Wellco Energy Services Trust

Wellco Energy Services Trust

January 04, 2008 08:00 ET

Wellco Announces Agreement to Sell Service Rig Division

CALGARY, ALBERTA--(Marketwire - Jan. 4, 2008) - Wellco Energy Services Trust (TSX:WLL.UN) ("Wellco" or the "Trust") and Central Alberta Well Services Corp. have entered into an agreement for the purchase and sale of the assets of Wellco's Service Rig Division for total cash consideration of $11.31 million. (Wellco previously sold equipment from this division to another party for proceeds of $190,000, for total proceeds of $11.5 million.) The transaction is expected to close on January 7, 2008, with all net proceeds being applied to the reduction of long-term debt. Results for this group of assets have been reported under the Production Services division.

This disposition forms part of the Wellco's ongoing assessment and review of its product lines with the objective of improving unitholder value and enhancing opportunities in the Trust's core businesses. This transaction will in no way delay or otherwise affect the previously announced merger involving Wellco and Peak Energy Services.

Wellco Energy Services Trust provides the following products and services:

- Accommodations (both camps and wellsite trailers)

- Full service catering

- Wastewater treatment rentals

- Surface equipment rentals

- Production testing and frac blow-back tanks

- Water and Wastewater treatment design and assembly

This press release may contain forward-looking statements based on the interpretation of industry indicators, reliance upon which involves substantial and unknown risk and uncertainty. These risks and uncertainties are beyond the control of Wellco Energy Services Trust, and no assurance can be given that any of these events or outcomes anticipated by these statements will transpire, or that Wellco Energy Services Trust will benefit therefrom.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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