Pantera Drilling Income Trust Announces Results for the Third Quarter Ended
September 30, 2010

/NOT FOR DISSEMINATION INTO THE UNITED STATES/

(TSX: RIG.UN)

CALGARY, Nov. 12 /CNW/ - Pantera Drilling Income Trust ("Pantera" or the "Trust") is pleased to release its third quarter 2010 financial and operating results.  Additional information relating to the Trust, including the Trust's financial statements and management's discussion and analysis for the nine months ended September 30, 2010 is available under the Trust's profile on SEDAR at www.sedar.com or the Trust's website at www.panteradrilling.com.

HIGHLIGHTS
		Three months ended September 30,			Nine months ended September 30,
FINANCIAL		2010	2009	Change	2010	2009	Change
($000s, except for units and per unit amounts)				(%)			(%)
Revenue		8,488	3,091	175	19,367	13,239	46
Gross margin ^(1)		3,266	2,117	54	6,921	5,250	32
Net earnings		853	388	120	1,666	748	123
Per unit
	- basic   - diluted	.09 .08	.04 .04	125 100	.17 .17	.08 .08	113 113
Cash flow from operating activities		(2,715)	(1,390)	(95)	1,316	4,458	(70)
Per unit
	- basic   - diluted	(.27) (.27)	(.15) (.15)	(80) (80)	.13 .13	.50 .48	(74) (73)
Cash distributions declared per basic unit		.09	.09	-	.27	.27	-
EBITDA ^(2)		2,187	1,534	43	4,598	3,357	37
Total assets (end of period)		60,286	56,138	7	60,286	56,138	7
Long-term financial liabilities (end of period)		15,300	16,575	(8)	15,300	16,575	(8)
Units outstanding (weighted average)
	- basic   - diluted	9,930,638 10,218,529	9,210,141 9,505,641	8 7	9,751,930 10,042,521	8,997,565 9,305,363	8 7
Units outstanding (end of period)		10,026,549	9,310,583	8	10,026,549	9,310,583	8
OPERATING
Number of rigs		7	7	-	7	7	-
Operating days ^(3)		416	326	28	897	683	31
Industry utilization average ^(4^)		40%	20%	100	38%	22%	73
Pantera utilization rate^(5)		65%	51%	27	47%	36%	31

Notes:

1. Gross margin represents revenue less operating expenses.  Readers are cautioned that gross margin does not have a standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. However, Pantera does compute gross margin on a consistent basis for each reporting period.  Management believes gross margin is a useful supplemental measure of operating performance and is particularly relevant to readers within the investment community. 
   
2. EBITDA means net earnings before interest, taxes, depreciation, amortization, and gain or loss on disposal of property and equipment.  Readers are cautioned that EBITDA does not have a standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers.  However, Pantera does compute EBITDA on a consistent basis for each reporting period.  Management believes that, in addition to net earnings, EBITDA is a significant indication of success for Pantera and is particularly relevant to readers within the investment community.
3. Operating days is the total of all drilling days from spud to release and excludes stand-by, moving, rig-up and rig-out days.
4. Source: Canadian Association of Oilwell Drilling Contractors (CAODC).
5. Pantera utilization rate is based on utilization of all rigs operating in Canada and Mexico.

Pantera's revenue for the three months ended September 30, 2010 was $8.5 million as compared to $3.1 million in 2009, an increase of 175% due to the combination of higher day rates and utilization.  On a year to date basis, Pantera recorded revenue of $19.4 million, a 46% increase over the $13.2 million recorded in 2009.

Pantera recorded net earnings of $853,100 for the quarter ended September 30, 2010 an increase of 120% compared to net earnings of $388,000 recorded for the third quarter of 2009. For the nine months ended September 30, 2010, net earnings increased 123% to $1.7 million ($.17 per unit) from $747,600 ($.08 per unit) in 2009.

Pantera continues to outperform the industry utilization average with a utilization rate for the three months ended September 30, 2010 of 65% as compared with the industry average of 40%.  On a year to date basis, Pantera's utilization rate was 47% whereas the industry averaged 38% for the nine months ended September 30, 2010. 

On October 18, 2010 Pantera announced that it has entered into an Arrangement Agreement (the "Transaction") with Western Energy Services Corp. ("Western") (TSX Venture: WRG) whereby, subject to certain conditions, Western will acquire all of the issued and outstanding units of Pantera in exchange for shares of Western.

Under the terms of the Transaction, Pantera unitholders will receive 21.9048 common shares of Western for each income trust unit of Pantera held, resulting in the issuance of approximately 226 million Western Shares. The consideration offered to Pantera is equivalent to $4.60 per Pantera unit based on a deemed value of $0.21 per Western share. Upon completion of the Transaction, Western shareholders will own approximately 72% of the combined entity and Pantera unitholders will collectively own approximately 28% on a fully diluted basis.

Pursuant to the Transaction, Ronald P. Mathison, Pantera's chairman who owns a majority of the Pantera trust units, will join Western's board of directors. In addition, Western agreed to nominate a second mutually acceptable candidate for election at its next AGM. It is expected that an information circular and letters of transmittal will be mailed to Pantera unitholders in mid-November. A special meeting of the unitholders of Pantera will be held on December 16, 2010 to vote on the Transaction.

The Transaction will be completed by way of a plan of arrangement under the Business Corporations Act of Alberta and is subject to normal stock exchange, court and regulatory approvals and the approval by at least 66 2/3 percent of the outstanding units of Pantera voted at the special meeting. Unitholders of Pantera, including all of the trustees and officers of Pantera, holding approximately 67% of the outstanding Pantera trust units, have entered into lock up agreements to vote in favour of the Transaction. The full text of the arrangement agreement is available at www.sedar.com under Pantera's profile as an attachment to a material change report dated October 22, 2010.

The Trust paid cash monthly distributions of $0.03 per trust unit during the third quarter of 2010.  Due to the proposed transaction with Western, Pantera's monthly cash distributions were suspended. The last distribution declared by the Trust on September 21, 2010, for the period covering September 1 to September 30, was paid on October 15, 2010 to unitholders of record on September 30, 2010.

Along with the suspension of monthly distributions, the Trust suspended its Distribution Reinvestment Plan (the "Plan").  The Plan provided eligible unitholders with the opportunity to reinvest their cash distributions payable toward the purchase of additional trust units from treasury at a price equal to 95% of the average market price on the applicable distribution payment date.  During the nine months ended September 30, 2010, 532,974 trust units were issued for net proceeds of $1.7 million due to participation in the Plan.

As at September 30, 2010 the trust had 10,026,549 units outstanding.  Subsequent to September 30, 2010, 61,514 trust units were issued for net proceeds of $194,800 pursuant to the Plan and 232,500 trust units were issued for net proceeds of $762,600 due to the exercise of trust unit options resulting in 10,320,563 total units outstanding as at November 10, 2010. As at November 10, 2010 there were no trust unit options outstanding.

Certain statements included in this release constitute forward-looking statements including, without limitation, such things as revenue expectations, capital expenditures, legislative changes, changes in industry conditions, the impact of weather and other seasonal factors that affect business operations, fluctuations in prevailing commodity prices, the competitive environment to which Pantera is, or may be, exposed in all aspects of its business and expected future availability and utilization of Pantera's rigs.  Such forward-looking statements that involve unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Pantera, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, but are not limited to, general economic and business conditions, the ability of Pantera to implement its business strategy, and changes in, or failure to comply with government regulations, especially health, safety and environment laws, regulations and guidelines.  Additional information on these and other 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 release may include, but are not limited to, revenue, commodity prices, rig utilization and availability, capital expenditures and legislative changes. For this purpose, any statements that are contained in this discussion 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.

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.

%SEDAR: 00023106E

For further information:

Terry Rosentreter
President and Chief Executive Officer
or
Lorna Pollock
Chief Financial Officer at: