November 02, 2009 16:01 ET

TerraVest Income Fund Acquires Service Rigs In Saskatchewan

VEGREVILLE, ALBERTA--(Marketwire - Nov. 2, 2009) - TerraVest Income Fund (TSX:TI.UN) announces today that Diamond Energy Services Limited Partnership ("Diamond") has acquired service rig assets of a privately held well services business. The acquisition has an effective date of October 31, 2009.

The acquisition adds four mobile single service rigs to Diamond's fleet, increasing the service rig fleet currently operated by Diamond to 24 rigs. The operational focus for the purchased assets is west-central Saskatchewan and east-central Alberta, areas in which Diamond does not currently operate. The majority of the purchased fleet of service rigs was built in the last five years. The purchased assets include all necessary support equipment and personnel to operate the purchased rigs, including the principal, managers and field personnel.

The acquisition allows Diamond to expand into a strategic growth area that neighbours geographic regions where Diamond has complementary equipment and experience.

Diamond is a growing well servicing business based in Swift Current, Saskatchewan. Diamond operates 24 well servicing rigs and six coiled tubing units with office and shop facilities in Swift Current, Saskatchewan, Medicine Hat, Alberta, Shaunavon, Saskatchewan, and Unity, Saskatchewan.

About TerraVest Income Fund

The Fund has invested in six portfolio businesses:

  • Diamond is a market leader in providing well servicing to the oil and natural gas sector in south-western Saskatchewan, with a presence in south-eastern Alberta.
  • RJV is one of the largest providers of wellhead processing equipment for the natural gas industry in western Canada.
  • Don Park is one of Canada's largest manufacturers and suppliers of heating, ventilation and air conditioning (HVAC) products.
  • Stylus is one of Canada's leading made-to-order upholstered furniture manufacturers.
  • Beco is one of the largest Canadian designers, manufacturers and importers of home textile products.
  • Ezee-On manufactures heavy-duty equipment for large acreage grain farms and livestock operations.

Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding Diamond's future operations and business strategy. By their nature, statements about Diamond's future operations and business strategy require us to make assumptions about future performance and are subject to inherent risks and uncertainties. There is risk that these statements will not prove to be accurate. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors could cause actual future results, conditions, actions or events to differ materially from the expectations expressed in such statements and the assumptions underlying them.

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