Western Lakota Energy Services Inc.
TSX : WLE

Western Lakota Energy Services Inc.

September 28, 2005 08:00 ET

Western Lakota Completes Construction of its 30th Drilling Rig and Signs Agreement to Acquire One Surface Casing Rig

CALGARY, ALBERTA--(CCNMatthews - Sept. 28, 2005) - Western Lakota Energy Services Inc. (TSX:WLE) announces that construction of its fifth 3,600 metre ultra-heavy telescoping double drilling rig has been completed on schedule and the rig is moving to its first well location. This brings the current number of rigs to 30.

The Company and its wholly owned subsidiary Akuna Drilling Inc. also announce the signing of an agreement to purchase one surface casing drilling rig and related spare equipment from Advantage Drilling Ltd. The rig has a full complement of crews, who will be offered employment with Akuna Drilling Inc. The completion of the proposed transaction is subject to approval of Western Lakota's board of directors and the Toronto Stock Exchange. Closing is targeted for October 3, 2005.

The purchase price of $1.925 million will be paid by the issuance of 70,565 common shares of Western Lakota Energy Services Inc. at a deemed issue price of $13.64 per share and $962,500 in cash.

"This rig complements our current fleet of four surface casing/core rigs which we expect to grow to nine by early 2006," said Elson McDougald, President and Chief Executive Officer of Western Lakota.

One of Canada's fastest-growing drilling contractors, Western Lakota will be operating 31 rigs, after the above transaction closes, including five surface casing/core drilling rigs and has 10 more rigs planned for construction. 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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