Western Lakota Energy Services Inc.
TSX : WLE

Western Lakota Energy Services Inc.

July 04, 2005 08:00 ET

Second Rig Added to Western Lakota and Saddle Lake First Nation Partnership

CALGARY, ALBERTA--(CCNMatthews - July 4, 2005) - Western Lakota Energy Services Inc. (TSX:WLE) announces that Saddle Lake First Nation has purchased a 50% interest in a second 3,000 metre telescoping double drilling rig from Western Lakota. The proceeds of sale will consist of a combination of $1,900,000 cash plus $1,600,000 in promissory notes. As such, a portion of the revenue and cost of sales will be deferred until Saddle Lake First Nation pays the promissory notes.

"The continued interest from our current partners to purchase additional rigs in their partnerships is a testament to the success of this model." said Elson McDougald, President and CEO of Western Lakota. "The addition of a second rig is a significant accomplishment for Saddle Lake First Nation and we look forward to continued success in working together."

One of Canada's fastest-growing drilling contractors, Western Lakota currently operates 22 rigs and, in addition to the four surface casing/core drilling rigs recently acquired, 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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