Canadian Energy Services L.P.

Canadian Energy Services L.P.

April 06, 2006 14:09 ET

Canadian Energy Services L.P. Announces Initial Cash Distribution

CALGARY, ALBERTA--(CCNMatthews - April 6, 2006) -


Canadian Energy Services L.P. (TSX:CEU.UN) ("Canadian Energy Services" or the "Partnership") announced today that it will pay a cash distribution of $0.0792 per Class A Common limited partnership unit ("Class A Unit") and $0.0792 per Class B Subordinated limited partnership unit ("Subordinated Class B Unit") on April 13, 2006 in respect of operations since closing of the Partnership's initial public offering on March 2, 2006, to Unitholders of record on March 31, 2006.

Based on a Class A Unit closing price on March 31, 2006 of $9.95 and annualized distribution payments of $0.9504 per unit, the Partnership's current annual cash-on-cash yield amounts to 9.55 percent.

Canadian Energy Services designs and implements drilling fluid systems for the oil and gas industry, in particular relating to drilling medium to deep vertical and directional wells and horizontal wells in western Canada. Additional information about Canadian Energy Services is available at

Canadian Energy Services is organized in accordance with the terms and conditions of a limited partnership agreement which provides that only persons who are resident in Canada, or, if partnerships, are Canadian partnerships, in each case for purposes of the Income Tax Act (Canada) (the "Tax Act"), may own units of the Partnership. Units may not be purchased as a "tax shelter investment" for the purposes of the Tax Act or by any entity an interest in which is a tax shelter investment.

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans" and similar expressions, are forward-looking information that represents management of Canadian Energy Services' internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Canadian Energy Services. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Canadian Energy Services' actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Canadian Energy Services' filings with the Canadian and securities authorities. Accordingly, holders of Canadian Energy Services Class A Units and Subordinated Class B Units and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canadian Energy Services Inc.
    the managing general partner of
    Canadian Energy Services L.P.
    Tom Simons, President and Chief Executive Officer
    (403) 261-6702
    Canadian Energy Services Inc.
    the managing general partner of
    Canadian Energy Services L.P.
    Laura A. Cillis, Chief Financial Officer
    (403) 269-2800