Western Lakota Energy Services Inc.
TSX : WLE

Western Lakota Energy Services Inc.

June 24, 2005 08:00 ET

Samson Cree Nation to Become Significant Shareholders in Western Lakota

CALGARY, ALBERTA--(CCNMatthews - June 24, 2005) - Western Lakota Energy Services Inc. (TSX:WLE) announces the signing of a letter of intent with the Samson Cree Nation to acquire their 50% interest in three drilling rigs. These rigs are currently held in a 50/50 limited partnership that is owned by Western Lakota and the Samson Cree Nation. This proposed transaction will be subject to Board and regulatory approval.

The purchase price of Samson Cree Nation's interest in these rigs is $6,625,000 plus the assumption of bank debt and working capital in the partnership. The consideration will consist of 883,334 common shares of Western Lakota at a deemed issue price of $7.50 per share. Western Lakota will continue to work with the Samson Cree Nation to train and employ members of their community.

"This partnership has been very successful and we believe this transaction is a natural evolution of our relationship," said Elson McDougald, President and Chief Executive Officer of Western Lakota. "While the limited partnership will be formally dissolved, our Aboriginal focus as an organization will be further strengthened by having the Samson Cree Nation as a significant shareholder."

One of Canada's fastest-growing drilling contractors, Western Lakota currently operates 22 rigs and plans to build 8 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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