Builders Energy Services Trust
TSX : BET.UN

Builders Energy Services Trust

May 12, 2005 10:10 ET

Builders Energy Announces Pending Acquisition

CALGARY, ALBERTA--(CCNMatthews - May 12, 2005) - Builders Energy Services Trust (TSX:BET.UN) ("Builders", or "the Trust") announces that its wholly-owned subsidiary, Builders Energy Services Ltd., has entered into an arm's length letter of intent regarding the acquisition of oilfield services assets from a privately held Alberta-based company ("the Company"). Builders expects the total net purchase price to be approximately $16 million, subject to adjustments, and anticipates the transaction will close at the end of May 2005. Under the terms of the letter of intent, Builders will acquire substantially all of the operating assets of the Company, including its brand name and distribution rights. Builders intends to retain the existing management and staff of the Company.

The Company is a well-established business that has experienced steady growth in the western Canadian oilfield services industry for several years. The Company provides equipment and associated services for completions, production, and workover projects for the oil and gas industry. The Company's revenue for its 2004 fiscal year was approximately $16 million.

"This acquisition opportunity fits very well with Builders' strategic growth and value objectives. We believe the cash flow addition will be accretive to Builders' Unitholders," said Garnet Amundson, Chief Executive Officer of Builders. "The Company's heavier weighting towards production-related work will further diversify Builders' operations between production and drilling related activities."

Upon closing, shareholders of the Company will receive $8 million in cash and the balance of the purchase price in units of Builders Energy Services Trust. Builders will utilize its acquisition credit facility to fund the $8 million of cash.

The transaction has been approved by the Board of Directors of Builders, subject to due diligence, and the completion of formal purchase agreements and management and non-competition agreements with senior personnel of the Company.

Based in Calgary, Builders Energy Services Trust is an open-end unincorporated investment trust governed by the laws of the Province of Alberta and was established to acquire and operate entities that engage in oilfield services. The principal undertaking of the Trust, through its indirect wholly-owned subsidiary Builders Energy Services Ltd., is to provide a variety of services to oil and gas exploration and production companies in Western Canada, including oilfield services, oilfield transportation and oilfield equipment rentals. Builders' Trust Units are listed on the Toronto Stock Exchange and trade under the symbol "BET.UN".

When used in this news release, the words "anticipate", "estimate" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the date that the statements are made, and the Trust undertakes no obligation to update forward-looking statements if conditions or opinions should change.

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

Contact Information