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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO SECTION 13A-16 OR 15D-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For October 25, 2005
Commission File Number: 001-14534
PRECISION DRILLING CORPORATION
(Exact name of registrant as specified in its charter)
4200, 150 - 6TH AVENUE S.W.
CALGARY, ALBERTA
CANADA T2P 3Y7
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [_] Form 40-F [X]
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1). _______
Note: Regulation S-T Rule 101(b)(1) only permits the submission in
paper of a Form 6-K if submitted solely to provide an attached annual report to
security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): _______
Note: Regulation S-T Rule 101(b)(7) only permits the submission in
paper of a Form 6-K if submitted to furnish a report or other document that the
registrant foreign private issuer must furnish and make public under the laws of
the jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes [_] No [X]
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- N/A
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PRECISION DRILLING CORPORATION
Per: /s/ Jan M. Campbell
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Jan M. Campbell
Corporate Secretary
Date: October 25, 2005
NEWS RELEASE
Calgary, Alberta, Canada - October 25, 2005
UNITED STATES RESIDENT SHAREHOLDER INFORMATION
REGARDING ESTIMATED CURRENT OR ACCUMULATED EARNINGS AND PROFITS OF
PRECISION DRILLING CORPORATION
Pursuant to the Information Circular, dated October 3, 2005, regarding the Plan
of Arrangement ("Arrangement") for the conversion of Precision Drilling
Corporation ("Precision") to Precision Drilling Trust ("Trust"), the information
contained herein is to provide shareholders who are United States persons ("U.S.
Shareholders") with information pertaining to the current or accumulated
earnings and profits of Precision for its taxable year ended December 31, 2005.
As indicated in the second last paragraph on page 52 of the Information
Circular, the receipt of Weatherford Shares and the Special Cash Payment by U.S.
Shareholders should result in dividend income for United States federal income
tax purposes to the extent of their allocable share of Precision's current or
accumulated earnings and profits as at its taxable yearend. The company will not
be able to provide U.S. Shareholders with the final calculation of the current
or accumulated earnings and profits until after the Arrangement is completed,
and after the end of the taxable year of Precision. Based on current estimates,
Precision expects that a significant portion (greater than 50%) of the sum of
the value of the Weatherford Shares and Special Cash Payment should constitute
dividend income for United States federal income tax purposes.
The final calculation of the current or accumulated earnings and profits of
Precision and the portion of the distribution that will be treated as a dividend
for U.S. federal income tax purposes will be posted on the company's website
www.precisiondrilling.com in January 2006. United States shareholders should
consult the United States Federal Income Tax Consequences section of the
Information Circular for a more detailed discussion of the United States federal
income tax consequences of the Arrangement and all shareholders are urged to
consult their own tax advisers as to the specific United States federal and
state tax consequences of the Arrangement based upon their particular
circumstances.
Certain statements contained in this press release may contain words such as
"anticipate", "estimate", "could", "should", "expect", "believe", "will" and
similar expressions and statements relating to matters that are not historical
facts. These statements are "forward-looking statements" within the meaning of
Section 27A of the SECURITIES ACT OF 1933 and Section 21E of the SECURITIES ACT
OF 1934. Such forward-looking statements involve known and unknown risks and
uncertainties which may cause the actual results, performance or achievements of
the entities discussed in this Press Release to be materially different from any
future results, performances or achievements expressed or implied by such
forward-looking statements. Such factors include fluctuations in the market for
oil and gas and related products and services; competition; the demand for
services provided by Precision; changes in laws and regulations, including
environmental and tax laws and regulations, to which Precision is subject and
other factors, which are described in further detail in Precision's filings with
the US Securities and Exchange Commission.
Precision is listed on the Toronto Stock Exchange under the trading symbols "PD"
and "PD.U" and on the New York Stock Exchange under the trading symbol "PDS".
For further information please contact Mr. Robert T. German, Vice President and
Chief Accounting Officer, 4200, 150 - 6th Avenue S.W., Calgary, Alberta, T2P
3Y7, Telephone: (403) 716-4500, Fax: (403) 264-0251, Website:
www.precisiondrilling.com.