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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO SECTION 13A-16 OR 15D-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For October 4, 2005
Commission File Number: 001-14534
PRECISION DRILLING CORPORATION
(Exact name of registrant as specified in its charter)
4200, 150 - 6TH AVENUE S.W.
CALGARY, ALBERTA
CANADA T2P 3Y7
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [_] Form 40-F [X]
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1). _______
Note: Regulation S-T Rule 101(b)(1) only permits the submission in
paper of a Form 6-K if submitted solely to provide an attached annual report to
security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): _______
Note: Regulation S-T Rule 101(b)(7) only permits the submission in
paper of a Form 6-K if submitted to furnish a report or other document that the
registrant foreign private issuer must furnish and make public under the laws of
the jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes [_] No [X]
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- N/A
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PRECISION DRILLING CORPORATION
Per: /s/ Jan M. Campbell
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Jan M. Campbell
Corporate Secretary
Date: October 4, 2005
N E W S R E L E A S E
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PRECISION TRUST CONVERSION DOCUMENTATION BEING MAILED
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CALGARY, ALBERTA, CANADA, October 4, 2005 - Precision Drilling Corporation
("Precision") announced today the mailing to securityholders of the Notice of
Special Meeting of Securityholders and Information Circular with respect to the
Plan of Arrangement for the reorganization of Precision into Precision Drilling
Trust (the "Trust"). Copies of this documentation have been submitted for
posting on SEDAR (www.sedar.com). The special meeting to consider the conversion
is scheduled to take place on October 31, 2005 at 10:00 a.m. (Calgary time) at
the Metropolitan Conference Centre, Royal Room, 333 - 4th Avenue S.W., Calgary,
Alberta.
Pursuant to the reorganization, shareholders will be entitled to receive in
exchange for each common share held (i) one unit of the Trust ("Trust Units");
(ii) their pro-rata share of the 26 million common shares of Weatherford
International Ltd. owned by Precision ("Weatherford Shares"); and (iii) their
pro-rata share of up to $850 million of cash in aggregate. The Weatherford
Shares will not be subject to any resale restrictions, however, Precision will
not be able to complete the reorganization or transfer the Weatherford Shares
until a Registration Statement to be filed by Weatherford is declared effective
by the U.S. Securities and Exchange Commission. The Trust will own Precision's
existing business and will make regular monthly distributions to holders of the
Trust Units. Based on current business conditions, it is anticipated that the
board of Trustees of the Trust will set the initial regular distributions to the
Trust's unitholders at approximately $0.24 per Trust Unit per month with the
first such payment expected to be made in the month following the effective date
of the reorganization.
The actual amount distributed will be dependent on various economic factors and
is at the discretion of the Board of Trustees. The anticipated distribution
policy targets the use of approximately 70% of available cash for distribution
to Trust Unitholders. Based upon current economic factors and the size of the
Trust's capital budget, it is expected that the remaining approximately 30% of
cash available for distribution will fund the Trust's annual capital expenditure
program.
Certain statements contained in this press release may contain words such as
"anticipate", "could", "should", "expect", "believe", "will" and similar
expressions and statements relating to matters that are not historical facts.
These statements are "forward-looking statements" within the meaning of Section
27A of the SECURITIES ACT OF 1933 and Section 21E of the SECURITIES ACT OF 1934.
Such forward-looking statements involve known and unknown risks and
uncertainties which may cause the actual results, performance or achievements of
the entities discussed in this Press Release to be materially different from any
future results, performances or achievements expressed or implied by such
forward-looking statements. Such factors include fluctuations in the market for
oil and gas and related products and services; competition; the demand for
services provided by Precision; changes in laws and regulations, including
environmental and tax laws and regulations, to which Precision is subject and
other factors, which are described in further detail in Precision's filings with
the US Securities and Exchange Commission.
Precision is listed on the Toronto Stock Exchange under the trading symbols "PD"
and "PD.U" and on the New York Stock Exchange under the trading symbol "PDS".
For further information please contact Mr. Robert T. German, Vice President and
Chief Accounting Officer, 4200, 150 - 6th Avenue S.W., Calgary, Alberta, T2P
3Y7, Telephone: (403) 716-4500, Fax: (403) 264-0251, Website:
www.precisiondrilling.com.