Builders Energy Services Trust

Builders Energy Services Trust

October 14, 2005 15:32 ET

Builders Energy Services Trust Acquires Service Rigs and Initiates Service Rig Fabrication Program

CALGARY, ALBERTA--(CCNMatthews - Oct. 14, 2005) - Builders Energy Services Trust (TSX:BET.UN) ("the Trust", or "Builders") has closed an asset purchase agreement today to acquire four service rigs and related assets from Puma Well Service Ltd. ("Puma"). In addition to the asset purchase, Builders has entered into a long term arrangement for exclusive use of Puma's fabrication facilities. Under the terms of the asset purchase agreement, Builders will also retain Puma's operating name and experienced management, service rig crews and fabricators.

"We feel this is an excellent strategic opportunity for Builders", said Garnet Amundson, President and Chief Executive Officer of Builders, "Puma expands our service rig business into a new geographic area, and Puma's fabrication facilities will allow Builders to more efficiently fabricate new service rigs for our operations. We also plan to use Puma's facility to service our existing fleet of rigs."

Established in 1997, Puma operates out of Brooks, Alberta with an established client base. Puma constructed three of its four service rigs and its management has a history of fabricating service rigs dating back to 1989. Puma will work closely with Brazeau Well Servicing (a Builders business unit) in operations.

Proceeds to the vendors of Puma were $3.0 million in cash and 222,222 units of Builders Energy Services Trust. These units, which will be held in escrow, will be released over a one-year period. Builders utilized its acquisition credit facility to fund the $3.0 million of cash. The deal is expected to be immediately accretive to the cashflow and earnings of the Trust.

Based in Calgary, Builders Energy Services Trust is an open-end unincorporated investment trust governed by the laws of the Province of Alberta and was established to acquire and operate entities that engage in oilfield services. The principal undertaking of the Trust, through its indirect wholly-owned subsidiary Builders Energy Services Ltd., is to provide a variety of services to oil and gas exploration and production companies in western Canada. Builders' Trust Units are listed on the Toronto Stock Exchange under the symbol "BET.UN".

When used in this news release, the words "anticipate", "estimate" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the date that the statements are made, and the Trust undertakes no obligation to update forward-looking statements if conditions or opinions should change.

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

Contact Information

  • Builders Energy Services Trust
    Garnet K. Amundson
    President and Chief Executive Officer
    (403) 693-3426
    Builders Energy Services Trust
    John W. Nearing
    Vice President, Finance and Chief Financial Officer
    (403) 693-3426