Builders Energy Services Trust
TSX : BET.UN

Builders Energy Services Trust

August 01, 2006 19:05 ET

Builders Energy Services Trust Closes $19 Million Acquisition of Prime Oilfield Hauling Ltd.

CALGARY, ALBERTA--(CCNMatthews - Aug. 1, 2006) - Builders Energy Services Trust ("Builders", or "the Trust") (TSX:BET.UN) is pleased to announce the closing of the acquisition of all of the outstanding shares of Prime Oilfield Hauling Ltd. ("Prime").

Established in 1998, Prime provides oilfield transport services and equipment rentals to oil and gas companies and oilfield service companies operating in northwestern Alberta and northeastern British Columbia from its Grande Prairie, Alberta location. Prime is regarded as one of the premiere transport companies in this region.

Under the terms of the Purchase and Sale Agreement, the Trust has entered into an agreement to retain key senior management. In addition, consistent with Builders' philosophy, the business will continue to operate under Prime's name with their existing staff.

The $19 million purchase price consists of $8.65 million in cash, 536,099 Trust Units and $1.7 million of assumed debt. The Trust Units will be held in escrow and released over a one-year period. The Trust utilized its existing cash combined with its credit facility to fund the cash requirement. The existing equipment associated with the acquisition is expected to contribute annualized revenue of $11 million and annualized EBITDA of $4.5 million. After closing, Builders plans to spend $3 million for additional equipment scheduled to be put into service by the end of 2006.

"We are pleased to have Prime join us", said Garnet Amundson, President and Chief Executive Officer, "The geographic area served by Prime is an active drilling and oilfield service region that will be complementary to our other transport and equipment rental businesses. Prime's experienced staff, established client base, and modern fleet combined with our financial resources provides Builders with an excellent platform for future growth".

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.

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 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 Perasalo
    Manager, Finance and Investor Relations
    (403) 296-0344
    Email: IR-BEST@BuildersEnergy.com