Conversion to Corporation

Effective December 17, 2010, Pantera Drilling Income Trust converted to corporate form through an exchange of its units for shares of Western Energy Services Corp. (“Western”). The exchange would be on the basis of 21.9048 Western shares for every Pantera unit. Fractional Western shares will not be issued; fractional entitlements will be rounded to the nearest whole share. The conversion was deemed to be a tax deferred event.