Western Lakota Energy Services Inc.

Western Lakota Energy Services Inc.

April 15, 2005 13:08 ET

Western Lakota Energy Services Inc., Corporate Update

CALGARY, ALBERTA--(CCNMatthews - April 15, 2005) - Western Lakota Energy
Services Inc. (WLE - TSX Venture)


Western Lakota Energy Services Inc. ("Western Lakota") is pleased to announce
that it has entered into a financing agreement with a syndicate of underwriters,
led by Peters & Co. Limited and including First Associates Investments Inc. and
Orion Securities Inc., under which the underwriters have agreed to purchase for
resale to the public, on a bought deal private placement basis, 4,800,000
subscription receipts of Western Lakota at a price of $5.25 per subscription
receipt, 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 be converted into 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 proceeds of the subscription receipts
will be held by an escrow agent and invested in approved interest-bearing
instruments pending closing of the Acquisition. If the Acquisition does not
close on or before May 17, 2005, or Western Lakota provides notice that the
Acquisition will not be proceeding, Western Lakota will be deemed to have
repurchased the subscription receipts at the issue price plus accrued interest.

The offering is subject to normal regulatory approvals, including the approval
of the TSX Venture Exchange. The subscription receipts will be offered in the
each of the provinces of Alberta, British Columbia, Ontario, and Quebec. Closing
of the private placement financing is expected to occur on or about May 5, 2005.
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.

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,
increasing the Company's net ownership to 22.5 rigs. 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.

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)