Western Lakota Energy Services Inc.

Western Lakota Energy Services Inc.

May 05, 2005 12:24 ET

Western Lakota Energy Services Inc. Announces Closing of Subscription Receipt Private Placement

CALGARY, ALBERTA--(CCNMatthews - May 5, 2005) - Western Lakota Energy Services Inc. (WLE - TSX Venture)


Western Lakota Energy Services Inc. announces that it has closed its previously announced financing
through a syndicate of underwriters, led by Peters & Co. Limited and including First Associates
Investments Inc. and Orion Securities Inc. (collectively the "Underwriters"). Western Lakota issued
4,800,000 subscription receipts by way of private placement on a bought deal basis at a price of
$5.25 per share, resulting in gross proceeds of $25,200,000.

Proceeds of the offering will be used to partially fund Western Lakota's previously announced
acquisition of the assets and operations of Hemsing Drilling Ltd. (the "Acquisition"). The
subscription receipts will entitle the holders to acquire common shares on a one-for-one basis,
for no additional consideration, upon closing the Acquisition, scheduled to close on or before
May 17, 2005. The subscription receipts and the common shares issuable pursuant thereto are subject
to a hold period expiring September 6, 2005.

One of Canada's fastest-growing drilling contractors, Western Lakota currently operates 16 rigs and
plans to grow its fleet to 30 rigs by the end of 2005. The additional 14 rigs would include the eight
new builds previously announced, as well as the proposed six from the Acquisition. Western Lakota
continues to provide one of the newest fleets of safe and efficient drilling rigs in Canada while
striving to deliver strong results for shareholders, customers and partners.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the
subscription receipts in the United States. The subscription receipts have not been and will not be
registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration requirements of such Act.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Western Lakota Energy Services Inc.
    Elson McDougald
    President and C.E.O.
    (403) 214-5953
    Email: elson@westernlakota.com
    Website: www.westernlakota.com
    Western Lakota Energy Services Inc.
    1050, 400 - 5th Avenue SW,
    Calgary, Alberta T2P 0L6
    (403) 214-5970
    (403) 214-5955 (FAX)