BlackWatch Energy Services Trust

BlackWatch Energy Services Trust

October 04, 2007 20:08 ET

BlackWatch Energy Services Trust Completes $35 Million Senior Credit Facility and $22.5 Million Subordinated Credit Facility

CALGARY, ALBERTA--(Marketwire - Oct. 4, 2007) - BlackWatch Energy Services Trust ("BlackWatch") (TSX:BWT.UN) has successfully completed an amended and restated $35 million syndicated senior credit agreement and a $22.5 million subordinated credit facility. All figures are reported in Canadian dollars unless otherwise stated.

The amended and restated syndicated facility will continue to be led by the Bank of Nova Scotia and includes the same group of major Canadian banks that BlackWatch has been dealing with since December, 2006. The new senior facility matures on June 30, 2008 and bears interest at prime plus 2.625%.

In conjunction with this closing, BlackWatch has also entered into a $22.5 million loan (the "Kai Loan") with Kai Commercial Trust ("Kai") based on the financing commitment announced on June 8, 2007. Kai is controlled by two of BlackWatch's directors. The Kai Loan is strictly subordinate to the amended and restated senior credit agreement and all terms of the Kai Loan are consistent with those described in the earlier announcement.

Upon closing, and after applying the proceeds of the Kai Loan and the $8 million raised by BlackWatch in the July 3, 2007 rights offering, approximately $20 million will be drawn on the senior credit facility. These credit facilities solidify BlackWatch's capital structure, providing both the capacity and stability required to pursue its business plan in the current environment.

The full amended and restated credit agreement and the Kai Loan agreement will be posted on SEDAR.

About BlackWatch Energy Services Trust

BlackWatch Energy Services Trust is a diversified income trust that provides a range of services to its customers operating in the Western Canadian Sedimentary Basin including drilling, wireline services, rig transportation and hauling, coil tubing well servicing, production services and oilfield equipment rentals and leasing. The units of BlackWatch trade on the Toronto Stock Exchange under the symbol "BWT.UN".

This press release may contain forward-looking statements subject to various risk factors and uncertainties, which may cause actual results, performance or achievements to be materially different from results, performance or achievements expressed or implied by forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services, competition and the ability to attract and retain customers and employees.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • BlackWatch Energy Services Trust
    Travis Robertson
    President and Chief Executive Officer
    (403) 225-3879
    BlackWatch Energy Services Trust
    Paul Partlo
    Vice President and Chief Financial Officer
    (403) 225-3879
    BlackWatch Energy Services Trust
    300, 855 - 8 Avenue SW
    Calgary, Alberta T2P 3P1
    (403) 225-3879
    (403) 366-2066 (FAX)