Builders Energy Services Trust

Builders Energy Services Trust

July 21, 2005 17:40 ET

Builders Energy Services Trust Closes Endeavor E-Line Services Inc. Acquisition

CALGARY, ALBERTA--(CCNMatthews - July 21, 2005) - Builders Energy Services Trust (TSX:BET.UN) ("Builders Trust" or the "Trust") announces that it has completed the acquisition of Endeavor E-Line Services Inc. ("Endeavor"). The Letter of Intent for this acquisition was previously announced on May 12, 2005.

For the remainder of 2005, Builders Trust expects that Endeavor will contribute revenue of approximately $11 million and EBITDA of $3 million. For 2006, Endeavor is expected to add incremental revenue of $29 million and EBITDA of approximately $8.5 million.

The Trust intends to retain Endeavor's name, distribution rights, management and staff. In keeping with its operating strategy, Builders Trust will operate Endeavor under the name of Endeavor E-Line Services.

Proceeds to Endeavor were comprised of $13.1 million in cash and 988,947 Units of Builders Energy Services Trust. These Units, which will be held in escrow, will be released over a one-year period. The Trust utilized its existing cash combined with its credit facility to fund the $13.1 million of cash.

"We're very excited about bringing an e-line business into Builders Energy Services and having their staff and management join us" commented Garnet Amundson, President and Chief Executive Officer of Builders. "This transaction will be immediately accretive to our cash flow, and will further diversify operations and provide a greater balance between production-related and drilling-related activities."

Endeavor is a well-established business that has experienced steady growth in the western Canadian oilfield services industry for several years. Its equipment performs e-line services including logging and perforating for the oil and gas industry. Revenue generated on eight e-line units for the 12 months ended March 31, 2005 was approximately $19 million.

As a result of demand for its services, Endeavor has now expanded to eleven e-line units operating out of five strategically-placed field offices in Stettler, Brooks, Westlock, Vermillion and Edson, Alberta. One additional unit is expected to be in service by the end of August 2005, with another additional unit scheduled to be in service by the end of January 2006.

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".

Certain measures are not recognized under Canadian generally accepted accounting principles (GAAP) and are provided where Management believes they assist the reader in understanding the Trust's results. These measures include: earnings before interest, taxes, depreciation, amortization and non-cash charges (EBITDA); gross margin, which refers to revenues less operating expenses; cash flow or cash flow from operations, which refers to cash flow from operations before changes in non-cash working capital; distributable cash, which refers to cash flow which management considers available for distribution to unitholders; and payout ratio, which refers to distributions as a percentage of cash flow from operations. These measures should not be used as an alternative to GAAP, because they may not be consistent with calculations of other companies or Trusts.

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.

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