1

Investor Presentation

April 2016

2

Forward-looking statements

Certain statements contained in this presentation, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "intend",

"plan", "expect", "believe", "will", "may", "continue", "project", "potential" and similar expressions and statements relating to matters that are not historical facts

constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of

the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information and statement").

In particular, forward looking information and statements include, but are not limited to, the following: our contract log for 2016 and 2017; expectations on the

delivery of 2 additional rigs to Kuwait; our capital expenditure plan for 2016; and the potential amount in annual fixed cost savings due to the steps taken by

Management to position Precision for a prolonged downturn.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our

perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These

include, among other things: low oil and natural gas prices will continue to pressure customers into reducing or limiting their drilling budgets; the status of

current negotiations with our customers and vendors; continuing demand for Tier 1 rigs; customer focus on safety performance; existing term contracts being

neither renewed nor terminated prematurely; our ability to deliver rigs to customers on a timely basis; and the general stability of the economic and political

environments in the jurisdictions where we operate.

Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our

expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our

expectations. Such risks and uncertainties include, but are not limited to: volatility in the price and demand for oil and natural gas; fluctuations in the demand for

contract drilling, well servicing and ancillary oilfield services; our customers’ inability to obtain adequate credit or financing to support their drilling and production

activity; changes in drilling and well servicing technology which could reduce demand for certain rigs or put us at a competitive disadvantage; shortages, delays

and interruptions in the delivery of equipment supplies and other key inputs; the effects of seasonal and weather conditions on operations and facilities; the

availability of qualified personnel and management; a decline in our safety performance which could result in lower demand for our services; changes in

environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas

emissions, which could have an adverse impact on the demand for oil and gas; terrorism, social, civil and political unrest in the foreign jurisdictions where we

operate; fluctuations in foreign exchange, interest rates and tax rates; and other unforeseen conditions which could impact the use of services supplied by

Precision and Precision’s ability to respond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business,

operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual

Report, Annual Information Form and 40-F for the year ended December 31, 2015, which may be accessed on Precision’s SEDAR profile at www.sedar.com,

under Precision’s EDGAR profile at www.sec.gov, or on our website at www.precision.com. The forward-looking information and statements contained in this

presentation are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information,

whether as a results of new information, future events or otherwise, unless so requires by applicable securities laws.

3

Historical North American Drilling Activity

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan, 2017

Jan, 2016

Jan, 2015

Jan, 2014

Jan, 2013

Jan, 2012

Jan, 2008

Jan, 2007

Jan, 2006

Jan, 2010

Jan, 2009

Jan, 2011

U.S. Land Rig Count10 Year History

Canadian Land Rig Count5 Year History

0

100

200

300

400

500

600

700

800

Source: Baker Hughes land rig count as of April 22nd. 2016

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1. Maintain strong liquidity through the downturn

2. Sustain High Performance, High Value competitive positioning

3. Position for an eventual rebound

a. Asset integrity

b. People – Retain and recruit

c. Ample liquidity

Precision’s 2016 Strategic Priorities

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Strong Position in Challenging Environment

__

Liquidity

238 Tier 1 Rigs Maintain High Performance

operations

Diverse customer base Geographical diversification

Revenue Diversification

Revenue Security

Rig Capability

57 Contracts for 2016 31 Contracts for 2017

Variable Cost Structure

Variable operating and capital expenditures

Reduce overhead and G&A costs

Strong Balance Sheet with $476 million Cash

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Positioning for the Rebound

Broad Footprint

Positioned to respond to North American activity

High PerformancePeople

Proven track record to manage staffing

Asset Integrity

Proven track record on asset quality

Liquidity(as of 3/31/2016)

$754

$445

$476 Cash

$734 RevolverRevolver/ OperatingFacilities Available

(Maturity June 3, 2019)

Ample liquidity

7Precision Super Triple rigs operating in Duvernay, 2015.

Fully Industrialized Development Drilling

Maximum Efficiency

Repeatability + Predictability

Risk Minimization

Technology Deployment

Long-term Economic Mindset

8

High Performance Super Single and Super Triple Rig Fleet

101

93

16

U.S.145 Tier 1Rigs Added

Canada

International

Upgrade Candidates

11 Feb, 2016

254

129

8

1 Jan, 2009

1) As of April 25th 2016 - Includes 2 newbuild rigs for Kuwait to be delivered in early 2017. Include 16 upgrade candidates.

2) Decommissioned 79 drilling rigs on December 31, 2015.

1,2

9

Career Path Management

Field Training

Investments

Structured Promotion

Programs

Long-term

Compensation

Programs

Permanent Training

Facilities with Fully

Functioning Rigs

Leadership Development Programs

World-Class

Safety Culture

and Processes

Tier 1 Assets

EXPERIENCED,

HIGHLY SKILLED

PRECISION CREWS

Precision HR Training and Processes

Structured Competency Standards

Structured Measured Retention Programs for Key Personnel

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Global recruitment

7 Countries

10 Provinces

50 States

Toughnecks program processed 13,505 applications and hired 506 people in 2015

90% retention target of key field positions

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Average market cap. of $41 billion (median $13 billion).2

Accounts for 86% of total revenue.

Credit risk for vast majority of contract book remains low.

Strong Contract Book backed by Well Capitalized Customers

National OilCompanies

8%

Private20%

Public 72%

1 Includes Canada, U.S. and International operations.2 As of February 8th 2016.

2015 Top 50 Customers 1

30 29

2221

77

31

57

2017 Average

Q2’16

59

2016 Average

Average Term Contracts

CanadaUSInternational

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Focused Footprint

Middle East 4 rigs in Saudi Arabia

2 rigs in Kurdistan

1 rig in Georgia

5 rigs in Kuwait

3 currently

2 to be deployed in late 2016

Focus on deep high pressure drilling

Specialized customer needs

North America 135 rigs in Canada

102 rigs in U.S.

Focused on development drilling

Dots representative of areas where Precision has had operations in 2014 and 2015

Mexico 5 rigs in Mexico

Focus on IPM support

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Increasing International Diversification

46%51%

3%

2012 2013

8%

46%46%

2014

International revenue was 14% of total in 2015, up from 3% in 2012.

14%

48%37%

2015

Two additional contracted rigs to be

deployed in Q4 2016 to Kuwait.

7%

44%49%

U.S.Canada International

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Capital Spending Highlights

$320

$187

$721

2016 Capital – $202 million

$160 million for Expansion and Upgrade

2 new-build rigs for Kuwait

$42 million for Maintenance and Infrastructure

2017 Capital

No anticipated growth capital

$42

$160

Maintenance & Infrastructure

Expansion & Upgrades

2016E

$44

$163

$423

$536

$708

$113

2013

$868

$142

2012

$726

2011

$176

2010

$605

$726

$121$158

$202

2009

$126

$50$30

$193 $410

$149

$459

2014

$857

$49

2015

Capital Expenditure Torque

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Balance Sheet Strength

1) Statistics refer to balance sheet and annual income statement as of 3/31/2016. Debt to total capital equals long-term debt to long-term debt plus equity. Interest coverage equals EBITDA divided by interest. Available liquidity, adjusted for amendment of revolver post quarter end.

2) Calculated as undrawn portion of revolver (adjusted for LCs outstanding) and cash using CAD/USD exchange rate and balance sheet numbers as at 3/31/2016.3) Current blended cash interest cost of our debt is approximately 6.2%.

Attractive Capital Structure (1)

Net debt to total capital: 38% Interest coverage: 3.7x

Long maturity, low cost debt Average interest rate of 6.2%

First Principal Payment due 2019 (3)

2019: $200 million 2020: US$650 million 2021: US$390 million 2024: US$400 million

Flexibility to react to market upturn or downturn

Available liquidity as of3/31/2016 2

Revolver /operating facilitiesAvailability(Maturity: June 3, 2019)

Cash

$1,210

$734

$476

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Historical Annual Revenue and EBITDA

Annual Revenue (millions, YOY % change)

Annual EBITDA(millions,%)

$695(36%)

20112010

$671(33%)

2009

$435(30%)

$407(34%)

$639(31%)

2012 2013 2014 2015

$800(34%)

$474(30%)

$1,197

$1,951

2009 2010 2015

+16%

+19%

+5% -1%

-34%

+36%

$1,430

$2,030

$2,351

20132011

$1,556

20142012

$2,041

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Cost Management In Lower Activity Environment

Variable Cost Structure Reduced Maintenance Capex

Limited Growth Capex

Variable Field Cost

Overhead Reductions

Positioned for Prolonged Downturn

Maintain High Performance, High Value

Operating center consolidation

$24 million of restructuring/ severance costs since 2015

Management reorganization

$120 million in annual fixed cost savings

Active Fixed Cost Management

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Precision Drilling Investment Merits

Leading North American driller with global diversification

High Performance Tier 1 fleet of rigs with Tier 1 crews

Strong balance sheet with $445*

million of cash

Contract position backed by excellent customer base

Experienced organization and management team

Delivering Shareholder Value

TSX: PDNYSE: PDS* As of December 31st 2015TSX: PD NYSE: PDS

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Appendix

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Canadian Activity Update

Source: Baker Hughes land rig count as of April 22nd. 2016

0

100

200

300

400

500

600

700

800

Ca

na

dia

n A

cti

ve

La

nd

Rig

Co

un

t

5 Year Range 2010 - 2014 2014 2015 2016

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Oil Drilling Dominates Activity

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

U.S

. A

cti

ve

La

nd

Rig

Co

un

t

Oil GasSource: BHI

Source: Baker Hughes land rig count as of April 22nd. 2016

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PEOPLE

SYSTEMS & SCALE

DRILLING TECHNOLOGY

LOWER RISK

MAXIMUM EFFICIENCY

ATTRACTIVE RETURNS

PRODUCES

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SYSTEMS&

SCALE

IT Infrastructure and ERP

Supply Chain Management• Leverage Procurement• Vendor Management• Centralized Support

Technical Support centres• Asset Integrity• Maintenance Standard• Centralized Support• In House Repair & Rebuild

Manufacturing + Capital Projects• Engineering• Project Management• Equipment Manufacturing (Rostel)

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8,680 employees completed training through Precision Tech centres in 2013 – 2015

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Safety & Operations

Training

Rig Build & Construction

Repair & Maintenance

Nisku Drilling Support Centre

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Completion & Production Segment: Full Well Cycle Exposure

Largest well service provider in Canada and established presence in U.S.

Over 150 Well Service, Snubbing and Coil Tubing rigs

Large fleet of high value rental equipment

Camps and Catering

Excellent footprint in Canada and Northern U.S.

Existing asset base supports solid cash flow generation

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International Revenue Growth

Inte

rna

tio

na

l R

eve

nu

e (

mil

lio

ns)

Compounded Annual Growth Rate

$240

$160

$200

$120

$0

$40

$80

+77%

20152014201320122011

Revenue

• Initiated Saudi with 3 Rigs

• Deployed additional 3 Rigs to Mexico

• Initiated Kurdistan with 3 Rigs

• Initiated Kuwait with 2 Rigs

• Deployed additional 1 rig to Saudi

• Deployed 1 rig to Georgia• Deployed additional 1 rig to Kuwait• Signed 2 newbuild contracts for

delivery to Kuwait in early 2017

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Commodity • Vertical gas • Vertical gas• Vertical oil• Horizontal gas emerges

• Horizontal gas, development mode• Horizontal oil/liquids growth• Vertical oil• Vertical gas declining

Customers • Small independents• Highly cyclic customer

demand

• Large cap independents• Mid cap independents• Small cap independents

• Integrated oil companies• National oil companies • Large cap independents• Mid cap independents• More stable demand

UnconventionalBasins

• Oil Sands • U.S. focused• 3 to 5 basins

• U.S. and Canada • Emerging Internationally• 20+ basins

Barriers to Entry & Competitive Advantage

• Low barriers• No differentiation

• Rig ownership• Capital• Technology bifurcation

emerging• High performance contractors

emerge• Shortage of Tier 1 rigs

• Technology bifurcation complete• Rig efficiency dominates• Scale benefits apparent• Capital needs large• Established track record• Robust support systems• Tier 1 rigs in demand

North American Market Has Transitioned To Industrialized Resource Drilling

1985-2005Reservoir Drilling

2005-2010Resource Drilling Emergence

2010-PRESENTIndustrial Resource Drilling

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Precision Commands Leadership In Canadian LNG Opportunity

Approved export capacity of 26Bcf/day 1

Opportunity for 20 to 25 rigs per Bcf of export capacity

Longer-term demand source

Require deeper Tier 1 rigs

ST-1200 and ST-1500 rigs ideal for type of development Pad walking Potential year around operations

Well capitalized players funding projects Want long-term partners with proven

track record

Precision has won approximately half of the awarded LNG related new builds

ST-1500 deployed in Northwestern Alberta in February 2014

1. Source: Risky Business: This issue of timing, entry and performance in the Asia-Pacific LNG Market, The School of Public Policy SPP Research Papers, University of Calgary

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Precision’s Tier 1 Super Series Fleet

High Performance Development Drilling Technology

INDUSTRY LEADING RIGSDelivering unrivaled economics through High Performance

Rapid Mobility Walking/skidding system Location to location Sophisticated connections

Small footprint Integrated components Cold weather operations

Smart Design

Automation & Safety Features

Pipe handling Electronics and hydraulics Advanced control systems

1) ST-1500 Requires as few as 42 truck loads in addition to 12 loads of tubular and any operator rental loads2) Requires as few as 36 truck loads in addition to 10 loads of tubular and any operator rental loads

Super Triple 1500 1

Super Triple 1200 2Super Single

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800, 525-8th Avenue S.W.

Calgary, Alberta, Canada T2P 1G1

Telephone: 403.716.4500

Facsimile: 403.264.0251

www.precisiondrilling.com