Peak Energy Services Trust

Peak Energy Services Trust

May 16, 2006 17:21 ET

Peak Energy Services Trust Confirms Cash Distribution for June 15, 2006

CALGARY, ALBERTA--(CCNMatthews - May 16, 2006) - Peak Energy Services Trust (TSX:PES.UN) ("Peak") confirms its cash distribution for the month of May 2006 will be Cdn. $0.09 per trust unit. This cash distribution will be paid on or about June 15, 2006 to unitholders of record on May 26, 2006. The ex-distribution date will be May 24, 2006.

Unitholders are encouraged to review a prior press release dated April 12, 2006 outlining Peak's recent announcement of its Premium Distribution™, Distribution Reinvestment and Optional Trust Unit Purchase Plan (the "Plan").

Peak confirms the following increase to the exchange ratio of the
exchangeable shares of Peak Energy Services Ltd.:

date of Exchange
the ratio
Record Market Increase increase as of
date of Opening price in in effective
unit Distribution exchange of exchange exchange date of
distribution per unit ratio units(1) ratio(2) ratio increase
------------ ------------ -------- ------- -------- --------- ----------

April 24, May 15,
2006 $0.09 1.2076 $13.34 0.00815 2006 1.2175

(1) Market price is the closing trading price of Peak's trust units on
the first business day following the distribution record date for
such distribution.

(2) The increase in the exchange ratio is calculated by multiplying
Peak's distribution per unit by the exchange ratio immediately prior
to the distribution record date and dividing by the closing market
price of Peak's trust units on the first business day following the
distribution record date for such distribution.

A holder of exchangeable shares can exchange all or a portion of their holdings into trust units, at any time, by giving notice to their investment advisor or Valiant Trust Company at its principal transfer office at Suite 310, 606 - 4th Street S.W., Calgary, Alberta, T2P 1T1.

About Peak Energy Services Trust

Peak Energy Services Trust is a diversified energy services organization providing oilfield equipment and related services to the energy industry in western Canada and the mid-western United States of America. Peak's trust units are listed on the Toronto Stock Exchange under the symbol "PES.UN".

Certain information set forth in this news release, including management's assessment of Peak's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, competition from other industry participants, volatility of commodity prices, currency fluctuations, environmental risks, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Peak's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Peak will derive there from. Peak disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

Contact Information

  • Peak Energy Services Trust
    Mr. Curtis W. Whitteron
    President & Chief Operating Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    Peak Energy Services Trust
    Mr. Matthew J. Huber
    Chief Financial Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    Peak Energy Services Trust
    Suite 1800, 530 - 8th Avenue S.W.
    Calgary, Alberta T2P 3S8