Precision Drilling Trust (PDS, PD_UN.TO) announced its planned capital expenditures for 2010 of about $75 million. This includes $50 million in sustaining upgrade and infrastructure expenditures and is based upon currently anticipated rig activity for 2010. In addition, $25 million is planned for performance improvements to certain rigs to align with potential customer opportunities in unconventional resource plays in Canada and the United States.
Precision also announced that its Board is continuing the indefinite suspension of cash distributions in order to maintain focus on debt reduction, and there will not be a special year-end distribution. The Board of Trustees is evaluating and planning for the conversion of Precision from a trust to a more traditional corporate structure. These plans are ongoing and it is anticipated that this conversion will take place well ahead of new Canadian tax measures for trusts slated for January 1, 2011.
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