Pantera Drilling Income Trust Announces Rights Offering



    
    /NOT FOR DISSEMINATION INTO THE UNITED STATES/

    (TSX: RIG.UN)
    

    CALGARY, Sept. 22 /CNW/ - Pantera Drilling Income Trust ("Pantera" or the
"Trust") announces that it is proceeding with a rights offering to unitholders
of the Trust (the "Rights Offering"). Pursuant to the Rights Offering, each
holder of trust units of the Trust (the "Trust Units") will receive one right
(a "Right") for every Trust Unit held. For every four Rights held a holder
thereof will be entitled to purchase one Trust Unit at a price of $3.13.
Unitholders will also have the opportunity to acquire additional Trust Units
beyond their entitlement through an additional subscription privilege. Details
as to the operation of this privilege are described in the Rights Offering
Circular to be mailed to unitholders in connection with the Rights Offering
(the "Rights Offering Circular"). Pursuant to the Rights Offering, a maximum
of approximately 1,686,277 Trust Units can be issued which represents 25% of
the currently issued and outstanding Trust Units.
    The record date for the Rights Offering has been set at October 1, 2008.
The Rights will expire at 4:00 PM (Calgary time) on October 23, 2008. The
Trust has received conditional approval for listing of the Rights and the
Trust Units to be issued upon exercise of the Rights on the Toronto Stock
Exchange (the "TSX"). Completion of the Rights Offering is subject to
receiving all necessary regulatory and TSX approvals. For full details of the
Rights Offering please see the Rights Offering Circular which has been filed
with securities commissions in Canada and is available on SEDAR at
www.sedar.com.

    Stand-by Commitments

    Stand-by commitments to purchase in the aggregate 100% of any Trust Units
issuable pursuant to the Rights which are not acquired by other rightsholders
are being provided by members of the Board of Trustees of the Trust (the
"Board"). The terms of any subscription under the Stand-by commitments will be
identical in all respects to those of unitholders as a whole under the Rights
Offering.

    Use of Proceeds

    The Board recently approved an increase of $6.2 million in 2008 capital
expenditures for the acquisition of certain assets to be utilized on the
Trust's own rigs that are typically rented by the Trust's customers, including
top drives, hevi-wate drill pipe and other ancillary equipment. Proceeds of
the Rights Offering will be used to partially fund these capital expenditures.
Contracts with existing clients have been amended to include these capital
items which are expected to deliver a favorable return to the Trust. Although
the Trust has sufficient availability under its existing credit facility to
fund such capital expenditures, the Board has determined that the Rights
Offering is a more appropriate manner of raising the funds required for such
expenditures in order to ensure the Trust maintains a strong balance sheet.

    Operations Update

    As of the date hereof, Pantera's fleet of seven rigs is fully utilized.
Six of the seven rigs are located in the Western Canada and have commitments
to spring break-up 2009 and the seventh rig, located in Ontario, continues to
be busy on short term contracts. Of the six rigs operating in Western Canada,
four are under contracts of greater than one year length, and two of those
contracts contain minimum day commitments.

    Third Party Offers

    The Trust generally has no obligation to disclose the existence or
occurrence of discussions regarding potential business combinations involving
the Trust that do not result in a definitive agreement. However, the Board
believes that unitholders of the Trust should be aware that over the past few
months, the Trust has been approached by certain unsolicited third parties in
regard to exploring a potential sale or other business combination involving
the Trust. With a view to the best interests of unitholders, the Board
discussed proposals raised by such third parties and all such proposals
involved consideration to be paid to unitholders of the Trust that would have
represented a significant premium to the market price of the Trust Units. None
of the proposals have resulted in a definitive agreement and there are no
proposals before the Board that the Board is prepared to recommend for
acceptance.

    About the Trust

    The Trust is an open-ended, investment trust governed by the laws of the
Province of Alberta pursuant to the Deed of Trust. The Trust was established
for the purpose of investing in property including the securities of Pantera
Drilling Limited Partnership and Pantera Drilling Inc. The beneficiaries of
the Trust are the holders of the trust units. The business of Pantera involves
the provision of contract drilling services to oil and natural gas exploration
and production companies operating in Canada.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities offered will not be and have not been registered under the United
States Securities Act of 1933 and may not be offered or sold in the United
States or to a U.S. person, absent registration or an applicable exemption
therefrom.

    Forward-Looking Statements

    Certain statements included in this press release constitute
forward-looking statements. Such forward-looking statements involve unknown
risks, uncertainties and other factors that may cause actual results,
performance or achievements of Pantera to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Additional factors that could affect Pantera's
operations and financial results are included in reports on file with Canadian
securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com) under Pantera's profile. Forward-looking statements in
this press release may include, but are not limited to, statements regarding
the proceeds to be realized from the Rights and the use of proceeds therefrom.
For this purpose, any statements that are contained in this press release that
are not statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements often contain terms such as "may",
"will", "should", "anticipate", "expects", "intends" and similar expressions.
Readers are cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be placed on
forward-looking statements. Furthermore, the forward-looking statements
contained herein are made as at the date hereof and Pantera does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.

    %SEDAR: 00023106E




For further information:

For further information: Terry Rosentreter, President and Chief
Executive Officer, or Lorna Pollock, Chief Financial Officer at Ph: (403)
515-8400, Fax: (403) 515-8405, E-mail: terryr@panteradrilling.com,
lpollock@panteradrilling.com

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PANTERA DRILLING INCOME TRUST

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