Builders Energy Services Trust

Builders Energy Services Trust

February 02, 2006 11:57 ET

Builders Energy Services Trust Closes $7.5 Million Acquisition of Leachman Enterprises Ltd.

CALGARY, ALBERTA--(CCNMatthews - Feb. 2, 2006) - Builders Energy Services Trust ("the Trust") (TSX:BET.UN) is pleased to announce the closing of the acquisition of all of the outstanding shares of Leachman Enterprises Ltd. ("Leachman").

Established in 1990, Leachman operates an oilfield tubulars storage and hauling business out of Provost, Alberta. Similar in nature to Polege Oilfield Hauling ("Polege"), another business unit of the Trust, Leachman's fleet consists of 23 winch, picker and bed trucks and 49 trailers.

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

Proceeds to the vendors were $7.5 million, consisting of $3.5 million in cash, 150,307 Units of the Trust and 64,417 exchangeable shares of Builders Energy Services Ltd. The exchangeable shares are convertible to units of the Trust on or before September 30, 2006. These exchangeable shares and units will be held in escrow and released over a one-year period.

"We are very pleased to have Leachman join us", said Garnet Amundson, President and Chief Executive Officer, "The geographic area served by Leachman is different than those served by Polege so we expect that these businesses will be complementary to one another."

For the remainder of 2006, the Trust expects that Leachman will contribute revenue of approximately $9.0 million and EBITDA of $2.7 million.

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 Energy Services 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.

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