Total Energy Services Trust

Total Energy Services Trust

November 01, 2007 12:00 ET

Total Energy Services Trust to Acquire Operating Assets of Oilpatch Rentals Ltd.

CALGARY, ALBERTA--(Marketwire - Nov. 1, 2007) - Total Energy Services Trust (TSX:TOT.UN) ("Total") is pleased to announce that its wholly-owned subsidiary, Total Energy Services Ltd, has signed a letter of intent to acquire the operating assets of Oilpatch Rentals Ltd. ("Oilpatch Rentals") for $9.4 million cash. Closing of the transaction is scheduled for December 3, 2007, with an effective date of December 1, 2007 and is subject to customary terms and conditions.

Based in Fort St. John, British Columbia, Oilpatch Rentals has been in business since December 2003 and provides quality surface drilling and production rental equipment and light oilfield transportation services to oil and natural gas companies operating in northeastern British Columbia. The purchased assets include approximately 375 pieces of rental equipment and five heavy trucks. Total currently owns approximately 3500 pieces of rental equipment and 66 heavy trucks. The business of Oilpatch Rentals is complementary to Total's existing rental and transportation business and this acquisition represents a strategic expansion of Total's presence in northeast British Columbia. Following completion of the acquisition, the operations of Oilpatch Rentals will be integrated into Total's drilling and production rental division, Total Oilfield Rentals, as a new branch location. It is anticipated that many of the employees of Oilpatch Rentals will join Total following closing as the principals of Oilpatch Rentals have agreed to enter into five year non-competition agreements.

Total Energy Services Trust is a growth oriented oil and gas service income trust involved in contract drilling services, drilling and production rentals and natural gas compression equipment fabrication, sales, rental and service. The trust units of Total are listed and trade on the TSX under the symbol "TOT.UN".

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Total Energy Services Trust
    Mr. Daniel K. Halyk
    President & Chief Executive Officer
    (403) 216-3921
    Total Energy Services Trust
    Mr. Mark Kearl
    Vice-President Finance and Chief Financial Officer
    (403) 216-3920