Essential Energy Services Trust
TSX : ESN.UN

Essential Energy Services Trust

February 24, 2010 17:54 ET

Essential Energy Services Trust Provides 2009 Tax Information

CALGARY, ALBERTA--(Marketwire - Feb. 24, 2010) - Essential Energy Services Trust ("Essential" or the "Trust") (TSX:ESN.UN) has announced the taxability of the 2009 distributions.

Canadian Unitholders

Essential has determined that for Canadian unitholders, 100% of the 2009 distributions declared should be treated as income and no portion should be treated as a return of capital. Canadian unitholders holding their Essential units in a Registered Retirement Savings Plan, Registered Retirement Income Fund, Registered Education Savings Plan, Registered Disability Savings Plans, Deferred Profit Savings Plan or a Tax Free Savings Account should not report any income related to distributions on their 2009 income tax return.

Unitholders holding their units outside such plans should receive a T3 Supplementary Information slip ("T3"), postmarked on or before March 31, 2010. Essential's Canadian registered unitholders should receive their T3 from Olympia Trust Company, Essential's transfer agent. Unitholders that hold their units through a broker or other intermediary should receive a T3 directly from their broker or intermediary.

U.S. Unitholders

Essential believes that for U.S. federal income tax purposes, the units of Essential will more likely than not be properly classified as equity, rather than debt, in a corporation and Essential understands that individual U.S. unitholders will treat the entire amount of the distributions as qualified dividends. As such, the distributions made during 2009 that are considered dividends, should qualify for the reduced rate of tax applicable to certain capital gains.

This information is intended to provide general guidance only to assist in 2009 income tax reporting for Canadian and U.S. unitholders of Essential. It is not exhaustive of all income tax considerations and is not intended to constitute legal or tax advice to any particular unitholder. Current or former unitholders or potential unitholders should consult their own legal or tax advisors with respect to their particular circumstances.

About Essental

Essential Energy Services Trust provides oilfield services to oil and gas producers in western Canada related to the ongoing servicing of producing wells and new drilling activity. Further information about Essential can be found at www.essentialenergy.ca.

This press release may contain forward-looking statements including expectations regarding the nature of the distributions of Essential to Canadian resident unitholders for Canadian income tax reporting purposes, expectations regarding the treatment of distributions of Essential held by Canadian resident unitholders in registered and non-registered accounts for Canadian income tax reporting purposes, expectations regarding the timing of receipt of tax related documents and forms, and expectations regarding the proper classification of the trust units of Essential and the nature of the distributions of Essential to United States resident unitholders for United States federal income tax reporting purposes. With respect to forward looking statements contained in this press release, Essential has made assumptions regarding, among other things, the continuation of current Canadian and United States income tax legislation and the interpretation thereof as it relates to the characterization of the trust units and the distributions paid thereon by applicable taxation authorities. Although Essential believes that the expectations reflected in the forward-looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the possibility of changes (which may be retroactive) in existing Canadian and United States income tax legislation and/or the interpretation thereof as it relates to the characterization of trust units and the distributions paid thereon by applicable taxation authorities. Accordingly, readers should not place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Trust's financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this news release are made as of the date hereof and the Trust undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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

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