Deepwell Energy Services Trust

Deepwell Energy Services Trust

April 17, 2007 23:59 ET

Deepwell announces April distribution and adoption of Distribution Reinvestment Plan

CALGARY--(Marketwire - April 17) -


Deepwell Energy Services Trust ("Deepwell" or the "Trust") (TSX:DWL.UN) announces that it has adopted a Distribution Reinvestment Plan (the "Plan"). The Plan, to the extent that unitholders participate, will provide Deepwell with additional cash for growth. The CEO, CFO and the Board of Directors, to the extent they are eligible, currently intend to reinvest their monthly distributions through participation in the Plan.

The Trust also announces today that the cash distribution for the period of April 1, 2007 to April 30, 2007 has been set at $0.06 per Trust unit. The cash distribution is payable on May 15, 2007 to unitholders of record on April 30, 2007.

Eligible unitholders may elect to participate in the Plan commencing with the monthly cash distribution payable on May 15, 2007. The Plan allows eligible unitholders of Deepwell to direct that their cash distributions be reinvested in additional trust units. The cash distributions will be reinvested at the discretion of Deepwell Energy Services Ltd. either by acquiring trust units issued from treasury at 95% of the Average Market Price (as defined in the Plan) or by acquiring trust units at prevailing market rates. The Plan is subject to final regulatory approval.

Deepwell reserves the right to limit the amount of new equity available under the Plan on any particular distribution date. Accordingly, participants may receive the cash distribution to which they would otherwise be entitled on such distribution date or participation may be prorated such that participants receive the portion of the cash distribution to which they would otherwise be entitled on such date which is not reinvested as a result of such proration.

Eligible registered unitholders who wish to enroll the Plan, must fax or otherwise deliver a properly completed and signed authorization form to CIBC Mellon Trust Company, at the fax number or address specified in the form, not later than 3:00 pm (Calgary time) on the fifth day immediately preceding a distribution record date in order for the cash distribution to which such record date relates to be reinvested under the Plan. The deadline for delivering an authorization form to CIBC Mellon Trust Company for purposes of the cash distribution payable on May 15, 2007 is 3:00 pm (Calgary time) on April 23, 2007.

Beneficial unitholders (i.e., owners of trust units that are held through a nominee such as a broker or custodian) who wish to participate in the Plan should contact the broker, investment dealer, financial institution or other nominee who holds their trust units to enquire about the applicable enrolment deadline and to request enrolment in the Plan.

Generally, no commissions, service charges or brokerage fees will be payable by Plan participants in connection with their purchase of trust units under the Plan, but beneficial unitholders should make enquiries of the broker, investment dealer or financial institution through which their trust units are held as to any policies of such party that might result in any commissions, charges or fees being payable.

Please note that registered and beneficial owners of Deepwell trust units who are not resident in Canada are not eligible to participate in the Plan.

Participation in the Plan does not relieve unitholders of any liability for taxes that may be payable on distributions. Unitholders should consult their tax advisors concerning the tax implications of their participation in the Plan having regard to their particular circumstances.

Unitholders should carefully read the complete text of the Plan before making any decisions regarding their participation in the Plan. The Plan, an introductory letter and the authorization form are available on Deepwell's website at

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

Additional information about the Trust is available at and on the Trust's website at

Certain statements in this press release constitute "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Trust or Deepwell LP, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements. In particular, final regulatory approval of the Plan may not be obtained.

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