Peak Energy Services Trust
TSX : PES.UN

Peak Energy Services Trust

March 05, 2010 17:09 ET

Peak Energy Services Trust Announces Update Regarding Its Rights Offering for Up to $25.0 Million in Trust Units

CALGARY, ALBERTA--(Marketwire - March 5, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Peak Energy Services Trust ("Peak" or the "Trust") (TSX:PES.UN) announced today that it has mailed the short-form prospectus of the Trust dated February 23, 2010 (the "Prospectus") and rights certificates evidencing rights ("Rights") to purchase up to 125.0 million trust units of the Trust ("Trust Units") at a price of $0.20 per Trust Unit, for gross proceeds of up to $25.0 million, to registered holders of Trust Units ("Unitholders") who were resident in a Province of Canada as of the end of business on March 4, 2010. Registered Unitholders wishing to exercise their Rights must forward the completed rights certificates along with the applicable funds to Valiant Trust Company (the subscription agent) by no later than 3:00 pm (Calgary time) on March 29, 2010. Unitholders who own their units through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary. 

Peak would also like to announce a correction with respect to the Prospectus and the Trust's press release dated February 23, 2010 (the "Previous Press Release"). Due to a typographical error both the Prospectus and the Previous Press Release incorrectly stated that the Rights would be listed and posted for trading on the Toronto Stock Exchange ("TSX") until 12:00 p.m (Calgary time) on March 29, 2010, at which point the Rights will be delisted. The Rights will actually be delisted from the TSX at 12:00 p.m. (Toronto time) on March 29, 2010.

The closing of the rights offering is expected to occur by no later than March 30, 2010 and is subject to customary closing conditions and the receipt of necessary regulatory approvals, including the approval of the TSX.

Questions and requests for assistance relating to the rights offering may be directed to Kingsdale Shareholder Services Inc., who has been engaged by Peak to act as information agent, at 1-877-659-1819 or Valiant Trust Company at 1-403-233-2801 or toll free at 1-866-313-1872.

About Peak Energy Services Trust

Peak Energy Services Trust is a diversified energy services organization operating in western Canada and the United States. Through its various operating divisions, Peak provides drilling and production services to its customers both in the conventional oil and natural gas industry as well as the oil sands regions of western Canada. The Trust also provides water technology solutions to a variety of customers throughout North America. Peak's units are listed on the TSX under the symbol "PES.UN".

Forward-looking information

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation regarding expected future events and financial and operating results of the Trust. By its nature, forward-looking information requires the Trust to make assumptions and is subject to numerous inherent risks and uncertainties. There is significant risk that assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking information as a number of factors could cause actual future results, conditions, actions or events to differ materially from expectations, estimations or intentions expressed in the forward-looking information. The Trust disclaims any intention or otherwise to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. It is the current policy of the Trust to evaluate its past forward-looking information and where it deems appropriate, provide updates subject to requirements by law. The forward-looking statements contained in this press release are made as of the date hereof. Additionally, Peak undertakes no obligation to comment on expectations of, or statements made by, third parties in respect of these transactions.

Specifically, this press release contains forward-looking statements relating to: the listing and delisting of the Rights on the TSX, receipt of regulatory approval and the closing of the rights offering. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The results or events predicated in these forward-looking statements may differ materially from actual results or events.

As a result, you are cautioned not to place undue reliance on these forward-looking statements. These statements are based on certain assumptions and analysis made by the Trust in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Trust's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Trust's expectations. Such risks and uncertainties include, but are not limited to: necessary approvals by regulatory bodies are not obtained; the transactions are not completed in the contemplated time period required; that a material adverse affect occurs in respect of Peak; that the transactions are not completed as contemplated or at all; the risk that Peak does not meet the minimum listing requirements of the TSX following the completion of the transaction and the current delisting review of Peak; fluctuations in the price and demand for oil and natural gas; currency fluctuations; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for oilfield services that the Trust provides; the effects of weather conditions on operations; the existence of competition from other oilfield service entities; general economic, market or business conditions including the consequences of the current global economic recession; public market volatility and the related ability to access sufficient capital to fund activities; availability to access debt financing to fund activities; government policy changes; changes in laws or regulations, including taxation and environmental regulations; the lack of availability of qualified personnel or management; and other unforeseen conditions which could impact the Trust.

Consequently, all of the forward-looking information made in this document are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Trust will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Trust or its business or operations.

The TSX have neither approved nor disapproved the information contained herein.

Contact Information

  • Peak Energy Services Trust
    Mr. Curtis W. Whitteron
    President and Chief Executive Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    or
    Peak Energy Services Trust
    Mr. Matthew J. Huber
    Executive Vice President
    (403) 543-7325
    (403) 543-7335 (FAX)
    or
    Peak Energy Services Trust
    Mr. Monty R. Balderston
    Chief Financial Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    or
    Kingsdale Shareholder Services Inc.
    1 (877) 659-1819
    (416) 867-2272 (Outside North America)
    1 (866) 545-5580 (FAX)
    contactus@kingsdaleshareholder.com