Builders Energy Services Trust

Builders Energy Services Trust

November 16, 2005 08:15 ET

Builders Energy Services Trust Announces $20 Million Bought Deal Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 16, 2005) -


Builders Energy Services Trust ("the Trust", or "Builders") (TSX:BET.UN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Capital Corporation and including CIBC World Markets Inc., J.F. Mackie & Company Ltd., Westwind Partners Inc., Raymond James Ltd., and Wellington West Capital Markets Inc., pursuant to which the underwriters have agreed to purchase 1,270,000 trust units (the "Trust Units") on a bought deal private placement basis, at a price of $15.75 per Trust Unit, for gross proceeds to Builders of $20,002,500. The Trust has granted the underwriters an option to purchase up to an additional 318,000 Trust Units, at a price of $15.75 per Trust Unit, for gross proceeds to Builders of up to $5,008,500, exercisable, in whole or in part, at any time prior to Closing. The offering is scheduled to close on or about November 30, 2005 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

The net proceeds of the offering will be used to partially fund the Trust's ongoing capital expenditure and acquisition program, and for general corporate purposes.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Trust Units in any jurisdiction. The Trust Units offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States or to a U.S. person, absent registration, or an applicable exemption therefrom.

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 subsidiaries, is to provide a variety of services to oil and gas exploration and production companies in western Canada, including oilfield services, oilfield transportation and oilfield equipment sales and rentals. Builders' Trust Units are listed on the Toronto Stock Exchange and trade under the symbol "BET.UN".

When used in this news release, the words "expect", "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 & Chief Executive Officer
    (403) 693-3426
    Builders Energy Services Trust
    John W. Nearing
    V.P., Finance and Chief Financial Officer
    (403) 693-3426