Item 1.01. Entry into a Material Definitive Agreement.

On October 6, 2008, Union Drilling, Inc. (the "Company") filed a Current Report on Form 8-K announcing that on September 30, 2008, 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 thereunder. As specified in the Amendment, M&I Business Credit, LLC and Capital One Leverage Finance Corp. remained as lenders under the Agreement, along with PNC Bank. As we previously reported, upon execution of the Amendment The CIT Group/Business Credit, Inc. and National City Business Credit, Inc. ceased being lenders under the Agreement. Also, as previously reported, the Amendment contained a provision by which additional lenders could join the lending group after the execution date of the Amendment.

On October 9, 2008, M&T Bank and TD Bank, N.A., became lenders under the Agreement. M&T Bank is a $10 million participating lender and TD Bank, N.A. is a $20 million participating lender. Each of these new lenders signed an additional lender certificate, a form of which was attached as an exhibit to the Amendment (which was filed as Exhibit 10.1 to our Form 8-K filed on October 6, 2008). With the addition of the two new lenders, the Total Commitment Amount available to the Company under the amended Agreement is $97,500,000.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

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

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