October 03, 2007 18:17 ET

Eveready Income Fund Awarded Significant Long-Term Service Contracts in the Alberta Oilsands and Signs Agreement to Acquire Truck Division of Wellco Energy Services Trust

EDMONTON, ALBERTA--(Marketwire - Oct. 3, 2007) - Eveready Income Fund (TSX:EIS.UN)("Eveready") is pleased to announce that it has been awarded five long-term service contracts in the Alberta oil sands region of north-eastern Alberta. The service contracts include Suncor Energy Inc., Nexen Inc., Canadian Natural Resources Limited, Petro Canada and Syncrude Canada Ltd. The contracts range in length from two to five years and will utilize a number of Eveready's services including vacuum truck, high pressure water blasting, chemical cleaning, hydro-excavation, tank truck, and steam cleaning services. Eveready expects these contracts to generate approximately $400 million in revenue over the next three years.

Eveready is also pleased to announce that it has entered into a purchase agreement to acquire the Truck division of Wellco Energy Services Trust ("Wellco"). The assets acquired will include a fleet of 25 units consisting of vacuum trucks, hydro-excavation trucks, and water trucks along with additional support equipment. Combined with Eveready's current capital expansion program, these assets will be utilized to fulfill Eveready's growing service commitments in the Alberta oil sands region. The purchase price of $5.0 million will be paid through cash consideration. The acquisition is expected to close on October 5, 2007.

"Eveready continues to position itself as the preferred service provider of essential industrial and oilfield services to the Alberta oil sands," comments Rod Marlin, Eveready's President and Chief Executive Officer. "Our current capital expenditure program in 2007 of over $74 million and the acquisition of Wellco's Truck division announced today are just two examples of how we are achieving this market position."

Eveready is a growth oriented income fund that provides industrial and oilfield services; health, safety and environmental services; and oilfield equipment rental and lodging services to the energy, resource, and manufacturing sectors. The units of Eveready trade on the Toronto Stock Exchange under the trading symbol "EIS.UN".

This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Eveready to be materially different from any future results, performances or achievements expressed or implied by such 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 provided by Eveready, industry competition and Eveready's ability to attract and retain both customers and key personnel.

Contact Information

  • Eveready Income Fund
    Rod Marlin
    President & CEO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Eveready Income Fund
    Darren Stevenson
    (780) 451-6075
    (780) 451-2142 (FAX)
    Website: www.evereadyincomefund.com