U>
    is intended to make any Person a third-party beneficiary of the
    agreements contained in this <U>Section&#160;5.16</U>, and
    nothing in this <U>Section&#160;5.16</U> shall constitute an
    amendment of any Grey Wolf Benefit Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;Each of the Parties agrees to cooperate in good faith
    prior to the Effective Time to establish a process to integrate
    the Grey Wolf Benefit Plans following the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;The Parties agree that Precision and Surviving
    Corporation shall administer and perform the Grey&#160;Wolf,
    Inc. Employee Severance Plan established on August&#160;8, 2008,
    in accordance with its terms and shall not amend or terminate
    such plan prior to its expiration in accordance with its terms
    in any way that negatively impacts the beneficiaries thereof
    prior to the first anniversary of the Closing Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.17&#160;&#160;</FONT><I>Tax
    Matters.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Precision, PDC, Grey Wolf and Lobos shall each use its
    commercially reasonable best efforts to cause the Merger to
    qualify as a &#147;reorganization&#148; within the meaning of
    <U>Section&#160;368(a)</U> of the Code and to obtain the Tax
    opinions set forth in <U>Section&#160;6.2(d)</U> and
    <U>Section&#160;6.3(d).</U> Precision, Grey Wolf and Lobos agree
    to file all Tax Returns consistent with the treatment of the
    Merger as a &#147;reorganization&#148;, with Precision, Lobos
    and Grey Wolf as &#147;parties to the reorganization&#148;,
    within the meaning of <U>Section&#160;368(a)</U> of the Code.
    This Agreement is intended to constitute a &#147;plan of
    reorganization&#148; within the meaning of Treasury Regulation
    Sec.&#160;1.368-2(g).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Each of PDC, in its capacity as administrator of
    Precision, and Grey Wolf shall deliver to Porter&#160;&#038;
    Hedges, L.L.P. and Mayer Brown LLP an officers&#146; certificate
    dated as of the Closing Date and signed by the Chief Executive
    Officers or the Chief Financial Officers of each of PDC and Grey
    Wolf, containing representations on behalf of Precision and Grey
    Wolf, in each case as shall be reasonably necessary or
    appropriate to enable Porter&#160;&#038; Hedges, L.L.P. to
    render the opinion described in <U>Section&#160;6.3(d)</U> of
    this Agreement and Mayer Brown LLP to render the opinion
    described in Section&#160;6.2(d) of this Agreement. Each of
    Precision and Grey Wolf shall use its commercially reasonable
    best efforts not to take or cause to be taken any action that
    would cause to be untrue (or fail to take or cause not to be
    taken any action which would cause to be untrue) any of the
    certifications and representations included in the
    officers&#146; certificates described in this <U>Section
    5.17.</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Grey Wolf and Precision shall provide each other with a
    certification in accordance with the requirements of Treasury
    Regulation
    <U><FONT style="white-space: nowrap">Section&#160;1.1445-2(c)(3)</FONT></U>
    that it is not a United States real property holding corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;The Parties intend and believe that this Agreement
    constitutes a binding Contract for fixed consideration pursuant
    to Treasury Regulation
    <U><FONT style="white-space: nowrap">Section&#160;1.368-1T(e)(2).</FONT></U>
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;After the Merger, Precision shall use its commercially
    reasonable best efforts to remain a &#147;qualified foreign
    corporation&#148; under Code <U>Section&#160;1(h)</U> and the
    applicable Treasury Regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.18&#160;&#160;</FONT><I>Continuing
    Obligation to Call, Hold and Convene Shareholders&#146; Meeting;
    No Other Vote.</I>&#160;&#160;Notwithstanding anything herein to
    the contrary, the obligations of Grey Wolf to call, give notice
    of, convene and hold the Grey Wolf Meeting shall not be limited
    or otherwise affected by the commencement, disclosure,
    announcement or submission to it of any Acquisition Proposal
    with respect to it, or by any determination by the Grey Wolf
    Board to modify, withdraw, amend or modify its recommendation in
    favor of the Merger. Prior to the earlier of the Effective Time
    or the termination of this Agreement in accordance with
    <U>Section&#160;7.1</U>, Grey Wolf shall not submit to the vote
    of its shareholders any Acquisition Proposal, or propose to do
    so. For the avoidance of doubt, nothing in this
    <U>Section&#160;5.18</U> shall in any way limit the ability of
    Grey Wolf to terminate this Agreement pursuant to
    <U>Section&#160;7.1(d)(iii).</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.19&#160;&#160;</FONT><I>Control
    of Other Party&#146;s Business.</I>&#160;&#160;Nothing contained
    in this Agreement shall give Grey&#160;Wolf, directly or
    indirectly, the right to control or direct Precision&#146;s
    operations prior to the Effective Time or give Precision,
    directly or indirectly, the right to control or direct Grey
    Wolf&#146;s operations prior to the Effective Time. Prior to the
    Effective Time, each of Precision and Grey Wolf shall exercise,
    consistent with the terms and conditions of this Agreement,
    complete control and supervision over its respective operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.20&#160;&#160;</FONT><I>Financing.</I>&#160;&#160;Grey
    Wolf shall, and shall cause its Subsidiaries and its and its
    Subsidiaries&#146; Representatives to, use commercially
    reasonable best efforts to cooperate in connection with
    Precision&#146;s efforts to complete the Financing as may be
    requested by Precision, including, without limitation:
    (i)&#160;participating on a timely basis in meetings, drafting
    sessions, due diligence sessions and other presentations,
    including presentations with potential lenders, agents or
    underwriters and with rating agencies; (ii)&#160;furnishing to
    the Joint Lead Arrangers and to Precision as promptly as
    reasonably practicable all financial statements, pro forma
    statements, financial projections, business plans, budgets and
    other reasonably pertinent data and information as may be
    available (or obtainable without unreasonable expense) and
    reasonably requested by any of the Joint Lead Arrangers or
    Precision; (iii)&#160;participating in the marketing
    presentations and other marketing efforts of the Joint Lead
    Arrangers or Precision for any portion of the Financing and
    assisting the Joint Lead Arrangers in the timely preparation of
    bank information memoranda, presentations and similar documents
    and of material for rating agency presentations;
    (iv)&#160;assisting Precision in securing the cooperation of the
    independent accountants of Grey Wolf, including with respect to
    the delivery of accountants&#146; comfort letters
    (v)&#160;obtaining legal opinions from Precision&#146;s counsel,
    ratings and other documentation and items relating to such
    financing as are reasonably requested by either of the Joint
    Lead Arrangers; (vi)&#160;executing and delivering in connection
    with the Financing any guarantees, mortgages, pledges and
    security documents, other definitive financing documents or
    other certificates or documents, conditioned on the completion
    of the Merger as may be reasonably requested by either of the
    Joint Lead Arrangers; and (vii)&#160;taking such actions and
    providing such information and assistance as either of the Joint
    Lead Arrangers or Precision may reasonably request in connection
    with creating Liens upon or pledging collateral to secure the
    Financing. Precision shall have provided a copy of the final
    executed commitment letter relating to the Financing, including
    all attachments thereto, to Grey Wolf prior to the execution of
    this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;5.21&#160;&#160;</FONT><I>Rights
    Agreement; State Takeover Laws.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Prior to the Effective Time, Grey Wolf shall not redeem
    the Grey Wolf Rights or amend, modify (other than to render the
    Grey Wolf Rights inapplicable to the Merger or any action
    permitted under this Agreement) or terminate the Grey Wolf
    Rights Agreement unless required to do so by order of a court of
    competent jurisdiction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Prior to the Effective Time, Grey Wolf shall not take
    any action to render inapplicable or to exempt any third Person
    from, any state takeover law or state law that purports to limit
    or restrict business combinations or the ability to acquire or
    vote shares of capital stock unless (i)&#160;required to do so
    by order of a court of competent jurisdiction or (ii)&#160;the
    Grey Wolf Board has concluded in good faith, after consultation
</DIV>

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    <BR>
    A-60
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    with its outside legal counsel, that, in light of a Superior
    Proposal with respect to Grey Wolf, the failure to take such
    action would be reasonably likely to result in a breach of its
    fiduciary duties under Applicable Law.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VI<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">CONDITIONS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;6.1&#160;&#160;</FONT><I>Conditions
    to Each Party&#146;s Obligation to Effect the
    Merger.</I>&#160;&#160;The respective obligations of each Party
    to effect the Merger shall be subject to the satisfaction, at or
    prior to the Closing Date, of each of the following conditions,
    any or all of which may be waived in writing in whole or in part
    only by both Precision and Grey Wolf (to the extent permitted by
    Applicable Law):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Shareholder Approval.</I>&#160;&#160;The Merger
    shall have been duly and validly approved and adopted by the
    requisite vote of the shareholders of Grey Wolf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I>CFIUS Approval.</I>&#160;&#160;Precision shall have
    received written notice from CFIUS of its determination pursuant
    to the Exon-Florio Amendment not to undertake an investigation
    of the transaction contemplated by this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I>Other Approvals.</I>&#160;&#160;Any applicable
    waiting period under the HSR Act (including extensions thereof)
    shall have expired or been terminated and all filings required
    to be made by the Parties prior to the Effective Time with, and
    all consents, approvals, permits and authorizations required to
    be obtained by the Parties prior to the Effective Time from, any
    Governmental Authority in connection with the execution and
    delivery of this Agreement and the consummation of the
    transactions contemplated hereby shall have been made or
    obtained (as the case may be), except for any failures to make
    such filings or obtain such consents, approvals, permits and
    authorizations that, individually or in the aggregate, would not
    reasonably be expected to have or cause a Material Adverse
    Effect on or with respect to Precision (assuming the Merger has
    taken place).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I>Securities Law Matters.</I>&#160;&#160;The
    Registration Statement shall have been declared effective by the
    SEC under the Securities Act and shall be effective at the
    Effective Time, and no stop order suspending such effectiveness
    shall have been issued, no action, suit, proceeding or
    investigation by the SEC to suspend such effectiveness shall
    have been initiated and be continuing (and no similar action
    shall have been taken by any Canadian Securities Regulatory
    Authority with respect to Precision or the Precision
    Trust&#160;Units), and any and all necessary approvals under
    state securities laws or Applicable Canadian Securities Laws
    relating to the issuance or trading of the Precision
    Trust&#160;Units to be issued in the Merger shall have been
    received.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I>No Injunctions or Restraints.</I>&#160;&#160;No
    Governmental Authority of competent jurisdiction shall have
    issued, promulgated, enforced or entered any Order, temporary
    restraining order, preliminary or permanent injunction, or other
    legal restraint or prohibition that is continuing and which
    prevents the consummation of the Merger. There shall not be any
    pending suit, action or proceeding asserted by any Governmental
    Authority challenging or seeking to restrain or prohibit the
    consummation of the Merger or the transactions contemplated
    hereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I>NYSE and TSX Listing.</I>&#160;&#160;The Precision
    Trust&#160;Units required to be included in the NYSE and TSX
    listing applications referred to in <U>Section&#160;5.8</U>
    above shall have been authorized for listing on the NYSE and the
    TSX, subject to official notice of issuance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;6.2&#160;&#160;</FONT><I>Conditions
    to Obligations of Precision, PDC and Lobos.</I>&#160;&#160;The
    obligations of Precision, PDC and Lobos to effect the Merger are
    subject to the satisfaction of each of the following conditions,
    any or all of which may be waived in writing in whole or in part
    by Precision, PDC and Lobos:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Representations and
    Warranties.</I>&#160;&#160;(i)&#160;The representations and
    warranties of Grey Wolf set forth in <U>Section&#160;3.2</U>
    (Authorization, Validity and Effect of Agreement),
    <U>Section&#160;3.3</U> (Capitalization) and
    <U>Section&#160;3.16</U> (No Brokers) shall be true, accurate
    and complete in all material respects as of the date of
</DIV>

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    <BR>
    A-61
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    this Agreement and (except to the extent such representation or
    warranty speaks as of an earlier date, in which case the
    representation or warranty shall be true and correct in all
    material respects as of such date) as of the Closing Date as
    though made on and as of that time and (ii)&#160;the
    representations and warranties of Grey Wolf set forth in
    <U>Article&#160;III</U> (other than the representations and
    warranties set forth in <U>Section&#160;3.2</U>,
    <U>Section&#160;3.3</U> and <U>Section&#160;3.16</U>) shall be
    true, accurate and complete (disregarding any qualifications as
    to materiality or Material Adverse Effect) as of the date of
    this Agreement and (except to the extent such representation or
    warranty speaks as of an earlier date, in which case the
    representation or warranty shall be true and correct as of such
    date) as of the Closing Date as though made on and as of that
    time, except in each case for any failures of such
    representations and warranties to be so true, accurate and
    complete that, individually or in the aggregate, do not have or
    cause and would not reasonably be expected to have or cause a
    Grey Wolf Material Adverse Effect, and Precision and PDC shall
    have received a certificate signed by the Responsible Officers
    of Grey Wolf to such effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I>Performance of Covenants and Agreements by Grey
    Wolf.</I>&#160;&#160;Grey Wolf shall have performed in all
    material respects all covenants and agreements required to be
    performed by it under this Agreement at or prior to the Closing
    Date, and Precision and PDC shall have received a certificate
    signed by a Responsible Officer of Grey Wolf to such effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I>No Material Adverse Change.</I>&#160;&#160;From the
    date of this Agreement through the Closing, there shall not have
    occurred any event, occurrence or development that has had or
    caused or would reasonably be expected to have or cause a Grey
    Wolf Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I>Tax Opinion.</I>&#160;&#160;Precision and PDC shall
    have received an opinion (reasonably acceptable in form and
    substance to Precision and PDC) from Mayer Brown LLP, dated as
    of the Closing Date, and based on a reasonable assumption as to
    the amount of cash consideration ultimately paid to Grey Wolf
    Dissenting Shareholders, to the effect that for federal income
    Tax purposes (i)&#160;the Merger will be treated as a
    reorganization within the meaning of <U>Section&#160;368(a)</U>
    of the Code, and (ii)&#160;each of Precision, Grey Wolf and
    Lobos will be a party to such reorganization within the meaning
    of <U>Section&#160;368(b)</U> of the Code, and such opinion
    shall not have been withdrawn, revoked or modified. Such opinion
    will be based upon representations of the Parties contained in
    this Agreement and in the officers&#146; certificates described
    in <U>Section 5.17(b).</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;6.3&#160;&#160;</FONT><I>Conditions
    to Obligation of Grey Wolf.</I>&#160;&#160;The obligation of
    Grey Wolf to effect the Merger is subject to the satisfaction of
    each of the following conditions, any or all of which may be
    waived in writing in whole or in part by Grey Wolf:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Representations and
    Warranties.</I>&#160;&#160;(i)&#160;The representations and
    warranties of Precision, PDC and Lobos set forth in
    <U>Section&#160;4.2</U> (Authorization, Validity and Effect of
    Agreement), <U>Section&#160;4.3</U> (Capitalization) and
    <U>Section&#160;4.13</U> (No Brokers) shall be true, accurate
    and complete in all material respects as of the date of this
    Agreement and (except to the extent such representation or
    warranty speaks as of an earlier date, in which case the
    representation or warranty shall be true and correct in all
    material respects as of such date) as of the Closing Date as
    though made on and as of that time and (ii)&#160;the
    representations and warranties of Precision set forth in
    <U>Article&#160;IV</U> (other than the representations and
    warranties set forth in <U>Section&#160;4.2,</U>
    <U>Section&#160;4.3</U> and <U>Section 4.13</U>) shall be true,
    accurate and complete (disregarding any qualifications as to
    materiality or Material Adverse Effect) as of the date of this
    Agreement and (except to the extent such representation or
    warranty speaks as of an earlier date, in which case the
    representation or warranty shall be true and correct as of such
    date) as of the Closing Date as though made on and as of that
    time, except in each case for any failures of such
    representations and warranties to be so true, accurate and
    complete that, individually or in the aggregate, do not have or
    cause and would not reasonably be expected to have or cause a
    Precision Material Adverse Effect, and Grey Wolf shall have
    received a certificate signed by the Responsible Officers of
    Precision to such effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I>Performance of Covenants and Agreements by
    Precision, Lobos and PDC</I>.&#160;&#160;Each of Precision,
    Lobos and PDC shall have performed in all material respects all
    covenants and agreements required to be
</DIV>

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    <BR>
    A-62
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    performed by it under this Agreement at or prior to the Closing
    Date, and Grey Wolf shall have received a certificate signed by
    a Responsible Officer of Precision to such effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I>No Material Adverse Change.</I>&#160;&#160;From the
    date of this Agreement through the Closing, there shall not have
    occurred any event, occurrence or development that has had or
    caused or would reasonably be expected to have or cause a
    Precision Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I>U.S.&#160;Tax Opinion.</I>&#160;&#160;Grey Wolf
    shall have received an opinion (reasonably acceptable in form
    and substance to Grey Wolf) from Porter&#160;&#038; Hedges
    L.L.P., dated as of the Closing Date, and based on a reasonable
    assumption as to the amount of cash consideration ultimately to
    be paid to Grey Wolf Dissenting Shareholders, to the effect that
    for federal income Tax purposes (i)&#160;the Merger will be
    treated as a reorganization within the meaning of
    <U>Section&#160;368(a)</U> of the Code, and (ii)&#160;each of
    Precision, Grey&#160;Wolf and Lobos will be a party to such
    reorganization within the meaning of <U>Section&#160;368(b)</U>
    of the Code, and such opinion shall not have been withdrawn,
    revoked or modified. Such opinion will be based upon
    representations of the Parties contained in this Agreement and
    in the officers&#146; certificates described in <U>Section
    5.17(b).</U>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VII<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">TERMINATION
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;7.1&#160;&#160;</FONT><I>Termination
    Rights.</I>&#160;&#160;This Agreement may be terminated and the
    Merger may be abandoned at any time prior to the Effective Time,
    whether before or after approval of the Grey Wolf Proposal by
    the shareholders of Grey Wolf (except as provided below), by
    action taken by the board of directors or the board of trustees,
    as applicable, of the terminating Party or Parties upon the
    occurrence of any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;By mutual written consent duly authorized by the
    Precision Board and the Grey Wolf Board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;By either Grey Wolf or Precision if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;the Merger has not been consummated by
    February&#160;28, 2009 (the <I>&#147;Termination Date&#148;</I>)
    (<U>provided</U>, <U>however</U>, that the right to terminate
    this Agreement pursuant to this clause&#160;(i) shall not be
    available to any Party whose breach of any representation or
    warranty or failure to perform or satisfy any covenant or
    agreement under this Agreement has been the principal cause of
    or resulted in the failure of the Merger to occur on or before
    such date);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;any Governmental Authority shall have issued an Order
    or taken any other action permanently restraining, enjoining or
    otherwise prohibiting the consummation of the Merger or making
    consummation of the Merger illegal, and such Order or other
    action shall have become final and nonappealable
    (<U>provided</U>, <U>however</U>, that the right to terminate
    this Agreement pursuant to this clause&#160;(ii) shall not be
    available to any Party whose failure to fulfill any material
    obligation under this Agreement has been the principal cause of
    or resulted in such Order or other action);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;the Grey Wolf Proposal shall not have been approved
    by the Required Grey Wolf Vote at the Grey Wolf Meeting or at
    any adjournment or postponement thereof; <U>provided</U>,
    <U>however</U>, that the right to terminate this Agreement
    pursuant to this clause&#160;(iii) shall not be available to
    Grey Wolf if the failure to obtain approval of the Grey Wolf
    Proposal is caused by the action or failure to act of Grey Wolf
    and such action or failure to act constitutes a material breach
    of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;By Precision if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;there has been a material breach of the representations
    and warranties made by Grey Wolf in <U>Article&#160;III</U> of
    this Agreement, which breach (A)&#160;would cause a failure of
    the condition described in <U>Section&#160;6.2(a)</U> and
    (B)&#160;is incapable of being cured by Grey Wolf within
    30&#160;days following receipt of written notice from Precision
    of such breach (but not later than the Termination Date);
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-63
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Grey Wolf has failed to comply in any material respect
    with any of its covenants or agreements contained in this
    Agreement, which failure to comply (A)&#160;would cause a
    failure of the condition described in <U>Section&#160;6.2(b)</U>
    and (B)&#160;is incapable of being cured by Grey Wolf within
    30&#160;days following written notice from Precision of such
    failure (but not later than the Termination Date);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;(A)&#160;Grey Wolf shall have breached in any
    material respect any of its obligations under
    <U>Section&#160;5.5</U>, (B)&#160;the Grey Wolf Board (or any
    committee thereof) shall have made an Adverse Recommendation
    Change or an Acquisition Proposal Recommendation, (C)&#160;any
    Grey Wolf Company shall have entered into an Acquisition
    Agreement or (D)&#160;Grey Wolf or the Grey Wolf Board (or any
    committee thereof) publicly shall have announced its intention
    to do any of the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;By Grey Wolf if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;there has been a material breach of the representations
    and warranties made by Precision in <U>Article&#160;IV</U> of
    this Agreement, which breach (A)&#160;would cause a failure of
    the condition described in <U>Section&#160;6.3(a)</U>, and
    (B)&#160;is incapable of being cured by Precision within
    30&#160;days following receipt of written notice from Grey Wolf
    of such breach (but not later than the Termination Date);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Precision has failed to comply in any material respect
    with any of its covenants or agreements contained in this
    Agreement, which failure to comply (A)&#160;would cause a
    failure of the condition described in <U>Section&#160;6.3(b)</U>
    and (B)&#160;is incapable of being cured by Precision within
    30&#160;days following receipt of written notice from Grey Wolf
    of such failure (but not later than the Termination
    Date);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;prior to the approval of Grey Wolf Proposal by the
    Required Grey Wolf Vote, Grey Wolf elects to enter into an
    Acquisition Agreement as permitted by (and not in violation of)
    <U>Section 5.5</U>; <U>provided</U>, <U>however</U>, that Grey
    Wolf may not terminate this Agreement pursuant to this
    <U>Section&#160;7.1(d)(iii)</U> unless Grey Wolf shall have
    complied with the provisions of <U>Section 5.5(e)(ii)</U> and
    shall not have otherwise breached any other term of
    <U>Section&#160;5.5</U> in any material respect. No termination
    pursuant to this <U>Section 7.1(d)(iii)</U> shall be effective
    unless Grey Wolf simultaneously pays in full the payment
    required by <U>Section&#160;7.3(a)</U> and provides Precision
    with a written acknowledgment from each other party to the
    Acquisition Agreement that such party is aware of the amounts
    due Precision under <U>Section&#160;7.3(a)</U> and that such
    party irrevocably waives any right it may have to litigate, sue
    or bring any Claim to contest such amounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;7.2&#160;&#160;</FONT><I>Effect
    of Termination.</I>&#160;&#160;If this Agreement is terminated
    by either Grey Wolf or Precision pursuant to the provisions of
    <U>Section&#160;7.1</U>, this Agreement shall forthwith become
    void, and there shall be no further obligation on the part of
    any Party or its Affiliates or Representatives except pursuant
    to the provisions of <U>Section&#160;5.4(d)</U>,
    <U>Section&#160;5.7(c)</U>, <U>Section&#160;5.7(d)</U>,
    <U>Section&#160;5.14</U>, this <U>Section&#160;7.2</U>,
    <U>Section&#160;7.3</U>, <U>Article&#160;VIII</U> and the
    Confidentiality Agreement (which shall continue pursuant to its
    terms); <U>provided</U>, <U>however</U>, that a termination of
    this Agreement shall not relieve any Party from any liability
    for damages incurred as a result of a willful or intentional
    breach by such Party of its representations, warranties,
    covenants, agreements or other obligations hereunder occurring
    prior to such termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;7.3&#160;&#160;</FONT><I>Fees
    and Expenses.</I>&#160;&#160;Notwithstanding the provisions of
    <U>Section&#160;5.14</U>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Grey Wolf will, immediately upon termination of this
    Agreement pursuant to <U>Section&#160;7.1(b)(iii)</U>,
    <U>Section&#160;7.1(c)(iii)</U> or
    <U>Section&#160;7.1(d)(iii)</U> (but in the case of <U>Section
    7.1(b)(iii)</U> only if prior to such Grey Wolf Meeting an
    Adverse Recommendation Change or an Acquisition
    Proposal&#160;Recommendation has been made), pay, or cause to be
    paid, to Precision by wire transfer of immediately available
    funds to an account designated by Precision a termination fee in
    the amount of $64&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Grey Wolf will, immediately upon termination of this
    Agreement pursuant to <U>Section&#160;7.1(b)(iii)</U>, pay, or
    cause to be paid, to Precision by wire transfer of immediately
    available funds to an account
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-64
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    designated by Precision $7.5&#160;million as a reasonable
    estimate of Precision&#146;s expenses; <U>provided</U> that no
    amount shall be payable under this <U>Section&#160;7.3(b)</U> if
    the termination fee is paid pursuant to
    <U>Section&#160;7.3(a)</U>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Grey Wolf will pay, or cause to be paid, to Precision a
    termination fee in the amount of $64&#160;million less the
    amount of the payment, if any, previously made by Grey Wolf
    pursuant to <U>Section 7.3(b)</U> if: (i)&#160;this Agreement is
    terminated pursuant to <U>Section 7.1(b)(i)</U> or
    <U>Section&#160;7.1(b)(iii)</U>; (ii)&#160;prior to such
    termination, there has been publicly announced an Acquisition
    Proposal; and (iii)&#160;within 365&#160;days of such
    termination, any Grey&#160;Wolf Company enters into any
    definitive agreement with respect to or consummates any
    Acquisition Proposal (regardless of whether such Acquisition
    Proposal is the same Acquisition Proposal referred to in
    clause&#160;(ii) above); <U>provided</U> that no amount shall be
    payable under this <U>Section 7.3(c)</U> if the termination fee
    is paid pursuant to <U>Section 7.3(a)</U>. Such termination fee
    shall be paid on the day such Grey Wolf Company consummates such
    Acquisition Proposal, by wire transfer of immediately available
    funds to an account designated by Precision. Notwithstanding the
    foregoing, Grey Wolf shall not be required to pay, or cause to
    be paid, to Precision any amounts pursuant to this <U>Section
    7.3(c)</U> if the reason the Merger has not been timely
    consummated is as the result of a failure to satisfy the
    conditions set forth in <U>Section&#160;6.1(b)</U>,
    <U>Section&#160;6.1(c)</U>, <U>Section&#160;6.1(d)</U>,
    <U>Section&#160;6.1(e)</U> or <U>Section&#160;6.1(f)</U>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Grey Wolf acknowledges that the agreements contained in
    this <U>Section&#160;7.3</U> are an integral part of the
    transactions contemplated by this Agreement, and that, without
    these agreements, Precision would not have entered into this
    Agreement. Accordingly, if Grey Wolf fails to pay promptly any
    amounts due pursuant to this <U>Section&#160;7.3</U>, Grey Wolf
    shall pay to Precision its costs and expenses (including
    attorneys&#146; fees and expenses) in connection with collecting
    these amounts, together with interest on the amounts so owed, at
    the rate of interest per annum specified as the Prime Rate in
    the Wall Street Journal as of the date of termination plus 2.0%,
    from the date of termination of this Agreement until the date
    all such amounts are paid to Precision.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VIII<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">MISCELLANEOUS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.1&#160;&#160;</FONT><I>Nonsurvival
    of Representations and Warranties.</I>&#160;&#160;None of the
    representations or warranties contained in this Agreement or in
    any instrument delivered pursuant to this Agreement (other than
    the Grey&#160;Wolf Voting Agreements) shall survive the
    consummation of the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.2&#160;&#160;</FONT><I>Amendment.</I>&#160;&#160;This
    Agreement may be amended by the Parties at any time before or
    after approval of the Grey Wolf Proposal by the shareholders of
    Grey Wolf; <U>provided</U>, <U>however</U>, that, after any such
    approval, no amendment shall be made that by Applicable Law
    requires further approval by such shareholders without such
    further approval. This Agreement may not be amended except by a
    written instrument signed by an authorized representative of
    each of the Parties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.3&#160;&#160;</FONT><I>Notices.</I>&#160;&#160;Any
    notice or other communication required or permitted hereunder
    shall be in writing and, unless delivery instructions are
    otherwise expressly set forth above herein, either delivered
    personally (effective upon delivery), by facsimile transmission
    (effective on the next day after transmission), by recognized
    overnight delivery service (effective on the next day after
    delivery to the service), or by registered or certified mail,
    postage prepaid and return receipt requested (effective on the
    third Business Day after the date of mailing), at the following
    addresses or facsimile transmission numbers (or at such other
    address(es) or facsimile transmission number(s) for a Party as
    shall be specified by like notice):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To Precision, PDC or Lobos:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">c/o&#160;Precision</FONT>
    Drilling Corporation<BR>
    4200,
    <FONT style="white-space: nowrap">150-6</FONT><SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Avenue,
    S.W.<BR>
    Calgary, Alberta, Canada T2P 3Y7<BR>
    Attention: Chief Executive Officer<BR>
    Facsimile:
    <FONT style="white-space: nowrap">(403)&#160;264-0251</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-65
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    with a copy <BR>
    (which shall not constitute notice) to:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mayer Brown LLP<BR>
    700&#160;Louisiana&#160;Street,&#160;Suite&#160;3400<BR>
    Houston, Texas 77002<BR>
    Attention: Robert F. Gray,&#160;Jr.<BR>
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;William
    S. Moss III<BR>
    <FONT style="white-space: nowrap">Facsimile:&#160;&#160;(713)&#160;238-4600</FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bennett Jones LLP<BR>
    4500 Bankers Hall East<BR>
    <FONT style="white-space: nowrap">855-2</FONT><SUP style="font-size: 85%; vertical-align: text-top">nd</SUP>&#160;Street,
    S.W.<BR>
    Calgary, Alberta, Canada T2P 4K7<BR>
    Attention: John H. Kousinioris<BR>
    Facsimile:
    <FONT style="white-space: nowrap">(403)&#160;265-7219</FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    to Grey Wolf:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf, Inc.<BR>
    10370 Richmond Avenue, Suite&#160;600<BR>
    Houston, Texas 77042<BR>
    Attention: Chief Executive Officer<BR>
    Facsimile:
    <FONT style="white-space: nowrap">(713)&#160;435-6171</FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    with a copy
</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (which shall not constitute notice) to:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Porter&#160;&#038; Hedges, L.L.P.<BR>
    1000 Main,
    36<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor<BR>
    Houston, Texas 77002<BR>
    Attention: Nick D. Nicholas<BR>
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Christopher
    A. Ferazzi<BR>
    Facsimile:
    <FONT style="white-space: nowrap">(713)&#160;226-6237</FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Blake, Cassels&#160;&#038; Graydon LLP<BR>
    3500 Bankers Hall East<BR>
    <FONT style="white-space: nowrap">855-2nd&#160;Street</FONT>
    S.W.<BR>
    Calgary, Alberta, Canada T2P 4J8<BR>
    Attention: Brock W. Gibson<BR>
    Facsimile:
    <FONT style="white-space: nowrap">(403)&#160;260-9700</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.4&#160;&#160;</FONT><I>Counterparts.</I>&#160;&#160;This
    Agreement may be executed in one or more counterparts, all of
    which shall be considered one and the same agreement, and shall
    become effective when one or more counterparts have been signed
    by each of the Parties and delivered to the other Parties, it
    being understood that all Parties need not sign the same
    counterpart.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.5&#160;&#160;</FONT><I>Severability.</I>&#160;&#160;Any
    term or provision of this Agreement that is invalid or
    unenforceable in any jurisdiction shall, as to such
    jurisdiction, be deemed modified to the minimum extent necessary
    to make such term or provision valid and enforceable,
    <U>provided</U> <U>that</U> if such term or provision is
    incapable of being so modified, then such term or provision
    shall be deemed ineffective to the extent of such invalidity or
    unenforceability without rendering invalid or unenforceable the
    remaining terms and provisions of this Agreement or affecting
    the validity or enforceability of any of the terms or provisions
    of this Agreement in any other jurisdiction. If any provision of
    this Agreement is so broad as to be unenforceable, such
    provision shall be interpreted to be only so broad as is
    enforceable.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-66
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    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.6&#160;&#160;</FONT><I>Entire
    Agreement; No Third Party Beneficiaries.</I>&#160;&#160;This
    Agreement (together with the Confidentiality Agreement and the
    documents and instruments delivered by the Parties in connection
    with this Agreement): (a)&#160;constitutes the entire agreement
    and supersedes all other prior agreements and understandings,
    both written and oral, among the Parties with respect to the
    subject matter hereof; and (b)&#160;except as provided in
    <U>Section&#160;5.15</U> and <U>Section&#160;5.16(h)</U> (which
    are intended to be for the benefit of the Persons covered
    thereby) is solely for the benefit of the Parties and their
    respective successors, legal representatives and assigns and
    does not confer on any Person other than the Parties any rights
    or remedies hereunder. The representations and warranties in
    this Agreement are the product of negotiations among the Parties
    and are for the sole benefit of the Parties. Any inaccuracies in
    such representations and warranties are subject to waiver by the
    Party for whose benefit such representation and warranty was
    made in accordance with <U>Section&#160;8.12</U> without notice
    of liability to any other Person. In some instances, the
    representations and warranties in this Agreement may represent
    an allocation among the Parties of risks associated with
    particular matters regardless of knowledge of any of the
    Parties. Consequently, Persons other than the Parties may not
    rely upon the representations and warranties in this Agreement
    as characterizations of actual facts or circumstances as of the
    date of this Agreement or as of any other date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.7&#160;&#160;</FONT><I>Applicable
    Law.</I>&#160;&#160;THIS AGREEMENT SHALL BE GOVERNED IN ALL
    RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE
    LAWS OF THE STATE OF TEXAS (INCLUDING THE LAWS OF TEXAS WITH
    RESPECT TO STATUTES OF LIMITATION AND STATUTES OF REPOSE)
    WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF THAT
    WOULD CAUSE THE LAWS OF ANY OTHER JURISDICTION TO APPLY.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.8&#160;&#160;</FONT><I>Jurisdiction.</I>&#160;&#160;The
    Parties agree that any suit, action or proceeding seeking to
    enforce any provision of, or based on any matter arising out of
    or in connection with, this Agreement or the transactions
    contemplated hereby shall be exclusively brought in any federal
    court sitting in Harris County, Texas or any Texas state court
    sitting in Harris County, Texas, and each of the parties hereby
    irrevocably consents to the jurisdiction of such courts (and of
    the appropriate appellate courts therefrom) in any such suit,
    action or proceeding and irrevocably waives, to the fullest
    extent permitted by law, any objection that it may now or
    hereafter have to the laying of the venue of any such suit,
    action or proceeding in any such court or that any such suit,
    action or proceeding brought in any such court has been brought
    in an inconvenient forum. Process in any such suit, action or
    proceeding may be served on any party anywhere in the world,
    whether within or without the jurisdiction of any such court.
    This Agreement is executed and is to be performed in Harris
    County, Texas. Without limiting the foregoing, each Party agrees
    that service of process on such Party as provided in
    <U>Section&#160;8.3</U> shall be deemed effective service of
    process on such party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.9&#160;&#160;</FONT><I>Specific
    Performance.</I>&#160;&#160;The Parties hereto agree that
    irreparable damage would occur in the event that any provision
    of this Agreement was not performed in accordance with its
    specific terms or was otherwise breached. It is accordingly
    agreed that the Parties shall be entitled to an injunction or
    injunctions to prevent breaches of this Agreement and to enforce
    specifically the terms and provisions hereof, this being in
    addition to any other remedy to which they are entitled at law
    or in equity. No Party shall object to the other Parties&#146;
    right to specific performance as a remedy for breach of this
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.10&#160;&#160;</FONT><I>No
    Remedy in Certain Circumstances.</I>&#160;&#160;Each Party
    agrees that should any Governmental Authority hold any provision
    of this Agreement or part hereof to be null, void or
    unenforceable, or order any Party to take any action
    inconsistent herewith or not to take an action consistent
    herewith or required hereby, the validity, legality and
    enforceability of the remaining provisions and obligations
    contained or set forth herein shall not in any way be affected
    or impaired thereby, unless the foregoing inconsistent action or
    the failure to take any action constitutes a material breach of
    this Agreement or makes this Agreement impossible to perform, in
    which case this Agreement shall terminate pursuant to
    <U>Article&#160;VII.</U> Except as otherwise contemplated by
    this Agreement, to the extent that a Party took an action
    inconsistent herewith or failed to take action consistent
    herewith or required hereby pursuant to an Order or judgment of
    a court or other competent Governmental Authority, such Party
    shall not incur any liability or obligation unless such Party
</DIV>

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    <BR>
    A-67
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    breached its obligations under <U>Section&#160;5.9</U> or did
    not in good faith seek to resist or object to the imposition or
    entering of such Order or judgment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.11&#160;&#160;</FONT><I>Assignment.</I>&#160;&#160;Neither
    this Agreement nor any of the rights, interests or obligations
    hereunder shall be assigned or delegated or otherwise
    transferred by any of the Parties (whether by operation of
    Applicable Law or otherwise) without the prior written consent
    of the other Parties, and any such attempted assignment without
    such consent shall be immediately null and void. Subject to the
    preceding sentence, this Agreement will be binding upon, inure
    to the benefit of and be enforceable by the Parties and their
    respective successors and assigns.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.12&#160;&#160;</FONT><I>Waivers.</I>&#160;&#160;At
    any time prior to the Effective Time, to the extent legally
    allowed: (a)&#160;any Party may extend the time for the
    performance of any of the obligations or other acts of the other
    Parties, (b)&#160;any Party for whose benefit a representation
    or warranty was made may waive any inaccuracies in the
    representations and warranties of the other Parties contained
    herein or in any document delivered pursuant hereto, and
    (c)&#160;any Party may waive performance of any of the covenants
    or agreements of the other Parties, or satisfaction of any of
    the conditions to its obligations to effect the Merger,
    contained herein. Any agreement on the part of a Party to any
    such extension or waiver shall be valid only if set forth in a
    written instrument signed by an authorized representative of
    such Party. Except as provided in this Agreement, no action
    taken pursuant to this Agreement, including any investigation by
    or on behalf of any Party, shall be deemed to constitute a
    waiver by the Party taking such action of compliance with any
    representations, warranties, covenants or agreements contained
    in this Agreement. The waiver by any Party of a breach of any
    provision hereof shall not operate or be construed as a waiver
    of any prior or subsequent breach of the same or any other
    provisions hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.13&#160;&#160;</FONT><I>Confidentiality
    Agreement.</I>&#160;&#160;The Confidentiality Agreement shall
    remain in full force and effect following the execution of this
    Agreement is hereby incorporated herein by reference, and shall
    constitute a part of this Agreement for all purposes;
    <U>provided</U>, <U>however</U>, that any standstill provisions
    contained therein will, effective as of the Closing, be deemed
    to have been waived to the extent necessary for the Parties to
    consummate the Merger in accordance with the terms of this
    Agreement. Any and all information received by Precision and
    Grey Wolf pursuant to the terms and provisions of this Agreement
    shall be governed by the applicable terms and provisions of the
    Confidentiality Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.14&#160;&#160;</FONT><I>Incorporation.</I>&#160;&#160;Exhibits
    and Schedules referred to herein are attached to and by this
    reference are incorporated herein for all purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.15&#160;&#160;</FONT><I>Acknowledgement.</I>&#160;&#160;The
    Parties hereto acknowledge that the obligations of Precision
    hereunder shall not be personally binding upon PDC, in its
    capacity as agent on behalf of Precision, any of the trustees of
    Precision or any of the unitholders of Precision and that any
    recourse against Precision, PDC (in its capacity as agent on
    behalf of Precision), any of the trustees of Precision or any of
    the unitholders of Precision in any manner in respect of any
    indebtedness, obligation or liability of Precision arising
    hereunder or arising in connection herewith or from the matters
    to which this Agreement relates, if any, including, without
    limitation, claims based on negligence or otherwise tortious
    behavior, shall be limited to, and satisfied only out of, the
    &#147;Trust&#160;Assets&#148; as defined in the Precision
    Declaration of Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Section&#160;8.16&#160;&#160;</FONT><I>Time
    of Essence.</I>&#160;&#160;Time is of the essence in the
    performance of this Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    [Signature Page&#160;Follows]
</DIV>

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    <BR>
    A-68
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS WHEREOF, the Parties have caused this Agreement to be
    executed by their duly authorized representatives, on the date
    first written above.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION DRILLING TRUST, </B>by its agent,
</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION DRILLING CORPORATION</B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="3%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Kevin
    A. Neveu</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 48%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Kevin A. Neveu
</DIV>

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;&#160;&#160;&#160;&#160;&#160;&#160;Chief Executive
    Officer
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="3%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Douglas
    J. Strong</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 48%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Douglas J. Strong
</DIV>

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;&#160;&#160;&#160;&#160;&#160;&#160;Chief Financial
    Officer
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION DRILLING CORPORATION,</B>
</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    a corporation amalgamated under the laws of the Province of
    Alberta
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="3%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Kevin
    A. Neveu</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 48%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Kevin A. Neveu
</DIV>

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;&#160;&#160;&#160;&#160;&#160;&#160;Chief Executive
    Officer
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="3%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Douglas
    J. Strong</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 48%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Douglas J. Strong
</DIV>

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;&#160;&#160;&#160;&#160;&#160;&#160;Chief Financial
    Officer
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION LOBOS CORPORATION,</B>
</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    a Texas corporation
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="3%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Joanne
    L. Alexander</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 48%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Joanne L. Alexander
</DIV>

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;&#160;&#160;&#160;&#160;&#160;&#160;President
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-69
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>GREY WOLF, INC.,</B>
</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    a Texas corporation
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="3%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Thomas
    P. Richards</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 48%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Thomas P. Richards
</DIV>

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;&#160;&#160;&#160;&#160;&#160;&#160;Chief Executive
    Officer
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-70
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNEX&#160;B</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">VOTING
    AGREEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This VOTING AGREEMENT (this &#147;<U>Agreement</U>&#148;), dated
    as of August&#160;&#160;&#160;, 2008, is by and between
    Precision Drilling Trust, an Alberta unincorporated open-ended
    investment trust (&#147;<U>Precision</U>&#148;), and the
    undersigned holder (the &#147;<U>Affiliate</U>&#148;) of shares
    or options to acquire shares of common stock of Grey Wolf, Inc.,
    a Texas corporation (&#147;<U>Grey Wolf</U>&#148;). Capitalized
    terms used and not defined herein shall have the respective
    meanings ascribed to them in the Merger Agreement referenced
    below.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RECITALS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A.&#160;Precision, Precision Lobos Corporation, a Texas
    corporation and a subsidiary of Precision
    (&#147;<U>Lobos</U>&#148;), Precision Drilling Corporation, a
    corporation amalgamated under the laws of the Province of
    Alberta and Grey Wolf have entered into an Agreement and Plan of
    Merger dated August&#160;&#160;&#160;, 2008 (as the same may be
    amended from time to time, the &#147;<U>Merger
    Agreement</U>&#148;) pursuant to which Grey Wolf will merge (the
    &#147;<U>Merger</U>&#148;) with and into Lobos, with Lobos
    surviving the Merger as a wholly-owned subsidiary of Precision,
    on the terms and subject to the conditions set forth in the
    Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    B.&#160;As of the date hereof, Affiliate owns and has the
    present power and right to vote (or to direct the voting of) the
    number of shares of common stock, par value of $0.10 per share,
    of Grey Wolf (the &#147;<U>Grey Wolf Common Stock</U>&#148;) set
    forth beneath the Affiliate&#146;s name on the signature page
    hereto and identified as &#147;Number of shares of Grey Wolf
    Common Stock owned,&#148; as such shares may be adjusted by
    stock dividend, stock split, recapitalization, combination,
    merger, consolidation, reorganization or other change in the
    capital structure of Grey Wolf affecting the Grey Wolf Common
    Stock (such shares of Grey Wolf Common Stock, plus any other
    shares of Grey Wolf Common Stock the voting power over which is
    acquired by Affiliate during the period (the
    &#147;<U>Term</U>&#148;) from and including the date hereof
    through and including the date on which this Agreement is
    terminated in accordance with its terms, are collectively
    referred to herein as Affiliate&#146;s &#147;<U>Subject
    Shares</U>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C.&#160;As an inducement to the willingness of Precision to
    enter into the Merger Agreement, and as an inducement and in
    consideration therefor, the Merger Agreement requires certain
    persons and entities, including Affiliate, to execute and
    deliver this Agreement and Affiliate has agreed to enter into
    this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    NOW, THEREFORE, intending to be legally bound, the parties agree
    as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;<I>Agreement to Vote the Subject
    Shares</I>.&#160;&#160;Affiliate, solely in Affiliate&#146;s
    capacity as a stockholder of Grey Wolf, hereby agrees that
    during the Term, at any and all meetings (or any adjournments or
    postponements thereof) of the holders of any class or classes of
    the capital stock of Grey Wolf at which the Merger Agreement and
    the transactions contemplated thereby are considered, however
    called, or in connection with any and all written consents of
    the holders of any class or classes of the capital stock of Grey
    Wolf relating to the Merger Agreement and transactions
    contemplated thereby, Affiliate shall vote (or cause to be
    voted) Affiliate&#146;s Subject Shares in favor of the approval
    and adoption of the Grey Wolf Proposal and the terms of the
    Merger Agreement and the Merger and each of the other
    transactions contemplated by the Merger Agreement (and any
    actions required in furtherance thereof). Affiliate, solely in
    Affiliate&#146;s capacity as a shareholder of Grey Wolf, agrees
    not to enter into any agreement, letter of intent, agreement in
    principle or understanding with any person that violates or
    could reasonably be expected to violate the provisions and
    agreements contained in this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;<I>Covenants</I>.&#160;&#160;Except for pledges in
    existence as of the date hereof, Affiliate agrees that, except
    as contemplated by the terms of this Agreement, Affiliate shall
    not, directly or indirectly, (i)&#160;grant any proxies or
    powers of attorney in respect of the Subject Shares, deposit any
    of Affiliate&#146;s Subject Shares into a voting trust or enter
    into a voting agreement with respect to any of Affiliate&#146;s
    Subject Shares, (ii)&#160;transfer, grant an option with respect
    to, sell, exchange, pledge or otherwise dispose of or encumber
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-1
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the Subject Shares, or make any offer or enter into any
    agreement providing for any of the foregoing at any time during
    the Term; provided, however, that nothing contained herein will
    be deemed to restrict the ability of Affiliate to exercise any
    Grey&#160;Wolf Option held by Affiliate, or (iii)&#160;take any
    action that would have the effect of preventing, impeding,
    interfering with or adversely affecting Affiliate&#146;s ability
    to perform Affiliate&#146;s obligations under this Agreement.
    Notwithstanding the foregoing, nothing herein shall prevent
    Affiliate from assigning or transferring any Subject Shares
    beneficially owned by Affiliate to any trust, estate, family
    partnership, foundation (whether family, private or public) or
    other entity under Affiliate&#146;s control or subject to the
    same ultimate control as Affiliate (each a &#147;<U>Permitted
    Transferee</U>&#148;) if such Permitted Transferee agrees in
    writing to hold any Subject Shares subject to all of the
    provisions of this Agreement as Affiliate hereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;<I>Representations and Warranties of
    Affiliate</I>.&#160;&#160;Affiliate hereby represents and
    warrants to Precision as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Due Authority.</I>&#160;&#160;Affiliate has the
    capacity to execute and deliver this Agreement and to consummate
    the transactions contemplated hereby. If Affiliate is an entity,
    Affiliate is duly organized and validly existing under the laws
    of the jurisdiction of its organization, and Affiliate has all
    necessary power and authority to execute and deliver this
    Agreement and to consummate the transactions contemplated
    hereby. The execution and delivery of this Agreement and the
    consummation of the transactions contemplated hereby by
    Affiliate have, if Affiliate is an entity, been duly authorized
    by all necessary action on the part of Affiliate, and, assuming
    its due authorization, execution and delivery by Precision,
    constitutes a valid and binding obligation of Affiliate,
    enforceable against Affiliate in accordance with its terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I>Ownership of Shares.</I>&#160;&#160;Affiliate owns
    and has the present power and right to vote (or to direct the
    voting of) the number of shares of Grey Wolf Common Stock set
    forth beneath the Affiliate&#146;s name on the signature page
    hereto and identified as &#147;Number of shares of Grey Wolf
    Common Stock owned.&#148; Affiliate has sole voting power and
    sole power of disposition, in each case with respect to all of
    the shares of Grey Wolf Common Stock set forth beneath
    Affiliate&#146;s name on the signature page hereto and
    identified as &#147;Number of shares of Grey Wolf Common Stock
    owned,&#148; with no limitations, qualifications or restrictions
    on such rights, subject only to applicable securities laws and
    the terms of this Agreement and as otherwise noted on the
    signature page hereto. Also set forth on the signature page
    hereto is (i)&#160;the number of shares of Grey Wolf Common
    Stock issuable pursuant to options to purchase Grey Wolf Common
    Stock held by Affiliate (the &#147;<U>Options</U>&#148;) and
    (ii)&#160;the number of restricted shares of Grey Wolf Common
    Stock (which have not vested) held by Affiliate (the
    &#147;<U>Restricted Shares</U>&#148;). The shares of Grey Wolf
    Common Stock set forth beneath the Affiliate&#146;s name on the
    signature page hereto and identified as &#147;Number of shares
    of Grey Wolf Common Stock owned,&#148; the Options and the
    Restricted Shares are all of the equity interests in Grey Wolf
    legally or beneficially owned by Affiliate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I>No Violations.</I>&#160;&#160;(i)&#160;No filing
    with any governmental authority, and no authorization, consent
    or approval of any other person is necessary for the execution
    of this Agreement by Affiliate and the consummation by Affiliate
    of the transactions contemplated hereby (it being understood
    that nothing herein shall prevent Affiliate&#146;s compliance
    with Section&#160;13(d) of the Exchange Act) and (ii)&#160;none
    of the execution and delivery of this Agreement by Affiliate or
    compliance by Affiliate with any of the provisions hereof shall
    (A)&#160;result in, or give rise to, a violation or breach of or
    a default under any of the terms of any contract, understanding,
    agreement or other instrument or obligation to which Affiliate
    is a party or by which Affiliate or any of Affiliate&#146;s
    Subject Shares or assets may be bound, or (B)&#160;violate any
    applicable order, writ, injunction, decree, judgment, statute,
    rule or regulation which could reasonably be expected to
    adversely affect Affiliate&#146;s ability to perform
    Affiliate&#146;s obligations under this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I>Reliance by Precision.</I>&#160;&#160;Affiliate
    understands and acknowledges that Precision has entered into the
    Merger Agreement in reliance upon the covenants contained
    therein requiring the execution and delivery of this Agreement
    by Affiliate.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-2
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;<I>Miscellaneous</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Affiliate Capacity.</I>&#160;&#160;If Affiliate is
    or becomes during the term hereof a director or officer of
    Grey&#160;Wolf, Affiliate does not make any agreement or
    understanding herein in Affiliate&#146;s capacity as such
    director or officer. Affiliate executes this Agreement solely in
    Affiliate&#146;s capacity as the record holder or beneficial
    owner of Affiliate&#146;s Subject Shares and nothing herein
    shall limit or affect any actions taken by Affiliate in
    Affiliate&#146;s capacity as an officer or director of Grey
    Wolf. Without limiting the foregoing, nothing in this Agreement
    shall limit or affect the ability of a director or officer of
    Grey Wolf to take any action as may be advisable or necessary in
    the discharge of his or her fiduciary duties as such director or
    officer, and without regard to whether he or she is, without
    limitation, (i)&#160;a trustee or co-trustee of one or more
    Affiliates, (ii)&#160;an officer, consultant or other
    representative of a trustee or co-trustee of one or more
    Affiliates, or (iii)&#160;a beneficiary of one or more
    Affiliates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I>Publication.</I>&#160;&#160;Affiliate hereby permits
    Precision and Grey Wolf to publish and disclose in the Proxy
    Statement/Prospectus (including all documents and schedules
    filed with the SEC) and in other filings with the SEC
    Affiliate&#146;s identity and ownership of shares of Grey Wolf
    Common Stock and the nature of Affiliate&#146;s commitments,
    arrangements, and understandings pursuant to this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I>Further Actions.</I>&#160;&#160;Each of the parties
    hereto agrees that it will use its commercially reasonable
    efforts to do all things necessary to effectuate this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I>Entire Agreement</I>.&#160;&#160;This Agreement
    contains the entire understanding of the parties hereto with
    respect to the subject matter contained herein and supersedes
    all prior agreements and understandings, oral and written, with
    respect thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I>Binding Effect; Benefit;
    Assignment.</I>&#160;&#160;This Agreement shall inure to the
    benefit of and be binding upon the parties hereto and their
    Permitted Transferees, heirs, estates and successors. Neither
    this Agreement nor any of the rights, interests or obligations
    hereunder shall be assigned by any of the parties hereto, except
    by will or by the laws of descent and distribution, without the
    prior written consent of each of the other parties. Nothing in
    this Agreement, expressed or implied, is intended to confer on
    any person, other than the parties hereto, any rights or
    remedies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I>Amendments; Waivers.</I>&#160;&#160;This Agreement
    may not be amended, changed, supplemented, waived or otherwise
    modified or terminated, except upon the execution and delivery
    of a written agreement executed by all of the parties hereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;<I>Specific Enforcement.</I>&#160;&#160;The parties
    agree that irreparable damage would occur in the event that any
    of the provisions of this Agreement were not performed in
    accordance with their specific terms or were otherwise breached.
    Accordingly, the parties shall be entitled to an injunction or
    injunctions to prevent breaches of this Agreement and to enforce
    specifically the terms and provisions of this Agreement, this
    being in addition to any other remedy to which they are entitled
    at law or in equity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;<I>Remedies Cumulative.</I>&#160;&#160;All rights,
    powers and remedies provided under this Agreement or otherwise
    available in respect hereof at law or in equity shall be
    cumulative and not alternative, and the exercise of any thereof
    by any party shall not preclude the simultaneous or later
    exercise of any other such right, power or remedy by such party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<I>No Waiver.</I>&#160;&#160;The failure of any party
    hereto to exercise any right, power or remedy provided under
    this Agreement or otherwise available in respect hereof at law
    or in equity, or to insist upon compliance by any other party
    hereto with its obligations hereunder, and any custom or
    practice of the parties at variance with the terms hereof shall
    not constitute a waiver by such party of its right to exercise
    any such or other right, power or remedy or to demand such
    compliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;<I>Governing Law; Waiver of Jury
    Trial.</I>&#160;&#160;THIS AGREEMENT SHALL BE GOVERNED BY AND
    CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.
    EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH
    MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED
    AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY
    IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-3
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
    LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
    THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS
    AGREEMENT.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;<I>Headings</I>.&#160;&#160;The descriptive headings of
    this Agreement are inserted for convenience only, do not
    constitute a part of this Agreement and shall not affect in any
    way the meaning or interpretation of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;<I>Counterparts; Facsimiles.</I>&#160;&#160;This
    Agreement may be executed in several counterparts, each of which
    shall be deemed to be an original, and all of which together
    shall be deemed to be one and the same instrument. A signature
    transmitted by facsimile or by electronic mail in &#147;portable
    document format&#148; shall be treated for all purposes by the
    parties hereto as an original and shall be binding upon the
    party transmitting such signature without limitation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (m)&#160;<I>Termination.</I>&#160;&#160;This Agreement shall
    terminate, neither Precision nor Affiliate shall have any rights
    or obligations hereunder, and this Agreement shall become null
    and void and have no effect upon the earliest to occur of
    (i)&#160;the mutual consent of Precision and Affiliate,
    (ii)&#160;the Effective Time, or (iii)&#160;the effective
    termination of the Merger Agreement pursuant to its terms;
    provided, further, that termination of this Agreement shall not
    prevent any party hereunder from seeking any remedies (at law or
    in equity) against any other party hereto for such party&#146;s
    breach of any of the terms of this Agreement. Notwithstanding
    the foregoing, Sections&#160;4(d), 4(e), 4(h) and 4(j) shall
    survive the termination of this Agreement.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>(Signature page follows)</I>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-4
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS WHEREOF, this Agreement is executed as of the date
    first stated above.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION DRILLING TRUST,</B>
</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    an Alberta unincorporated open-ended investment trust, by its
    administrator, Precision Drilling Corporation
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="1%"></TD>
    <TD width="54%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;
</TD>
    <TD valign="bottom" align="left">
    By:&#160;<DIV style="display:inline; text-align:center; width:90%">&#160;&#160;&#160;<FONT style="font-variant: SMALL-CAPS">&#160;</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=115 iwidth=274 length=0 -->Name:&#160;&#160;&#160;&#160;&#160;<BR>
    Title:&#160;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>AFFILIATE</B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 3pt; margin-left: 45%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Printed Name:
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Number of shares of Grey Wolf Common Stock owned:
</DIV>

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 3pt; margin-left: 45%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Number of shares of Grey Wolf Common Stock issuable upon
    exercise of options to purchase Grey Wolf Common Stock held:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 3pt; margin-left: 45%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Number of restricted shares of Grey Wolf Common Stock (which
    have not vested) held:
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 3pt; margin-left: 45%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-5
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNEX&#160;C</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h59905h5990504.jpg" alt="(UBS LETTERHEAD)"><B> </B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors<BR>
    Grey Wolf, Inc.<BR>
    10370 Richmond Avenue, Suite&#160;600<BR>
    Houston, Texas 77042
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">August&#160;24,
    2008
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Members of the Board:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We understand that Grey Wolf, Inc., a Texas corporation
    (&#147;Grey Wolf&#148; or the &#147;Company&#148;), is
    considering a transaction whereby Precision Drilling Trust, an
    Alberta unincorporated open-ended investment trust
    (&#147;Precision&#148;), will effect a merger involving the
    Company. Pursuant to the terms of an Agreement and Plan of
    Merger, draft dated as of August&#160;22, 2008 (the
    &#147;Agreement&#148;), among the Company, Precision, Precision
    Drilling Corporation, a corporation amalgamated under the laws
    of the Province of Alberta and the administrator of Precision
    (&#147;Precision Corporation&#148;), and Precision Lobos
    Corporation, a Texas corporation and wholly owned subsidiary of
    Precision (&#147;Merger Sub&#148;), the Company will merge with
    and into Merger Sub and the surviving company will become a
    wholly owned subsidiary of Precision (the
    &#147;Transaction&#148;). Pursuant to the terms of the
    Agreement, all of the issued and outstanding shares of the
    common stock, par value of $0.10 per share, of the Company
    (&#147;Company Common Stock&#148;) will be converted into the
    right to receive one of the following: (i)&#160;for each share
    of Company Common Stock with respect to which an election to
    receive cash consideration has been effectively made, $9.02 in
    cash (the &#147;Cash Consideration&#148;), (ii)&#160;for each
    share of Company Common Stock with respect to which an election
    to receive trust units of Precision, each representing an equal,
    undivided beneficial interest in Precision
    (&#147;Trust&#160;Units&#148;), has been effectively made,
    0.4225 Trust&#160;Units (the &#147;Trust&#160;Unit
    Consideration&#148;), or (iii)&#160;for each share of Company
    Common Stock with respect to which no election has been
    effectively made, Cash Consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    Trust&#160;Unit Consideration as provided in the Agreement, all
    such conversions being subject to the proration mechanisms,
    procedures and limitations contained in the Agreement, as to
    which proration mechanisms, procedures and limitations we are
    expressing no opinion. The Trust&#160;Unit Consideration and the
    Cash Consideration are referred to herein collectively as the
    &#147;Merger Consideration&#148;. The terms and conditions of
    the Transaction are more fully set forth in the Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You have requested our opinion as to the fairness, from a
    financial point of view, to the holders of the Company Common
    Stock of the Merger Consideration, taken in the aggregate, to be
    received by such holders in the Transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    UBS Securities LLC (&#147;UBS&#148;) has acted as financial
    advisor to the Board of Directors of the Company in connection
    with the Transaction and will receive a fee for its services, a
    portion of which is payable in connection with this opinion and
    a significant portion of which is contingent upon consummation
    of the Transaction. In the past, UBS has provided investment
    banking services to the Company unrelated to the proposed
    Transaction, for which UBS received compensation, including
    having acted as financial advisor to the Company in connection
    with its proposed combination with Basic Energy Services, Inc.
    In addition, UBS or an affiliate provided a commitment for a
    proposed credit facility of the Company in connection with its
    proposed combination with Basic Energy Services, Inc. for which
    it received a fee. In the ordinary course of business, UBS and
    its affiliates may hold or trade, for their own accounts and the
    accounts of their customers, securities of the Company and
    Precision and, accordingly, may at any time hold a long or short
    position in such securities. The issuance of this opinion was
    approved by an authorized committee of UBS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our opinion does not address the relative merits of the
    Transaction as compared to other business strategies or
    transactions that might be available with respect to the Company
    or the Company&#146;s underlying
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-1
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h59905h5990505.jpg" alt="(UBS LOGO)">
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    business decision to effect the Transaction. Our opinion does
    not constitute a recommendation to any shareholder as to how
    such shareholder should vote or make any election or otherwise
    act with respect to the Transaction. At your direction, we have
    not been asked to, nor do we, offer any opinion as to the terms,
    other than the Merger Consideration to the extent expressly
    specified herein, of the Agreement or the form of the
    Transaction. In addition, we express no opinion as to the
    fairness of the amount or nature of any compensation to be
    received by any officers, directors or employees of any parties
    to the Transaction, or any class of such persons, relative to
    the Merger Consideration. We express no opinion as to what the
    value of the Trust&#160;Units will be when issued pursuant to
    the Transaction or the prices at which the Trust&#160;Units or
    Company Common Stock will trade at any time. In rendering this
    opinion, we have assumed, with your consent, that (i)&#160;the
    final executed form of the Agreement will not differ in any
    material respect from the draft that we have reviewed,
    (ii)&#160;Precision, Precision Corporation, Merger Sub and the
    Company will comply with all material terms of the Agreement,
    and (iii)&#160;the Transaction will be consummated in accordance
    with the terms of the Agreement without any adverse waiver or
    amendment of any material term or condition thereof. We have
    also assumed that all governmental, regulatory or other consents
    and approvals necessary for the consummation of the Transaction
    will be obtained without any material adverse effect on the
    Company, Precision or the Transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In arriving at our opinion, we have, among other things:
    (i)&#160;reviewed certain publicly available business and
    financial information relating to the Company and Precision;
    (ii)&#160;reviewed certain internal financial information and
    other data relating to the business and financial prospects of
    the Company that were not publicly available, including
    financial forecasts and estimates prepared by the management of
    the Company that you have directed us to utilize for purposes of
    our analysis; (iii)&#160;reviewed certain internal financial
    information and other data relating to the business and
    financial prospects of Precision that were not publicly
    available, including financial forecasts and estimates prepared
    by the management of Precision, as adjusted by the management of
    the Company, that you have directed us to utilize for purposes
    of our analysis; (iv)&#160;reviewed certain estimates of
    synergies prepared by the management of the Company that were
    not publicly available that you have directed us to utilize for
    purposes of our analysis; (v)&#160;conducted discussions with
    members of the senior managements of the Company and Precision
    concerning the businesses and financial prospects of the Company
    and Precision; (vi)&#160;reviewed publicly available financial
    and stock market data with respect to certain other companies we
    believe to be generally relevant; (vii)&#160;compared the
    financial terms of the Transaction with the publicly available
    financial terms of certain other transactions we believe to be
    generally relevant; (viii)&#160;reviewed current and historical
    market prices of Company Common Stock and Trust&#160;Units;
    (ix)&#160;considered certain pro forma effects of the
    Transaction on Precision&#146;s financial statements;
    (x)&#160;reviewed the Agreement; and (xi)&#160;conducted such
    other financial studies, analyses and investigations, and
    considered such other information, as we deemed necessary or
    appropriate. At your request, we have contacted third parties to
    solicit indications of interest in a possible transaction with
    the Company and held discussions with certain of these parties
    prior to the date hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our review, with your consent, we have
    assumed and relied upon, without independent verification, the
    accuracy and completeness in all material respects of the
    information provided to or reviewed by us for the purpose of
    this opinion. In addition, with your consent, we have not made
    any independent evaluation or appraisal of any of the assets or
    liabilities (contingent or otherwise) of the Company or
    Precision, nor have we been furnished with any such evaluation
    or appraisal. With respect to the financial forecasts,
    estimates, synergies and pro forma effects referred to above, we
    have assumed, at your direction, that they have been reasonably
    prepared on a basis reflecting the best currently available
    estimates and judgments of the management of each company as to
    the future financial performance of their respective company and
    such synergies and pro forma effects. In addition, we have
    assumed with your approval that the financial forecasts and
    estimates, including synergies, referred to above will be
    achieved at the times and in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-2
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h59905h5990505.jpg" alt="(UBS LOGO)">
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the amounts projected. We also have assumed, with your consent,
    that the Transaction will qualify for U.S.&#160;federal income
    tax purposes as a reorganization within the meaning of
    Section&#160;368(a) of the Internal Revenue Code of 1986, as
    amended (the &#147;Code&#148;), and that Precision will satisfy
    all the requirements of the &#147;active trade or business
    test&#148; under
    <FONT style="white-space: nowrap">Section&#160;1.367(a)-3(c)(3)</FONT>
    of the regulations promulgated by the United States Treasury
    Department under the Code at the consummation of the
    Transaction. In addition, we have assumed, with your consent,
    that Precision will constitute a Business Trust under the
    Canadian Tax Act until January&#160;1, 2011. Our opinion is
    necessarily based on economic, monetary, market and other
    conditions as in effect on, and the information available to us
    as of, the date hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based upon and subject to the foregoing, it is our opinion that,
    as of the date hereof, the Merger Consideration, taken in the
    aggregate, to be received by holders of Company Common Stock in
    the Transaction is fair, from a financial point of view, to such
    holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This opinion is provided for the benefit of the Board of
    Directors in connection with, and for the purpose of, its
    evaluation of the Transaction.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Very truly yours,
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ UBS Securities LLC
</DIV>

<DIV style="font-size: 3pt; margin-left: 45%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    UBS Securities LLC
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-3
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNEX&#160;D</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Article&#160;5.12
    of the Texas Business Corporation Act
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Art. 5.12.
    PROCEDURE FOR DISSENT BY SHAREHOLDERS AS TO SAID CORPORATE
    ACTIONS.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A.&#160;Any shareholder of any domestic corporation who has the
    right to dissent from any of the corporate actions referred to
    in Article&#160;5.11 of this Act may exercise that right to
    dissent only by complying with the following procedures:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)(a) With respect to proposed corporate action that is
    submitted to a vote of shareholders at a meeting, the
    shareholder shall file with the corporation, prior to the
    meeting, a written objection to the action, setting out that the
    shareholder&#146;s right to dissent will be exercised if the
    action is effective and giving the shareholder&#146;s address,
    to which notice thereof shall be delivered or mailed in that
    event. If the action is effected and the shareholder shall not
    have voted in favor of the action, the corporation, in the case
    of action other than a merger, or the surviving or new
    corporation (foreign or domestic) or other entity that is liable
    to discharge the shareholder&#146;s right of dissent, in the
    case of a merger, shall, within ten (10)&#160;days after the
    action is effected, deliver or mail to the shareholder written
    notice that the action has been effected, and the shareholder
    may, within ten (10)&#160;days from the delivery or mailing of
    the notice, make written demand on the existing, surviving, or
    new corporation (foreign or domestic) or other entity, as the
    case may be, for payment of the fair value of the
    shareholder&#146;s shares. The fair value of the shares shall be
    the value thereof as of the day immediately preceding the
    meeting, excluding any appreciation or depreciation in
    anticipation of the proposed action. In computing the fair value
    of the shares under this article, consideration must be given to
    the value of the corporation as a going concern without
    including in the computation of value any control premium, any
    minority discount, or any discount for lack of marketability. If
    the corporation has different classes or series of shares, the
    relative rights and preferences of and limitations placed on the
    class or series of shares, other than relative voting rights,
    held by the dissenting shareholder must be taken into account in
    the computation of value. The demand shall state the number and
    class of the shares owned by the shareholder and the fair value
    of the shares as estimated by the shareholder. Any shareholder
    failing to make demand within the ten (10)&#160;day period shall
    be bound by the action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;With respect to proposed corporate action that is
    approved pursuant to Section&#160;A of Article&#160;9.10 of this
    Act, the corporation, in the case of action other than a merger,
    and the surviving or new corporation (foreign or domestic) or
    other entity that is liable to discharge the shareholder&#146;s
    right of dissent, in the case of a merger, shall, within ten
    (10)&#160;days after the date the action is effected, mail to
    each shareholder of record as of the effective date of the
    action notice of the fact and date of the action and that the
    shareholder may exercise the shareholder&#146;s right to dissent
    from the action. The notice shall be accompanied by a copy of
    this Article and any articles or documents filed by the
    corporation with the Secretary of State to effect the action. If
    the shareholder shall not have consented to the taking of the
    action, the shareholder may, within twenty (20)&#160;days after
    the mailing of the notice, make written demand on the existing,
    surviving, or new corporation (foreign or domestic) or other
    entity, as the case may be, for payment of the fair value of the
    shareholder&#146;s shares. The fair value of the shares shall be
    the value thereof as of the date the written consent authorizing
    the action was delivered to the corporation pursuant to
    Section&#160;A of Article&#160;9.10 of this Act, excluding any
    appreciation or depreciation in anticipation of the action. The
    demand shall state the number and class of shares owned by the
    dissenting shareholder and the fair value of the shares as
    estimated by the shareholder. Any shareholder failing to make
    demand within the twenty (20)&#160;day period shall be bound by
    the action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Within twenty (20)&#160;days after receipt by the
    existing, surviving, or new corporation (foreign or domestic) or
    other entity, as the case may be, of a demand for payment made
    by a dissenting shareholder in accordance with
    Subsection&#160;(1) of this Section, the corporation (foreign or
    domestic) or other entity shall deliver or mail to the
    shareholder a written notice that shall either set out that the
    corporation (foreign or domestic) or other entity accepts the
    amount claimed in the demand and agrees to pay that amount
    within ninety (90)&#160;days after the date on which the action
    was effected, and, in the case of shares represented by
    certificates, upon the surrender of the certificates duly
    endorsed, or shall contain an
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    D-1
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    estimate by the corporation (foreign or domestic) or other
    entity of the fair value of the shares, together with an offer
    to pay the amount of that estimate within ninety (90)&#160;days
    after the date on which the action was effected, upon receipt of
    notice within sixty (60)&#160;days after that date from the
    shareholder that the shareholder agrees to accept that amount
    and, in the case of shares represented by certificates, upon the
    surrender of the certificates duly endorsed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;If, within sixty (60)&#160;days after the date on which
    the corporate action was effected, the value of the shares is
    agreed upon between the shareholder and the existing, surviving,
    or new corporation (foreign or domestic) or other entity, as the
    case may be, payment for the shares shall be made within ninety
    (90)&#160;days after the date on which the action was effected
    and, in the case of shares represented by certificates, upon
    surrender of the certificates duly endorsed. Upon payment of the
    agreed value, the shareholder shall cease to have any interest
    in the shares or in the corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    B.&#160;If, within the period of sixty (60)&#160;days after the
    date on which the corporate action was effected, the shareholder
    and the existing, surviving, or new corporation (foreign or
    domestic) or other entity, as the case may be, do not so agree,
    then the shareholder or the corporation (foreign or domestic) or
    other entity may, within sixty (60)&#160;days after the
    expiration of the sixty (60)&#160;day period, file a petition in
    any court of competent jurisdiction in the county in which the
    principal office of the domestic corporation is located, asking
    for a finding and determination of the fair value of the
    shareholder&#146;s shares. Upon the filing of any such petition
    by the shareholder, service of a copy thereof shall be made upon
    the corporation (foreign or domestic) or other entity, which
    shall, within ten (10)&#160;days after service, file in the
    office of the clerk of the court in which the petition was filed
    a list containing the names and addresses of all shareholders of
    the domestic corporation who have demanded payment for their
    shares and with whom agreements as to the value of their shares
    have not been reached by the corporation (foreign or domestic)
    or other entity. If the petition shall be filed by the
    corporation (foreign or domestic) or other entity, the petition
    shall be accompanied by such a list. The clerk of the court
    shall give notice of the time and place fixed for the hearing of
    the petition by registered mail to the corporation (foreign or
    domestic) or other entity and to the shareholders named on the
    list at the addresses therein stated. The forms of the notices
    by mail shall be approved by the court. All shareholders thus
    notified and the corporation (foreign or domestic) or other
    entity shall thereafter be bound by the final judgment of the
    court.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C.&#160;After the hearing of the petition, the court shall
    determine the shareholders who have complied with the provisions
    of this Article and have become entitled to the valuation of and
    payment for their shares, and shall appoint one or more
    qualified appraisers to determine that value. The appraisers
    shall have power to examine any of the books and records of the
    corporation the shares of which they are charged with the duty
    of valuing, and they shall make a determination of the fair
    value of the shares upon such investigation as to them may seem
    proper. The appraisers shall also afford a reasonable
    opportunity to the parties interested to submit to them
    pertinent evidence as to the value of the shares. The appraisers
    shall also have such power and authority as may be conferred on
    Masters in Chancery by the Rules of Civil Procedure or by the
    order of their appointment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    D.&#160;The appraisers shall determine the fair value of the
    shares of the shareholders adjudged by the court to be entitled
    to payment for their shares and shall file their report of that
    value in the office of the clerk of the court. Notice of the
    filing of the report shall be given by the clerk to the parties
    in interest. The report shall be subject to exceptions to be
    heard before the court both upon the law and the facts. The
    court shall by its judgment determine the fair value of the
    shares of the shareholders entitled to payment for their shares
    and shall direct the payment of that value by the existing,
    surviving, or new corporation (foreign or domestic) or other
    entity, together with interest thereon, beginning 91&#160;days
    after the date on which the applicable corporate action from
    which the shareholder elected to dissent was effected to the
    date of such judgment, to the shareholders entitled to payment.
    The judgment shall be payable to the holders of uncertificated
    shares immediately but to the holders of shares represented by
    certificates only upon, and simultaneously with, the surrender
    to the existing, surviving, or new corporation (foreign or
    domestic) or other entity, as the case may be, of duly endorsed
    certificates for those shares. Upon payment of the judgment, the
    dissenting shareholders shall cease to have any interest in
    those shares or in the corporation. The court shall allow the
    appraisers a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    D-2
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    reasonable fee as court costs, and all court costs shall be
    allotted between the parties in the manner that the court
    determines to be fair and equitable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    E.&#160;Shares acquired by the existing, surviving, or new
    corporation (foreign or domestic) or other entity, as the case
    may be, pursuant to the payment of the agreed value of the
    shares or pursuant to payment of the judgment entered for the
    value of the shares, as in this Article provided, shall, in the
    case of a merger, be treated as provided in the plan of merger
    and, in all other cases, may be held and disposed of by the
    corporation as in the case of other treasury shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    F.&#160;The provisions of this Article shall not apply to a
    merger if, on the date of the filing of the articles of merger,
    the surviving corporation is the owner of all the outstanding
    shares of the other corporations, domestic or foreign, that are
    parties to the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    G.&#160;In the absence of fraud in the transaction, the remedy
    provided by this Article to a shareholder objecting to any
    corporate action referred to in Article&#160;5.11 of this Act is
    the exclusive remedy for the recovery of the value of his shares
    or money damages to the shareholder with respect to the action.
    If the existing, surviving, or new corporation (foreign or
    domestic) or other entity, as the case may be, complies with the
    requirements of this Article, any shareholder who fails to
    comply with the requirements of this Article shall not be
    entitled to bring suit for the recovery of the value of his
    shares or money damages to the shareholder with respect to the
    action.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    D-3
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='316'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    NOT REQUIRED IN PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;20.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='317'></A><B><I><FONT style="font-family: 'Times New Roman', Times">INDEMNIFICATION
    OF TRUSTEES, DIRECTORS AND OFFICERS</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Precision&#146;s Declaration of Trust, each trustee of
    Precision, each former trustee of Precision, each officer of
    Precision and each former officer of Precision shall be entitled
    to be and shall be indemnified and reimbursed out of the assets
    of Precision in respect of any and all taxes, penalties or
    interest in respect of unpaid taxes or other governmental
    charges imposed upon the trustee or officer in consequence of
    such person&#146;s performance of such person&#146;s duties
    under the Declaration of Trust and in respect of any and all
    costs, charges and expenses, including amounts paid to settle an
    action or satisfy a judgment, reasonably incurred in respect of
    any civil, criminal or administrative action or proceeding to
    which the trustee, former trustee, officer or former officer is
    made a party by reason of being or having been a trustee or
    officer of Precision or, at the request of Precision, a
    director, trustee or officer of any affiliate of Precision;
    provided that a trustee, former trustee, officer of former
    officer shall not be indemnified out of the assets of Precision
    in respect of unpaid taxes or other governmental charges or in
    respect of such costs, charges and expenses that arise out of or
    as a result or in the course of his or her failure to act
    honestly and in good faith with a view to the best interests of
    Precision, or out of or as a result of or in the course of his
    or her failure to exercise that degree of care, diligence or
    skill that a reasonably prudent person would exercise in
    comparable circumstances or, in the case of a criminal or
    administrative action or proceeding that is enforced by monetary
    penalty, where such person did not have reasonable grounds for
    believing that his or her conduct was lawful. A trustee, former
    trustee, officer or former officer shall not be entitled to
    satisfy any right of indemnity or reimbursement granted herein,
    or otherwise existing under law, except out of the assets of
    Precision, and no holder of Precision trust units or other
    trustee or officer shall be personally liable to any person with
    respect to any claim for such indemnity or reimbursement as
    aforesaid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the administration agreement between Precision and
    PDC, PDC and any person who is serving or shall have served as a
    director, officer or employee of PDC shall be indemnified and
    saved harmless by Precision (in each case in relation to
    services provided in respect of or for the benefit of such
    party) from and against all losses, claims, damages,
    liabilities, obligations, costs and expenses (including
    judgments, fines, penalties amounts paid in settlement and
    counsel and accountants&#146; fees) of whatsoever kind and
    nature incurred by, borne by or asserted against any of such
    indemnified parties in any way arising from or related in any
    manner to the administration agreement or the provision of
    services thereunder, unless such indemnified party is found
    liable for or guilty of fraud, willful default or gross
    negligence
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Business Corporations Act (Alberta) (the
    &#147;ABCA&#148;), PDC may indemnify a present or former
    director or officer or a person who acts or acted at PDC&#146;s
    request as a director or officer of a body corporate of which
    PDC is or was a shareholder or creditor, and his or her heirs
    and legal representatives, against all costs, charges and
    expenses, including an amount paid to settle an action or
    satisfy a judgment, reasonably incurred by him or her in respect
    of any civil, criminal or administrative action or proceeding to
    which he or she is made a party by reason of being or having
    been a director or officer of PDC or that body corporate, if the
    director or officer acted honestly and in good faith with a view
    to the best interests of PDC, and, in the case of a criminal or
    administrative action or proceeding that is enforced by a
    monetary penalty, had reasonable grounds for believing that his
    or her conduct was lawful. Such indemnification may be in
    connection with a derivative action only with court approval. A
    director or officer is entitled to indemnification from PDC as a
    matter of right if he or she was substantially successful on the
    merits in the person&#146;s defense of the action or proceeding,
    fulfilled the conditions set forth above, and is fairly and
    reasonably entitled to indemnify.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The by-laws of PDC provide that, subject to the limitations
    contained in the ABCA, PDC shall indemnify a director or
    officer, a former director or officer, or a person who acts or
    acted at PDC&#146;s request as a director or officer of a body
    corporate of which PDC is or was a shareholder or creditor (or a
    person who undertakes or has undertaken any liability on behalf
    of PDC or any such body corporate), and his or her heirs and
    legal
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    representatives, against all costs, charges and expenses,
    including an amount paid to settle an action or satisfy a
    judgment, reasonably incurred by him or her in respect of any
    civil, criminal or administrative action or proceeding to which
    he or she is made a party by reason of being or having been a
    director or officer of PDC or such body corporate, if he or she
    acted honestly and in good faith with a view to the best
    interests of PDC; and, in the case of a criminal or
    administrative action or proceeding that is enforced by a
    monetary penalty, he or she had reasonable grounds for believing
    that his or her conduct was lawful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The by-laws of PDC provide that PDC may, subject to the
    limitations contained in the ABCA, purchase and maintain such
    insurance for the benefit of its directors and officers as such,
    as the board of directors of PDC may from time to time determine.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;21.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='318'></A><B><I><FONT style="font-family: 'Times New Roman', Times">EXHIBITS&#160;AND
    FINANCIAL STATEMENT SCHEDULES</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(a)&#160;Exhibits</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Document</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Agreement and Plan of Merger dated August&#160;24, 2008, among
    Grey Wolf, Inc., Precision Drilling Trust, Precision Drilling
    Corporation and Precision Lobos Corporation dated
    August&#160;24, 2008 (included as Annex&#160;A to the proxy
    statement/prospectus forming a part of this registration
    statement and incorporated herein by reference)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Declaration of Trust of Precision Drilling Trust (incorporated
    by reference to Exhibit&#160;1 to
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    filed by Precision with the SEC on November&#160;4, 2005)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Opinion of Bennett Jones LLP as to the validity of the
    trust units of Precision Drilling Trust being registered
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Opinion of Mayer Brown LLP as to certain United States
    federal income tax matters
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Opinion of Felesky Flynn LLP as to certain Canadian
    income tax matters
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Voting Agreement (included as Annex&#160;B to the proxy
    statement/prospectus forming a part of this registration
    statement and incorporated herein by reference)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Subsidiaries of registrant (incorporated by reference to
    Precision&#146;s Annual Report on Form
    <FONT style="white-space: nowrap">40-F</FONT> for the
    year ended December&#160;31, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Mayer Brown LLP, US counsel to Precision Drilling
    Trust (included as part of its opinion filed as Exhibit&#160;8.1
    hereto)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *23
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Bennett Jones LLP, Canadian counsel to Precision
    Drilling Trust (included as part of its opinion filed as
    Exhibit&#160;5.1 hereto)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *23
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Felesky Flynn LLP, Canadian counsel to Precision
    Drilling Trust (included as part of its opinion filed as
    Exhibit&#160;8.2 hereto)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of KPMG LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of KPMG LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *99
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of proxy materials for the Grey Wolf, Inc. special meeting
    of shareholders
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of UBS
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of letter of transmittal and form of election
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Commitment Letter dated August&#160;24, 2008, from Royal Bank of
    Canada, RBC Capital Markets, Deutsche Bank AG Cayman Islands
    Branch, Deutsche Bank Securities Inc., HSBC Bank Canada, HSBC
    Bank USA, National Association and The Toronto-Dominion Bank to
    Precision Drilling Corporation.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;22.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='120'></A><B><I><FONT style="font-family: 'Times New Roman', Times">UNDERTAKINGS</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;To file, during any period in which offers or sales are
    being made, a post-effective amendment to this registration
    statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;to include any prospectus required by
    section&#160;10(a)(3) of the Securities Act;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;to reflect in the prospectus any facts or events
    arising after the effective date of the registration statement
    (or the most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information in the registration statement.
    Notwithstanding the foregoing, any increase or decrease in
    volume of securities offered (if the total dollar value of
    securities offered would not exceed that which was registered)
    and any deviation from the low or high end of the estimated
    maximum offering range may be reflected in the form of
    prospectus filed with the Commission pursuant to
    Rule&#160;424(b) if, in the aggregate, the changes in volume and
    price represent no more than a 20% change in the maximum
    aggregate offering price set forth in the &#147;Calculation of
    Registration Fee&#148; table in the effective registration
    statement; and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;to include any material information with respect to
    the plan of distribution not previously disclosed in the
    registration statement or any material change to such
    information in the registration statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The undersigned registrant hereby undertakes that, for
    purposes of determining any liability under the Securities Act
    of 1933, each filing of the registrant&#146;s annual report
    pursuant to section&#160;13(a) or section&#160;15(d) of the
    Securities Exchange Act of 1934 (and, where applicable, each
    filing of an employee benefit plan&#146;s annual report pursuant
    to section&#160;15(d) of the Securities Exchange Act of
    1934)&#160;that is incorporated by reference in the registration
    statement shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
    bona fide offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;(1)&#160;The undersigned registrant hereby undertakes
    as follows: that prior to any public reoffering of the
    securities registered hereunder through use of a prospectus
    which is a part of this registration statement, by any person or
    party who is deemed to be an underwriter within the meaning of
    Rule&#160;145(c), the issuer undertakes that such reoffering
    prospectus will contain the information called for by the
    applicable registration form with respect to reofferings by
    persons who may be deemed underwriters, in addition to the
    information called for by the other Items of the applicable form.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The registrant undertakes that every prospectus
    (i)&#160;that is filed pursuant to the paragraph immediately
    preceding, or (ii)&#160;that purports to meet the requirements
    of section&#160;10(a)(3) of the Securities Act and is used in
    connection with an offering of securities subject to
    Rule&#160;415, will be filed as a part of an amendment to the
    registration statement and will not be used until such amendment
    is effective, and that, for purposes of determining any
    liability under the Securities Act of 1933, each such
    post-effective amendment shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Insofar as indemnification for liabilities arising
    under the Securities Act may be permitted to directors, officers
    and controlling persons of the registrant pursuant to the
    foregoing provisions, or otherwise, the Registrant has been
    advised that in the opinion of the Securities and Exchange
    Commission such indemnification is against public policy as
    expressed in the Securities Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the Registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Securities Act and
    will be governed by the final adjudication of such issue.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;The undersigned registrant hereby undertakes to
    (i)&#160;respond to requests for information that is
    incorporated by reference into the prospectus pursuant to
    Item&#160;4, 10(b), 11, or 13 of this Form, within one business
    day of receipt of such request, and to send the incorporated
    documents by first class mail or other equally prompt means; and
    (ii)&#160;to arrange or provide for a facility in the US for the
    purpose of responding to such requests. The information in
    subparagraph (i)&#160;above includes information contained in
    documents filed subsequent to the effective date of the
    registration statement through the date of responding to the
    request.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;The undersigned Registrant hereby undertakes to supply
    by means of a post-effective amendment all information
    concerning a transaction, and the company being acquired
    involved therein, that was not the subject of and included in
    the registration statement when it became effective.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<A name='321'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Calgary, Province of Alberta, on the
    24th&#160;day of September, 2008.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRECISION DRILLING TRUST, by its administrator, Precision
    Drilling Corporation</B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="3%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Douglas
    J. Strong</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 48%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Douglas J. Strong
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="48%"></TD>
    <TD width="7%"></TD>
    <TD width="45%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    Chief Financial Officer, Precision Drilling Corporation
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">POWER OF
    ATTORNEY</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each person whose signature appears below hereby appoints
    Douglas J. Strong and Kenneth J. Haddad as his or her
    attorney-in-fact with full power of substitution and
    resubstitution, severally, to execute in the name and on behalf
    of each such person, in any and all capacities, one or more
    amendments (including post-effective amendments) to this
    registration statement as the attorney-in-fact acting in the
    premises deems appropriate and to file any such amendment to
    this registration statement, with all exhibits thereto, and all
    other documents in connection therewith, with the
    U.S.&#160;Securities and Exchange Commission, granting unto said
    attorney-in-fact full power and authority to do and perform each
    and every act and thing requisite and necessary to be done, as
    fully for all intents and purposes as he or she might or could
    do in person, hereby ratifying and confirming all that said
    attorney-in-fact, or his substitute, may lawfully do or cause to
    be done by virtue hereof.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed below by the following
    persons in the capacities and on the dates indicated.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="36%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Kevin
    A. Neveu</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=178 length=0 -->Kevin
    A. Neveu
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chief Executive Officer,<BR>
    Precision Drilling Corporation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    September&#160;24, 2008
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Douglas
    J. Strong</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=178 length=0 -->Douglas
    J. Strong
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chief Financial Officer,<BR>
    Precision Drilling Corporation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    September&#160;24, 2008
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Leonard
    C. Gambles</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=178 length=0 -->Leonard
    Gambles
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chief Accounting Officer,<BR>
    Precision Drilling Corporation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    September&#160;24, 2008
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Robert
    J.S. Gibson</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=178 length=0 -->Robert
    J.S. Gibson
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Trustee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    September&#160;24, 2008
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Allen
    R. Hagerman, FCA</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=178 length=0 -->Allen
    R. Hagerman, FCA
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Trustee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    September&#160;24, 2008
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Patrick
    M. Murray</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=178 length=0 -->Patrick
    M. Murray
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Trustee
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    September&#160;24, 2008
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AUTHORIZED
    REPRESENTATIVE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of Section&#160;6(a) of the
    Securities Act of 1933, the Authorized Representative certifies
    that it is the duly authorized United States representative of
    Precision Drilling Trust and has duly caused this Registration
    Statement to be signed on its behalf by the undersigned, solely
    in its capacity as the duly authorized representative of
    Precision Drilling Trust in the United States, in the City of
    Houston, State of Texas, on this 24th&#160;day of September,
    2008.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Precision Drilling Corporation<BR>
    </B>(Authorized Representative)
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="3%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Kenneth
    J. Haddad</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 48%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 48%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Kenneth J. Haddad
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="48%"></TD>
    <TD width="7%"></TD>
    <TD width="45%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    Vice President, Precision Drilling Corporation
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='119'><B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></B></A>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Document</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Agreement and Plan of Merger dated August&#160;24, 2008, among
    Grey Wolf, Inc., Precision Drilling Trust, Precision Drilling
    Corporation and Precision Lobos Corporation dated
    August&#160;24, 2008 (included as Annex&#160;A to the proxy
    statement/prospectus forming a part of this registration
    statement and incorporated herein by reference)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Declaration of Trust of Precision Drilling Trust (incorporated
    by reference to Exhibit&#160;1 to
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    filed by Precision with the SEC on November&#160;4, 2005)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Opinion of Bennett Jones LLP as to the validity of the
    trust units of Precision Drilling Trust being registered
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Opinion of Mayer Brown LLP as to certain United States
    federal income tax matters
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Opinion of Felesky Flynn LLP as to certain Canadian
    income tax matters
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Voting Agreement (included as Annex&#160;B to the proxy
    statement/prospectus forming a part of this registration
    statement and incorporated herein by reference)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Subsidiaries of registrant (incorporated by reference to
    Precision&#146;s Annual Report on Form
    <FONT style="white-space: nowrap">40-F</FONT> for the
    year ended December&#160;31, 2007)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Mayer Brown LLP, US counsel to Precision Drilling
    Trust (included as part of its opinion filed as Exhibit&#160;8.1
    hereto)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *23
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Bennett Jones LLP, Canadian counsel to Precision
    Drilling Trust (included as part of its opinion filed as
    Exhibit&#160;5.1 hereto)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *23
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Felesky Flynn LLP, Canadian counsel to Precision
    Drilling Trust (included as part of its opinion filed as
    Exhibit&#160;8.2 hereto)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of KPMG LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of KPMG LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *99
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of proxy materials for the Grey Wolf, Inc. special meeting
    of shareholders
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of UBS
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of letter of transmittal and form of election
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Commitment Letter dated August&#160;24, 2008, from Royal Bank of
    Canada, RBC Capital Markets, Deutsche Bank AG Cayman Islands
    Branch, Deutsche Bank Securities Inc., HSBC Bank Canada, HSBC
    Bank USA, National Association and The Toronto-Dominion Bank to
    Precision Drilling Corporation.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 11%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=60 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    *&#160;To be filed by amendment
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>h59905exv5w1.htm
<DESCRIPTION>FORM OF OPINION OF BENNETT JONES LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv5w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;5.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Form of Opinion of Bennett Jones LLP&#093;</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;Bennett Jones LLP Letterhead&#093;</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#091;&nbsp;&nbsp;&nbsp; &#093;, 2008
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Precision Drilling Trust<BR>
4200, 150-6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue S.W.<BR>
Calgary, Alberta, Canada T2P 3Y7

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Re:&nbsp;&nbsp;&nbsp;&nbsp;Agreement and Plan of Merger (the &#147;Merger Agreement&#148;) dated as of August&nbsp;24, 2008 by and
between Precision Drilling Trust, Grey Wolf, Inc., Precision Drilling Corporation and Precision
Lobos Corporation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have acted as counsel to Precision Drilling Trust, an Alberta unincorporated open-ended
investment trust (&#147;Precision&#148;), in connection with the Registration Statement on Form&nbsp;F-4 (the
&#147;Registration Statement&#148;) (Registration No.&nbsp;&#091;&nbsp;&nbsp;&nbsp; &#093;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) filed by Precision with the Securities
and Exchange Commission (the &#147;Commission&#148;) under the Securities Act of 1933, as amended, relating
to the proposed issuance by Precision of trust units (the &#147;Units&#148;), in connection with the merger
(the &#147;Merger&#148;) contemplated by the Merger Agreement. Upon consummation of the Merger, each
shareholder of Grey Wolf, Inc., a Texas corporation (&#147;Grey Wolf&#148;), will be entitled to receive, in
exchange for each share of Grey Wolf common stock owned by such shareholder immediately prior to
the Merger, at the option of the shareholder: (a)&nbsp;0.4225 Units, plus cash in lieu of any fractional
units; or (b)&nbsp;US$9.02 in cash, subject to proration and all as more fully described in the
Registration Statement. This opinion is being delivered in connection with the Registration
Statement, to which this opinion appears as an exhibit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have examined the Registration Statement and the Merger Agreement, which has been filed with the
Commission as an annex to the Registration Statement. We also have examined the originals, or
duplicate, certified, conformed, telecopied or photostatic copies, of such corporate records,
agreements, documents and other instruments and have made such other investigations as we have
considered necessary or relevant for the purposes of this opinion. With respect to the accuracy of
factual matters material to this opinion, we have relied upon certificates or comparable documents
and representations of public officials and of officers and representatives of Precision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In giving this opinion, we have assumed the genuineness of all signatures, the legal capacity of
natural persons, the authenticity of all documents submitted to us as originals, the conformity to
authentic original documents of all documents submitted to us as duplicates, certified, conformed,
telecopied or photostatic copies and the authenticity of the originals of such latter documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based and relying upon the foregoing, and subject to the qualifications, assumptions and
limitations stated herein, we are of the opinion that when the Units shall have been issued in
accordance with the terms of the Merger Agreement, the Units will be validly issued, fully paid and
non-assessable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This opinion is based upon and limited to the laws of the Province of Alberta and the laws of
Canada applicable therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We hereby consent to the filing of this opinion letter as Exhibit&nbsp;5.1 to the Registration Statement
and to the use of our name under the caption &#147;Legal Matters&#148; in the proxy statement/prospectus
included in the Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Yours very truly,
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-8.1
<SEQUENCE>3
<FILENAME>h59905exv8w1.htm
<DESCRIPTION>FORM OF OPINION OF MAYER BROWN LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv8w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;8.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Form of Opinion of Mayer Brown LLP&#093;</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;Mayer Brown LLP Letterhead&#093;</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#091;&nbsp;&nbsp;&nbsp; &#093;, 2008
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Precision Drilling Trust<BR>
4200, 150-6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue S.W.<BR>
Calgary, Alberta, Canada T2P 3Y7

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Precision Drilling Trust/Grey Wolf, Inc. Merger</U></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as counsel to Precision Drilling
Trust, an Alberta unincorporated
open-ended investment trust (&#147;Precision&#148;), in connection with the Agreement and Plan of Merger,
dated as of August&nbsp;24, 2008 (including the exhibits thereto, the &#147;Agreement&#148;), by and among
Precision, Grey Wolf, Inc., a Texas corporation (&#147;Grey Wolf&#148;), Precision Drilling Corporation, an Alberta
corporation (&#147;PDC&#148;), and Precision Lobos Corporation, a Texas corporation and wholly-owned
subsidiary of Precision (&#147;Merger Sub&#148;), pursuant to which Grey Wolf shall be merged with and into
Merger Sub with Merger Sub surviving (the &#147;Merger&#148;) on the terms and conditions set forth therein.
The time at which the Merger becomes effective is hereafter referred to as the &#147;Effective Time.&#148;
For purposes of this opinion, capitalized terms used and not otherwise defined herein shall have
the meaning ascribed thereto in the Agreement. This opinion is being delivered in connection with
the filing of the registration statement on Form&nbsp;F-4 (Registration No.&nbsp;&#091;&nbsp;&nbsp;&nbsp; &#093;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) (as amended,
the &#147;Registration Statement&#148;) filed by Precision with the Securities and Exchange Commission under
the Securities Act of 1933, as amended, relating to the proposed Merger pursuant to the Agreement
and to which this opinion appears as an exhibit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have examined (i)&nbsp;the Agreement and (ii)&nbsp;the Registration Statement. In addition, we
have examined, and relied as to matters of fact upon, originals or copies, certified or otherwise
identified to our satisfaction, of such corporate records, agreements, documents and other
instruments and made such other inquiries as we have deemed necessary or appropriate to enable us
to render the opinion set forth below. In such examination, we have assumed the genuineness of all
signatures, the legal capacity of natural persons, the authenticity of all documents submitted to
us as originals, the conformity to original documents of all documents submitted to us as
duplicates or certified or conformed copies, and the authenticity of the originals of such latter
documents. We have not, however, undertaken any independent investigation of any factual matter set
forth in any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In rendering such opinion, we have assumed, with your permission, that (i)&nbsp;the Merger
will be effected in accordance with the Agreement, (ii)&nbsp;the statements concerning the Merger set
forth in the Agreement and the Registration Statement are true, complete and correct and will
remain true, complete and correct at all times up to and including the Effective Time, and
(iii)&nbsp;any representations made in the Agreement &#147;to the knowledge of&#148;, or based on the belief of
Precision, Grey Wolf, PDC and Merger Sub or similarly qualified are true, complete and correct and
will remain true, complete and correct at all times up to and including the Effective Time, in each
case without such qualification. We have also assumed that the parties have complied with and, if
applicable, will continue to comply with, the covenants contained in the Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio --></DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon the foregoing, and subject to the qualifications, assumptions and limitations
stated herein, we hereby confirm our opinion set forth in the discussion contained in the
Registration Statement under the caption &#147;The Merger&#151;Material United States Federal Income Tax
Consequences of the Merger.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We express our opinion herein only as to those matters specifically set forth above and
no opinion should be inferred as to the tax consequences of the Merger under any state, local or
foreign law, or with respect to other areas of United States federal taxation. We do not express
any opinion herein concerning any law other than the federal tax law of the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the filing of this opinion as Exhibit&nbsp;8.1 to the Registration
Statement, and to the references to our firm name therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Very truly yours,
</DIV>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-8.2
<SEQUENCE>4
<FILENAME>h59905exv8w2.htm
<DESCRIPTION>FORM OF OPINION OF FELESKY FLYNN LLP
<TEXT>
<HTML>
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<TITLE>exv8w2</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;8.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Form of Opinion of Felesky Flynn LLP&#093;</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;Felesky Flynn LLP Letterhead&#093;</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#091;&nbsp;&nbsp;&nbsp; &#093;, 2008
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Precision Drilling Trust<BR>
4200, 150-6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue S.W.<BR>
Calgary, Alberta, Canada T2P 3Y7

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dear Sirs/Mesdames:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Agreement and Plan of Merger, dated August&nbsp;24, 2008, by and among Grey Wolf, Inc., Precision
Drilling Trust, Precision Drilling Corporation and Precision Lobos Corporation.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have acted as Canadian tax counsel to Precision Drilling Trust,
an Alberta unincorporated open-ended investment trust (&#147;Precision&#148;), in connection with the Registration Statement on Form&nbsp;F-4 (the &#147;Registration
Statement&#148;) (Registration No.&nbsp;&#091;&nbsp;&nbsp;&nbsp; &#093;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) filed by Precision with the Securities and Exchange
Commission (the &#147;Commission&#148;) under the Securities Act of 1933, as amended, relating to the merger
(the &#147;Merger&#148;) contemplated by the Agreement and Plan of Merger, dated as of August&nbsp;24, 2008
(including the exhibits thereto, the &#147;Merger Agreement&#148;) by and among Precision, Grey Wolf, Inc., a Texas corporation (&#147;Grey Wolf&#148;), Precision
Drilling Corporation, an Alberta corporation and a direct, wholly-owned subsidiary of Precision
(&#147;PDC&#148;), and Precision Lobos Corporation, a Texas corporation and a direct wholly-owned subsidiary
of Precision (&#147;Precision Merger Sub&#148;). This opinion is being delivered in connection with the
Registration Statement, to which this opinion appears as an exhibit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have examined the Merger Agreement and the Registration Statement. In addition, we have examined
and relied as to matters of fact upon originals or copies, certified or otherwise identified to our
satisfaction, of such corporate records, agreements, documents and other instruments and made such
other inquiries as we have considered necessary or relevant for the purposes of this opinion. In
such examination, with respect to all documents examined by us, we have assumed the genuineness of
all signatures, the legal capacity of natural persons, the authenticity of all documents submitted
to us as originals, the conformity to authentic original documents of all documents submitted to us
as duplicates, certified, conformed, telecopied or photostatic copies, and the authenticity of the
originals of such latter documents. We have not, however, undertaken any independent investigation
of any factual matter set forth in any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In giving this opinion, we have assumed, with your permission, that (i)&nbsp;the Merger will be effected
in accordance with the Merger Agreement, (ii)&nbsp;the statements concerning the Merger set forth in the
Merger Agreement and the Registration Statement are true, complete and correct and will remain
true, complete and correct at all times up to and including the effective time of the Merger, and
(iii)&nbsp;any representations made in the Merger Agreement &#147;to the knowledge of&#148; or based on the belief
of Precision, PDC, Precision Merger Sub, or Grey Wolf or similarly qualified are true, complete and
correct and will remain true, complete and correct at all times up to and including the effective
time of the Merger, in each case without such qualification. We have also assumed that the parties
have complied with and, if applicable, will continue to comply with, the covenants contained in the
Merger Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our opinion is based on the <I>Income Tax Act </I>(Canada), as amended (the &#147;ITA&#148;), and the regulations
under the ITA, all specific proposals to amend the ITA and the regulations publicly announced by or
on behalf of the Minister of Finance prior to the date of this opinion and the administrative and
assessing practices of
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Canada Revenue Agency published in writing prior to the date hereof. If there is any subsequent
change in such law, regulations, proposals or practices or if there are subsequently any new
applicable administrative or assessing practices, this opinion may become inapplicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based and relying upon the foregoing and subject to the qualifications, assumptions and limitations
stated herein, we are of the opinion that the discussion contained in the Registration Statement
under the caption &#147;The Merger&#151;Material Canadian Federal Income Tax Consequences of the Merger and of Owning Precision Trust Units&#148;
constitutes, in all material respects, an accurate summary of the Canadian federal income tax
matters described therein subject to the qualifications, assumptions and limitations stated
therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We express our opinion herein only as to those matters of Canadian federal income taxation
specifically set forth under the caption &#147;The Merger&#151;Material Canadian Federal Income Tax
Consequences of the Merger and of Owning Precision Trust Units&#148; in the Registration Statement and no opinion should be inferred as to
the tax consequences of the Merger under any provincial, state, local or foreign law, or with
respect to any other areas of Canadian federal taxation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This opinion is based upon and limited to the laws of Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We hereby consent to the filing of this opinion as Exhibit&nbsp;8.2 to the Registration Statement and to
the references to our firm name therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Yours very truly,
</DIV>


&nbsp;




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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.4
<SEQUENCE>5
<FILENAME>h59905exv23w4.htm
<DESCRIPTION>CONSENT OF KPMG LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w4</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;23.4</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Consent of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors<BR>
Grey Wolf, Inc.:<BR>
&nbsp;

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the use of our reports dated February&nbsp;28, 2008, with respect to the consolidated
balance sheets of Grey Wolf, Inc. and subsidiaries as of December&nbsp;31, 2007 and 2006, and the
related consolidated statements of operations, shareholders&#146; equity and comprehensive income, and
cash flows for each of the years in the three-year period ended December&nbsp;31, 2007, and related
financial statement schedule and the effectiveness of internal control over financial reporting as
of December&nbsp;31, 2007, incorporated herein by reference and to the reference to our firm under the
heading &#147;Experts&#148; in the proxy statement/prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our report on the consolidated financial statements referred to above refers to a change in the
methods of accounting for uncertainty in income taxes as of January&nbsp;1, 2007 and accounting for
stock-based compensation plans as of January&nbsp;1, 2006.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ KPMG LLP
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Houston, Texas<BR>
September&nbsp;24, 2008

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.5
<SEQUENCE>6
<FILENAME>h59905exv23w5.htm
<DESCRIPTION>CONSENT OF KPMG LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w5</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;23.5</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Consent of Independent Registered Public Accounting Firm</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Board of Directors of Precision Drilling Corporation, as administrator of Precision Drilling
Trust
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the use of our reports dated March&nbsp;20, 2008, with respect to the consolidated balance
sheets of Precision Drilling Trust as of December&nbsp;31, 2007 and 2006, and the related consolidated
statements of earnings and retained earnings (deficit)&nbsp;and cash flow for each of the years in the
three-year period ended December&nbsp;31, 2007 and the effectiveness of internal control over financial
reporting as of December&nbsp;31, 2007, incorporated herein by reference and to the reference to our
firm under the heading &#147;Experts&#148; in the registration statement on Form F-4.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">/s/ KPMG LLP
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calgary, Canada<BR>
September&nbsp;24, 2008
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>7
<FILENAME>h59905exv99w2.htm
<DESCRIPTION>CONSENT OF UBS
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CONSENT OF UBS SECURITIES LLC</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We hereby consent to the use of our opinion letter dated August&nbsp;24, 2008 to the Board of Directors
of Grey Wolf, Inc. (&#147;Grey Wolf&#148;) included as Annex C to the proxy statement/prospectus which forms
part of the Registration Statement on Form F-4 of Precision Drilling Trust relating to the proposed
merger involving Grey Wolf, Precision Drilling Trust, Precision Drilling Corporation and Precision
Lobos Corporation and to the references to such opinion in such proxy statement/prospectus under
the captions &#147;SUMMARY OF THE PROXY STATEMENT / PROSPECTUS&#151;Opinion of Grey Wolf&#146;s Financial
Advisor&#148;, &#147;THE MERGER&#151;Background of the Merger&#148;, &#147;THE MERGER&#151;Grey Wolf&#146;s
Reasons for the Merger and Recommendation of Grey Wolf&#146;s Board
of Directors&#148;
and &#147;THE MERGER&#151;Opinion of Grey Wolf&#146;s Financial Advisor.&#148; In giving such consent, we do not admit
that we come within the category of persons whose consent is required under Section&nbsp;7 of the
Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange
Commission thereunder, nor do we thereby admit that we are experts with respect to any part of such
Registration Statement within the meaning of the term &#147;expert&#148; as used in the Securities Act of
1933, as amended, or the rules and regulations of the Securities and Exchange Commission
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">UBS Securities LLC<BR>
By: /s/ UBS Securities LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">September
24, 2008
</DIV>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>8
<FILENAME>h59905exv99w3.htm
<DESCRIPTION>FORM OF LETTER OF TRANSMITTAL AND FORM OF ELECTION
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w3</TITLE>
</HEAD>
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<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>EXHIBIT&#160;99.3</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>IN ORDER TO BE EFFECTIVE, THIS LETTER OF TRANSMITTAL AND
    FORM&#160;OF ELECTION MUST BE VALIDLY COMPLETED, DULY EXECUTED
    AND RETURNED TO THE DEPOSITARY, COMPUTERSHARE
    TRUST&#160;COMPANY, N.A. IT IS IMPORTANT THAT GREY WOLF
    SHAREHOLDERS VALIDLY COMPLETE, DULY EXECUTE AND RETURN THIS
    LETTER OF TRANSMITTAL AND FORM&#160;OF ELECTION ON A TIMELY
    BASIS IN ACCORDANCE WITH THE INSTRUCTIONS&#160;CONTAINED HEREIN
    AND IN THE PROXY STATEMENT/PROSPECTUS (THE &#147;PROXY
    STATEMENT/PROSPECTUS&#148;) OF GREY WOLF, INC. AND PRECISION
    DRILLING TRUST
    DATED&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PLEASE READ CAREFULLY THE PROXY STATEMENT/PROSPECTUS AND THE
    INSTRUCTIONS&#160;SET OUT BELOW BEFORE COMPLETING THIS LETTER OF
    TRANSMITTAL AND FORM&#160;OF ELECTION.</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 24pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GREY
    WOLF, INC.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LETTER OF
    TRANSMITTAL AND FORM&#160;OF ELECTION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="16%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="83%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TO:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    GREY WOLF, INC. (<B>&#147;Grey Wolf&#148;</B>)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    AND TO:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    PRECISION DRILLING TRUST (<B>&#147;Precision&#148;</B>)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    AND TO:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    PRECISION LOBOS CORPORATION (<B>&#147;Merger Sub&#148;</B>)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    AND TO:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    COMPUTERSHARE TRUST COMPANY, N.A. (the
    <B>&#147;Depositary&#148;</B>)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This letter of transmittal and form of election (the
    <B>&#147;Letter of Transmittal and Form of Election&#148;</B>)
    is for use by registered holders (<B>&#147;Grey Wolf
    Shareholder&#148;</B>) of shares of common stock (<B>&#147;Grey
    Wolf Shares&#148;</B>) of Grey Wolf, in connection with the
    proposed merger (the <B>&#147;Merger&#148;</B>) under the Texas
    Business Corporation Act and the Texas Corporation Law (the
    <B>&#147;Acts&#148;</B>) of Grey Wolf with and into Merger Sub,
    a wholly-owned subsidiary of Precision, with Merger Sub
    continuing as the surviving corporation, all as more fully
    described in the proxy statement/prospectus. Capitalized terms
    referred to herein but not otherwise defined have the same
    meanings as set forth in the proxy statement/prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order for this Letter of Transmittal and Form of Election to
    be validly completed, the undersigned Grey Wolf Shareholder is
    required to complete each of the steps indicated below that are
    applicable to it or to any beneficial owner of Grey Wolf Shares
    on whose behalf the undersigned Grey Wolf Shareholder holds Grey
    Wolf Shares. <B>Grey Wolf Shareholders whose Grey Wolf Shares
    are registered in the name of a broker, investment dealer, bank,
    trust company, depositary or other nominee should contact that
    nominee for instructions and assistance in delivering those Grey
    Wolf Shares to the Depositary.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STEP
    1&#160;&#151; DESCRIPTION OF GREY WOLF SHARES
    TRANSMITTED</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>All Grey Wolf Shareholders must complete this
    Step.</B>&#160;&#160;If space is insufficient, please attach a
    signed list (see Instruction&#160;4).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned registered Grey Wolf Shareholder hereby deposits
    with the Depositary, for exchange upon the Merger becoming
    effective, the enclosed certificate(s) representing Grey Wolf
    Shares, details of which are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="30%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    <B>Number of Grey Wolf Shares Deposited <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
    <B>Names and Addresses of<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Certificate<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    <B>with this Letter of Transmittal and <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
    <B>Registered Grey Wolf Shareholder(s)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number(s)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    <B>Form of Election</B>
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=246 length=0 -->(Name&#160;&#151;
    please print)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">

</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=246 length=0 -->(Address)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <BR>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=246 length=0 -->(Address)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <BR>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=246 length=0 -->(City
    /
    Country)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(Postal
    / Zip Code)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <BR>
    <B>TOTAL:<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENERAL
    INFORMATION FOR ALL GREY WOLF SHAREHOLDERS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">All Grey
    Wolf Shareholders are required to complete Steps 2 and 3 hereof
    and Steps 4 and 5, if applicable.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is understood that upon receipt and deposit of: (i)&#160;this
    Letter of Transmittal and Form of Election; (ii)&#160;the
    certificate(s) representing Grey Wolf Shares; and (iii)&#160;all
    other documentation as may be required by the Depositary, and
    following the effective date of the Merger, the Depositary will
    send to the undersigned in accordance with the instructions
    given below, either check(s) for cash the consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate(s) representing Precision trust units to which the
    undersigned is entitled under the Merger Agreement. The
    certificate(s) will be issued in the name of the Grey Wolf
    Shareholder as it appears on the face page hereof or in
    accordance with the instructions under Step&#160;4 or
    Step&#160;5, if completed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned Grey Wolf Shareholder covenants, represents and
    warrants that: (i)&#160;such shareholder is the registered owner
    of the Grey Wolf Shares being deposited; (ii)&#160;such Grey
    Wolf Shares are free and clear of all liens, charges,
    encumbrances, mortgages, security interests and adverse claims;
    (iii)&#160;the undersigned has full power and authority to
    execute and deliver this Letter of Transmittal and Form of
    Election and to deposit, sell, assign, transfer and deliver the
    Grey Wolf Shares and that, when the consideration is paid
    <FONT style="white-space: nowrap">and/or</FONT>
    received, none of Grey Wolf, Merger Sub or Precision or any
    successors thereto will be subject to any adverse claim in
    respect of such Grey Wolf Shares; (iv)&#160;all information
    inserted into this Letter of Transmittal and Form of Election by
    the undersigned is accurate; (v)&#160;the Grey Wolf Shares have
    not been sold, assigned or transferred nor has any agreement
    been entered into to sell, assign or transfer any such deposited
    Grey Wolf Shares to any other person; and (vi)&#160;unless the
    undersigned shall have withdrawn this Letter of Transmittal and
    Form of Election by notice in writing given to the Depository
    prior to the Effective Date, the undersigned will not transfer
    or permit to be transferred any of the deposited Grey Wolf
    Shares. The covenants, representations and warranties of the
    undersigned herein contained will survive the completion of the
    Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned acknowledges and agrees that this Letter of
    Transmittal and Form of Election shall not be construed as a
    proxy granted for use at the Grey Wolf special meeting and that
    this Letter of Transmittal and Form of Election shall not serve
    to revoke any proxy for use at the Grey Wolf special meeting
    previously conferred or agreed to be conferred by the
    undersigned (whether as agent, attorney-in-fact, attorney, proxy
    or otherwise) at any time with respect to the Grey&#160;Wolf
    Shares being deposited. No subsequent authority, whether as
    agent, attorney-in-fact, attorney, proxy or otherwise, except a
    proxy granted for use at the Grey Wolf special meeting, has been
    or will be granted with respect to the deposited Grey Wolf
    Shares. Each authority conferred or agreed to be conferred by
    the undersigned in this Letter of Transmittal and Form of
    Election survives the death or incapacity of the undersigned and
    each obligation of the undersigned hereunder is binding upon the
    heirs, legal representatives, successors and assigns of the
    undersigned.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following completion of the Merger, the undersigned instructs
    Precision, Merger Sub and the Depositary to mail check(s)
    representing cash consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate(s) representing Precision trust units promptly,
    after completion and return of this Letter of Transmittal and
    Form of Election to the Depositary, to the undersigned in
    accordance with the instructions provided below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Merger is not completed, the deposited Grey Wolf Shares
    and all other ancillary documents will be returned to the
    undersigned by mail at the address of the undersigned shown on
    the register of Grey Wolf Shareholders or in accordance with the
    instructions under Step 4 or Step 5, if completed. The
    undersigned acknowledges that Grey Wolf has no obligation
    pursuant to the instructions given below to transfer any Grey
    Wolf Shares from the name of the registered Grey Wolf
    Shareholder thereof if the Merger is not completed.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STEP
    2&#160;&#151; AUTHORIZATION</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">All Grey
    Wolf Shareholders must complete this Step.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned hereby represents to Grey Wolf, Precision,
    Merger Sub and the Depositary that it is the registered owner of
    the Grey Wolf Shares represented by the certificate(s) described
    above under &#147;Step 1&#160;&#151; Description of
    Grey&#160;Wolf Shares Transmitted&#148; and has good title to
    those Grey Wolf Shares. The certificate(s) representing such
    Grey Wolf Shares are enclosed. The undersigned hereby transmits
    the certificate(s) representing such Grey Wolf Shares to be
    dealt with in accordance with this Letter of Transmittal and
    Form of Election. The undersigned understands that, following
    receipt of a fully completed and duly executed copy of this
    Letter of Transmittal and Form of Election and the
    certificate(s) described above, check(s) for cash consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate(s) representing Precision trust units to which the
    undersigned is entitled pursuant to the Merger will be issued to
    the undersigned as soon as practicable after the effective date
    of the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="46%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD rowspan="15" align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: 0pt; margin-left: 5pt">
    <B>SECURITYHOLDER SIGNATURE(S)</B> <BR>
    This box must be signed by registered Grey Wolf Shareholder(s)
    exactly as the name(s) appear(s) on the Grey Wolf share
    certificate(s). <B>See Instruction&#160;5.</B> If the signature
    is by a trustee, executor, administrator, guardian,
    attorney-in-fact, agent, officer of a corporation or any other
    person acting in a fiduciary or representative capacity, please
    provide the information described in Instruction&#160;5.
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <B><FONT style="font-family: Wingdings; font-variant: normal">&#224;</FONT></B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Name:&#160;<FONT style="word-spacing: 200pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    (please print)
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Signature:&#160;<FONT style="word-spacing: 200pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Capacity
    (Title):&#160;<FONT style="word-spacing: 200pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
<DIV style="text-indent: -38pt; margin-left: 38pt">
    Address:&#160;<FONT style="word-spacing: 200pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 21pt">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    <DIV style="font-size: 1pt; margin-left: 0%; width: 97%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=234 length=228 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 21pt">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    <DIV style="font-size: 1pt; margin-left: 0%; width: 97%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=234 length=228 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Telephone:&#160;<FONT style="word-spacing: 200pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By signing above, and unless the undersigned has completed Step
    5 below, the undersigned requests that the check(s) for cash
    consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate(s) representing Precision trust units to which it is
    entitled, be delivered by first class mail to the undersigned at
    the address as shown on the register of Grey Wolf Shares
    maintained by the Depositary.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 7%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STEP
    3&#160;&#151; ELECTION OF CONSIDERATION TO BE RECEIVED</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Part&#160;A</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">All Grey
    Wolf Shareholders must complete this Part&#160;A of Step
    3.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned hereby elects to receive the following for each
    Grey Wolf Share transmitted (please check only one):
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="5%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="45%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="45%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>ELECTION<SUP style="font-size: 85%; vertical-align: text-top">(*)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>FURTHER INSTRUCTIONS</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    all cash consideration (on the basis of $9.02 per Grey Wolf
    Share)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    If the undersigned has checked this box, proceed to Step&#160;4.
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    or
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    all Precision trust units (on the basis of 0.4225 of a Precision
    trust unit per Grey Wolf Share)
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    If the undersigned has checked this box, proceed to Step&#160;4.
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    or
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    a combination of cash consideration and Precision trust units
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    If the undersigned has checked this box, proceed to Step 3 -
    Part B below and upon completion thereof, (i) proceed to Step 4,
    and (ii) see Schedule &#147;A&#148; and ensure all information
    requested therein is completed.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Note:</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <B>*&#160;&#160;</B></TD>
    <TD align="left">
    <B>If any of the elections above are made, this Letter of
    Transmittal and Form of Election must be received by the
    Depositary by 5:00&#160;p.m. (Houston, Texas time)
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008 (the &#147;Election Deadline&#148;). If the effective date
    of the Merger is delayed to a subsequent date, the Election
    Deadline will also be delayed and Precision and Grey Wolf will
    promptly announce any such delay and, when determined, the
    rescheduled election deadline. The Grey Wolf Shares of any Grey
    Wolf Shareholder who does not deposit with the Depositary a duly
    completed Letter of Transmittal and Form of Election prior to
    the Election Deadline, or otherwise fails to comply with the
    requirements of the Letter of Transmittal and Form of Election
    with respect to elections to receive cash consideration,
    Precision trust units or a combination thereof (each, a
    &#147;Non-Electing Grey Wolf Shareholder&#148;), shall be deemed
    to be &#147;No Election Shares&#148; pursuant to the Merger
    Agreement. To the extent that the amount of cash consideration
    that would be paid with respect to shares for which holders of
    Grey Wolf Shares have elected to receive cash, together with the
    aggregate amount of cash consideration payable to Grey Wolf
    dissenting shares, exceeds the $1.12&#160;billion maximum cash
    consideration to be paid by Precision in the Merger, No Election
    Shares will be converted into Precision trust units. However, to
    the extent that the amount of cash consideration that would be
    paid with respect to shares for which Grey Wolf Shareholders
    have elected to receive cash, together with the aggregate amount
    of cash consideration payable to Grey Wolf dissenting shares, is
    less than the $1.12&#160;billion maximum cash consideration
    amount, then No Election Shares shall be converted into cash up
    to the maximum cash consideration amount. If payment of the No
    Election Shares would cause the aggregate cash consideration to
    exceed the $1.12&#160;billion maximum cash consideration amount,
    then all No Election Shares will be converted pro rata into cash
    up to the maximum cash consideration amount, with the balance of
    such shares converted into Precision trust units.</B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Grey Wolf Shareholders should consult their financial and tax
    advisors prior to making an election as to the consideration
    they wish to receive pursuant to the Merger</B>.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STEP
    3&#160;&#151; ELECTION OF CONSIDERATION TO BE RECEIVED</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Part&#160;B</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Only Grey
    Wolf Shareholders who have elected to receive a combination of
    cash consideration and Precision trust units are required to
    complete this Part&#160;B of Step 3.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Grey Wolf Shareholder has elected to receive a
    combination of cash consideration and Precision trust units
    (where applicable) in Step 3&#160;&#151; Part&#160;A above, the
    undersigned is required to make the further election below
    specifying the number of Grey Wolf Shares submitted for each
    form of consideration that the undersigned wishes to receive for
    their Grey Wolf Shares. The number of Grey Wolf Shares inserted
    below should total the number of Grey Wolf Shares submitted with
    this Letter of Transmittal and Form of Election. For example, if
    a Grey Wolf Shareholder holds 1,000 Grey Wolf Shares and wishes
    to elect to receive one-half cash and one-half Precision trust
    units for its Grey Wolf Shares, the Grey Wolf Shareholder should
    insert the number 500 in the box corresponding to cash and the
    number 500 in the box corresponding to Precision trust units
    below. If the numbers inserted below do not total the number of
    Grey Wolf Shares submitted with this Letter of Transmittal and
    Form of Election, the numbers specified below will be pro-rated
    to total the number of Grey Wolf Shares submitted with this
    Letter of Transmittal and Form of Election. If a Grey Wolf
    Shareholder does not insert a number in the box corresponding to
    a form of consideration below, that Grey Wolf Shareholder will
    be deemed to have elected to not receive that form of
    consideration. If the Grey Wolf Shareholder does not complete
    this Part&#160;B, the Grey Wolf Shareholder will be deemed to
    have made an invalid election and will be treated as a
    Non-Electing Grey Wolf Shareholder as described in Step 3 -
    Part&#160;A above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE UNDERSIGNED, HAVING ELECTED TO RECEIVE A COMBINATION OF CASH
    CONSIDERATION, AND PRECISION TRUST&#160;UNITS IN STEP
    3&#160;&#151; PART&#160;A ABOVE, HEREBY ELECTS TO RECEIVE THE
    FOLLOWING OF EACH FORM&#160;OF CONSIDERATION FOR THE GREY WOLF
    SHARES TRANSMITTED:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="25%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Consideration
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Grey Wolf Shares
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="25%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Precision trust units
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Grey Wolf Shares
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Grey Wolf Shares
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The above allocations are subject to pro-rationing in accordance
    with the Merger Agreement whereby the maximum amount of cash to
    be paid to Grey Wolf Shareholders is $1.12&#160;billion. See the
    Note to Step 3-Part&#160;A.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STEP
    4&#160;&#151; HOLD FOR
    <FONT style="white-space: nowrap">PICK-UP</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 0pt; border-right: 1px solid #000000; padding-right: 0pt; border-bottom: 1px solid #000000; padding-bottom: 0pt; border-left: 1px solid #000000; padding-left: 0pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STEP
    5&#160;&#151; SPECIAL DELIVERY INSTRUCTIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Grey Wolf Shareholder must complete this step <U>only</U> if
    it wishes to have the check(s) for cash consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate(s) representing Precision trust units to which it is
    entitled under the Merger Agreement delivered to an address
    other than the current registered address of the Grey Wolf
    Shareholder as shown on the register maintained by Grey
    Wolf&#146;s transfer agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="46%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: 0pt; margin-left: 5pt">
    <B>SPECIAL DELIVERY INSTRUCTIONS<BR>
    See Instruction&#160;6.</B>
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-family: Wingdings; font-variant: normal">&#224;
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    Mail checks(s) and/or certificate(s) to
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Name:&#160;<FONT style="word-spacing: 200pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    (please print)
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Address:&#160;<FONT style="word-spacing: 190pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<FONT style="word-spacing: 186pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<FONT style="word-spacing: 186pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">If
    special delivery instructions have been selected, please proceed
    to Step 6.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STEP
    6&#160;&#151; SIGNATURE GUARANTEE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Grey Wolf Shareholder does <U>not</U> have to complete this
    step if either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;&#160;
</TD>
    <TD align="left">
    it is the registered Grey Wolf Shareholder of the certificate(s)
    representing the Grey Wolf Shares delivered with this Letter of
    Transmittal and Form of Election and has not completed Step 5
    requesting delivery to an address other than the current
    registered address of the Grey Wolf Shareholder,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;&#160;
</TD>
    <TD align="left">
    it is an &#147;<B>Eligible Institution</B>&#148; as defined in
    Instruction&#160;2.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>In all other cases, a Grey Wolf Shareholder must complete
    this Step 6 by having its signature on this Letter of
    Transmittal and Form of Election guaranteed by an Eligible
    Institution (both a signature guarantee and a medallion
    guarantee are required).</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="46%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD rowspan="2" align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: 0pt; margin-left: 5pt">
    <B>GUARANTEE OF SIGNATURE(S)<BR>
    </B>Authorized Signature on behalf of Eligible<BR>
    Institution.
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-family: Wingdings; font-variant: normal">&#224;
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Name:&#160;<FONT style="word-spacing: 200pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    (please print)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: 0pt; margin-left: 5pt">
    <B>See Instructions&#160;2 and 5.</B>
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Signature:&#160;<FONT style="word-spacing: 185pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Name&#160;of&#160;Firm:&#160;<FONT style="word-spacing: 167pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Address:&#160;<FONT style="word-spacing: 192pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<FONT style="word-spacing: 188pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<FONT style="word-spacing: 188pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<FONT style="word-spacing: 188pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Telephone:&#160;<FONT style="word-spacing: 183pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt">
    Dated:&#160;<FONT style="word-spacing: 202pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=234 length=0 -->
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INSTRUCTIONS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Use of
    Letter of Transmittal and Form of Election</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order for a valid election to be made, this Letter of
    Transmittal and Form of Election (or manually signed facsimile
    thereof), together with the accompanying certificate(s)
    representing Grey Wolf Shares and all other required documents,
    must be received by the Depositary at one of the addresses
    specified on the back page of this Letter of Transmittal and
    Form of Election by the Election Deadline, being 5:00&#160;p.m.
    (Houston, Texas time)
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008. If the effective date of the Merger is delayed to a
    subsequent date, the Election Deadline will also be delayed and
    Precision and Grey Wolf will promptly announce any such delay
    and, when determined, the rescheduled election deadline.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Guarantee
    of Signatures</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The signature guarantee on this Letter of Transmittal and Form
    of Election is not required if: (i)&#160;this Letter of
    Transmittal and Form of Election is signed by the registered
    Grey Wolf Shareholder of the Grey Wolf Shares transmitted by
    this Letter of Transmittal and Form of Election, unless the Grey
    Wolf Shareholder has completed &#147;Step 5&#160;&#151; Special
    Delivery Instructions&#148; in which case the signature
    guarantee is required; or (ii)&#160;the Grey Wolf Shares are
    transmitted for the account of an Eligible Institution. An
    &#147;<B>Eligible Institution</B>&#148; means an institution
    such as a commercial bank, a trust company, a credit union or a
    brokerage firm that participates in a Medallion program. A
    notary public seal is NOT acceptable. If you require additional
    information regarding the legal documentation, please contact
    Computershare at the number provided in Instruction&#160;10
    below. See also Instruction&#160;5.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Delivery
    of Letter of Transmittal and Form of Election and
    Certificates</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Letter of Transmittal and Form of Election is to be
    completed by Grey Wolf Shareholders who hold certificates
    representing Grey Wolf Shares to be submitted with this Letter
    of Transmittal and Form of Election. Certificates representing
    Grey Wolf Shares, as well as a properly completed and duly
    executed Letter of Transmittal and Form of Election in the
    appropriate form, should be received by the Depositary at the
    addresses set forth herein by the Election Deadline. <B>The
    method of delivery of certificates representing Grey Wolf Shares
    is at the option and risk of the person transmitting the
    certificates and delivery will be deemed to be effective only
    when such documents are actually received. Grey Wolf recommends
    that these documents be delivered to the Depositary at one of
    the addresses specified on the back page of this Letter of
    Transmittal and Form of Election via the use of registered mail,
    properly insured, with return receipt requested. This is highly
    recommended.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Inadequate
    Space</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the space provided in this Letter of Transmittal and Form of
    Election is inadequate, the certificate number(s) and the number
    of Grey Wolf Shares represented thereby should be listed on a
    separate list attached to this Letter of Transmittal and Form of
    Election, which separate list must be signed by the Grey Wolf
    Shareholder.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Signatures
    on Letter of Transmittal and Form of Election, Powers and
    Endorsements</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Letter of Transmittal and Form of Election is signed by
    the registered Grey Wolf Shareholder(s) of the Grey Wolf Shares
    transmitted by this Letter of Transmittal and Form of Election,
    the signature(s) must correspond with the name(s) as written on
    the face of the certificate(s) without alteration, enlargement
    or any change whatsoever. If any of the Grey Wolf Shares
    transmitted by this Letter of Transmittal and Form of Election
    are held of record by two or more joint owners, all the owners
    must sign this Letter of Transmittal and Form of Election. If
    any transmitted Grey Wolf Shares are registered in different
    names on several certificates, it will be necessary to complete,
    sign and submit as many separate Letters of Transmittal and Form
    of Election as there are different registrations or
    certificates. If this Letter of Transmittal and Form of Election
    or any certificates or powers are signed by a trustee, executor,
    administrator, guardian, attorney-in-fact, agent, officer of a
    corporation or any other person acting in a fiduciary or
    representative capacity, those persons should so indicate below
    the signature on the line marked &#147;Capacity (Title)&#148;
    when signing, and proper evidence satisfactory to the Depositary
    of their authority to act should be submitted.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Letter of Transmittal and Form of Election is signed by
    the registered Grey Wolf Shareholder(s) of the Grey Wolf Shares
    evidenced by certificates listed and submitted with this Letter
    of Transmittal and Form of Election, no endorsements of
    certificates or separate powers are required unless the check(s)
    for cash consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate(s) representing Precision trust units are to be
    delivered to a person other than the registered Grey Wolf
    Shareholder(s). Signatures on those certificates or powers must
    be guaranteed by an Eligible Institution. If this Letter of
    Transmittal and Form of Election is signed by a person other
    than the registered Grey Wolf Shareholder(s) of the Grey Wolf
    Shares evidenced by certificates listed and submitted by this
    Letter of Transmittal and Form of Election, the certificates
    must be endorsed or accompanied by appropriate share transfer or
    share transfer powers, in either case signed exactly as the name
    or names of the registered Grey Wolf Shareholder or Grey Wolf
    Shareholders appear on the certificates. Signatures on the
    certificates or powers must be guaranteed by an Eligible
    Institution (both a signature guarantee and a medallion
    guarantee are required).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Special
    Delivery Instructions</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the check(s) for cash consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate(s) representing Precision trust units are to be sent
    to an address other than the current address of the Grey Wolf
    Shareholder as shown on Grey Wolf&#146;s register, Step 5 should
    be completed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Lost
    Certificates</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Grey Wolf Share certificate has been lost or destroyed,
    please contact American Stock Transfer
    at&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.
    Requests for Assistance or Additional Copies
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Questions and requests for assistance may be directed to the
    Information Agent and additional copies of this Letter of
    Transmittal and Form of Election may be obtained without charge
    on request from the Information Agent at the telephone number or
    addresses set forth in this Letter of Transmittal and Form of
    Election. Grey Wolf Shareholders may also contact their local
    broker, dealer, commercial bank, chartered bank, trust company
    or other nominee for assistance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Defects
    or Irregularities in the Declaration and/or Deposit</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any defect or irregularity in any declaration made by a Grey
    Wolf Shareholder pursuant to this Letter of Transmittal and Form
    of Election will, subject to the discretion of Grey Wolf, and
    after the effective date, Precision and Merger Sub, invalidate
    such declaration and, as a result thereof, will mean that the
    Grey Wolf Shareholder will not receive the check(s) for cash
    consideration
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate(s) representing Precision trust units until a
    properly completed declaration is ultimately received. Grey
    Wolf, and after the effective date of the Merger, each of
    Precision and Merger Sub reserve the right, if either of them so
    elects, in its absolute discretion, to instruct the Depositary
    to waive any defect or irregularity contained in any Letter of
    Transmittal and Form of Election received by&#160;it.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Questions</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Grey Wolf Shareholder has any questions about the
    information contained in this Letter of Transmittal and Form of
    Election or requires assistance in completing this Letter of
    Transmittal and Form of Election, please contact [Insert
    Georgeson information and name] at:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <U><FONT style="font-size: 10pt">By
    Mail</FONT></U><FONT style="font-size: 10pt">:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <U><FONT style="font-size: 10pt">By Overnight
    Delivery</FONT></U><FONT style="font-size: 10pt">:
    </FONT>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    Computershare Trust&#160;Company,<BR>
    N.A.<BR>
    Attn Grey Wolf Inc<BR>
    P.O.&#160;Box&#160;859208<BR>
    Braintree MA
    <FONT style="white-space: nowrap">02185-9208</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Computershare Trust Company,<BR>
    N.A.<BR>
    Attn Grey Wolf Inc<BR>
    161 Bay State Drive<BR>
    Braintree MA 02184
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="center" valign="top">
    Toll Free: 1-800-561-3540
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">U.S. Grey
    Wolf Shareholders:
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT></FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to avoid backup withholding of U.S.&#160;federal income
    tax, a Grey Wolf Shareholder who is a resident of the
    U.S.&#160;for U.S.&#160;federal tax purposes or who is otherwise
    a U.S.&#160;person for U.S.&#160;federal income tax purposes is
    required to provide the Grey Wolf Shareholder&#146;s current
    taxpayer identification number (<B>&#147;TIN&#148;</B>) by
    completing the
    <FONT style="white-space: nowrap">Form&#160;W-9,</FONT>
    see Schedule &#147;B&#148;, certifying under penalties of
    perjury that the TIN provided on that form is correct (or that
    such Grey Wolf Shareholder is awaiting receipt of a TIN), that
    the Grey Wolf Shareholder is a U.S.&#160;person for
    U.S.&#160;federal income tax purposes, and that (i)&#160;the
    Grey Wolf Shareholder is exempt from backup withholding,
    (ii)&#160;the Grey Wolf Shareholder has not been notified by the
    Internal Revenue Service that the Grey Wolf Shareholder is
    subject to backup withholding as a result of failure to report
    all interest or dividends, or (iii)&#160;after being so
    notified, the Internal Revenue Service has notified the Grey
    Wolf Shareholder that the Grey Wolf Shareholder is no longer
    subject to backup withholding. If the correct TIN is not
    provided or if any other information is not correctly provided,
    a penalty of up to $500 may be imposed on the Grey Wolf
    Shareholder by the Internal Revenue Service and the Grey Wolf
    Shareholder may be subject to backup withholding at a rate of
    28%. Wilfully falsifying certifications or affirmations may
    result in criminal penalties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Backup withholding is not an additional U.S.&#160;income tax.
    Rather, the U.S.&#160;income tax liability of persons subject to
    backup withholding will be reduced by the amount of tax
    withheld. If backup withholding results in an overpayment of
    taxes, a refund may be obtained, provided that the required
    information is furnished in a timely manner to the Internal
    Revenue Service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The TIN for an individual U.S.&#160;citizen or resident is the
    individual&#146;s social security number. A Grey Wolf
    Shareholder who does not have a TIN may write &#147;Applied
    For&#148; in Part&#160;I of the
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    if such Grey Wolf Shareholder has applied for a TIN or intends
    to apply for a TIN in the near future. If the Grey Wolf
    Shareholder does not provide a TIN within 60&#160;days, the Grey
    Wolf Shareholder will be subject to backup withholding until a
    TIN is provided.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain Grey Wolf Shareholders (including, among others, all
    corporations and certain not-for-profit organizations) are not
    subject to these backup withholding requirements. To avoid
    possible erroneous backup withholding, a Grey Wolf Shareholder
    that is a U.S.&#160;person for U.S.&#160;federal income tax
    purposes and is exempt from backup withholding should complete
    the
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    by providing the Grey Wolf Shareholder&#146;s correct TIN,
    signing and dating the form, and checking the box &#147;Exempt
    from backup withholding&#148;. A Grey Wolf Shareholder should
    consult its tax advisor as to the Grey Wolf Shareholder&#146;s
    qualification for an exemption from backup withholding and the
    procedure for obtaining such exemption.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Grey Wolf Shareholders:
    <FONT style="white-space: nowrap">Form&#160;W-8</FONT></FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A holder of Grey Wolf Shares who is not a U.S.&#160;person for
    U.S.&#160;federal income tax purposes must submit the
    appropriate Form(s)
    <FONT style="white-space: nowrap">W-8.</FONT>
    Generally, a foreign individual or a foreign corporation that is
    not a pass-through entity for U.S.&#160;income tax purposes and
    is not engaged in a trade or business within the U.S.&#160;would
    provide a
    <FONT style="white-space: nowrap">Form&#160;W-8BEN.</FONT>
    A foreign entity that is a pass-through entity for
    U.S.&#160;federal income tax purposes and is not engaged in a
    trade or business within the U.S.&#160;would generally provide a
    <FONT style="white-space: nowrap">W-8BEN</FONT>
    <FONT style="white-space: nowrap">and/or</FONT> a
    <FONT style="white-space: nowrap">Form&#160;W-8IMY</FONT>
    (which may require additional
    <FONT style="white-space: nowrap">Forms&#160;W-8BEN</FONT>
    for its beneficial owners), depending on its particular
    circumstances. A foreign individual or a foreign entity that is
    engaged in a trade or business within the U.S.&#160;may be
    required to provide a
    <FONT style="white-space: nowrap">Form&#160;W-8ECI.</FONT>
    The
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    is enclosed herein, see Schedule &#147;B&#148;. The
    <FONT style="white-space: nowrap">Forms&#160;W-8IMY</FONT>
    and <FONT style="white-space: nowrap">W-8ECI</FONT>
    will be provided to Grey Wolf Shareholders upon request to the
    Depositary at one of the addresses specified on the back page of
    this Letter of Transmittal and Form of Election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Exempt persons are not subject to backup withholding. Grey Wolf
    Shareholders that are
    <FONT style="white-space: nowrap">non-U.S.&#160;residents</FONT>
    for U.S.&#160;federal income tax purposes may qualify as exempt
    persons by submitting
    <FONT style="white-space: nowrap">Form&#160;W-8BEN,</FONT>
    signed under penalties of perjury, certifying such Grey Wolf
    Shareholder&#146;s foreign status.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If backup withholding applies, 28% of certain payments to be
    made to the Grey Wolf Shareholder is required to be withheld.
    Backup withholding is not an additional tax. Rather, the
    U.S.&#160;tax liability of persons subject to backup withholding
    will be reduced by the amount of tax withheld. If withholding
    results in an overpayment of taxes, a refund may be obtained by
    filing a tax return with the Internal Revenue Service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>All Grey Wolf Shareholders are urged to consult their own tax
    advisors to determine which forms should be used and whether
    they are exempt from backup withholding.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">SCHEDULE
    &#147;A&#148;</FONT></U></B>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Depositary is:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Computershare
    Trust&#160;Company, N.A.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Deliver
    by Registered Mail or Overnight Mai to:</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="49%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <FONT style="font-size: 10pt">By Mail:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <FONT style="font-size: 10pt">By Overnight Delivery:
    </FONT>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    Computershare Trust&#160;Company,<BR>
    N.A.<BR>
    Attn Grey Wolf Inc<BR>
    P.O.&#160;Box&#160;859208<BR>
    Braintree MA
    <FONT style="white-space: nowrap">02185-9208</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Computershare Trust Company,<BR>
    N.A.<BR>
    Attn Grey Wolf Inc<BR>
    161 Bay State Drive<BR>
    Braintree MA 02184
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    Toll Free:
    <FONT style="white-space: nowrap">1-800-561-3540</FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>9
<FILENAME>h59905exv99w4.htm
<DESCRIPTION>COMMITMENT LETTER
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w4</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.4</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">ROYAL BANK OF CANADA <BR>
One Liberty Plaza <BR>
New York, New York 10006-1404
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH<BR>
DEUTSCHE BANK SECURITIES INC.<BR>
60 Wall Street<BR>
New York, New York 10005-2858</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">HSBC BANK CANADA <BR>
800-407 8th Avenue SW <BR>
Calgary, Alberta T2P 1E5
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">HSBC BANK USA, NATIONAL ASSOCIATION<BR>
452 Fifth Avenue<BR>
New York, New York 10018</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">THE TORONTO-DOMINION BANK<BR>
333 &#150; 7th Ave S.W., Suite&nbsp;910<BR>
Calgary, Alberta T2P 2Z1
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">August&nbsp;24, 2008
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">$1,200,000,000 Senior Secured Facilities<BR>
$400,000,000 Senior Unsecured Facility<BR>
<U>Commitment Letter</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Precision Drilling Corporation<BR>
150 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SW<BR>
Suite&nbsp;4200<BR>
Calgary, AB T2P 3Y7<BR>
Canada

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attention: Doug J. Strong

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Precision Drilling Corporation (&#147;<U>you</U>&#148; or the &#147;<U>Borrower</U>&#148;), a wholly-owned
subsidiary of Precision Drilling Trust (&#147;<U>Holdings</U>&#148;), has advised Royal Bank of Canada
(&#147;<U>Royal Bank</U>&#148;), RBC Capital Markets<SUP style="font-size: 85%; vertical-align: text-top">*</SUP> (&#147;<U>RBCCM</U>&#148;), Deutsche Bank AG Cayman
Islands Branch (&#147;<U>DBCI</U>&#148;), Deutsche Bank Securities Inc. (&#147;<U>DBSI</U>&#148;), HSBC Bank Canada
(&#147;<U>HSBC Canada</U>&#148;), HSBC Bank USA, National Association (&#147;<U>HSBC US</U>&#148;) and The
Toronto-Dominion Bank (&#147;<U>TD</U>&#148;; together with Royal Bank, RBCCM, DBCI, DBSI, HSBC Canada and
HSBC US, the &#147;<U>Commitment Parties</U>&#148;) that you intend to acquire the Target and consummate the
other transactions described in the introductory paragraph of Exhibit&nbsp;A hereto. Capitalized terms
used but not defined herein are used with the meanings assigned to them in said paragraph or in the
Exhibits attached hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RBCCM and DBSI are pleased to advise you that they are willing to act as the joint lead
arrangers and joint bookrunners for the Credit Facilities and each of Royal Bank, DBCI, HSBC
Canada,
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>RBC Capital Markets is a brand name for the investment
banking activities of Royal Bank of Canada and its affiliates.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">HSBC US and TD is pleased to advise you of its several commitment to provide the amount of
each of the Credit Facilities set forth next to its name in the table of commitments set forth in
Annex A hereto. This Commitment Letter and the Summaries of Terms and Conditions attached as
Exhibits&nbsp;A and B hereto (the &#147;<U>Term Sheets</U>&#148;), respectively, set forth the principal terms
and conditions on and subject to which Royal Bank, DBCI, HSBC Canada and TD are willing to make
available the Senior Secured Facilities and Royal Bank, DBCI and HSBC US are willing to make
available the Senior Unsecured Facility.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is agreed that RBCCM and DBSI will act as the joint lead arrangers and joint bookrunners in
respect of the Credit Facilities (in such capacities, the &#147;<U>Lead Arrangers</U>&#148;), that Royal
Bank will act as the sole administrative agent in respect of the Senior Secured Facilities, that
DBSI will act as the sole syndication agent in respect of the Senior Secured Facilities, that DBSI
will act as the sole administrative agent in respect of the Senior Unsecured Facility, that Royal
Bank will act as the sole syndication agent in respect of the Senior Unsecured Facility, that HSBC
Canada and TD will act as co-documentation agents in respect of the Senior Secured Facilities and
that HSBC US will act as documentation agent in respect of the Senior Unsecured Facility, with
RBCCM having left lead placement in any marketing materials used in connection with the Senior
Secured Facilities and DBSI having left lead placement in any marketing materials used in
connection with the Senior Unsecured Facility. You agree that, as a condition to the commitments
and agreements hereunder, no other agents, co-agents or arrangers will be appointed, no other
titles will be awarded and no compensation (other than that expressly contemplated by the Term
Sheets and Fee Letter referred to below) will be paid in connection with (a)&nbsp;the Senior Secured
Facilities unless you and the Commitment Parties holding a majority of the commitments hereunder in
respect of the Senior Secured Facilities shall so agree and (b)&nbsp;the Senior Unsecured Facility
unless you and the Commitment Parties holding a majority of the commitments hereunder in respect of
the Senior Unsecured Facility shall so agree.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to syndicate the Credit Facilities to a group of lenders (together with Royal Bank,
DBCI, HSBC Canada, HSBC US and TD, the &#147;<U>Lenders</U>&#148;) identified by us in consultation with
you. We intend to commence syndication efforts promptly, and you agree actively to assist us in
completing a syndication satisfactory to us. Such assistance shall include (a)&nbsp;your using
commercially reasonable efforts to ensure that the syndication efforts benefit from your existing
banking relationships and those of the Target, (b)&nbsp;direct contact between senior management and
advisors of Holdings, the Borrower and, to the extent reasonable and available, the Target and the
proposed Lenders (and your using commercially reasonable efforts to ensure such contact between the
senior management and advisors of the Target and the proposed Lenders), (c)&nbsp;as set forth in the
next paragraph, assistance from Holdings, the Borrower and, to the extent reasonable and available,
the Target (including the use of commercially reasonable efforts to cause the Target and its
subsidiaries and representatives and advisors to assist) in the preparation of materials to be used
in connection with the syndication (collectively, with the Term Sheets, the &#147;<U>Information
Materials</U>&#148;), (d)&nbsp;the hosting, with us and senior management of Holdings, the Borrower and, to
the extent reasonable and available, the Target, of one or more meetings of prospective Lenders
(and your using commercially reasonable efforts to ensure participation in such meetings by the
senior management and advisors of the Target) and (e)&nbsp;your providing the Lead Arrangers a
reasonable period of time to syndicate the Credit Facilities prior to the Closing Date, which in no
event shall be less than 30&nbsp;days from the date of delivery by the Borrower to the Lead Arrangers of
the Confidential Information Memoranda. The Commitment Parties acknowledge and agree that
completion of such syndication is not a condition precedent to their commitments hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will assist us in preparing Information Materials, including Confidential Information
Memoranda, for distribution to prospective Lenders. If requested, you also will assist us in
preparing an additional version of the Information Materials (the &#147;<U>Public-Side Version</U>&#148;) to
be used by prospective Lenders&#146; public-side employees and representatives (&#147;<U>Public-Siders</U>&#148;)
who do not wish to receive material
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">non-public information (within the meaning of United States federal securities laws) with
respect to Holdings, the Borrower, the Target, their respective affiliates and any of their
respective securities (&#147;<U>MNPI</U>&#148;) and who may be engaged in investment and other market
related activities with respect to any such entity&#146;s securities or loans. Before distribution of
any Information Materials, you agree to execute and deliver to us (i)&nbsp;a letter in which you
authorize distribution of the Information Materials to a prospective Lender&#146;s employees willing to
receive MNPI (&#147;<U>Private-Siders</U>&#148;) and (ii)&nbsp;a separate letter in which you authorize
distribution of the Public-Side Version to Public-Siders and represent that no MNPI is contained
therein. You also acknowledge that Commitment Party Public-Siders who are publishing debt analysts
may participate in any meetings held pursuant to clause (d)&nbsp;of the preceding paragraph;
<U>provided</U> that such analysts shall not publish any information obtained from such meetings
(i)&nbsp;until the syndication of the Credit Facilities has been completed upon the making of
allocations by the Lead Arrangers and the Lead Arrangers freeing the Credit Facilities to trade or
(ii)&nbsp;in violation of any confidentiality agreement between you and the relevant Commitment Party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower agrees that the following documents may be distributed to both Private-Siders and
Public-Siders, unless the Borrower advises the Lead Arrangers in writing (including by email)
within a reasonable time prior to their intended distribution that such materials should only be
distributed to Private-Siders: (a)&nbsp;administrative materials prepared by the Commitment Parties for
prospective Lenders (such as a lender meeting invitation, lender allocation, if any, and funding
and closing memoranda), (b)&nbsp;notification of changes in the terms of the Credit Facilities and (c)
other materials intended for prospective Lenders after the initial distribution of Information
Materials. If you advise us that any of the foregoing should be distributed only to
Private-Siders, then Public-Siders will not receive such materials without further discussions with
you.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower hereby authorizes the Commitment Parties to distribute drafts of definitive
documentation with respect to the Credit Facilities to Private-Siders and Public-Siders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Lead Arrangers, will manage, in consultation with you, HSBC Canada, HSBC US and TD, all
aspects of the syndication, including decisions as to the selection of institutions to be
approached and when they will be approached, when their commitments will be accepted, which
institutions will participate, the allocation of the commitments among the Lenders and the amount
and distribution of fees among the Lenders. The Lead Arrangers will have no responsibility other
than to arrange the syndication as set forth herein and in no event shall be subject to any
fiduciary or other implied duties. Additionally, the Borrower acknowledges and agrees that, as
Lead Arrangers, RBCCM and DBSI are not advising Holdings or the Borrower as to any legal, tax,
investment, accounting or regulatory matters in any jurisdiction. Each of Holdings and the
Borrower shall consult with its own advisors concerning such matters and shall be responsible for
making its own independent investigation and appraisal of the transactions contemplated hereby, and
none of the Lead Arrangers or the Commitment Parties shall have any responsibility or liability to
Holdings or the Borrower with respect thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To assist us in our syndication efforts, you agree promptly to prepare and provide to us all
information with respect to Holdings, the Borrower and the Target and their subsidiaries, the
Transaction and the other transactions contemplated hereby, including all financial information and
projections (the &#147;<U>Projections</U>&#148;), as we may reasonably request in connection with the
arrangement and syndication of the Credit Facilities, to the extent, in the case of information
concerning the Target, such information is reasonably available to the Borrower. You hereby
represent and covenant that (a)&nbsp;all information other than the Projections (the
&#147;<U>Information</U>&#148;) that has been or will be made available to us by you or any of your
representatives is or will be, when furnished, complete and correct in all material respects and
does not or will not, when furnished, contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements contained therein not materially
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">misleading in light of the circumstances under which such statements are made and (b)&nbsp;the
Projections that have been or will be made available to us by you or any of your representatives
have been or will be prepared in good faith based upon reasonable assumptions. You understand that
in arranging and syndicating the Credit Facilities we may use and rely on the Information and
Projections without independent verification thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As consideration for the commitments and agreements of the Commitment Parties hereunder, you
agree to cause to be paid the nonrefundable fees described in the Fee Letter dated the date hereof
and delivered herewith (the &#147;<U>Fee Letter</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Commitment Party&#146;s commitments and agreements hereunder are subject to: (a)&nbsp;since
December&nbsp;31, 2007, except as described in the Grey Wolf Reports (as defined in the Draft
Transaction Agreement (as defined in Exhibit&nbsp;C hereto)), there not occurring or becoming known to
such Commitment Party any event or occurrence that has had or caused or would reasonably be
expected to have or cause a Grey Wolf Material Adverse Effect (as defined in the Draft Transaction
Agreement), (b)&nbsp;such Commitment Party not becoming aware after the date hereof of any information
or other matter (including any matter relating to financial models and underlying assumptions
relating to the Projections) affecting Holdings, the Borrower, the Target or the Transaction that
in such Commitment Party&#146;s reasonable judgment is inconsistent in a material and adverse manner
with any such information or other matter disclosed to such Commitment Party prior to the date
hereof; (c)&nbsp;such Commitment Party&#146;s satisfaction that prior to and during the syndication of the
Credit Facilities there shall be no competing offering, placement or arrangement of any debt
securities (other than (i)&nbsp;the Senior Notes and (ii)&nbsp;convertible subordinated debentures and other
junior securities or bank financings to the extent the execution thereof is coordinated with the
syndication of the Credit Facilities to the reasonable satisfaction of the Arrangers and so long as
the proceeds thereof are used to reduce the commitments hereunder in respect of the Credit
Facilities) or bank financing (other than bilateral local lines of credit) by or on behalf of
Holdings, the Borrower, the Target or any of their affiliates; (d)&nbsp;the closing of the Credit
Facilities on or before February&nbsp;28, 2009 or such later date as may be agreed by the Commitment
Parties; and (e)&nbsp;the other conditions set forth or referred to in the Term Sheets. The terms and
conditions of the commitments hereunder and of the Credit Facilities are not limited to those set
forth herein and in the Term Sheets. Those matters that are not covered by the provisions hereof
and of the Term Sheets are subject to the approval and agreement of the Commitment Parties and the
Borrower, each acting reasonably.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Commitment Letter, the Fee Letter, the definitive
documentation relating to the Credit Facilities, or any other agreement or other undertaking
concerning the financing of the transactions contemplated hereby to the contrary, (a)&nbsp;the only
representations relating to the Target and its subsidiaries and their respective businesses the
making of which shall be a condition to availability of the Credit Facilities on the Closing Date,
shall be (i)&nbsp;such of the representations made by or on behalf of the Target in the Transaction
Agreement as are material to the interests of the Commitment Parties, but only to the extent that
the Borrower (or Holdings) has the right to terminate its obligations under the Transaction
Agreement as a result of a breach of such representations in the Transaction Agreement and (ii)&nbsp;the
Specified Representations (as defined below) and (b)&nbsp;the terms of the definitive documentation
relating to the Credit Facilities shall be in a form such that they do not impair availability of
the Credit Facilities on the Closing Date if the conditions set forth in this Commitment Letter
(including for the avoidance of doubt the exhibits and other attachments thereto) are satisfied (it
being understood that, to the extent any collateral referred to in Exhibit&nbsp;A under &#147;Collateral&#148; may
not be perfected by filing of UCC or PPSA financing statements or delivery of stock certificates,
if the perfection of the Administrative Agent&#146;s security interest in such collateral may not be
accomplished prior to the Closing Date without undue burden or expense, then the Administrative
Agent and the Borrower shall negotiate a reasonably satisfactory period following the Closing Date
in which the Borrower and the Guarantors (as defined in Exhibit&nbsp;A) shall be required to perfect the
interest in such collateral so that such
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">perfection of the interest in such collateral shall not constitute a condition precedent to
the availability of the Credit Facilities on the Closing Date). For purposes hereof, &#147;Specified
Representations&#148; means the representations and warranties set forth in the Term Sheets relating to
power and authority, due authorization, execution and delivery and the enforceability of the
definitive documentation relating to the Credit Facilities, no conflict with law or contractual
obligations, approvals and consents, use of proceeds, Federal Reserve margin regulations and the
Investment Company Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You agree (a)&nbsp;to indemnify and hold harmless the Commitment Parties, their affiliates and
their respective directors, employees, advisors, and agents (each, an &#147;indemnified person&#148;) from
and against any and all losses, claims, damages and liabilities to which any such indemnified
person may become subject arising out of or in connection with this Commitment Letter, the Credit
Facilities, the use of the proceeds thereof, the Transaction or any related transaction or any
claim, litigation, investigation or proceeding relating to any of the foregoing, regardless of
whether any indemnified person is a party thereto, and to reimburse each indemnified person upon
demand for any legal or other expenses incurred in connection with investigating or defending any
of the foregoing, <U>provided</U> that the foregoing indemnity will not, as to any indemnified
person, apply to losses, claims, damages, liabilities or related expenses to the extent they are
finally judicially determined to arise from the willful misconduct or gross negligence of such
indemnified person, and (b)&nbsp;to reimburse each Commitment Party and its affiliates on demand for all
reasonable out-of-pocket expenses (including due diligence expenses, syndication expenses,
consultant&#146;s fees and expenses, travel expenses, and reasonable fees, charges and disbursements of
one US counsel and one Canadian counsel and one local counsel, as necessary, in each relevant
jurisdiction, in each case, for all the Commitment Parties) incurred in connection with this
Commitment Letter, the Term Sheets, the Fee Letter, the Credit Facilities and any related
documentation (including this Commitment Letter and the definitive financing documentation) or the
administration, amendment, modification, waiver or enforcement thereof. No indemnified person
shall be liable for any damages arising from the use by others of Information or other materials
obtained through electronic, telecommunications or other information transmission systems, except
to the extent such damages are finally judicially determined to arise from the gross negligence or
willful misconduct of such indemnified person. In addition, no indemnified person shall be liable
for any special, indirect, consequential, exemplary or punitive damages in connection with the
Credit Facilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You acknowledge that each Commitment Party and its affiliates (the term &#147;Commitment Party&#148; as
used below in this paragraph being understood to include such affiliates) may be providing debt
financing, equity capital or other services (including financial advisory services) to other
companies in respect of which you may have conflicting interests regarding the transactions
described herein and otherwise. No Commitment Party will use confidential information obtained
from you by virtue of the transactions contemplated hereby or its other relationships with you in
connection with the performance by such Commitment Party of services for other companies, and no
Commitment Party will furnish any such information to other companies. You also acknowledge that
no Commitment Party has any obligation to use in connection with the transactions contemplated
hereby, or to furnish to you, confidential information obtained from other companies. You further
acknowledge that each of the Commitment Parties is a full service securities and financial firm and
each of them may from time to time effect transactions, for their own or their affiliates&#146; account
or the account of customers, and hold positions in loans, securities or options on loans or
securities of Holdings, the Borrower and their respective affiliates and of other companies that
may be the subject of the transactions contemplated by this Commitment Letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Commitment Party may employ the services of its affiliates in providing certain services
hereunder and, in connection with the provision of such services, may exchange with such affiliates
information concerning Holdings, you and the other companies that may be the subject of the
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">transactions contemplated by this Commitment Letter, and, to the extent so employed, such
affiliates shall be entitled to the benefits afforded such Commitment Party hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Commitment Letter shall not be assignable by you without the prior written consent of
each Commitment Party (and any purported assignment without such consent shall be null and void),
is intended to be solely for the benefit of the parties hereto and is not intended to confer any
benefits upon, or create any rights in favor of, any person other than the parties hereto and the
indemnified persons. This Commitment Letter may not be amended or waived except by an instrument
in writing signed by you and each Commitment Party. This Commitment Letter may be executed in any
number of counterparts, each of which shall be an original, and all of which, when taken together,
shall constitute one agreement. Delivery of an executed signature page of this Commitment Letter
by email or facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof. This Commitment Letter and the Fee Letter are the only agreements that have
been entered into among us with respect to the Credit Facilities and set forth the entire
understanding of the parties with respect thereto and supersede all prior agreements or writings
delivered prior to the date hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Commitment Letter shall be governed by, and construed and interpreted in accordance with,
the laws of the State of New York. The Borrower consents to the nonexclusive jurisdiction and
venue of the state or federal courts located in the City of New York. Each party hereto
irrevocably waives, to the fullest extent permitted by applicable law, (a)&nbsp;any objection that it
may now or hereafter have to the laying of venue of any such legal proceeding in the state or
federal courts located in the City of New York and (b)&nbsp;any right it may have to a trial by jury in
any suit, action, proceeding, claim or counterclaim brought by or on behalf of any party related to
or arising out of this Commitment Letter, the Term Sheets, the transactions contemplated hereby or
the performance of services hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Commitment Letter is delivered to you on the understanding that neither this Commitment
Letter, the Term Sheets or the Fee Letter nor any of their terms or substance shall be disclosed,
directly or indirectly, to any other person (including, without limitation, other potential
providers or arrangers of financing) except (a)&nbsp;to your officers, agents and advisors and, on a
confidential basis, those of the Target who are directly involved in the consideration of this
matter (except that Fee Letter may not be disclosed to the Target) or (b)&nbsp;as may be compelled in a
judicial or administrative proceeding or as otherwise required by law (in which case you agree to
inform us promptly thereof to the extent you may lawfully do so).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Commitment Parties hereby notifies you that, pursuant to the requirements of the
USA Patriot Act, Title III of Pub. L. 107-56 (signed into law on October&nbsp;26, 2001) (the
&#147;<U>Patriot Act</U>&#148;), it is required to obtain, verify and record information that identifies the
Borrower and each Guarantor (as defined in the Term Sheets), which information includes names and
addresses and other information that will allow such Commitment Party to identify the Borrower and
each Guarantor in accordance with the Patriot Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation, reimbursement, indemnification and confidentiality provisions contained
herein and in the Fee Letter and any other provision herein or therein which by its terms expressly
survives the termination of this Commitment Letter shall remain in full force and effect regardless
of whether definitive financing documentation shall be executed and delivered and notwithstanding
the termination of this Commitment Letter or the commitments hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing correctly sets forth our agreement, please indicate your acceptance of the
terms hereof and of the Term Sheets and the Fee Letter by returning to us executed counterparts
hereof and of the Fee Letter not later than 11:59&nbsp;p.m., New York City time, on August&nbsp;24, 2008.
This offer will
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">automatically expire at such time if we have not received such executed counterparts in
accordance with the preceding sentence.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are pleased to have been given the opportunity to assist you in connection with this
important financing.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Very truly yours,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ROYAL BANK OF CANADA</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ Blair J. Fleming</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="border-top: 1px solid #000000">&nbsp;Blair J. Fleming</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Attorney-in-Fact</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" nowrap>DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ Calli S. Hayes</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="border-top: 1px solid #000000">&nbsp;Calli S. Hayes</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Managing Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ David Mayhen</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="border-top: 1px solid #000000">&nbsp;David Mayhen</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Managing Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">DEUTSCHE BANK SECURITIES INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ Steve Cunningham</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="border-top: 1px solid #000000">&nbsp;Steve Cunningham</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Managing Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ Mark Fedrcik</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="border-top: 1px solid #000000">&nbsp;Mark Fedrcik</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Managing Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">HSBC BANK CANADA</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ Vivek Varma</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="border-top: 1px solid #000000">&nbsp;Vivek Varma</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Associate Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">THE TORONTO-DOMINION BANK</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ Derek Koppe</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="border-top: 1px solid #000000">&nbsp;Derek Koppe</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Vice President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">HSBC BANK USA, NATIONAL ASSOCIATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ David Morin</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="border-top: 1px solid #000000">&nbsp;David Morin</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Senior Vice President,
Portfolio Management ID#15337</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accepted and agreed to as of<BR>
the date first above written:

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">PRECISION DRILLING CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ Douglas J. Strong</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name:&nbsp;Douglas J. Strong
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:&nbsp;Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</div>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U>Annex A</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMMITMENTS*</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>Tranche A </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>Tranche B </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #ffffff"><B>Revolving</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>Senior Unsecured</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #ffffff"><B>Commitment Party</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #ffffff"><B>Term Facility</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #ffffff"><B>Term Facility</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #ffffff"><B>Facility</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #ffffff"><B>Facility</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Royal Bank of Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deutsche Bank AG Cayman
Islands Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HSBC Bank Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HSBC Bank USA, National
Association</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The Toronto-Dominion Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>&#091;Information relating to the commitment amount of each commitment party has been omitted&#093;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Annex A</div>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U>Annex B</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SOURCES AND USES TABLE</B><SUP style="font-size: 85%; vertical-align: text-top"><B>1</B></SUP>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="2" nowrap>(in millions)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="3" valign="top" align="center">Sources:</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">800.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revolving Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">80.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior Notes or
Senior Unsecured Facility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrower Cash<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">286.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">867.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Sources</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,433.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center">Uses:</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase of Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,609.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Refinancing of Indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">728.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payment of Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">96.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<tr>
    <TD>&nbsp;</TD>
</tr>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Uses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,433.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>All amounts are based on the model agreed between the
Borrower and the Commitment Parties and the forecasts and estimates contained
therein, with such adjustments as agreed by the Borrower and the Commitment
Parties on or prior to the date hereof. Sources and uses relating to equity
and the refinancing of the Convertible Securities (as defined in Exhibit&nbsp;A) are
subject to change based upon fluctuations in Holdings&#146; unit price.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The amount of &#147;Borrower Cash&#148; is estimated to be the
amount set forth in the Sources and Uses Table. Any consequential changes in
this amount based on the actual amount of the Borrower&#146;s consolidated cash as
of the Closing Date will result in changes in the amount of Revolving Loans
used on the Closing Date to finance the Transaction, subject to the cap thereon
set forth in the Term Sheets.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Annex B
</DIV>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><u><B>EXHIBIT A</B></u>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PRECISION DRILLING CORPORATION<BR>
SENIOR SECURED FACILITIES<BR>
Summary of Terms and Conditions
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Precision Drilling Corporation (the &#147;<U>Borrower</U>&#148;) intends to acquire (the
&#147;<U>Transaction</U>&#148;) Grey Wolf, Inc. (the &#147;<U>Target</U>&#148;), all as previously described to the
Lenders. In connection therewith: (a)&nbsp;Precision Drilling Trust (&#147;Holdings&#148;), the Borrower and/or
one or more of their respective subsidiaries will enter into an agreement (the &#147;<U>Transaction
Agreement</U>&#148;) with the Target pursuant to which the Borrower and/or one or more of its or
Holdings&#146; subsidiaries will acquire the stock of the Target; (b)&nbsp;the Borrower will obtain senior
secured credit facilities (the &#147;<U>Senior Secured Facilities</U>&#148;) comprised of $800,000,000 of
term loan facilities and a $400,000,000 revolving credit facility; and (c)&nbsp;the Borrower will obtain
$400,000,000 (reduced by the amount of the Target&#146;s Floating Rate Contingent Convertible Senior
Notes Due 2024 and 3.75% Contingent Convertible Senior Notes due 2023 (collectively, the
&#147;<U>Convertible Securities</U>&#148;) that the Borrower determines on or prior to the Closing Date will
not be converted or redeemed on or after the Closing Date) in cash proceeds from either (i)&nbsp;the
issuance of senior notes (the &#147;<U>Senior Notes</U>&#148;) in a Rule&nbsp;144A or other private placement or
(ii)&nbsp;if the Borrower is unable to issue the full amount of the Senior Notes at or prior to the time
the Transaction is consummated, a senior unsecured facility (the &#147;<U>Senior Unsecured
Facility</U>&#148;; together with the Senior Secured Facilities, the &#147;<U>Credit Facilities</U>&#148;). Set
forth below is a summary of the terms and conditions for the Senior Secured Facilities. All
amounts set forth herein are denominated in U.S. dollars unless otherwise indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>PARTIES</u></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrower:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Borrower. The Borrower may from time to time
before or after the Closing Date designate other
U.S. or Canadian direct or indirect wholly-owned
subsidiaries of the Borrower or Holdings to be
borrowers under the Senior Secured Facilities in
addition to or in place of the Borrower, subject to
terms and conditions to be agreed, including but
not limited to each such borrower being liable for
its borrowings under the Senior Secured Facilities
and guaranteeing the borrowings of each other
borrower and the delivery of customary
documentation and opinions reasonably satisfactory
to the Administrative Agent and Holdings pledging,
directly or indirectly, the stock of each borrower
in favor of the Lenders.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Guarantors:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Holdings and each of the Borrower&#146;s direct and
indirect, existing and future, material
subsidiaries incorporated in Canada or the United
States and other direct or indirect subsidiaries of
Holdings to be agreed upon which, collectively with
Holdings and Holdings&#146; direct and indirect
subsidiaries incorporated in Canada or the United
States, account for no less than 85% of the
consolidated EBITDA of Holdings and the Target
(with a reasonable cure period provided in the
event of any deficiency in meeting such threshold
after the Closing Date); provided, that the EBITDA
attributable to any Excluded Assets (as defined
below) shall not be counted in the determination of
whether the above threshold is satisfied
(collectively, the &#147;<u>Guarantors</u>&#148;; the Borrower and
the Guarantors, collectively, the &#147;<u>Loan Parties</u>&#148;).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;2
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Joint Lead Arrangers and
Bookrunners:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RBC Capital Markets and Deutsche Bank Securities
Inc. (&#147;<u>DBSI</u>&#148;) (in such capacity, the &#147;<u>Arrangers</u>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Administrative Agent:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Royal Bank of Canada (&#147;<u>Royal Bank</u>&#148; and, in such
capacity, the &#147;<u>Administrative Agent</u>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Syndication Agent:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DBSI (in such capacity, the &#147;Syndication Agent&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Co-Documentation Agents:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">HSBC Bank Canada (&#147;<u>HSBC Canada</u>&#148;) and The
Toronto-Dominion Bank (&#147;<U>TD</U> and collectively with
HSBC Canada in such capacities, the
&#147;<u>Co-Documentation Agents</u>&#148; and collectively with the
Administrative Agent and the Syndication Agent, the
&#147;<u>Agents</u>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lenders:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A syndicate of banks, financial institutions and
other entities, including Royal Bank, Deutsche Bank
AG Cayman Islands Branch (&#147;<u>DBCI</u>&#148;), HSBC Canada and
TD, arranged by the Arrangers (collectively in this
Exhibit&nbsp;A, the &#147;<u>Lenders</u>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3"><U>TYPES AND AMOUNTS OF SENIOR SECURED FACILITIES</U>
</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">A.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Term Facilities</U></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Type and Amount:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Term loan facilities (the &#147;<U>Term Facilities</U>&#148;; the
loans thereunder, the &#147;<U>Term Loans</U>&#148;) as follows:</TD>
</TR>
<tr>
    <TD>&nbsp;</TD>
</tr>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Tranche A Term Facility</U>: A five-year term loan
facility (the &#147;<U>Tranche A Term Facility</U>&#148;) in the
amount of $400,000,000 (the loans thereunder, the
&#147;<U>Tranche A Term Loans</U>&#148;). The Tranche A Term Loans
shall be repayable in quarterly installments in
aggregate annual amounts equal to 5% of the
original principal amount thereof in the first year
following the Closing Date (as defined below), 10%
of the original principal amount thereof in the
second year following the Closing Date, 10% of the
original principal amount thereof in the third year
following the Closing Date and 15% of the original
principal amount thereof in the fourth year
following the Closing Date, with the balance
payable on the final maturity date thereof.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
&#091;Information relating to pricing of the Tranche A
Term Loans has been omitted&#093;.<SUP style="font-size: 85%; vertical-align: text-top"> 3</SUP></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A portion of the Tranche A Term Facility in an
amount to be agreed upon will be available for
borrowings in Canadian</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&#091;Information relating to pricing of the Tranche&nbsp;A
Term Loans has been omitted&#093;.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">dollars.</TD>
</TR>

<tr>
    <TD>&nbsp;</TD>
</tr>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Tranche&nbsp;B Term Facility</U>: A 5.75-year term loan
facility (the &#147;<u>Tranche&nbsp;B Term Facility</u>&#148;) in the
amount of $400,000,000 (the loans thereunder, the
&#147;<u>Tranche&nbsp;B Term Loans</u>&#148;). The Tranche&nbsp;B Term Loans
shall be repayable in quarterly installments in an
aggregate annual amount equal to 1% of the original
principal amount thereof, with the balance payable
on the final maturity date thereof.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Information relating to the pricing of the Tranche
B Term Loans has been omitted&#093;.<SUP style="font-size: 85%; vertical-align: text-top"> 4 </SUP></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Availability:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Term Loans shall be made in a single drawing on
the Closing Date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purpose:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The proceeds of the Term Loans shall be used to
finance a portion of the Transaction (including
expenses related thereto and the refinancing of the
Convertible Securities after the Closing Date).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">B.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>Revolving Facility</u></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Type and Amount:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A five-year revolving facility (the &#147;<u>Revolving
Facility</u>&#148;; the commitments thereunder, the
&#147;<u>Revolving Commitments</u>&#148;) in the amount of
$400,000,000 (the loans thereunder, together with
(unless the context otherwise requires) the
Swingline Loans referred to below, the &#147;<u>Revolving
Loans</u>&#148;; and together with the Term Loans, the
&#147;<u>Loans</u>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Availability:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Revolving Facility shall be available on a
revolving basis during the period commencing on the
Closing Date and ending on the date that is five
years after the Closing Date (the &#147;<u>Revolving
Termination Date</u>&#148;). Up to $100,000,000 of
Revolving Loans (or such higher amount as may be
agreed between the Borrower and the Arrangers, each
acting reasonably) plus any additional amounts
necessary to finance any original issue discount in
respect of the Term Loans may be borrowed on the
Closing Date to finance the Transaction (exclusive
of any Letters of Credit that need to be issued on
the Closing Date to replace any letters of credit
of the Target) and the refinancing of indebtedness
and payment of fees and expenses in connection
therewith. A portion of the Revolving Facility in
an amount to be agreed upon will be available for</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&#091;Information relating to pricing of the Tranche&nbsp;B
Term Loans has been omitted&#093;.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">borrowings in Canadian dollars.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Maturity:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Revolving Termination Date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letters of Credit:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A portion of the Revolving Facility not in excess
of an amount to be agreed upon (but in any event
not less than $200,000,000) shall be available for
the issuance of letters of credit (the &#147;<u>Letters of
Credit</u>&#148;) by &#091;Information relating to the letter of
credit commitments of the Lenders has been omitted&#093; (in such capacity
and collectively, the &#147;<u>Issuing Lender</u>&#148;). No Letter
of Credit shall have an expiration date after the
earlier of (a)&nbsp;one year after the date of issuance
and (b)&nbsp;five business days prior to the Revolving
Termination Date, <u>provided</u> that any Letter of
Credit with a one-year tenor may provide for the
renewal thereof for additional one-year periods
(which shall in no event extend beyond the date
referred to in clause (b)&nbsp;above). An amount of
Letters of Credit to be agreed upon may be
denominated in Canadian dollars.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Drawings under any Letter of Credit shall be
reimbursed by the Borrower (whether with its own
funds or with the proceeds of Revolving Loans, in
each case in the currency drawn) on the same
business day (or on the next business day if notice
of such drawing is received after 10:00&nbsp;a.m.). To
the extent that the Borrower does not so reimburse
the Issuing Lender (a)&nbsp;absent an event of default
caused by bankruptcy, insolvency or winding up, the
amount drawn shall constitute a Revolving Loan in
the currency drawn bearing interest at the ABR plus
the Applicable Margin or the Canadian Prime Rate
plus the Applicable Margin, as applicable, and the
Lenders under the Revolving Facility shall be
irrevocably and unconditionally obligated to fund
participations in such Revolving Loans on a <u>pro</u> <u>rata</u> basis and (b)&nbsp;otherwise, the Lenders under the
Revolving Facility shall be irrevocably and
unconditionally obligated to fund participations in
the reimbursement obligations on a <u>pro</U> <U>rata</u> basis.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Swingline Loans:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$10,000,000 of the Revolving Facility shall be
available for swingline loans (the &#147;<u>Swingline
Loans</u>&#148;) from Royal Bank on same-day notice. Any
Swingline Loans will reduce availability under the
Revolving Facility on a dollar-for-dollar basis.
Each Lender under the Revolving Facility shall be
unconditionally and irrevocably required to
purchase, under certain circumstances, a <u>pro</U> <U>rata</u>
participation in each Swingline Loan. An amount of
Swingline Loans to be agreed upon will be available
for borrowings in Canadian dollars.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Bankers&#146; Acceptances:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A portion of the Revolving Facility not in excess
of an amount to be agreed upon shall, in addition
to other customary availability options, be
available for the issuance of bankers&#146; acceptances
or the making of BA equivalent loans on customary term.
</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purpose:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The proceeds of the Revolving Loans shall be used
to finance the working capital needs and general
corporate purposes of the Borrower, Holdings and
their respective subsidiaries; provided that not
more than $100,000,000 (exclusive of any Letters of
Credit that need to be issued on the Closing Date
to replace any letters of credit of the Target), or
such higher amount as may be agreed between the
Borrower and the Arrangers, each acting reasonably,
plus any additional amounts necessary to finance
any original issue discount in respect of the Term
Loans may be used to finance the Transaction and
the refinancing of indebtedness and payment of fees
and expenses in connection therewith.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">C.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><u>Incremental Facilities</u>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">At any time the Borrower shall have the right, on
one or more occasions, to increase the amount of
the Term Facilities and/or the Revolving Facility
by incurring an incremental term loan facility,
increasing the Term A Term Facility and/or the Term
B Term Facility and/or increasing the Revolving
Facility in an aggregate amount not to exceed
$150,000,000 (each, an &#147;<u>Incremental Facility</u>&#148;);
provided, that (i)&nbsp;if such Incremental Facility is
a term loan facility, the terms of such Incremental
Facility shall be the same as the terms applicable
to the Tranche A Term Loans (to the extent such
Incremental Facility is an increase in the Tranche
A Term Facility or is an incremental term loan
facility with material amortization) or the Tranche
B Term Loans (to the extent such Incremental
Facility is an increase in the Tranche B Term
Facility or is an incremental term loan facility
with nominal amortization), as the case may be,
except that (x)&nbsp;the maturity date and amortization
applicable to such Incremental Facility will be as
agreed by the Borrower and the lenders providing
such Incremental Facility (but in no event shall
such Incremental Facility mature prior to, or have
a weighted average life shorter than, the Tranche A
Term Loans or the Tranche B Term Loans, as the case
may be) and (y)&nbsp;the margins applicable to
borrowings thereunder shall be as agreed by the
Borrower and the lenders providing such Incremental
Facility (provided that in the event that the
margins applicable to such borrowings (as adjusted
to reflect any original issue discount and upfront
fees) is more than 0.25% greater than the margins
applicable to the Tranche A Term Loans or the
Tranche B Term Loans, as the case may be, the
margins applicable to the Tranche A Term Loans or
the Tranche B Term Loans, as the case may be, shall
be increased so that the amount of such difference
is equal to 0.25%); (ii)&nbsp;the lenders providing any
such Incremental Facility shall be reasonably
acceptable to the Administrative Agent; (iii)&nbsp;if
such Incremental Facility is an increase in the
Revolving Facility, the terms of such Incremental
Facility shall be identical to those of the
Revolving Facility (other than with respect to
upfront fees or original issue</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">discount); (iv)
after giving effect thereto, the Borrower shall be
in pro forma compliance with the financial
covenants; (v)&nbsp;all representations and warranties
shall be true and correct; and (vi)&nbsp;no default or
event of default shall have occurred and be
continuing nor will result therefrom. No existing
Lender will be obligated to provide any such
Incremental Facility.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3"><u>CERTAIN PAYMENT PROVISIONS</u></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fees and Interest Rates:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As set forth on Annex I.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Optional Prepayments and
Commitment Reductions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loans may be prepaid and commitments may be reduced
by the Borrower in minimum amounts to be agreed
upon. Optional prepayments of the Term Loans shall
be applied to installments thereof as directed by
the Borrower. Optional prepayments of the Term
Loans may not be reborrowed.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mandatory Prepayments:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The following amounts shall be applied to prepay
the Term Loans:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)&nbsp;&nbsp; 100% of the net proceeds of any incurrence of
debt (including convertible debentures) after the
Closing Date by Holdings, the Borrower or any of
its subsidiaries (subject to exceptions to be
agreed, including for any Incremental Facility),
<u>provided</u> that, the net proceeds of any such
incurrence of debt (including any issuance of
Senior Notes) will be applied first to repay the
Senior Unsecured Facility.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)&nbsp;&nbsp; 100% of the net cash proceeds of any sale or
other disposition (including as a result of
casualty or condemnation) by Holdings, the Borrower
or any of its subsidiaries of any assets, except
for sales of inventory or obsolete or worn-out
property in the ordinary course of business and
subject to certain other customary exceptions
(including capacity to reinvest within 12&nbsp;months of
sale) to be agreed upon.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(c)&nbsp;&nbsp; 50% of excess cash flow (to be defined, but
to be calculated after deducting permitted capital
expenditures and Distributable Cash (as defined
below) for such fiscal year) for each fiscal year
of the Borrower (commencing with the 2009 fiscal
year), <u>provided</u>, that the foregoing percentage
shall be reduced to (i)&nbsp;25% for any fiscal year in
which the total leverage ratio as of the end of
such fiscal year is less than 1.5 to 1.0 and (ii)
0% for any fiscal year in which the total leverage
ratio as of the end of such fiscal year is less
than 1.25 to 1.0.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mandatory prepayments of the Term Loans shall be
applied <u>pro</u> <u>rata</u> to the Tranche&nbsp;A Term Loans and
the Tranche&nbsp;B Term Loans, and <u>first</u> to scheduled
installments thereof occurring within the next 18
months in direct order of maturity and second
ratably to the remaining respective installments
thereof.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mandatory prepayments of the Term Loans
may not be reborrowed.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Revolving Loans shall be prepaid and the
Letters of Credit shall be cash collateralized or
replaced to the extent such extensions of credit
exceed the Revolving Commitments.</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
        <TD colspan="0">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>COLLATERAL</u>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The obligations of each Loan Party in respect of
the Senior Secured Facilities and any swap
agreements provided by any Lender (or any affiliate
of a Lender) shall be secured by a perfected first
priority security interest in all of its tangible
and intangible assets (including, without
limitation, intellectual property, material real
property and all of the capital stock of the
Borrower and each of the Borrower&#146;s direct and
indirect subsidiaries), except for certificated
motor vehicles and bank accounts in the United
States, assets outside of Canada and the United
States (provided that the EBITDA attributable to
assets of the Loan Parties outside of Canada and
the United States upon which the Lenders do not
have security (the &#147;<u>Excluded Assets</u>&#148;) shall not
exceed 15% of the consolidated EBITDA of Holdings
and the Target, with a reasonable cure period
provided in the event of any deficiency in meeting
such threshold after the Closing Date) and those
assets as to which the Administrative Agent shall
determine in its reasonable discretion that the
cost of obtaining a security interest therein are
excessive in relation to the value of the security
to be afforded thereby (collectively, the
&#147;<u>Collateral</u>&#148;). The Senior Secured Facilities may
be secured on a pari passu basis with one or more
bilateral operating facilities in an aggregate
amount of up to $60&nbsp;million to be provided by Royal
Bank and/or other Lenders (the &#147;<u>Operating
Facilities</u>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>CERTAIN CONDITIONS</u></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Initial Conditions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The availability of the Senior Secured Facilities
shall be conditioned upon the satisfaction of the
conditions set forth in Exhibit&nbsp;C (the date upon
which all such conditions precedent shall be
satisfied, the &#147;<u>Closing Date</u>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">On-Going Conditions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The making of each extension of credit, including
the initial borrowing thereunder (subject to the
twelfth paragraph of the Commitment Letter to which
this Exhibit&nbsp;A is attached), shall be conditioned
upon (a)&nbsp;the accuracy in all material respects of
all representations and warranties in the
documentation (the &#147;<u>Senior Secured Credit
Documentation</u>&#148;) with respect to the Senior Secured
Facilities (including, without limitation, the
material adverse change and litigation
representations, provided that the material adverse
change representation as it relates to the Target
on the Closing Date shall conform to the
Transaction Agreement) and (b)&nbsp;there being no
default or event of default in existence at the
time of, or after giving effect to the making of,</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>



<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">such extension of credit. As used herein and in
the Senior Secured Credit Documentation a &#147;material
adverse change&#148; shall mean any event, development
or circumstance that has had or would reasonably be
expected to have a material adverse effect on
(a)&nbsp;the business, operations, property or condition
(financial or otherwise) of Holdings and its
subsidiaries taken as a whole or (b)&nbsp;the validity
or enforceability of any of the Senior Secured
Credit Documentation or the rights and remedies of
the Administrative Agent and the Lenders
thereunder.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">6.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><u>CERTAIN DOCUMENTATION MATTERS</u></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Senior Secured Credit Documentation shall
contain representations, warranties, covenants and
events of default (in each case, applicable to
Holdings, the Borrower and its subsidiaries)
customary for financings of this type and other
terms deemed appropriate by the Lenders (including
customary carveouts and materiality and
reasonableness standards and based on current
market conditions but taking into account the terms
of the Borrower&#146;s existing credit agreement),
including, without limitation:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Representations and Warranties:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial statements (including pro forma financial
statements); absence of undisclosed liabilities; no
material adverse change (which shall take into
account the contingent tax liability referred to in
clause (i)(m) of &#147;Negative Covenants&#148; below);
existence; compliance with law; power and
authority; enforceability of Senior Secured Credit
Documentation; no conflict with law or contractual
obligations; approvals and consents; no material
litigation or governmental actions; no default;
ownership of property; liens; intellectual
property; taxes; insurance; Federal Reserve
regulations; labor matters; ERISA and other pension
matters; Investment Company Act and other
regulations; subsidiaries; use of proceeds;
environmental matters; accuracy of disclosure;
creation and perfection of security interests;
solvency; and status of Senior Secured Facilities
as senior debt. The foregoing shall be subject to
customary exceptions and materiality and
reasonableness qualifiers to be agreed.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Affirmative Covenants:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delivery of financial statements, reports,
accountants&#146; letters, projections, officers&#146;
certificates, compliance certificates and other
information reasonably requested by the Lenders;
payment of taxes and other obligations;
continuation of business and maintenance of
existence and material rights and privileges;
compliance with laws and material contractual
obligations; maintenance of property and insurance;
maintenance of books and records; right of the
Lenders to inspect property and books and records;
notices of defaults, litigation and other material
events; compliance with environmental laws; further
assurances (including, without limitation, with
respect to security interests</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">in after-acquired
property); and agreement to obtain interest rate
protection in an amount and manner satisfactory to
the Administrative Agent. The foregoing shall be
subject to customary exceptions and materiality and
reasonableness qualifiers to be agreed.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Covenants:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Minimum interest coverage ratio of 3.0 to 1.0,
minimum fixed charge coverage ratio of 1.05 to 1.0
in 2009 and 1.10 to 1.0 thereafter and maximum
total leverage ratio of 3.0 to 1.0; provided, that
any debt in respect of the Convertible Securities
shall not count in the determination of the
financial covenants to the extent cash in respect
of the conversion and settlement thereof has been
deposited with the trustee thereof.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Negative Covenants:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitations on the following, with the exceptions
(with limitations thereon to be agreed upon) set
forth below and other customary exceptions for
financings of this type and to take into account
the Borrower&#146;s business:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(i) Indebtedness (including guarantee obligations),
with exceptions to include, without limitation (a)
capital leases and purchase money debt in an amount
to be agreed, (b)&nbsp;the Operating Facilities and
other local working capital debt facilities for the
Borrower and subsidiaries of the Borrower and
Holdings in an amount to be agreed, (c)&nbsp;debt
incurred to finance an acquisition in an amount to
be agreed, (d)&nbsp;assumed debt existing on an entity
or assets at the time of the acquisition thereof
and not incurred in contemplation thereof in an
amount to be agreed, (e)&nbsp;unsecured debt maturing
outside the Senior Secured Facilities in an amount
to be agreed, (f)&nbsp;debt in existence on the Closing
Date satisfactory to the Lead Arrangers, acting
reasonably, including the Convertible Securities,
(g)&nbsp;certain intercompany debt, (h)&nbsp;debt under
non-speculative hedge agreements, (i)&nbsp;earn-outs and
other indemnification obligations in connection
with permitted acquisitions, (j)&nbsp;debt under cash
management arrangements in the ordinary course of
business, (k)&nbsp;insurance obligations and take and
pay obligations in the ordinary course of business,
(l)&nbsp;letters of credit, surety bonds and deposits
for statutory obligations and performance
obligations in the ordinary course of business, (m)
additional debt used to finance contingent tax
liabilities disclosed in Holdings&#146; most recently
disclosed financial statements delivered prior to
the Closing Date in an amount to be agreed, (n)
convertible subordinated debt securities in an
amount to be agreed and (o)&nbsp;additional debt in an
amount to be agreed.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(ii) Liens, with exceptions to include, without
limitation (a)&nbsp;liens on the assets financed with
capital lease or purchase money debt, (b)&nbsp;liens on
the assets of local subsidiaries securing the
working capital facilities referred to in clause
(b)&nbsp;of</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#147;Indebtedness&#148; above, (c)&nbsp;liens securing
debt of the type referred to in clause (d)&nbsp;of
&#147;Indebtedness&#148; above, (d)&nbsp;liens securing debt of
the type referred to in clause (f)&nbsp;of
&#147;Indebtedness&#148; above and (e)&nbsp;customary liens on
cash and cash equivalents securing debt of the type
referred to in clause (l)&nbsp;of &#147;Indebtedness&#148; above
to the extent granted in the ordinary course of
business consistent with past practices.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(iii) Mergers, amalgamations, plans of arrangement,
consolidations, liquidations and dissolutions, with
exceptions to include, without limitation, (a)&nbsp;any
such transaction between Guarantors (other than
Holdings) or with a non-Guarantor into a Guarantor
(so long as in any such case the security interests
in respect of the Collateral are maintained), (b)
any such transaction between non-Guarantors and (c)
Permitted Reorganizations (as defined below).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(iv) Sales of assets, with exceptions to include,
without limitation, (a)&nbsp;unlimited amounts of asset
sales made at or above fair market value and for a
minimum percentage of cash consideration to be
agreed and (b)&nbsp;annual basket limitations in amounts
to be agreed.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(v) Dividends, capital distributions and other cash
payments in respect of capital stock or trust
units, including, without limitation, redemptions
by Holdings (but excluding any in-kind non-cash
distributions and any distributions to the Loan
Parties located in the United States and Canada).
Provided no default or event of default shall have
occurred and be continuing or will result
therefrom, Holdings shall be permitted to make cash
distributions
of any kind to its unitholders in an
aggregate amount per fiscal year not to exceed 100%
of Distributable Cash (to be defined).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(vi) &#091;Information related to
limitations on certain expenditures has been omitted&#093;.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(vii) Acquisitions, investments, loans and
advances, with exceptions to include, without
limitation: (a)&nbsp;unlimited amounts of permitted
acquisitions of all or substantially all of the
capital stock or assets of an entity or a business
line, (b)&nbsp;investments in joint ventures in an
amount to be agreed and (c)&nbsp;additional investments
in an amount to be agreed.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(viii) Payments and modifications of subordinated
and other material debt instruments.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(ix) Transactions with affiliates.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(x) Sale-leasebacks.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(xi) Changes in fiscal year, (with an exception for
any changes pursuant to a Permitted
Reorganization).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(xii) Negative pledge clauses.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(xiii) Clauses restricting subsidiary distributions.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(xiv) Material changes in business.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(xv) Amendments to the Transaction Agreement, other
transaction documents and certain other material
contracts (including without limitation Holdings&#146;
trust indenture (or any similar or succeeding
contract) which are materially adverse to the
Lenders.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(xvi) Issuance of redemption notes pursuant to the
trust unit redemption requirements of Holdings&#146;
trust indenture (or any similar or succeeding
contract including any note indenture entered into
in relation thereto) unless such redemption notes
are subject to subordination provisions acceptable
to the Administrative Agent, acting reasonably.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Events of Default:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nonpayment of principal when due; nonpayment of
interest, fees or other amounts after a grace
period to be agreed upon; material inaccuracy of a
representation or warranty when made; violation of
a covenant (subject, in the case of certain
covenants, to a grace period to be agreed upon);
cross-default to material indebtedness; bankruptcy,
insolvency and winding up events; certain ERISA and
other pension events; material judgments or seizure
of property; actual or asserted invalidity of any</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">guarantee, security document or subordination
provisions or non-perfection of security interest;
changes in the passive holding company status of
Holdings (excluding any such change resulting from
a Permitted Reorganization); and a change of
control (the definition of which is to be agreed
upon) (excluding any such change resulting from a
Permitted Reorganization).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Collateral Release
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the event that the Tranche B Term Loans have
been repaid in full, the Collateral will be
automatically released in the event the corporate
family ratings of the Borrower are at least BBB-
(with a stable outlook) from S&#038;P and Baa3 (with a
stable outlook) from Moody&#146;s.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Voting:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendments and waivers with respect to the Senior
Secured Credit Documentation shall require the
approval of Lenders holding more than 50%&nbsp;of the
aggregate amount of the Term Loans and Revolving
Commitments, except that (a)&nbsp;the consent of each
Lender directly affected thereby shall be required
with respect to (i)&nbsp;reductions in the amount or
extensions of the scheduled date of any
amortization or final maturity of any Loan,
(ii)&nbsp;reductions in the rate of interest or any fee
or extensions of any due date thereof and
(iii)&nbsp;increases in the amount or extensions of the
expiry date of any Lender&#146;s commitment and (b)&nbsp;the
consent of 100% of the Lenders shall be required
with respect to (i)&nbsp;reductions of any of the voting
percentages, (ii)&nbsp;releases of all or substantially
all of the value of the collateral and
(iii)&nbsp;releases of all or substantially all of the
value of the Guarantors.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Senior Secured Credit Documentation shall
contain customary provisions for replacing
non-consenting Lenders in connection with
amendments and waivers requiring the consent of all
Lenders or of all Lenders directly affected thereby
so long as Lenders holding at least 75% of the
aggregate amount of Term Loans and Revolving
Commitments shall have consented thereto.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Assignments and Participations:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Lenders shall be permitted to assign all or a
portion of their Loans and commitments with the
consent, not to be unreasonably withheld, of (a)
the Borrower, unless (i)&nbsp;the assignee is a Lender,
an affiliate of a Lender or an approved fund or
(ii)&nbsp;an event of default has occurred and is
continuing, (b)&nbsp;the Administrative Agent, unless a
Term Loan is being assigned to a Lender, an
affiliate of a Lender or an approved fund, and (c)
any Issuing Lender, unless a Term Loan is being
assigned. In the case of partial assignments
(other than to another Lender, an affiliate of a
Lender or an approved fund), the minimum assignment
amount shall be $1,000,000 (in the case of the Term
Facilities) and $5,000,000 (in the case of the
Revolving Facility), in each case unless otherwise
agreed by the Borrower and the Administrative</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agent. The Administrative Agent shall receive a
processing and recordation fee of $3,500, payable
by the assignor or the assignee, in connection with
all assignments. The Lenders shall also be
permitted to sell participations in their Loans
without the consent of the Borrower or the
Administrative Agent or any Issuing Lender.
Participants shall have the same benefits as the
selling Lenders (and will be limited to the amount
of such benefits) with respect to yield protection
and increased cost provisions subject to customary
limitations. Voting rights of participants shall
be limited to those matters set forth in clause&nbsp;(a)
under &#147;Voting&#148; with respect to which the
affirmative vote of the Lender from which it
purchased its participation would be required.
Pledges of Loans in accordance with applicable law
shall be permitted without restriction.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Yield Protection:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Senior Secured Credit Documentation shall
contain customary provisions (a)&nbsp;protecting the
Lenders against increased costs or loss of yield
resulting from changes in reserve, tax, capital
adequacy and other requirements of law and from the
imposition of or changes in withholding or other
taxes and (b)&nbsp;indemnifying the Lenders for
&#147;breakage costs&#148; incurred in connection with, among
other things, any prepayment of a Eurodollar Loan
(as defined in Annex&nbsp;I) on a day other than the
last day of an interest period with respect
thereto.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Expenses and Indemnification:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Borrower shall pay (a)&nbsp;all reasonable
out-of-pocket expenses of the Agents and the
Arrangers associated with the syndication of the
Senior Secured Facilities and the preparation,
execution, delivery and administration of the
Senior Secured Credit Documentation and any
amendment or waiver with respect thereto (including
the reasonable fees, disbursements and other
charges of one US counsel and one Canadian counsel
and one local counsel, as necessary, in each
relevant jurisdiction for all of the Credit
Facilities, in each case, for all the Agents and
the Arrangers) and (b)&nbsp;all out-of-pocket expenses
of the Agents and the Lenders (including the fees,
disbursements and other charges of counsel) in
connection with the enforcement of the Senior
Secured Credit Documentation.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Agents, the Arrangers and the Lenders (and
their affiliates and their respective officers,
directors, employees, advisors and agents) will
have no liability for, and will be indemnified and
held harmless against, any losses, claims, damages,
liabilities or expenses incurred in respect of the
financing contemplated hereby or the use or the
proposed use of proceeds thereof, except to the
extent they are found by a final, non-appealable
judgment of a court to arise from the gross
negligence or willful misconduct of the relevant
indemnified person.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Permitted Reorganizations:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Senior Secured Credit Documentation shall
contain provisions to permit (notwithstanding any
default that would</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">otherwise arise under the Senior
Secured Credit Documentation as a result of any
change of control provision or any other term,
condition, covenant or event of default) a
reorganization of the Borrower and/or Holdings and
their respective direct and/or indirect
subsidiaries as a consequence of the application of
the Canadian &#147;SIFT&#148; rules and any related tax and
corporate reorganization, and to permit an
assumption of the Senior Secured Credit
Documentation by the ultimate parent resulting from
such reorganization and/or any subsidiaries thereof
(the &#147;<u>New Borrower</u>&#148;), provided that (a)&nbsp;the New
Borrower shall be solvent and organized under the
laws of Canada, the United States, or a province or
state thereof, (b)&nbsp;the New Borrower shall assume
all obligations of the Borrower and Holdings and
their respective subsidiaries (if applicable), and
the ultimate parent, if not the New Borrower, will
provide a guarantee of the New Borrower&#146;s
obligations and security (including provisions of
any guarantees, security and subordination
agreements from subsidiaries or affiliates of the
ultimate parent), and the New Borrower shall
deliver a legal opinion of Bennett Jones LLP and/or
Mayer Brown LLP or other independent counsel
reasonably satisfactory to the Administrative Agent
that all such assumption agreements, guarantees,
security agreements and subordinations are
enforceable in accordance with their terms, (c)&nbsp;no
default or event of default shall have occurred and
be continuing nor will result therefrom, (d)&nbsp;the
reorganization shall not result in any adverse tax
consequences related to withholding tax or similar
amounts on payments to the Lenders, (e)&nbsp;the
collateral available to secure the Senior Secured
Credit Facilities shall be substantially the same
after the reorganization as prior thereto, (f)&nbsp;the
reorganization shall not result in any changes to
the creditworthiness of the Borrower and its
subsidiaries other than permitted changes to be
agreed and (g)&nbsp;the Administrative Agent shall
receive such other representations and warranties,
assurances, legal opinions (subject to customary
qualifications and assumptions) and other documents
with respect to such reorganization as may be
reasonably requested by the Administrative Agent
including, without limitation, to preserve as
against the New Borrower and other entities
resulting from the reorganization the substance of
the reporting requirements, affirmative and
negative covenants and events of default.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Security Release:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the event of any permitted sale of subsidiary
stock, any security on the stock or assets of such
subsidiary, and the guarantee of such subsidiary,
shall be released.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Governing Law and Forum:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">State of New York.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">U.S. Counsel to the
Administrative Agent and the
Arrangers:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Simpson Thacher &#038; Bartlett LLP.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


</DIV>



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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Canadian Counsel to the
Administrative Agent and the Arrangers:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Burnet, Duckworth &#038; Palmer LLP.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U>Annex I-A to Exhibit&nbsp;A</U>
</DIV>




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>INTEREST AND CERTAIN FEES</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interest Rate Options:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Borrower may elect that the Loans
denominated in U.S. dollars bear interest at a
rate per annum equal to (a)&nbsp;the ABR plus the
Applicable Margin or (b)&nbsp;the Eurodollar Rate
plus the Applicable Margin; <U>provided</U>, that all
Swingline Loans shall bear interest at a rate
per annum equal to the ABR plus the Applicable
Margin.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Borrower may elect that the Loans
denominated in Canadian dollars bear interest at
a rate per annum equal to (a)&nbsp;the Canadian Prime
Rate plus the Applicable Margin or (b)&nbsp;the B/A
Discount Rate plus the Applicable Margin;
<U>provided</U>, that all Swingline Loans shall bear
interest at a rate per annum equal to the
Canadian Prime Rate plus the Applicable Margin.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As used herein:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#147;<U>ABR</U>&#148; means the higher of (i)&nbsp;the corporate base
rate of interest announced or established by the
Administrative Agent in the United States for
U.S. dollar loans from time to time, changing
effective on the date of announcement of said
corporate base rate changes (the &#147;<U>Base Rate</U>&#148;)
and (ii)&nbsp;the federal funds effective rate from
time to time <U>plus</U> 0.5%. The Base Rate is not
necessarily the lowest rate charged by the
Lender acting as Administrative Agent to its
customers; <U>provided</U> that, in respect of Tranche
B Term Loans, &#147;ABR&#148; shall be no less than
&#149; &#091;information relating to the pricing of
the Loans has been omitted&#093;.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#147;<U>Applicable Margin</U>&#148; means &#091;information relating
to the pricing of the Loans has been omitted&#093;.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#147;<U>B/A Discount Rate</U>&#148; means the rate determined by
the Administrative Agent for a period equal to
one, two, three or six months (as selected by
the Borrower) by reference to an agreed
reference discount rate (CDOR)&nbsp;for bankers&#146;
acceptances denominated in Canadian dollars.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#147;<U>Canadian Prime Rate</U>&#148; shall have the meaning
customarily assigned to such term in Canadian
lending transactions.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#147;<U>Eurodollar Rate</U>&#148; means the rate (adjusted for
any statutory reserve requirements for
eurocurrency liabilities) for eurodollar
deposits for a period equal to one, two, three
or six months (as selected by the Borrower)
appearing on the Reuters Screen LIBOR01 Page;
<U>provided</U> that, in respect of Tranche B Term
Loans, the &#147;Eurodollar Rate&#148; shall be no less
than &#149; <FONT style="font-family: Symbol">&#032;</FONT>&#091;information related to the
pricing of the Tranche B Term Loans has been
omitted&#093;.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interest Payment Dates:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the case of Loans bearing interest based upon
the ABR (&#147;<U>ABR Loans</U>&#148;) or the Canadian Prime Rate
(&#147;<U>Canadian Prime Rate Loans</U>&#148;), quarterly in
arrears.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the case of Loans bearing interest based upon
the Eurodollar Rate (&#147;<U>Eurodollar Loans</U>&#148;) on the
last day of each relevant interest period and,
in the case of any interest period longer than
three months, on each successive date three
months after the first day of such interest
period.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commitment Fees:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Information related to the commitment fees for
the Revolving Facility has been omitted&#093;.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Letter of Credit Fees:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Borrower shall pay a fee on all outstanding
Letters of Credit at a per annum rate equal to
the Applicable Margin then in effect with
respect to Eurodollar Loans under the Revolving
Facility on the face amount of each such Letter
of Credit (2/3 of the Applicable Margin for
non-financial letters of credit). Such fee
shall be shared ratably among the Lenders
participating in the Revolving Facility and
shall be payable quarterly in arrears.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A fronting fee equal to
&#149; <FONT style="font-family: Symbol">&#032;</FONT>&#091;information relating to the
fronting fee has been omitted&#093; per annum on the
face amount of each Letter of Credit shall be
payable quarterly in arrears to the Issuing
Lender for its own account. In addition,
customary administrative, issuance, amendment,
payment and negotiation charges shall be payable
to the Issuing Lender for its own account.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Default Rate:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">At any time when the Borrower is in default in
the payment of any amount of principal, interest
or other amount due under the Senior Secured
Facilities, all outstanding Loans shall bear
interest at 2%&nbsp;above the rate otherwise
applicable thereto. Overdue interest, fees and
other amounts shall bear interest at 2% above
the rate applicable to the relevant ABR Loans
(or if such amounts are denominated in Canadian
dollars, the Canadian Prime Rate).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Rate and Fee Basis:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All per annum rates shall be calculated on the
basis of a year of 360&nbsp;days (or 365/366&nbsp;days, in
the case of ABR Loans the interest rate payable
on which is then based on the Base Rate and
Canadian Prime Rate Loans) for actual days
elapsed.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Secured Facilities
</DIV>


</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><u><B>EXHIBIT&nbsp;B</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PRECISION DRILLING CORPORATION<BR>
SENIOR UNSECURED FACILITY<BR>
Summary of Terms and Conditions
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth below is a summary of the terms and conditions for the Senior Unsecured Facility.
Capitalized terms used but not defined herein shall have the meanings set forth in the introductory
paragraph of Exhibit&nbsp;A.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Initial Loans:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Lenders (as defined below) will
make unsecured loans (the &#147;<U>Initial
Loans</U>&#148;) to the Borrower on the
Closing Date (as defined below) in
an aggregate principal amount not to
exceed $400,000,000, reduced by the
amount of the Convertible Securities
that the Borrower determines on or
prior to the Closing Date will not
be converted or redeemed on or after
the Closing Date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrower:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Borrower. The Borrower may from
time to time before or after the
Closing Date designate other U.S. or
Canadian direct or indirect
wholly-owned subsidiaries of the
Borrower or Holdings to be borrowers
under the Senior Unsecured Facility
in addition to or in place of the
Borrower, subject to terms and
conditions to be agreed, including
but not limited to each such
borrower being liable for its
borrowings under the Senior
Unsecured Facility and guaranteeing
the borrowings of each other
borrower and the delivery of
customary documentation and opinions
reasonably satisfactory to the
Administrative Agent.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Guarantors:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Senior Unsecured Facility Debt
(as defined below) shall be jointly
and severally guaranteed by all
guarantors of the Senior Secured
Facilities on a senior basis (the
&#147;<U>Guarantors</U>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Administrative Agent:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deutsche Bank Securities Inc.
(&#147;<U>DBSI</U>&#148;; in such capacity, the
&#147;<U>Administrative Agent</U>&#148;) will act as
Administrative Agent for the Lenders
holding the Initial Loans from time
to time.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Syndication Agent:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Royal Bank of Canada (&#147;<U>Royal Bank</U>&#148;;
in such capacity, the &#147;<U>Syndication
Agent</U>&#148;) will act as Syndication
Agent for the Lenders holding the
Initial Loans from time to time.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Documentation Agent:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">HSBC Bank USA, National Association
(&#147;<U>HSBC US</U>&#148;; in such capacity, the
&#147;<U>Documentation Agent</U>&#148; and
collectively with the Administrative
Agent and the Syndication Agent, the
&#147;<U>Agents</U>&#148;) will act as Documentation
Agent for the Lenders holding the
Initial Loans from time to time.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Joint Lead Arrangers and
Bookrunners:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RBC Capital Markets (&#147;<U>RBCCM</U>&#148;) and
DBSI (together with RBCCM, in such
capacity, the &#147;<U>Arrangers</U>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lenders:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Royal Bank, Deutsche Bank AG Cayman
Islands Branch (&#147;<U>DBCI</U>&#148;), HSBC US and
any other holder of any portion of
the</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>


</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Initial Loans or of any
commitment to make the Initial Loans
are collectively referred to in this
Exhibit&nbsp;B as the &#147;<U>Lenders.</U>&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Use of Proceeds:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The proceeds of the Initial Loans
will be used to provide funds to
finance a portion of the
Transaction
(including to refinance the
Convertible Securities after the
Closing Date).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Funding:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Lenders will make the Initial
Loans simultaneously with (a)&nbsp;the
consummation of the Transaction and
(b)&nbsp;the initial funding under the
Senior Secured Facilities. The date
on which such Initial Loans are made
and the Transaction is consummated
is herein called the &#147;<U>Closing Date.</U>&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Maturity/Exchange:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Initial Loans will initially
mature on the date that is 12&nbsp;months
following the Closing Date (the
&#147;<U>Initial Loan Maturity Date</U>&#148;), which
may be extended as provided below.
If any Initial Loan has not been
previously repaid in full on or
prior to the Initial Loan Maturity
Date, the Lender in respect of such
Initial Loan will have the option at
any time or from time to time to
receive Exchange Notes (the
&#147;<U>Exchange Notes</U>&#148;; together with the
Initial Loans, the &#147;<U>Senior Unsecured
Facility Debt</U>&#148;) in exchange for such
Initial Loan having the terms set
forth in the term sheet attached
hereto as Annex&nbsp;I. The maturity of
any Initial Loans that are not
exchanged for Exchange Notes on the
Initial Loan Maturity Date shall
automatically be extended to the
eighth anniversary of the Closing
Date. Such exchange and/or
extension of the Initial Loans, in
each case, on the Initial Loan
Maturity Date shall be subject to
the following conditions: (i)&nbsp;there
has been no payment default or
acceleration under the Senior
Unsecured Facility, (ii)&nbsp;there has
been no acceleration under the
Credit Facilities or under any other
debt of the Borrower, (iii)&nbsp;all fees
due to the Arrangers on such date
have been paid in full and (iv)&nbsp;such
exchange and/or extension would not
violate any injunction, decree order
or judgment.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Initial Loans and the Exchange
Notes shall be pari passu for all
purposes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interest:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Information relating to the pricing
of the Initial Loans has been
omitted&#093;.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mandatory Prepayment:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Borrower will be required to
prepay Initial Loans (and, if
issued, redeem Exchange Notes, other
than the Fixed Rate Exchange Notes
(as defined below)) on a <U>pro</U> <U>rata</U>
basis, at par <U>plus</U> accrued and
unpaid interest from 100% of the net
cash proceeds (after deduction of,
among other things, amounts
required, if any, to repay the
Senior Secured Facilities) of the
sale of any assets outside the
ordinary course of business and the
incurrence of any debt (including
the Senior Notes, but excluding any
Incremental Facility), in each case
subject to exceptions and baskets to
be agreed including, in the case of
asset sales, a right to reinvest</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>


</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">within 12&nbsp;months of sale. In
addition, after any payments
required to be made to repay the
Senior Secured Facilities have been
paid in full, the Borrower will be
required to redeem the Initial Loans
and, if issued, the Exchange Notes
but not the Fixed Rate Exchange
Notes (as defined below), upon the
occurrence of a change of control
(which will be defined to exclude a
Permitted Reorganization) at par
<U>plus</U> accrued and unpaid interest.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Optional Prepayment:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Initial Loans may be prepaid, in
whole or in part, at the option of
the Borrower, at any time upon three
days&#146; prior notice, at par <U>plus</U>
accrued and unpaid interest.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Documentation:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Usual for facilities and
transactions of this type as may be
reasonably agreed by the Arrangers
and the Lenders (such documentation,
the &#147;<U>Senior Unsecured Facility
Documentation</U>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Conditions Precedent:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The availability of the Senior
Unsecured Facility shall be
conditioned upon the satisfaction of
the conditions set forth in
Exhibit&nbsp;C.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Representations and Warranties:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Usual for facilities and
transactions of this type and others
as reasonably agreed by the
Arrangers, the Lenders and the
Borrower. As appropriate, such
representations and warranties shall
be substantially similar to the
representations and warranties set
forth in the Senior Secured Credit
Documentation.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Covenants:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Usual for facilities and
transactions of this type and others
as may be reasonably agreed by the
Arrangers, the Lenders and the
Borrower, including, without
limitation, restrictions on the
incurrence of indebtedness, the
payment of dividends, capital
distributions and other payments in
respect of capital stock or trust
units, redemption of capital stock
or trust units and making certain
investments, the incurrence of
liens, the sale of assets and the
sale of subsidiary stock, entering
into agreements that restrict the
payment of dividends by subsidiaries
or the repayment of intercompany
loans and advances, entering into
affiliate transactions, entering
into mergers, amalgamations, plans
of arrangement, consolidations and
sales of substantially all the
assets of the Borrower and its
subsidiaries and requirements as to
future subsidiary guarantors. Prior
to the Initial Loan Maturity Date,
the covenants will be more
restrictive than those in the
Exchange Notes but less restrictive
than the Senior Secured Facilities.
Following the Initial Loan Maturity
Date, the covenants relevant to the
Initial Loans will automatically be
modified so as to be consistent with
the Exchange Notes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Events of Default:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Usual for facilities and
transactions of this type and others
as may be reasonably agreed by the
Arrangers, the Lenders and the
Borrower and less restrictive than
the Events of Default in the Senior
Secured Facility. Following the
Initial Loan Maturity Date, the
events of default relevant to the
Initial Loans will</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>


</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">automatically be
modified so as to be consistent with
the Exchange Notes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cost and Yield Protection:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Usual for facilities and
transactions of this type, including
standard protective provisions for
such matters as increased costs,
funding losses, capital adequacy,
requirements of law and withholding
taxes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Assignment and Participation:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subject to the prior approval of the
Administrative Agent (such approval
not to be unreasonably withheld),
the Lenders will have the right to
assign Initial Loans and commitments
without the consent of the Borrower;
provided that, for the twelve month
period commencing on the Closing
Date, the consent of the Borrower
(not to be unreasonably withheld)
shall be required with respect to
any assignment that would result in
the Agents collectively holding less
than 50.1% of the aggregate
outstanding principal amount of the
Initial Loans. Assignments will be
by novation that will release the
obligation of the assigning Lender.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Lenders will have the right to
participate their Initial Loans to
other financial institutions without
restriction, other than customary
voting limitations. Participants
will have the same benefits as the
selling Lenders would have (and will
be limited to the amount of such
benefits) with regard to yield
protection and increased costs,
subject to customary limitations and
restrictions.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Voting:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendments and waivers of the Senior
Unsecured Facility Documentation
will require the approval of Lenders
holding more than 50% of the
outstanding Initial Loans, except
that (i)&nbsp;the consent of each
affected Lender will be required for
(a)&nbsp;reductions of principal,
interest rates or spread, (b)&nbsp;except
as provided under
&#147;Maturity/Exchange&#148; above,
extensions of the Initial Loan
Maturity Date, (c)&nbsp;additional
restrictions on the right to
exchange Initial Loans for Exchange
Notes or any amendment of the rate
of such exchange and (d)&nbsp;any
amendment to the Exchange Notes that
requires (or would, if any Exchange
Notes were outstanding, require) the
approval of all holders of Exchange
Notes and (ii)&nbsp;the consent of 100%
of the Lenders shall be required
with respect to (a)&nbsp;modifications to
any of the voting percentages, (b)
modifications to the redemption
provisions and (c)&nbsp;releases of all
or substantially all of the
Guarantors.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Expenses and Indemnification:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Senior Unsecured Facility
Documentation shall provide that the
Borrower shall pay (a)&nbsp;all
reasonable out-of-pocket expenses of
the Agents and the Arrangers
associated with the syndication of
the Senior Unsecured Facility and
the preparation, execution, delivery
and administration of the Senior
Unsecured Facility Documentation and
any amendment, waiver or
modification with respect thereto
(including the reasonable fees,
disbursements and other charges of
one US counsel and one Canadian
counsel and one local counsel, as
necessary, in each relevant
jurisdiction for all</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>


</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">of the Credit
Facilities and all of the Agents and
the Arrangers) and (b)&nbsp;all
out-of-pocket expenses of the Agents
and the Lenders (including the fees,
disbursements and other charges of
one counsel) in connection with the
enforcement of the Senior Unsecured
Facility Documentation.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Agents, the Arrangers and the
Lenders (and their respective
affiliates, controlling persons,
officers, directors, employees,
advisors and agents) will have no
liability for, and will be
indemnified and held harmless
against, any loss, liability, cost
or expense incurred in respect of
the proposed transactions,
including, but not limited to, the
financing contemplated hereby or the
use or the proposed use of proceeds
thereof, except to the extent they
are found by a final, non-appealable
judgment of a court to arise from
the gross negligence or willful
misconduct of the relevant
indemnified person.</TD>
</TR>
<TR style="font-size: 10pt">
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Permitted Reorganizations:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Senior Unsecured Facility
Documentation shall contain
provisions to permit
(notwithstanding any default that
would otherwise arise under the
Senior Unsecured Facility
Documentation as a result of any
change of control provision or any
other term, condition, covenant or
event of default) a reorganization
of the Borrower and/or Holdings and
their respective direct and/or
indirect subsidiaries as a
consequence of the application of
the Canadian &#147;SIFT&#148; rules and any
related tax and corporate
reorganization, and to permit an
assumption of the Senior Unsecured
Facility Documentation by the
ultimate parent resulting from such
reorganization and/or any
subsidiaries thereof (the &#147;<U>New
Borrower</U>&#148;), provided that (a)&nbsp;the
New Borrower shall be solvent and
organized under the laws of Canada,
the United States, or a province or
state thereof, (b)&nbsp;the New Borrower
shall assume all obligations of the
Borrower and Holdings and their
respective subsidiaries (if
applicable), and the ultimate
parent, if not the New Borrower,
will provide a guarantee of the New
Borrower&#146;s obligations and security
(including provisions of any
guarantees and subordination
agreements from subsidiaries or
affiliates of the ultimate parent),
and the New Borrower shall deliver a
legal opinion of Bennett Jones LLP
and/or Mayer Brown LLP or other
independent counsel reasonably
satisfactory to the Administrative
Agent that all such assumption
agreements, guarantees and
subordinations are enforceable in
accordance with their terms, (c)&nbsp;no
default or event of default shall
have occurred and be continuing nor
will result therefrom, (d)&nbsp;the
reorganization shall not result in
any adverse tax consequences related
to withholding tax or similar
amounts on payments to the Lenders,
(e)&nbsp;the reorganization shall not
result in any changes to the
creditworthiness of the Borrower and
its subsidiaries other than
permitted changes to be agreed and
(f)&nbsp;the Administrative Agent shall
receive such other representations
and warranties, assurances, legal
opinions (subject to customary
qualifications and assumptions) and
other documents with respect to such</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>


</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">reorganization as may be reasonably
requested by the Administrative
Agent including, without limitation,
to preserve as against the New
Borrower and other entities
resulting from the reorganization
the substance of the reporting
requirements, affirmative and
negative covenants and events of
default.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Governing Law and Forum:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">U.S. Counsel to the Administrative
Agent and the Arrangers:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Simpson Thacher &#038; Bartlett LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Canadian Counsel to the
Administrative Agent and the
Arrangers:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Burnet, Duckworth &#038; Palmer LLP.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>




</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><u>Annex I to Exhibit&nbsp;B</u>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Summary of Terms and Conditions</U><BR>
<U>of Exchange Notes</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms used but not defined herein have the meanings given in the Summary of Terms
and Conditions of the Senior Unsecured Facility to which this Annex I is attached.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Issuer:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Borrower will issue Exchange Notes
under an indenture that complies with
the Trust Indenture Act (the
&#147;<U>Indenture</U>&#148;). The Borrower in its
capacity as issuer of the Exchange Notes
is referred to as the &#147;<U>Issuer</U>.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Guarantors:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Same as the Initial Loans.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Principal Amount:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Exchange Notes will be available
only in exchange for the Initial Loans
on or after the Initial Loan Maturity
Date. The principal amount of any
Exchange Note will equal 100% of the
aggregate principal amount (including
any accrued interest not required to be
paid in cash) of the Initial Loan for
which it is exchanged.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Maturity:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Exchange Notes will mature on the
eighth anniversary of the Closing Date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interest Rate:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Information relating to the pricing of
the Exchange Notes has been omitted&#093;.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mandatory Redemption:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Issuer will be required to redeem
the Exchange Notes (other than the Fixed
Rate Exchange Notes) and, if
outstanding, prepay the Initial Loans on
a <U>pro</U> <U>rata</U> basis, at par <U>plus</U> accrued
and unpaid interest, from 100% of the
net cash proceeds (after deduction of,
among other things, amounts required, if
any, to repay the Senior Secured
Facilities) of the sale of any assets
outside the ordinary course of business
and the incurrence of any debt
(including the Senior Notes, but
excluding any Incremental Facility) (in
each case subject to exceptions and
baskets to be agreed including, in the
case of asset sales, a right to reinvest
within 12&nbsp;months of sale). In addition,
the Issuer will be required to redeem
the Exchange Notes (other than the Fixed
Rate Exchange Notes) and prepay Initial
Loans upon the occurrence of a change of
control, which will be defined to
exclude a Permitted Reorganization
(which redemption or prepayment shall be
at 100% of the principal amount of such
Exchange Notes or Initial Loans, as the
case may be, <U>plus</U> accrued and unpaid
interest).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Optional Redemption:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subject to the following paragraph, the
Exchange Notes will be redeemable at the
option of the Issuer, in whole or in
part, at any time at par plus accrued
and unpaid interest to the redemption
date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(i) Any Lender (other than any
Commitment Party) that holds an Exchange
Note, at any time, and (ii)&nbsp;any
Commitment Party that</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;2
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">sells an Exchange
Note to a third party, at the time of
sale, shall have the right to fix the
interest rate on such Exchange Note (a
&#147;<U>Fixed Rate Exchange Note</U>&#148;) at a rate
equal to (a)&nbsp;the then applicable rate of
interest or (b)&nbsp;in the case of clause
(ii)&nbsp;above, upon the representation of
such Lender that a higher rate (such
higher rate, the &#147;<U>Transfer Rate</U>&#148;) would
be necessary in order to permit such
Lender to transfer such Exchange Note to
a third party and receive consideration
equal to the principal amount thereof
<U>plus</U> all accrued and unpaid interest to
the date of such transfer, the Transfer
Rate; <U>provided</U>, that such Transfer Rate
shall not exceed the interest rate cap
applicable to the Exchange Notes. If
such Lender exercises such right, such
Exchange Note will be (a)&nbsp;non-callable
for the first four years from the
Initial Loan Maturity Date and (b)
thereafter, callable at par <U>plus</U> accrued
interest <U>plus</U> a premium equal to (i)&nbsp;50%
of the coupon in effect on the date of
sale of such Exchange Notes to a third
party purchaser or (ii)&nbsp;if the Transfer
Rate was used, 50% of the Transfer Rate,
which premium in either case shall
decline ratably on each yearly
anniversary of the date of such sale to
zero two years prior to the maturity of
the Exchange Notes. The Fixed Rate
Exchange Notes will also be subject to
customary equity clawback features.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mandatory Offer to Purchase:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Issuer will be required to offer to
repurchase the Fixed Rate Exchange Notes
upon the occurrence of a change of
control, which will be defined to
exclude a Permitted Reorganization
(which offer shall be at 101% of the
principal amount of such Fixed Rate
Exchange Notes <U>plus</U> accrued and unpaid
interest).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Issuer will also be required to
offer to repurchase Fixed Rate Exchange
Notes, subject to customary exceptions
including prior rights of senior ranking
secured lenders and subject to a 12
month reinvestment period, upon the
consummation of asset sales (which offer
shall be at 100% of the principal amount
of such Fixed Rate Exchange Note <U>plus</U>
accrued and unpaid interest).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Registration Rights:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Issuer will file within 90&nbsp;days
after the Initial Loan Maturity Date,
and will use its commercially reasonable
efforts to cause to become effective as
soon thereafter as practicable, a shelf
registration statement with respect to
the Exchange Notes (a &#147;<u>Shelf
Registration Statement</u>&#148;) and/or a
registration statement relating to a
Registered Exchange Offer (as described
below). If a Shelf Registration
Statement is filed, the Issuer will keep
such registration statement effective
and available (subject to customary
exceptions) until it is no longer needed
to permit unrestricted resales of
Exchange Notes but in no event longer
than two years from the Initial Loan
Maturity Date. If within 180&nbsp;days from
the Initial Loan Maturity Date, a Shelf
Registration Statement for the Exchange
Notes has not been declared effective or
the Issuer has not effected an exchange
offer (a &#147;<U>Registered Exchange Offer</U>&#148;)
whereby the Issuer has offered
registered notes having terms identical
to the Exchange Notes (the &#147;<U>Substitute</U></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;3
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Notes</U>&#148;) in exchange for all outstanding
Exchange Notes and Initial Loans (it
being understood that a Shelf
Registration Statement is required to be
made available in respect of Exchange
Notes the holders of which could not
receive Substitute Notes through the
Registered Exchange Offer that, in the
opinion of counsel, would be freely
saleable by such holders without
registration or requirement for delivery
of a current prospectus under the
Securities Act of 1933, as amended
(other than a prospectus delivery
requirement imposed on a broker-dealer
who is exchanging Exchange Notes
acquired for its own account as a result
of a market making or other trading
activities)), then the Issuer will pay
liquidated damages of 1.00% per annum on
the principal amount of Exchange Notes
and Initial Loans outstanding to holders
thereof who are, or would be, unable
freely to transfer Exchange Notes from
and including the 181<SUP style="font-size: 85%; vertical-align: text-top">st </SUP>day
after the date of
the first issuance of
Exchange Notes to but excluding the
earlier of the effective date of such
Shelf Registration Statement or the date
of consummation of such Registered
Exchange Offer (such damages may be
payable, at the option of the Borrower,
in the form of additional Initial Loans
or Exchange Notes, as applicable, if the
then interest rate thereon exceeds the
applicable interest rate cap). The
Issuer will also pay such liquidated
damages for any period of time (subject
to customary exceptions) following the
effectiveness of a Shelf Registration
Statement that such Shelf Registration
Statement is not available for resales
thereunder. In addition, unless and
until the Issuer has consummated the
Registered Exchange Offer and, if
required, caused the Shelf Registration
Statement to become effective, the
holders of the Exchange Notes will have
the right to &#147;piggy-back&#148; the Exchange
Notes in the registration of any debt
securities (subject to customary
scale-back provisions) that are
registered by the Issuer (other than on
a Form&nbsp;S-4) unless all the Exchange
Notes and Initial Loans will be redeemed
or repaid from the proceeds of such
securities.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Right to Transfer Exchange Notes:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The holders of the Exchange Notes shall
have the absolute and unconditional
right to transfer such Exchange Notes in
compliance with applicable law to any
third parties.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Covenants:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Similar to those in an indenture
governing a high-yield senior note
issue, but modified to include
additional restrictions customary in
interim facilities.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Events of Default:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Similar to those in an indenture
governing a high-yield senior note
issue, but modified to include
additional events of default customary
in interim facilities.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Permitted Reorganizations:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Indenture shall contain provisions
to permit (notwithstanding any default
that would otherwise arise under the
Indenture as a result of any change of
control provision or any other term,
condition, covenant or event of default)
a reorganization of the</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;4</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Issuer and/or
Holdings and their respective direct
and/or indirect subsidiaries as a
consequence of the application of the
Canadian &#147;SIFT&#148; rules and any related
tax and corporate reorganization, and to
permit an assumption of the Exchange
Notes by the ultimate parent resulting
from such reorganization and/or any
subsidiaries thereof (the &#147;<U>New Issuer</U>&#148;),
provided that (a)&nbsp;the New Issuer shall
be solvent and organized under the laws
of Canada, the United States, or a
province or state thereof, (b)&nbsp;the New
Issuer shall assume all obligations of
the Issuer and Holdings and their
respective subsidiaries (if applicable),
and the ultimate parent, if not the New
Issuer, will provide a guarantee of the
New Issuer&#146;s obligations and security
(including provisions of any guarantees
and subordination agreements from
subsidiaries or affiliates of the
ultimate parent), and the New Issuer
shall deliver a legal opinion (subject
to customary qualifications and
assumptions) of Bennett Jones LLP and/or
Mayer Brown LLP or other independent
counsel reasonably satisfactory to the
trustee that all such assumption
agreements, guarantees and
subordinations are enforceable in
accordance with their terms, (c)&nbsp;no
default or event of default shall have
occurred and be continuing nor will
result therefrom, (d)&nbsp;the reorganization
shall not result in any adverse tax
consequences related to withholding tax
or similar amounts on payments to the
noteholders, (e)&nbsp;the reorganization
shall not result in any changes to the
creditworthiness of the Issuer and its
subsidiaries other than permitted
changes to be agreed and (f)&nbsp;the trustee
shall receive such other representations
and warranties, assurances, legal
opinions and other documents with
respect to such reorganization as may be
reasonably requested including, without
limitation, to preserve as against the
New Issuer and other entities resulting
from the reorganization the substance of
the reporting requirements, affirmative
and negative covenants and events of
default.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Governing Law and Forum:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York.</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Commitment Letter Term Sheet  &#151; Senior Unsecured Facility</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><u>Exhibit&nbsp;C</u>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The availability of the Credit Facilities, in addition to the conditions set forth in Exhibits
A and B, shall be subject to the satisfaction of the following conditions. Capitalized terms used
but not defined herein have the meanings given in said Exhibits.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(a)&nbsp; Each Loan Party shall have executed and delivered Senior Secured Credit
Documentation satisfactory to the Commitment Parties, acting reasonably, and, if
applicable, Senior Unsecured Facility Documentation satisfactory to the Commitment
Parties, acting reasonably, holding commitments under the Commitment Letter in
respect of the Senior Unsecured Facility.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(b)&nbsp; The Borrower shall have received (i)&nbsp;as a condition to the funding of the
Senior Secured Facilities, $400,000,000 (subject to reduction as set forth in
Exhibit&nbsp;B) in gross cash proceeds from the issuance of the Senior Notes on
reasonably satisfactory terms or the borrowing of Initial Loans under the Senior
Unsecured Facility, as applicable, and (ii)&nbsp;as a condition to the funding of the
Senior Unsecured Facility, $800,000,000 in gross cash proceeds from the borrowing of
Term Loans under the Senior Secured Facilities. The fees and expenses related to
the Transaction shall not exceed the amount set forth under &#147;Payment of Fees and
Expenses&#148; in the Table set forth in Annex B of the Commitment Letter without the
approval of the Arrangers, not to be unreasonably withheld.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(c)&nbsp; The Transaction shall have been consummated, or substantially simultaneously
with the initial borrowing under the Senior Secured Credit Facilities shall be
consummated, in accordance with the Transaction Agreement (and no provision of the
Transaction Agreement (including the disclosure schedules thereto) in the form most
recently delivered to the Arrangers on or prior to the date hereof (the &#147;<U>Draft
Transaction Agreement</U>&#148;) shall have been waived, amended, supplemented or
otherwise modified in a manner material and adverse to the Lenders without the
consent of the Arrangers, which consent shall not be unreasonably withheld or
delayed). The sources and uses of funding for the Transaction shall be
substantially consistent with the Table set forth in Annex B of the Commitment
Letter (giving effect to the footnotes therein, and with such other changes as may
be agreed between the Borrower and the Arrangers, each acting reasonably) and the
terms of such funding sources shall be consistent with the terms hereof or otherwise
satisfactory to the Arrangers. Substantially all of the existing indebtedness of
the Target and its subsidiaries (excluding those Convertible Securities that are not
converted or redeemed on or prior to the Closing Date) shall have been repaid, or
substantially simultaneously with the initial borrowing under the Senior Secured
Credit Facilities shall be repaid, on satisfactory terms and all related security
interests released or arrangements shall have been made which are reasonably
satisfactory to the Administrative Agent for the repayment thereof and release of
all related security interests within an agreed period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(d)&nbsp; The Lenders, the Agents and the Arrangers shall have received all fees and
invoiced expenses required to be paid on or before the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(e)&nbsp; The government and third party approvals required under Section&nbsp;6.1 of the
Draft Transaction Agreement shall have been obtained on reasonably satisfactory
terms. No Governmental Authority (as defined in the Draft Transaction Agreement) of
competent jurisdiction shall have issued, promulgated, enforced or entered any Order
(as defined in the Draft Transaction Agreement), temporary restraining order,
preliminary or permanent injunction, or other legal restraint or prohibition that is
continuing and which prevents the
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;2
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">consummation of the Merger (as defined in the Draft Transaction Agreement). There
shall not be any pending suit, action or proceeding asserted by any Governmental
Authority challenging or seeking to restrain or prohibit the consummation of the
Merger or the transactions contemplated under the Transaction Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(f)&nbsp; /The Lenders shall have received (i)&nbsp;audited consolidated financial statements
of the Trust for its two most recent fiscal years and of the Target for its three
most recent fiscal years, (ii)&nbsp;unaudited consolidated financial statements of each
of the Trust and the Target for each fiscal quarter ended after the latest fiscal
year referred to in clause (i)&nbsp;above, and at least 45&nbsp;days prior to the Closing
Date, and unaudited consolidated financial statements for the same period of the
prior fiscal year and (iii)&nbsp;all other financial statements for completed or pending
acquisitions that may be required under Regulation&nbsp;S-X of the Securities Act of
1933, as amended (&#147;<U>Regulation&nbsp;<BR>S-X</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(g)&nbsp; The Lenders shall have received a pro forma consolidated balance sheet of the
Borrower as at the date of the most recent balance sheet delivered pursuant to the
preceding paragraph and a pro forma statement of operations for the 12-month period
ending on such date, in each case adjusted to give effect to the consummation of the
Transaction and the financings contemplated hereby as if such transactions had
occurred on such date or on the first day of such period, as applicable, prepared in
accordance with Regulation&nbsp;S-X and consistent in all material respects with
information previously provided by the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(h)&nbsp; The pro forma ratio of total debt of the Borrower and its consolidated
subsidiaries to Adjusted EBITDA shall not exceed 2.00 to 1.0, and the Borrower shall
have provided satisfactory support for such calculations. As used herein, &#147;Adjusted
EBITDA&#148; means consolidated EBITDA of the Borrower and the Target for the 12-month
period ended on the date of the most recent available quarterly financial
statements, subject to adjustments permitted by Regulation&nbsp;S-X and such other
adjustments as the Arrangers reasonably determines reflect the pro forma financial
condition of the Borrower and may be used in the offering memorandum or prospectus
for the Senior Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i)&nbsp; The Lenders shall have received satisfactory projections through 2014.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(j)&nbsp; Subject to the twelfth paragraph of the Commitment Letter, all actions
necessary (including obtaining lien searches) to establish that the Administrative
Agent will have a perfected first priority security interest in the collateral under
the Senior Secured Facilities shall have been taken, and, in connection with real
estate collateral, the Administrative Agent shall have received satisfactory title
insurance policies, surveys and other customary documentation to the extent
reasonably requested by it.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(k)&nbsp; The Administrative Agent shall have received such legal opinions (including
opinions (i)&nbsp;from counsel to the Borrower, and (ii)&nbsp;from such special and local
counsel as may be required by the Administrative Agent), certificates (including a
chief financial officer&#146;s solvency certificate), documents and other instruments as
are customary for transactions of this type or as it may reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(l)&nbsp; As a condition to the funding of the Senior Unsecured Facility, the Borrower
shall have delivered preliminary offering memoranda or preliminary prospectuses and
other marketing materials relating to the Senior Notes usable in a customary
high-yield road
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;3
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">show (which shall comply with the rules and regulations (including Regulation&nbsp;S-X)
of the Securities Act of 1933, as amended) and the investment bank engaged to place
the Senior Notes shall have been afforded a reasonable period, which shall not be
less than 30&nbsp;days, following the receipt of such documentation to place the Senior
Notes with qualified purchasers thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(m)&nbsp; (i)&nbsp;As a condition to the funding of the Senior Secured Facilities, the
Borrower shall have received corporate ratings and ratings on the Senior Secured
Facilities, in each case from both Moody&#146;s Investors Service, Inc.
(&#147;<U>Moody&#146;s</U>&#148;) and Standard &#038; Poor&#146;s Ratings Group (&#147;<U>S&#038;P</U>&#148;) at least 30
days prior to funding, and (ii)&nbsp;as a condition to funding the Senior Unsecured
Facility, the Borrower shall have received corporate ratings and ratings on the
Senior Secured Facilities, in each case from both Moody&#146;s and S&#038;P at least 30&nbsp;days
prior to funding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commitment Letter</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>17
<FILENAME>filename17.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>corresp</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 8pt; margin-top: 12pt"><FONT style="font-size:14pt">M A Y E R&nbsp;&nbsp;&#149;&nbsp;&nbsp; B R O W N</FONT>
</DIV>


<DIV align="right" style="font-size: 8pt; margin-top: 12pt">Mayer Brown LLP<BR>
700 Louisiana Street<BR>
Suite&nbsp;3400<BR>
Houston, Texas 77002-2730
</DIV>


<DIV align="right" style="font-size: 8pt; margin-top: 9pt">Main Tel (713)&nbsp;238-3000<BR>
Main Fax (713)&nbsp;238-4888<BR>
www.mayerbrown.com
</DIV>


<DIV align="right" style="font-size: 9pt; margin-top: 12pt"><B>Robert F. Gray, Jr.</B><BR>
Direct Tel (713)&nbsp;238-2600<BR>
Direct Fax (713)&nbsp;238-4600<BR>
rgray@mayerbrown.com
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">September&nbsp;25, 2008
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">U.S. Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.E.<BR>
Washington, DC 20549

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Statement on Form&nbsp;F-4 of Precision Drilling Trust<BR>
(the &#147;Registration Statement&#148;)</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On behalf of Precision Drilling Trust
(the &#147;Company&#148;), a registration statement on Form F-4
was filed on September&nbsp;25, 2008, relating to the merger of the Company and
Grey Wolf, Inc. (&#147;Grey Wolf&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Rule&nbsp;461 of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;),
the Company wishes to advise the staff that it may, when appropriate, make an oral request for
acceleration of effectiveness of the registration statement. The Company hereby confirms to the
staff its awareness of its obligations under the Securities Act in connection with any such oral
acceleration request.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Robert F. Gray, Jr.
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Robert F. Gray, Jr.&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




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