BlackWatch Energy Services Trust

BlackWatch Energy Services Trust

August 24, 2007 18:15 ET

BlackWatch Energy Services Trust Announces Disposition of Pipeline Business and Assets

CALGARY, ALBERTA--(Marketwire - Aug. 24, 2007) - BlackWatch Energy Services Trust ("BlackWatch") (TSX:BWT.UN) announces the signing of a binding agreement with EMS Acquisition Canada, Inc, a wholly owned subsidiary of Energy Maintenance Service Group, I LLC ("EMS Group"), for the sale of the assets and business of BlackWatch's pipeline construction division (formerly K&D Oilfield Services). All figures are reported in Canadian dollars unless otherwise stated.

The purchase price for this acquisition is $3.845 million and is scheduled to close at the end of business on Friday, August 31, 2007.

BlackWatch's pipeline construction division provides pipeline and facility construction management, well-site construction, inspection services, equipment installation and shop and field fabrication to oil and gas producers and pipeline owner / operators. The division has earned a solid reputation among its client base, which include some of the largest energy companies in Canada.

EMS Group has a presence in Canada through its subsidiary, Celtic Controls, which is an instrumentation, electrical and controls company serving the northwestern Alberta area.

"The sale of our pipeline construction division is a strategic decision that will simplify the BlackWatch operating structure and enable us to focus resources on our core businesses, "stated Travis Robertson, President and CEO of BlackWatch. Proceeds of the sale will be used to repay bank debt, resulting in bank debt of approximately $39.5 million following closing and including the impact of the previously announced rights offering.

About BlackWatch Energy Services Trust

BlackWatch Energy Services Trust is a diversified income trust that provides a range of services to its customers operating in the Western Canadian Sedimentary Basin including drilling, wireline services, rig transportation and hauling, coil tubing well servicing, production services and oilfield equipment rentals and leasing. The units of BlackWatch trade on the Toronto Stock Exchange under the symbol "BWT.UN".

This press release may contain forward-looking statements subject to various risk factors and uncertainties, which may cause actual results, performance or achievements to be materially different from results, performance or achievements expressed or implied by forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services, competition and the ability to attract and retain customers and employees.

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

Contact Information

  • BlackWatch Energy Services Trust
    Travis Robertson
    President and Chief Executive Officer
    (403) 225-3879
    BlackWatch Energy Services Trust
    Paul Partlo
    Vice President and Chief Financial Officer
    (403) 225-3879
    BlackWatch Energy Services Trust
    300, 855 - 8 Avenue SW
    Calgary, Alberta T2P 3P1
    (403) 225-3879
    (403) 366-2066 (FAX)