Builders Energy Services Trust
TSX : BET.UN

Builders Energy Services Trust

August 14, 2006 08:17 ET

Builders Energy Services Trust Announces $30 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(CCNMatthews - Aug. 14, 2006) -

This news release is not for distribution to United States newswire services or for dissemination in the United States.

Builders Energy Services Trust ("Builders", or "the Trust") (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 Raymond James Ltd., CIBC World Markets Inc., Westwind Partners Inc., Orion Securities Inc., Wellington West Capital Markets Inc., and National Bank Financial Inc. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 1,765,000 trust units of Builders at a price of $17.00 per trust unit, for gross proceeds of $30,005,000. The Underwriters have been granted an over-allotment option to purchase up to an additional 264,750 trust units at a price of $17.00 per trust unit, for additional gross proceeds of up to $4,500,750, exercisable at the discretion of the Underwriters for a period of up to 30 days from the date of closing.

The trust units will be offered in all of the provinces in Canada except Quebec by way of short form prospectus. Closing is anticipated to occur on or about August 30, 2006. The transaction is subject to the satisfaction of standard conditions, including the receipt of all necessary regulatory and stock exchange approvals.

The net proceeds from this offering will be used to fund repayment of the debt portions of the Trust's recently announced acquisitions of Leachman Enterprises Ltd., Kodiak Well Service Ltd., Prime Oilfield Hauling Ltd., 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 within the United States. The trust units have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws. Accordingly, trust units may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from the registration is available.

Based in Calgary, Builders Energy Services Trust is an open-end, unincorporated investment trust providing oilfield services in western Canada through skilled staff and specialized equipment. Builders provides services to the oil and gas industry related to the ongoing servicing of producing wells and new drilling activity.

Forward-looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the offering and the anticipated use of the net proceeds of the offering. Although Builders believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Builders can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the offering could be delayed if Builders is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied.

The intended use of the net proceeds of the offering by Builders might change if the board of directors of Builders Energy Services Ltd., the administrator of Builders, determines that it would be in the best interests of Builders to deploy the proceeds for some other purpose.

The forward-looking statements contained in this press release are made as of the date hereof and Builders undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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) 296-0344
    Email: IR-BEST@BuildersEnergy.com
    or
    Builders Energy Services Trust
    John W. Nearing
    Vice President, Finance and Chief Financial Officer
    (403) 296-0344
    Email: IR-BEST@BuildersEnergy.com
    or
    Builders Energy Services Trust
    Karen D. Perasalo
    Manager, Finance and Investor Relations
    (403) 296-0344
    Email: IR-BEST@BuildersEnergy.com