Abstract: A drilling apparatus for underreaming includes a top sub, a pressure sleeve mated to the top sub, and a blade body mated to the pressure sleeve. A pilot bit is mated to the lower end of the blade body. A plurality of movable cutting blades are pivotably attached to the blade body by pivot pins. Each of the pins is inserted through the blade body and the cutting blade. Slidable covers, held in place by the pressure sleeve, are used to retain the pins. A mandrel is centrally positioned with respect to the pressure sleeve and the blade body and is axially movable therein. Each of the cutting blades includes an end which is operatively associated with channels transversely formed on one end of the mandrel. Movement of the mandrel in a first axial direction effects retraction of the cutting blades. Movement of the mandrel in a second axial direction effects extension of the cutting blades. The mandrel is held in its blade-retracting position by the biasing force of a spring.