Union Drilling’s management team will be holding a conference call on Wednesday, November 8, 2006, at 9:30 a.m. eastern time. To participate in the call, dial (303) 262-2141 at least ten minutes before the conference call begins and ask for the Union Drilling conference call. To listen to the live call on the web, please visit Union Drilling’s web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live call, a telephonic replay will be available through November 15, 2006 and may be accessed by calling (303) 590-3000 and using the pass code 11073859#. Also, an archive of the webcast will be available after the call for a period of 60 days on the ‘‘Investor Relations’’ section of the Company’s website at www.uniondrilling.com.

Union Drilling, Inc., headquartered in Ft. Worth, Texas, provides contract land drilling services and equipment, primarily to natural gas producers, in the United States. Union Drilling currently owns or operates 74 rigs and specializes in unconventional drilling techniques.

This press release contains various forward-looking statements and information that are based on management’s belief as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding the Company’s anticipated growth, demand from the Company’s customers, capital spending by oil and gas companies and the Company’s expectations regarding its new rigs and the U. S. land drilling sector. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions and industry trends; the continued strength or weakness of the contract land drilling industry in the geographic areas where the Company operates; decisions about onshore exploration and development projects to be made by oil and gas companies; the highly competitive nature of the contract land drilling business; the Company’s future financial performance, including availability, terms and deployment of capital; the continued availability of qualified personnel; and changes in governmental regulations, including those relating to the environment. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission, including the Company’s 10-K.

Union Drilling, Inc.
Consolidated Statements of Income
(in thousands, except share and per share data)
(Unaudited)


	Three Months Ended September 30,								Nine Months Ended September 30,
	2006				2005				2006				2005
Revenues
Nonaffiliates		$	69,482			$	42,042			$	184,877			$	91,026
Related party			—				1,188				—				4,138
Total revenues			69,482				43,230				184,877				95,164
Cost and expenses
Drilling operations			40,836				31,639				113,298				70,448
Depreciation and amortization			6,334				4,251				17,079				10,387
General and administrative			5,200				4,324				15,034				9,175
Total cost and expenses			52,370				40,214				145,411				90,010
Operating income			17,112				3,016				39,466				5,154
Interest expense			(212	)			(901	)			(213	)			(1,905	)
Gain on sale of assets			(41	)			82				282				153
Other income			152				108				279				160
Income before income taxes			17,011				2,305				39,814				3,562
Income tax expense			7,217				2,292				16,589				2,292
Net income		$	9,794			$	13			$	23,225			$	1,270
Earnings per common share:
Basic		$	0.46			$	0.00			$	1.09			$	0.08
Diluted		$	0.45			$	0.00			$	1.08			$	0.08
Weighted-average common shares outstanding:
Basic			21,337,507				16,226,591				21,239,735				15,205,373
Diluted			21,636,504				17,174,310				21,567,444				16,015,059

Union Drilling, Inc.
Operating Statistics
(in thousands, except per day data)


	Three Months Ended September 30,								Nine Months Ended September 30,
	2006				2005				2006				2005
Revenues		$	69,482			$	43,230			$	184,877			$	95,164
Drilling margins		$	28,646			$	11,591			$	71,579			$	24,716
Revenue days			4,732				3,686				13,430				8,394
Marketed rig utilization			79.0	%			67.1	%			77.4	%			58.9	%
Revenue per revenue day		$	14,683			$	11,728			$	13,766			$	11,337
Drilling margin per revenue day		$	6,054			$	3,145			$	5,330			$	2,944

Union Drilling, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)


	September 30, 2006			December 31, 2005
	(unaudited)
Assets:
Current assets:
Cash and cash equivalents		$	146		$	2,388
Accounts receivable (net of allowance for doubtful accounts of $870 and $313 at September 30, 2006 and December 31, 2005, respectively)			46,294			27,579
Accounts receivable – related party			—			482
Inventories			1,356			860
Prepaid expenses and deposits			3,041			4,930
Deferred taxes			6,574			10,543
Total current assets			57,411			46,782
Goodwill			7,678			5,425
Intangible assets (net of accumulated amortization of $427 and $203 at September 30, 2006 and December 31, 2005, respectively)			3,573			3,798
Property, buildings and equipment (net of accumulated depreciation of $62,060 and $46,251 at September 30, 2006 and December 31, 2005, respectively)			171,318			120,783
Other assets			467			700
Total assets		$	240,447		$	177,488
Liabilities and Stockholders' equity:
Current liabilities:
Accounts payable		$	11,560		$	9,241
Current portion of long-term obligations			2,366			2,014
Other current obligations			650			3,308
Current portion of advances from customers			429			1,265
Accrued expense and other liabilities			8,439			5,353
Total current liabilities			23,444			21,181
Revolving credit facility			30,203			—
Long-term obligations			5,295			5,812
Deferred taxes			23,563			17,917
Advances from customers			139			139
Total liabilities			82,644			45,049
Stockholders' equity:
Common stock, par value $.01 per share; 75,000,000 shares authorized; 21,367,192 and 21,166,109 shares issued and outstanding at September 30, 2006 and December 31, 2005			214			212
Additional paid in capital			135,518			133,381
Retained earnings (deficit)			22,071			(1,154	)
Total stockholders' equity			157,803			132,439
Total liabilities and stockholders' equity		$	240,447		$	177,488

EBITDA is earnings before net interest, income taxes and depreciation and amortization. The Company believes EBITDA is a useful measure of evaluating its financial performance because of its focus on the Company’s results from operations before net interest, income taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles. However, EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies. A reconciliation of EBITDA to net earnings is included below. EBITDA as presented may not be comparable to other similarly titled measures reported by other companies.

Union Drilling, Inc.
(in thousands)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2006			2005			2006			2005
Calculation of EBITDA:
Net income		$	9,794		$	13		$	23,225		$	1,270
Interest expense			212			901			213			1,905
Income tax expense			7,217			2,292			16,589			2,292
Depreciation expense			6,334			4,251			17,079			10,387
EBITDA		$	23,557		$	7,457		$	57,106		$	15,854

Drilling margin represents contract drilling revenues less contract drilling costs. Union Drilling believes that drilling margin is a useful measure for evaluating its financial performance, although it is not a measure of financial performance under generally accepted accounting principles. However, drilling margin is a common measure of operating performance used by investors, financial analysts, rating agencies and Union Drilling’s management. A reconciliation of drilling margin to operating income is included below. Drilling margin as presented may not be comparable to other similarly titled measures reported by other companies.

Union Drilling, Inc.
(in thousands)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2006			2005			2006			2005
Calculation of drilling margin:
Operating income		$	17,112		$	3,016		$	39,466		$	5,154
Depreciation and amortization			6,334			4,251			17,079			10,387
General and administrative			5,200			4,324			15,034			9,175
Drilling margin		$	28,646		$	11,591		$	71,579		$	24,716
Revenue days during the period			4,732			3,686			13,430			8,394
Drilling margin per revenue day		$	6,054		$	3,145		$	5,330		$	2,944

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	Contacts:	Union Drilling, Inc. Christopher D. Strong, CEO 817-735-8777 Dan Steigerwald, CFO 817-735-8776 DRG&E Ken Dennard / Ben Burnham 713-529-6600