Bonnett's Energy Services Trust
TSX : BT.UN

Bonnett's Energy Services Trust

September 22, 2005 09:01 ET

Bonnett's Energy Services Trust Closes Initial Public Offering

GRANDE PRAIRIE, ALBERTA--(CCNMatthews - Sept. 22, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Bonnett's Energy Services Trust ("Bonnett's" or the "Trust")(TSX:BT.UN) is pleased to announce that it has completed its initial public offering (the "Offering") of 4,500,000 trust units at a price of $10.00 per unit for gross proceeds of $45 million. The units of the Trust ("Trust Units") commenced trading today on the Toronto Stock Exchange under the symbol "BT.UN".

The Trust expects to commence paying monthly cash distributions of $0.10 per Trust Unit ($1.20 per Trust Unit per year). The first distribution for the period from September 22 to September 30, 2005 will be $0.0267 per Trust Unit and is expected to be paid on October 14, 2005 to unitholders of record on September 30, 2005. Based on the offering price and initial distribution, the Trust Units will provide investors with an initial annual yield of 12%.

The proceeds of the Offering were used as follows: approximately $30 million to pay the cash portion for the purchase of the assets of Bonnett's Wireline Services Ltd. and The Testers Inc. (the "Vendor Companies"); and approximately $15 million for the purchase of new equipment and working capital purposes.

In connection with the acquisition of the assets of the Vendor Companies and certain other assets, 3,782,383 Trust Units were issued by the Trust. As well, an additional 20,000 Trust Units were issued to certain employees of the Trust pursuant to a private placement at the Offering price of $10.00 per Trust Unit. As a result, following closing of the Offering, the Trust will have 8,302,383 Trust Units issued and outstanding. Additional information about the Trust and this transaction is available at www.sedar.com.

The Offering was completed through a syndicate led by Raymond James Ltd., and included Sprott Securities Inc. and Westwind Partners Inc.

Immediately following closing of the Offering, the shareholders of each of Bonnett's Wireline Services Ltd. and The Testers Inc., in connection with the sale of all of the assets of Bonnett's and The Testers to the Trust, received an aggregate of 2,661,400 Trust Units and 1,018,183 Trust Units representing 32.1% and 12.3% of the outstanding Trust Units, respectively. As a result, Murray Toews, the President and Chief Executive Officer of the Trust will acquire 910,485 Trust Units, (representing 11.0%), Colleen Toews (the spouse of Murray Toews) will acquire 1,080,795 Trust Units, (representing 13.0%) and Kelvin Torgerson, the Chief Financial Officer of the Trust will acquire 1,208,303 Trust Units, (representing 14.6%). Ownership or control of further securities of the Trust may be acquired or securities of the Trust may be disposed of by the foregoing individuals, subject to applicable law.

The Trust is an open-end unincorporated investment trust governed by the laws of the Province of Alberta. The Trust was established to acquire the businesses of the Vendor Companies and the securities and assets of other entities engaged in the oilfield services business. The principal undertaking of the Trust, through its indirect wholly owned subsidiary, Bonnett's Energy Services, L.P. ("Bonnett's LP") is to provide wireline and testing services to oil and natural gas exploration and production companies operating in the Western Canadian Sedimentary Basin ("WCSB"). Operating from nine full service locations located throughout the WCSB, with a sales office located in Calgary, Alberta, Bonnett's LP currently operates 34 wireline trucks, 6 heliportable wireline units and 18 testing packages.

The Trust Units offered will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person, absent registration, or an applicable exemption therefrom. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Trust Units in any jurisdiction. This news release may contain forward-looking statements concerning the anticipated performance of the Trust. Forward-looking statements are based on the estimates and opinions of management at the date the statements are made, and the Trust undertakes no obligation to update forward-looking statements if conditions or opinions should change.

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

Contact Information