Precision Drilling Corp.

Precision Drilling announced transactions to divest five of its Mexico based drilling rigs and water treatment business branded Terra Water Systems. The company entered into an agreement to sell five idle drilling rigs and ancillary equipment currently located in Mexico for $48 million. To date, the company has received $30 million for the sale of three drilling rigs and ancillary equipment with the balance of $10 million and $8 million due upon delivery of the fourth and fifth rigs in March and April 2019, respectively. At the conclusion of this transaction, Precision will have no assets in Mexico.

Separately, the company has initiated the redemption of $30 million of its 6.5% senior notes due 2021 on a pro rata basis with available cash on hand. The redemption payment will be made on April 16, 2019. Debt reduction and de-leveraging remains Precision’s top priority and we are pleased to accelerate our program with this redemption.