On September 30, 2008, Union Drilling, Inc. (the "Company") entered into the seventh amendment (the "Amendment") to its Revolving Credit and Security Agreement dated March 31, 2005 (the "Agreement") with PNC Bank, National Association, acting as lender and agent to the other lenders specified in the Agreement. Unless modified by the Amendment, all other terms of the Agreement, as modified by the six previous amendments thereto, remain in full force and effect.

In addition to other less substantive modifications, the Amendment provides:

• for a term extension to March 30, 2012;

• for a Total Commitment Amount of $67.5 million, with a possible increase of up to $32.5 million ($100 million maximum), if additional lenders elect to participate;

• for an Initial Margin of 1.25% over the Base Rate (i.e., prime rate) for Domestic Rate Loans and 3.0% over the Eurodollar Rate (i.e., LIBOR) for Eurodollar Rate Loans and, commencing January 1, 2009, a sliding scale monthly adjustment, depending upon Facility Usage, from 0.75% to 1.25% over the Base Rate and from 2.50% to 3.00% over the Eurodollar Rate;

• for sliding scale monthly adjustments to the unused line fees, depending upon Facility Usage, from 0.375% to 0.625%; and

• for the removal of The CIT Group/Business Credit, Inc. and National City Business Credit, Inc. as lenders under the credit facility.

The summary above does not purport to be complete and is qualified in its entirety by reference to the actual text of the Amendment filed as Exhibit 10.1 to this Current Report on Form 8-K (being incorporated herein by reference). Unless otherwise defined above, capitalized terms have the meaning as set forth in the Agreement or the Amendment.

The information set forth in Item 1.01 is hereby incorporated by reference into this Item 2.03.

(d) Exhibits.

Exhibit No.       Description
10.1              Seventh Amendment to Revolving Credit and Security Agreement
                  dated September 30, 2008 between Union Drilling, Inc. and PNC
                  Bank, National Association, for itself and for the other lenders.


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