Western Lakota Energy Services Inc.
TSX : WLE

Western Lakota Energy Services Inc.

July 28, 2005 08:00 ET

New Shareholder Reinforces Western Lakota's Aboriginal Commitment

CALGARY, ALBERTA--(CCNMatthews - July 28, 2005) - Western Lakota Energy Services Inc. (TSX:WLE) announces the closing of the previously announced transaction, adjusted for partnership cash distributions made prior to closing, to purchase 100% of the Samson Cree Nation's partnership units of a jointly owned partnership. Western Lakota and Western Lakota Drilling Limited, a wholly owned subsidiary of Western Lakota, now own 100% of this partnership. The purchase price of $6,325,000 was based on effectively acquiring a 50% interest in three drilling rigs and related equipment, bank debt ($3,100,000), a note payable to Western Lakota ($1,117,500) and working capital ($515,000). The consideration consisted of 843,334 common shares of Western Lakota at a deemed issue price of $7.50 per share.

As an example of its continued community commitment, Western Lakota is presently completing a second training course for Samson Cree members in an effort to introduce them to the energy services industry.

"The Samson Cree Nation is the first Aboriginal community to become a significant shareholder in Western Lakota," said Elson McDougald, President and Chief Executive Officer of Western Lakota. "We look forward to welcoming like-minded shareholders in the future as we continue to prove ourselves as an Aboriginal focused organization."

One of Canada's fastest-growing drilling contractors, Western Lakota currently operates 28 rigs including four surface casing/coring rigs and plans to build 6 more rigs by the end of 2005. Western Lakota continues to provide one of the newest fleets of safe and efficient drilling rigs in Canada while delivering strong results for shareholders, customers and Aboriginal partners.

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