1

Investor Presentation

December, 2016

*Rig 580, Oklahoma SCOOP

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

0

100

200

300

400

500

600

700

800

January

Febru

ary

Marc

h

April

May

June

July

August

Septe

mber

Oct

ober

Novem

ber

Dece

mber

Historical North American Drilling Activity

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan, 2018Jan, 2016Jan, 2014Jan, 2012Jan, 2010Jan, 2008Jan, 2006

+51%increase in rigcount sinceMay lows

U.S. Land Rig Count10 Year History

Canadian Land Rig Count5 Year History

Source: Baker Hughes land rig count as of November 18th, 2016

4752016 Year to Date Average

1212016 Year to Date Average

1892015 Average

Active Rigs

9432015 Average Active Rigs 378

2014 Average Active Rigs

18042014 Average

Active Rigs

4

Market Share Growth

0

50

100

150

200

250

300

Sep/15Jul/15May/15Jan/15 Mar/15 May/16Nov/15 Jan/16 Jul/16Mar/16 Sep/16 Jan/17Nov/16

Precision continues to deliver High Performance, High Value services, operating the most active fleet in North America.

Acti

ve

No

rth

Am

eri

ca

n D

rill

ing

Rig

s

Peers A, B, and C operate in Canada and the U.S. Peer D operates only in the U.S.

U.S. Based Peer D

U.S. Based Peer B

Canadian Based Peer A

U.S. Based Peer C

PD

Source: Company disclosure, CAODC, and RigData as of November 28th, 2016

5

Precision Responding to Improving Outlook

Reactivated 59 rigs in Canada from low of 10 rigs to 69 rigs

Reactivated 20 rigs in the U.S. from low of 21 rigs to 41 rigs

Filled ~1,200 positions

2016 Precision Average Active Rigs

0

20

40

60

80

100

120

Nov

U.S. - 41 Rigs

Canada - 69 Rigs

OctSepAugJulJunMayAprMarFebJan

Source: Company disclosure as of November 28th, 2016

6*Rig 575, Permian

Financial Performance – Precision’s Resilient Margins

6

($ in millions) 2016 2015

Revenue $668 $1,211 $1,556

EBITDA $163 $363 $474

Margin 24% 30% 30%

Drilling Utilization Days

Canada 8,050 13,062 17,238

U.S. 7,773 17,063 21,172

International 2,044 3,262 4,084

Total Days 17,867 33,387 42,494

Nine months ended Sept. 30 Fiscal

2015

• Despite a ~50% decline in drilling days from the first 9 months of 2015 to the first nine months of 2016, EBITDA margin declined by only 20% due to aggressive cost management and rig contract performance

7

Issued US$350 million Senior Notes due 2023

Retired $200 million Senior Notes due 2019

Redeemed US$250 million of 2020 Senior Notes

Redeemed US$53 million of 2021 Senior Notes

Reduced total debt by $2131 million YTD

No maturities until November 2020

Recent Financing Actions

*Rig 570, Duvernay

1. Using CAD/USD exchange rate and balance sheet numbers as at 9/30/2016

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Precision’s 2016 Strategic Priorities

Sustain High Performance, High Value competitive positioning

Position for a rebound

Manage strong liquidity position

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Manage Strong Liquidity Position

Liquidity as of 9/30/2016 1

Pro-forma 2016 Debt Offering

Revolver/ Operating Facilities (Matures June 3, 2019)

Cash

$929 Million$736 Million $193 Million

1) Calculated as undrawn portion of revolver (adjusted for LCs outstanding) and cash using CAD/USD exchange rate and balance sheet numbers as at 9/30/2016 (pro-forma October 31st 2016 high yield offering and related transaction costs.

2) Statistics refer to balance sheet and trailing twelve months income statement as of 9/30/2016. Net debt to total capital equals ratio of long-term debt less cash to long-term debt less cash plus equity. Interest coverage equals EBITDA divided by interest. Available liquidity, adjusted for amendment of revolver post quarter end.

3) Current blended cash interest cost of our debt is approximately 6.4%.

US$400US$350

US$319US$372

2020 202420232019201820172016 20222021

Senior Debt Maturity Profile

No Maturities Until November 2020

Reduced total debt by $2131 million YTD

Improved financial flexibility

Expanded maturity profile

Attractive Capital Structure 2

Net debt to total capital: 42% Interest coverage: 2.0x

Long maturity, low cost debt Average interest rate of 6.4%

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Sustain High Performance, High Value Competitive Advantage

Added 14 rig years to 2017 contract

book, improving visibility next year

Reactivated 79 rigs throughout North

America, including the Permian,

Niobrara, Marcellus, Viking, Canadian

Bakken, Montney, Duvernay

Majority of the rigs reactivated have

been Super Triple 1500s in the U.S. and

Super Triple 1200s in Canada

Currently operating 110 rigs in North

America, 12% market share – up from

8% market share in Q3 2014*Rig 556, Louisiana, Drilling with fully integrated Directional Drilling services

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Position for the Rebound – Toughnecks Recruiting Program

102,224Applications processed

2013-2015

(16,000 Applications in 2016 1)

1,200 – 1,400 Screened candidates in the

system – ready to work

517Drillers ~50% at lower

positions

280Rig Managers ~40% at

lower positions

Brand & Advertising

Targeted Selection

Interviews

System Screening & Testing

New Hire

Rig Placement

1

1

1. As of September 30th 2016.

79 drilling rigs reactivated from Q2 lows, ~1200 positions filled

*Houston training rig10

12

119Tier 1 Rigs

Added

Position for the Rebound – 239 High Performance Super Series Rigs

75

114 119 125 128

43

7279

88101 102

2

2011

2

Canada

U.S.

International

2016E

129

8

2015

6

2014

5

2013

2

2012

1) As of October 21st 2016 - Includes 1 newbuild rigs for Kuwait to be delivered late 2016. Excludes 16 upgrade candidates. 2) Includes 98 newbuild rigs and 21 major upgrades.3) Decommissioned 36 rigs in 2011, 52 rigs in 2012, 29 rigs in 2014 and 79 rigs in 2015 – total of 196 rigs.

1,2,3

$359

$702

$180

$409

$619

$530

2014201320122011 2016E2015

$2.8 Billion in Drilling Expansion and Upgrade Capital Investment from 2011 – 2016E

Super Series Rigs Designed for Today’s Unconventional Development Drilling Programs

Expansion & Upgrade Capital

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13

High Performance – Precision Super Triple Efficiency

Reducing well cost while improving performance and

efficiency

Average Canada downtime of 0.42% and 1.39% for U.S.

74% improvements in recordable frequency

57% efficiency gain in average rig move days

6 days faster wells on PD integrated services with

reduced headcount on location

0

2,000

4,000

6,000

8,000

10,000

12,000

0 4 8 12 16 20 24 28 32

Ho

le D

ep

th (

Fe

et)

Drilling Days

Competitor A

Competitor B

PD Planned Well

PD Well

2-Man Directional Crew w/ Remote

MWD & DD

6 days faster

Feb/16Dec/15Oct/15Aug/15Jun/15Apr/15Feb/15

201320122011 20152014

0.59% 0.61%

0.41%0.50%

0.42%

20152014201320122011

Ca

na

dia

n

Do

wn

tim

e

Re

co

rda

ble

Fre

qu

en

cy

We

st

Te

xa

sA

vg

. M

ove

Da

ys

2.09%1.73% 1.65% 1.58% 1.39%

20152014201320122011

U.S

.D

ow

nti

me

14

Lowering Cost and Improving Performance

Nisku - AlbertaHouston – Texas

Vertically Integrated

Centralized Procurement

Repair & Maintenance

• Leverage Scale• Centralized Support

Rig Build & Construction

State of the Art Training Rigs

*Houston Technical Centre 13

15

Comprehensive North American Footprint / Targeted International Markets

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

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Geographical Diversification

0%

20%

40%

60%

80%

100%

International

2016YTD2015

Canada

U.S.

20112010200920082007 201420132012

2007 to 2016YTD Geographical Diversification

Canadian revenue diversified from 95% to 36%

U.S. revenue increased from 5% to 47%

International expansion from 0% to 17%

Rig 89, Saudi Arabia

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Average market cap. of ~$40 billion (median ~$12 billion).2

Credit risk of contract book remains low.

All contracts have performed.

Strong Contract Book backed by Well Capitalized Customers

National OilCompanies

10%

Private26%

Public 64%

1 Includes Canada, U.S. and International operations and accounts for 82% of total revenue.2 As of October 27th, 2016.

2016YTD Top 50 Customers1

31

19

23

18

7

8

61

2017 Average2016 Average

45

Average Term Contracts

International

Canada

US

To date in 2016, have added 14 rig years to 2017 contract book.

18

Responsive Capital Allocation

$320

$187

$721

2016 Capital – $213 million

$170 million for Expansion and Upgrade

2 new-build rigs for Kuwait

$43 million for Maintenance and Infrastructure

2017 Capital – $109 million

$58 million for Expansion and Upgrade

$51 million for Maintenance and Infrastructure

$43

$170

Maintenance & Infrastructure

Expansion & Upgrades

$0

$500

$1,000

2017E2016E2015201420132012201120102009

Annual Capital Spending ($ in millions) *Rig 904, Kuwait

17

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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 $193

*million of cash

Contract position backed by excellent customer base

Experienced organization and management team

Delivering Shareholder Value

TSX: PD NYSE: PDS* Cash balance as at 9/30/2016, pro-forma October 31st 2016 high yield offering and related transaction costs.

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Appendix

21

Canadian Activity Update

Source: Baker Hughes land rig count as of December 2nd, 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

Source: Baker Hughes land rig count as of December 2nd, 2016

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

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PEOPLE

SYSTEMS & SCALE

DRILLING TECHNOLOGY

LOWER RISK

MAXIMUM EFFICIENCY

ATTRACTIVE RETURNS

PRODUCES

24

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)

25

Staffing for a Rebound – Retention and Development of Key Personnel

Leadership

Development

Programs

Career Path

Management

Structured Promotion

Programs

Long-term

Compensation Programs

Field Training

Investments

Permanent Training

Facilities with Fully

Functioning Rigs

Tier 1 Assets

World-Class Safety

Culture and

Processes

Precision HR Training and Processes

Structured Measured Retention Programs for Key Personnel

Structured

Competency

Standards

26

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

27

Safety & Operations

Training

Rig Build & Construction

Repair & Maintenance

Nisku Drilling Support Centre

28

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

29

International Revenue Growth

Inte

rna

tio

na

l R

eve

nu

e (

mil

lio

ns)

Compounded Annual Growth Rate

$240

$200

$160

$120

$80

$40

$02016YTD20152014201320122011

Revenue

• Initiated Saudi with 3 Rigs

• Deployed additional 3 Rigs to Mexico

• Initiated Kurdistan with 2 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 late 2016

• 4th Kuwait rig started operations in October

• 5th Kuwait rig to start operations in November

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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’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