Good afternoon, ladies and gentlemen, and welcome to the Precision Drilling Trust’s Third Quarter 2007 Earnings Conference Call and Webcast. I would now like to turn the meeting over to Kevin Neveu, Chief Executive Officer. Mr. Neveu, please go ahead.

Good afternoon, ladies and gentlemen. Let me begin by introducing myself, Kevin Neveu, the Chief Executive Officer of Precision Drilling. As this is my 72nd day in the job, I hope that you extend me a little latitude this time around too in your question-and-answer period. Joining me in the call today is Doug Strong, our Chief Financial Officer; Gene Stahl, our Chief Operating Officer is usually a regular participant in this call, but as he is traveling today he will not be participating. Just before we start to review our business, on behalf of the employees, the Board of Directors, and the stakeholders of Precision Drilling, I want to extend a full thanks to Hank Swartout for his 22 years of incredible leadership for this company, the industry, and the community at large. I know Hank and his wife, Carol, will continue to be a large part of the Calgary community through their involvement in various charities, boards, and events around town. All of us will continue to draw inspiration from the leadership Hank provided to Precision and Hank and Carol's ongoing leadership with the community. Thank you, Hank. Okay. Moving on, my early impressions of Precision Drilling are very clear. First, while Precision is very good at controlling costs, over the coming months you will see us refocus and aggressively drive cost reduction in every aspect of our business. Secondly, I am very pleased with our growth in United States. You can expect us to leverage this success with continued growth in US. Thirdly, despite this challenging environment for our customers, particularly natural gas storage levels, gas pricing, the Canadian F&D economics, and the current Alberta royalty uncertainty, our customers continue to recognize the exceptional value Precision provides. It's our plan to enhance that value through our people, our equipments, and our services going forward. I want to make a special note of thanks to our employees who clearly understand the challenges we face and continue to work very hard to deliver safety and productivity results as our customers' demand. Notably, our drilling rig fleet achieved a new benchmark for safety in Q3 2007 with the total reportable incident rate of 2.98%. This record is exceptionally low and gives us confidence that we’ll achieve target zero, that is zero reportable incidents, a completely safe operation, a target we and our customers hold very dear. Again, thank you to our people for the success in safety. Let me now turn this to Doug Strong to review our third quarter financial results.

Thank you, Kevin. Ladies and gentlemen, through a news release this morning Precision Drilling Trust reported its financial results for the third quarter and nine-month period ended September 30, 2007. The news release included the unaudited consolidated financial statements consisting of the consolidated statements of earnings and deficit, the consolidated balance sheets, the consolidated statements of cash flows, as well as business segment information and Canadian drilling operating statistics. Please note that the financial figures are stated in Canadian dollars. We remind our audience that today's comments may include forward-looking information and statements reflecting Precision's views and about events and their potential impact on our operating and financial performance and legal entity capital structure, including oil and natural gas commodity prices, weather trends, growth initiatives, demand trends, estimated capital expenditure levels and timing, projected equipment utilization, customer revenue rates, operating expense levels, earnings, cash flow, the likelihood of a special year-end distribution, the cash distribution policy of Precision Drilling Trust, and tax legislation and policy announcements by the Government of Canada. These expectations involve risks and uncertainties that could impact Precision's operation and financial results and cause actual results to differ from such forward-looking statements and information. In addition, some of today's comments may refer to non-GAAP measures such as operating earnings, and we refer our listeners to the disclosures in the news release. The September 30, 2007 unaudited financial statements complete with notes and management's discussion and analysis will be filed with regulators and made available on sedar.com by November 14, 2007. Precision Drilling Trust converted to an income trust on November 7, 2005, and now has generated a distribution history for 23 months, which includes seven complete quarters. During these quarters, Precision has declared cumulative cash distributions of C$624 million or C$4.97 per unit. Precision declared third quarter…

Thank you, Doug. Let me comment specifically on a few issues going forward. First of all, right now, our customers are currently reserving rigs at a rate very similar to last fall for the coming winter season. While these reservations have no contractual commitment, they do provide an interesting proxy for winter activity. I'll be very pleased if this proxy plays out and we see winter of 2008 like 2007. However, it remains to be seen that these reservations fully turn the rig to contracts. Turning to rig rates, the fall market will continue to be pressured by the smaller operators and by the lower grade service providers. While these loss rates are a challenge on our overall margin blend, they really do not materially impact our rig rates on our term contracts with our core customers, where safety, drilling performance, and economic results are recognized and valued by those customers. Nonetheless, we fully expect continued pressure on pricing from our customers, as they fully understand the economics around the commodity prices and the potential impact of the changing royalty rates. I want to reemphasize our renewed focus on cost and discuss the reduction in capital that Doug mentioned in 2007 on maintenance capital. These aspects are directly related, and let me provide a little more color. In Q4, we will permanently retire 11 drilling rigs and 16 well service rigs reducing our fleet size. These are some of our oldest, least efficient, and most costly rigs to operate and transport. Clearly, taking these rigs off of our fleet will improve our cost basis both from an operating cost and maintenance capital perspective, while having a minimal impact on our revenue potential. It's my belief that the Canadian rig fleet and for that matter the North American rig fleet has…

Thank you. We will now take questions from the telephone lines. [Operator Instructions]. The first question is from John Tasdemir from TRISTONE Capital. Please go ahead.

Hi. Good afternoon, guys. Kevin, welcome back to Alberta. Hope they gave you some kind of force majeure clause in your options contract for royalty changes. Anyway, first question is… I mean obviously we all kind of know what's going on in Canada right now. Activity levels are weak and there's a lot of cut-throat pricing going on out there, yet you guys managed to have really pretty good margins in the quarter, and I'm kind of wondering if that's how we look at that going forward. I know you're putting in some cost initiatives, but will we start to see margins… will we see margins continue to decline as we go forward as, I guess, spot contracts start to roll through your income statement? How should we look at that?

John, thank you, and I appreciate coming back to Alberta. I was a little surprised, yesterday to have the temperature go from plus 24 through the day to snow this morning, but I'll adjust. In any event, your question on rates and margins going forward and our performance so far, let me begin by saying that I do believe Precision is excellent at managing cost and we’ve done a very good job to this point. And clearly, the steps we're taking in quarter four to further reduce cost is designed to try to manage our margin and sustain our margin rate through what's going to be a rocky period on prices over the next few months.

Does that mean you don't see material decline in margins?

Well, I'll stop short of forecasting forward on our margin rates, but I'll tell you that we are going to work very hard to try to make our margins.

Okay. Switch gears a bit. Your… the [inaudible] business, you guys I think posted 38% utilization and I'm told that the industry is closer to 55%. Can you explain the disparity there?

Yes, John, I think first of all the 55% you're quoting, I have to go back and look and see if our numbers would match that, but there's no question that we're running a few percentage points below industry as we typically like to do. We're not focused on driving utilization by pricing.

Fair enough. Okay. Yes, there might be just different ways to calculate the number. To clean up the model a bit, Doug, can you help me out with… so you're taking some of the rigs out of the mix in the fourth quarter, but you're also... have already announced some rig additions into next year. So, I was wondering if you could tell me, for the 232 rigs you'll have in Canada at year-end, how many should we be adding to that as we go into 2008 based on what you guys have already announced and the same with the US?

John, just in terms of timing the rig additions, I think we've got six that we'll be adding in Canada between now and the second quarter of 2008 and you can proportionately add those into the fleet over that time period.

So, does that mean starting with 232 right now plus six?

Well, one of that 232 is addition, so five additional will be on the 232.

Okay.

That's correct.

Okay. In the US?

I think in the US you'll see we reported eight rigs as of the end of the quarter.

Yes.

As Kevin indicated, we expect to be at 12 by the end of the year.

That's all that you've announced so far.

Correct.

Okay. Is there… and then finally on… I know you guys have some thinking to do on capital spending for all of 2008, but has there already been a dedicated amount for 2008 to give us a starting point?

No. We'll provide some indication on that in December when we announce as we have historically our capital expenditure plan for 2008. Clearly, as we just discussed, there is some carryover to do with completion of the existing rig build program.

Okay. That's helpful. Thanks, guys.

Thank you, John.

Thank you. The next question is from Alan Laws from Merrill Lynch. Please go ahead.

Good afternoon. Hey, 10,000-foot question first. Other than say, I don't know, a swarm of Locusts descending on Western Canada, what could really get worse in the market right now, as you see it?

Why don't we answer that question tomorrow?

Is the general feeling that you're going to get a watered down response, is that what… the industry association that you belong to, is that what they are feeling or are you guys looking for the worst case here going into next year?

Alan, you know, it's my opinion that this is really a big issue for my customers, and frankly we operate a business, which is designed to be highly variable. We run with the seasonal variances and we'll run with the cycle variances and we'll deal with government activity that changes the business level for us. So, I think we're prepared to handle whatever happens.

As far as what's most topical that could affect things from where you are today, is it the gas price more so than anything or is it just tax issue or the Canadian dollar, like what's the biggest factor? I'm going to guess it is the gas price, but if it stays in this range, is this tax thing the next shoe [ph] to really grind you guys down?

All right. Alan, certainly right now the gas price is not encouraging drilling in Alberta. We understand that. You understand that.

Yes.

Longer term, I am extremely bullish on gas and I'm looking very carefully at the amount of rigs drilling in the US at decline rates and looking carefully at imports of LNG. And I firmly believe that over the longer term, and I'm thinking of past couple of quarters, but… probably not even a couple of years, but I don't think gas drilling has any real downside.

Okay. Well, what I was really getting at is if the gas prices were to recover and you had this tax issue come in, would this tax issue and, say, the Canadian dollar at par, would that delay the recovery in your mind of activity of your customers, or is it just gas prices go higher, it's not going to matter?

Well, I guess it's a pretty complex model that our customers run.

Very complex, that’s why--.

And certainly, the exchange rate makes our cost bases here a little higher, but I think underlying all of this is that the gas reserves in Canada and the US are declining very quickly. And we're seeing a lot less activity drilling right now and the production rates are going to decline.

Okay.

And I think that underlines everything that is going on.

I appreciate that. Another question I had was on, you've taken rigs out of service here and obviously utilizations in the 30s and we're going into the winter and the margins are compressing, you made some comments about the negative leverage inherent in pricing right now I think in your note. How far are margins from 2002 levels are right now? Are we at that or are we rapidly heading there or is it going to take longer to get there?

Alan, it's Doug, I think when you look at the rates that we announced for the quarter, average day rate on the drilling rig fleet of C$17,112 per day, reflect back to 2002 how the industry evolved to that point. I think it is fair to say that rates today are still higher in terms of absolute numbers certainly.

Sure, but the costs are higher too.

Costs are higher and the implied profit margin is higher as well currently when you look at the third quarter in isolation.

Okay. So, are you... with your comments, I'm assuming that we are rapidly heading towards those 2002 levels, or is there some reason why we won't hit those?

I don't think you necessarily have to make that call. No, I think you have seen our results trend in Q2, Q3, and how we have sustained, and we are into the second year of lower drilling levels. So, we are hanging in pretty well.

Okay. Good answer. As far as the fleet goes and the movement the rig to the US, what percentage of your fleet would you view as having relocation potential?

I guess we will deal with every rig on kind of a case-by-case basis. And as we are looking at opportunities right now today, I have got a sales team right now traveling to the US. It is really just case-by-case, application-by-application.

Sure. The demand for a single down here isn't that great, but as far as your kind of modern rigs and that… are they being fully utilized there enough that you would keep them there or any opportunity down here you just punting every rig you can out of Western Canada, is that fair?

That’s probably not a fair statement. We have a strong base, we are very happy with the Western Canada base and we’ll protect our position here, as long as I am in this job no question about that. But we are going to be growing in US as quickly as we can. Whether it’s one rig at a time or whether it ends up being a three or four-rig contract or a ten-rig contract, we’ll be applying the processes and using the strengths we have in Northern Canada and our economic efficiency to be competitive in US.

Okay.

This year, we have gone from two rigs to 12 rigs and I’m suggesting that next year we’ll be growing at that rate or better, pretty strong guidance.

All right. This is my last question, sorry. You mentioned in the release something about the non-compete coming off of the international business. Is this something you're interested in? And how aggressive would you be in taking a shot at building back what you used to have as a pretty big international position?

We will balance our growth outside North America with our growth inside North America. This is the neat thing about moving outside Canada and US is that it gets us into fundamentally the oil market rather than the gas market. And opportunity to me is very exciting.

All right. Thanks. Sorry for taking up so much time.

No problem. Thank you, Alan.

Thank you. The next question is from Neema Ballou [ph] from Bloom Investment Council [ph]. Please go ahead.

Good afternoon, gentlemen. First question, what is the split between contract and spot with respect to the Canadian drilling business?

Neema, we are still running pretty much at our historic range right now on contract rates with our core customers. Nothing has changed dramatically from Q2.

And the historic rate again, sorry, just to refresh?

It is in the 20% range.

20% range. With respect to the question earlier in terms of international… pursuing international growth, is that going to take a significant capital commitment or are you going to be able to redeploy Canadian assets?

Well, I'm confident that we have Canadian assets we can redeploy internationally tomorrow.

Okay. And on the US side, I know you've got a business now taking some Canadian customers you are expending the US activities and you're building these rigs and they're contracted out. Is there anything you’re doing now to win new customers on the US side rather than just extending the Canadian business down south? What are the initiatives there to bring on new customers?

Well, it might fair to say that we’ve started with Canadian customers leveraging into the US, but right now we are developing a broad base and we're working primarily for US E&P companies.

So, you are gaining some new customers there?

Yes.

That's all the questions I had. Thank you.

Thank you.

Thank you. The next question is from Dana Benner from Westwind Partners. Please go ahead.

Good afternoon, guys, and welcome Kevin. I guess I'd like to comment a little bit differently in terms of focusing on the margins, maybe we could just look at spot day rates right now. So, you having reported a number for Q3, can you give us a sense for where spot day rates would be right now, both from the drilling side and then you are already charging in-service rigs, even as a percentage change would be fine?

I can't comment on the service rigs today. I don't have the information in front of me. But on the drilling side, spot day rates are all over the map and people tend to focus in on the lowest rate they've heard in the last few weeks and there’s no question, people are talking about rates and I’ve heard rumors and talk about rates that get down to the C$10,000 range, maybe slightly above, slightly below. This depends on... the spot depends on the region, the type of rig, and location, and the range of spot rates could be a 100% range. So, I'm not going to focus too much in on the lowest rates that I've heard in the last two weeks.

Right, but--.

I’m not going to [inaudible].

You'd have had a notional rig working in the third quarter, and that same notional rig would be working in the fourth quarter. Let’s call it maybe the change on a super single or maybe look at our midrange double, let’s say, and there is probably some sense for how rates have moved since then, maybe it’s just a couple of points, maybe a 5, I don't know, but you must be able to give us at least some sense.

Again, I'm quite aware of the competition out there right now and certainly aware of what some of our larger and some of our smaller competitors are doing on prices. Frankly, our rates in Q2 and Q3, both spot and contract, haven't changed in a measurable way.

All right. I guess I'm looking at it more on a Q4 basis, kind of on a real-time level as we head into winter.

And typically, we try to firm things up in wintertime to enjoy better rates. Now, this year it will be probably no different than most years when the best rigs will demand great rates and more regional rigs will be more subject to the spot market, but frankly we’re not concerned about rates going into the winter despite the discussion in the marketplace about rates.

Okay. That's helpful. With respect to the C$55 million decline in CapEx, you suggested deferred maintenance, which I think is self-explanatory, but then you’ve also talked about non-rig initiatives and also our infrastructure. Can you give us a bit more color on those two items?

Dana, it's Doug. The non-rig expansion typically relates to our camp and catering business and the infrastructure is literally brick-and-mortar type infrastructure, building those types of--.

So, this would be… presumably, it would be much more weighted to the camps and the catering.

It’s not a huge amount, but that is the... there is not a lot of expansion capital in that number, but that is the primary part of it.

All right. Okay. Thirdly, distribution policy, interesting market, obviously you’ve got a good balance sheet and you’ve brought the payout ratio within your operations down quite nicely. I would be curious to know how wedded you are to the distributions you have right now and maybe you want to pontificate a little bit longer term on the effectiveness of the current structure?

Dana, I think if you take a good look at our outlook, clearly we are now in a challenging market heading into 2008. If you look back on our 21-month history, I think you have seen that we have been very balanced in terms of the cash that we have generated. That cash is pretty much at a very close one-to-one ratio in terms of cash from operations, cash used for distributions to unitholders, and cash used to fund our capital expenditure program. So, as we read the market going forward, we will certainly relay information to our trustees and our directors to ensure that the best information is available to make those calls. You know the uncertainty in the marketplace and how difficult that is.

I guess just one final question. Can you give us a sense for the... let's think about the term weighting of your current contract structure within Canadian drilling. Would the rollover point be largely in, say, first half of '08 or how... would we get a sense for how long you are protected contractually?

Well, I'm not going to give real specific guidance on that. What I will say is that on the rigs that are under term contracts, those are generally our best-performing rigs and highest demand rigs, and I can tell you that the demand for those rigs remain very strong.

I guess, so no sense as to whether they are generally rolling over in '08 versus '09, let's say, or prefer not to comment?

No, Dana, in general, Dana, our long-term contracts carry through 2008 quite nicely.

Okay. That is exactly what I'm looking for. Okay, guys. That's great. Thanks.

Thank you. The next question is from Brian Purdy from National Bank Financial. Please go ahead.

Hi, guys. I was wondering if you could give us maybe a bit more color on your rig fleet. You mentioned that you are going to retire a certain number. Is there another percentage that you would classify that is close to that low performance category that you mentioned in your comments?

Great question, Brian, and it is one you need to ask us again at the end of Q1.

Just ask you again in Q1, is that whatever you said?

Yes, we will come back and we’ll look at the fleet again every quarter.

Okay. Fair enough.

But right now, at this point in time, we think that we have made the right steps in our fleet.

Okay, great. And in terms of the US market, you mentioned that you are seeing good demand and good performance from your rigs there. I have seen a few comments from your competitors that there is a bit of price pressure and maybe an oversupply of equipment in the US. Can you comment on the market dynamics there and how you plan to attack it?

Right. Brian, I'll come back to my comments earlier that I think that there is an oversupply of under-performing rigs. I think on the high-performance rigs, there is still a significant under-supply. And high performance is not just the quality of the rig itself, it’s also a big factor on the crew. I believe that we have excellent crews, maybe the best crews in the business. Our safety record is phenomenal and our overall performance is phenomenal. So, I believe that we have a rig fleet that in some cases is high technology, some cases mid-technology, and some cases traditional technology run by very good crews that makes them generally high performance rigs. So, I think as we look at the US right now, we're only really focusing on the customers looking for high performance results and I believe that market is highly under-supplied.

Okay. And with those comments then, would you expect that any rigs that went into the US… that you put into the US market would either be new or relatively new rigs, is that fair to say?

Not necessarily.

Because some of your older rigs are... you would put them in the high performance category as well?

Depending on the application, we've some rigs that are surprisingly not very young with good crews that are very high performance rigs.

That's great.

And I don't want call them in by saying 15 years or 20 years or 5 years. I don't want to get into that trap. But clearly, the performance of a rig is tied to the technology and to the crew.

Okay great. And could you give us any comments on what you're seeing in terms of day rates in the US for new rigs? Obviously, most of your rigs are under contract I believe, but are there the rates that you would be looking at similar to the rates you've got on the rigs you are deploying now?

The rates on the high performance rigs are markedly better than they are for the rigs in Canada right now.

And would you say they're stable there as well?

On the high performing… And I’ll keep qualifying this by saying high performance rigs, but yes, on those rigs. Those rigs are quite stable on the good rigs.

Okay. Greats. Thanks very much. That's it from me.

Thank you, Brian.

Thank you. The next question is from Robert Ulicky [ph] from Ferris Wealth Management [ph]. Please go ahead.

Hi. Good afternoon. I'd like to know, under what circumstances would you consider converting to a corp. prior to 2011?

Robert, that is a question, which is really with our Board of Directors or trustees, and they’ll be discussing that on an ongoing basis. But I am not prepared to make any comments today.

Okay. And then, can you comment whether or not… have you renegotiated any long-term contracts prior to exploration?

No, we've not.

Thank you.

Thank you.

Thank you, Robert.

The next question is from Andrew Bradford, Canaccord Adams. Please go ahead.

Thank you. I’m in danger of sounding fairly mundane here. I want to come back to this deferred maintenance capital item. So, C$55 million, the way I look at that’s C$0.45 a unit that you ultimately don't have to spend. And so, I guess the question I have is, what does deferred maintenance mean, because it is not that obvious to me? Does that mean that it was something that… it was like I have to take my car and to get the oil changed every once in a while, I am just going to decide not to do that this year or does it mean that something maybe breaks down a rig and we will just the stack the rig for now So, I am going to have a certain number of rigs back anyway, and if we want to bring that rig back into the market at some point in the future, then we'll fix whatever it is that might have broken down on it?

Andrew, this is Doug. The way to reflect on maintenance capital, the maintenance term we really brought first to try to standardize based on some accounting pronouncements in prior years. Maintenance, you can really think of in terms of betterment and upgrades to existing equipment.

But not on routine maintenance.

Sorry maintenance capital is a betterment and an upgrade?

Correct.

That is not a... okay. So, you're... it’s just you are keeping the equipment running, but you're not doing anything to improve upon it as you go forward?

I am saying that is exactly the nature, that we are improving upon it, upgrading the capacity of the piece of equipment that we are referring to.

I'm referring to the C$55 million in deferred CapEx, as you’re deciding you're not going to do those upgrades at this point in time.

By taking rigs out of the fleet permanently we’re reducing our need for maintenance capital.

Great. And now is the second part of the question, a good portion of that relates to rigs that you just… that you’re not going to be... you're not going to be marketing or you’re going to be taking out of the fleet?

A portion of it does. The rigs we’ve identified we’re pulling out of our fleet, some of that capital is tied to those rigs.

And also, think about it in terms of just aligning those expenditures with near-term prospects for the equipment to go to work. So, when you reflect on the activity declines in Canada, the number reduction for that type of discretionary spending is simply in line, it is not elimination, it is a deferral.

Okay. Not to belabor the point, but if I thought for whatever reasons that 2008 is going to be a great year again, then I’d have to… I’d put all that money back into my forecast for your capital spending for 2008. That’s fair?

There again variable activity, that is a good premise.

Okay. And just one other question here. With your background, Kevin, I assume that you at least out of the corner or your eye at this in time you are scanning the globe for opportunities. Now, I am not going to ask anything specific here, but just generally speaking whether it's in Canada or whether it's in the US or abroad, where do you think… given where secondary market pricing is on rigs, where do you think you get the best... you could get the best bang for your buck today?

Well, I think it is probably fair to say that we’ll look for placed where our customers value performance as opposed to places where customers are simply looking for the lowest cost.

Where are those places?

It is probably a little bit early to start pointing out and waking up my competition.

Okay. That's fair enough.

But clearly, there are some markets outside of Canada and the United States where performance and on time and drilling cycle time and having knowledgeable crews and safe crews has measurable value to our customers.

Okay. Is there… just one last question. Is there any place geographically where you find that has changed a lot in the last little while where all of a sudden sort of the market has grown up and the demand for rigs have become much more sophisticated?

Clearly, South America is warming up right now.

Thank you, guys.

And certainly, the Middle East remains very strong.

Okay. Perfect. Thank you.

Thank you. Next question is from Todd Garman from Peters & Co. Please go ahead. Todd Garman - Peters & Co.: Good afternoon. Just want to come back to Canada here and big bookings and rates this winter. Is it still reasonable to assume that you're going to be able to charge for winter equipment here for when it does actually became cold, or is that something that is going to change?

Todd, it's Doug. The traditional ancillary charges for winter equipment is very well established in the industry and that will continue. Todd Garman - Peters & Co.: Okay. And then, does that include service rigs as well, Doug? You mentioned some rate pressure in the release here that surfaced recently. Is that going to impact that you think or not?

The same would apply. Todd Garman - Peters & Co.: All right. And then, in the US I understand that the higher performing rigs are obviously in high demand. You also mentioned rate pressure there. Is that specific to the clients that you are currently working for or is that rate pressure for new work that you are trying to acquire?

Okay. Let me be clear of rate pressure. First of all, all of our clients all the time apply rate pressure, but the places where it has most impact clearly is not on the high performance end of the market. Although rigs are performing and exceeding customer expectations and exceeding contract requirements, the rate pressure is probably less than it is at the lower end of the market. So, in the US right now, we have chosen to participate specifically in the high end of the market, the high performance end, and I think that our rates will be commensurate of the services we provide. Todd Garman - Peters & Co.: Okay. And then, just last question, coming back to the equipment that has been retired, what type of rigs were retired in each of drilling and service?

I've got a list… a detailed list of the rigs, but generally speaking, they are some of the older rigs that have heavier loads and more loads, more lifts, more difficult to rig up, and then a little bit less on the control system side of the rigs. And typically, these were the rigs that we would put to work later in the cycle rather than early in the cycle. Todd Garman - Peters & Co.: But where they focused towards singles, doubles, triples, where they coil, can you kind of give us some color on that?

Yes. We don't retire anything in single size, nothing in singles. Todd Garman - Peters & Co.: Okay. And then, does that apply to service rigs as well?

No, service rigs are really just kind of across the fleet looking at the oldest rigs, least efficient rigs. And no particular trend there. Todd Garman - Peters & Co.: Okay. Thank you.

Thank you. The next question is from Alan Laws from Merrill Lynch. Please go ahead.

Hi, guys again. Sorry, a follow-up to I think Roberts question and he was asking about potential conversion back. I know you can't comment on it or it is up to the Board of Trustees, but if you were going to, can you maybe lay out how that would work? From us down here, is this a complicated type process or just a shareholder vote?

Okay. See, this is more of a clarification of the process than it is about what we're going to do?

Yes, exactly. I just want to know what the process would be to do this.

Alan, we really haven't spent a lot of time talking about the conversion at this point, and I’d really prefer not to.

Okay. But it is a when, not an if thing, right? 2011 is just on the horizon.

Well, from a tax standpoint, it is compelling to look at some kind of a structure change, yes.

Okay. But from, say, an investor in this, you have to provide an extra incentive for them to want to convert back, is that fair?

Again, we really haven't [inaudible].

Okay. All right, thanks.

Thank you. The next question is from William Dong [ph] from Merrill Lynch. Please go ahead.

Yes. I guess following up a few questions ago, you were talking about lower 40, the US market and you are moving equipment down there. It seems to me by following those companies pretty closely and looking at what is happening with them, I mean the market is pretty weak, is this just a matter of it being relatively attractive versus… because Canada is in such bad shape? And you mentioned a shortage of I guess high-end equipment there. Is there a way to maybe spend more on CapEx to build equipment for that market if you really think there is an opportunity there that is not being I guess satisfied by Nabors and Grey Wolf and guys like that?

Okay. So, I think, you had two questions there, William. The first question was comment about softness in the market, in the US generally from the US drilling contractors?

Yes.

I am not going to comment on what US drilling contractors are saying. What I will comment on is that I know the US fleets very well having worked in the supply side for a long time, and I have a really good sense of the condition of the US fleet and the strengths and weakness of the US fleet. And I firmly believe that the surplus or the oversupply or the softness is really in the soft-bellied part of the rig fleet that dates back… that predates the year 2000 in the US and maybe even predate year 1984 and that number is still a large number, probably over 1000 rigs. When you move to the newer investments and the more efficient rigs and the safer rigs in the US, I am still a firm believer that that market isn't over supplied.

Okay. How many rigs--?

The second half of your question was I believe, is it worth more investment to pursue the second half of the market, it may be very well be. So far this year, we have invested in new rigs in 2007 for the US fleet and it’s not unlikely to think we might do that going forward.

So, but we are cutting back our CapEx overall, right?

Only our 2007 CapEx has currently forecasted and budgeted.

I guess what we have to do to be able to... let's assume the Canadian market kind of stays where it is for a little while longer from another season. What do we have to do spend extra money? I mean are we talking distribution cuts if that were in the cards or would you not sacrifice that to maybe take advantage of a market like that you see up to in the US?

I think that our capital budget in 2007 will allow us to take care of expansion, and we would expect to see things differently going forward.

All right. Last question. How many rigs is Nabors building per year?

I know that number about 90 days ago, but I don't know it today.

What was it 90 days ago?

I am not going to quote it. It is not relevant to my business now.

You are talking about getting into a market where we have got a dominant supplier and it spends readily and invests money and builds their own rigs. So, I think it is relevant to the discussion if we are talking about putting more of our rigs and business there.

Okay. Sure enough. I'm not going to comment on Nabors’ expansions plans. That is their plan.

Yes. But it is our market. Okay.

Fair enough.

So, will you answer the question or not?

I can’t comment on Nabors’ plans or where they are spending their money, I can’t. What I can tell you is, the customers we're seeing and doing business with right now continues to demand more of our rigs and we believe that it will carry forward into 2008.

Okay. But I guess you'd hope that you would take into account the size of the market and market potential, and I guess that does kind of include other players.

William, I mentioned earlier that I still believe that the high performance rig market is well under-supplied.

Okay. Thank you.

Thank you.

Thank you. The next question is from Mike Mazar from BMO Capital Markets. Please go ahead.

Okay, guys. Most of my questions have been answered, but just on the cost control priority that Kevin mentioned off the top, I mean CAODC sort of mandated wage rates being what they are. Can you give us some examples of specifically what you can do as for as cost cutting goes?

I am not going to today, but I can tell you that we have some initiatives right now that are in place that we are moving forward on that I'll prefer to comment on probably on our next conference call.

Sure, okay. And just lastly, I don't suppose you'd tell us those international regions you thought you could deploy Canadian rigs tomorrow?

Once again, if I do that I will be alerting competition, which I really don't want to do this early. We are still 10 months away from the earliest we could deploy a rig to most international markets.

Okay. Sure. Let me ask you this one. When you are talking about say a 1000 rigs, legacy rigs, let’s say, in the US, I think was the number you just threw out, as that fleet gets high-graded and those rigs… something has to happen to them. If those go overseas where there is a bit more resistance to new technology so they maybe willing to take those older rigs, does that market suddenly get saturated and kind of ruins the economics or deteriorate the economics, is that something you guys worry about or is that not the right way to think about the international market?

Mike, I am not sure if I caught the question correctly, but let me try to answer to what I thought I heard. What you’re really looking at is the global pool of rigs and deciding whether or not the global pool of rigs is really saturated or not saturated.

I guess that’s it, exactly. Particularly, in light of those older rigs you said in the US that are not necessarily in demand, I am wondering if they would be in demand overseas and if so when they move there to what extent that deteriorates the economics of the international market?

Okay. First of all, rigs are not completely fungible. I mean some of those rigs in US aren't wouldn't be good rigs in Canada, wouldn't be good rigs in Kuwait, and some of the rigs would be. So, there’s an issue with fungibility of rigs. I think the fact of the matter is that a large portion of the worldwide fleet is a lot less effective than a very small portion of the worldwide fleet. And as rig technology and rig performance continues to develop, I mean both crews and technology, a lot of the soft underbelly of the worldwide land rig fleet is going to be obsoleted by performance.

Is there demand for that new technology overseas? I mean it only seems to me just kind of anecdotally that they're willing to put up with these older rigs for safety record things like that and they haven't really adopted new rigs in most markets, is that fair?

No, not really. Having been a rig manufacturer in a lot of those markets, it is really case-by-case, customer-by-customer.

Sure. Okay.

And there is no broad-brush trend.

Right. Okay. Terrific.

Thank you. The next question is from Robert Ulicky [ph] from Ferris Wealth Management [ph]. Please go ahead.

Two more questions. I am not sure if I heard correctly, but did you say it is advantageous to convert back to a corp.?

No, I didn't say that. And we are making no comments about conversion. We don't plan to make any comments.

Okay. Then the last question on potential conversion, if you do convert to a corp., is a shareholder vote required or can you just do it arbitrarily?

Robert, I think you’ve seen already with certain income trusts that there certainly are cases where a unitholder vote is required. I think that that is something that is reasonable to expect.

All right. Thank you very much.

All right. We’re kind of running short of time and I want to keep everybody on their own calendars. We will take one more question.

Thank you. The next question is from Todd Garman from Peters & Co. Please go ahead. Todd Garman - Peters & Co.: Kevin, wondering if you... do you think that there are... are there any differences between Canada and the US in terms of how work is awarded by E&P companies? Is there more use of contracts in the US as compared to here? Do they use procurement departments more or consulting firms more? Can you clarify or provide any color on whether or not there might be any differences?

Todd, the answer might be almost basin-to-basin and operator-to-operator. In certain states, there are a lot of E&P operators in Canada or US, behaves relatively similarly. Mid-size, intermediates, again generally similarly, it’s the smaller companies that might behave differently. And since I’ve commented that we are kind of focusing towards the high performance end of the drilling spectrum, we’re probably going to be talking more to the large E&P companies and large intermediates. Todd Garman - Peters & Co.: Okay. Thank you.

Thank you.

Thank you. I would now like to turn the meeting back over to Mr. Neveu.

All right. Well, thank you. We look very much forward to meeting many of you over the coming weeks. Clearly, I’m very enthusiastic about the momentum we have in Precision Drilling and frankly believe that the challenges in this sector right now create excellent opportunities for our company. Thank you.

Thank you. The conference has now ended. Please disconnect your lines at this time. Thank you for your participation. Have a great day.