Builders Energy Services Trust

Builders Energy Services Trust

May 12, 2005 16:42 ET

Builders Energy Services Trust Announces Letter of Intent with an E-Line Company

CALGARY, ALBERTA--(CCNMatthews - May 12, 2005) - In addition to the pending acquisition announced earlier today, 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 to acquire a privately held Alberta-based Electric Line ("e-line") company ("the Company"). Builders expects the total net purchase price to be approximately $24.2 million, subject to adjustments, and anticipates closing by the end of June, 2005. 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. Its equipment performs e-line services including logging and perforating for the oil and gas industry. Revenue for the 12 months ending March 31, 2005 was approximately $19 million.

"We're very excited about bringing an e-line business into the Builders organization," commented Garnet Amundson, Chief Executive Officer of Builders. "This company exceeded all of Builders' performance criteria for acquisition selection, and we look forward to closing this deal and having their staff and management join Builders."

Upon closing, shareholders of the Company will receive half of the purchase price in cash and the balance in Builders' Trust units.

The transaction has been approved by the Board of Directors of Builders and is subject to due diligence, completion of formal agreements and applicable regulatory approval.

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.

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