Deepwell Energy Services Trust

Deepwell Energy Services Trust

March 02, 2009 20:23 ET

Deepwell Releases 2008 Tax Information

CALGARY, ALBERTA--(Marketwire - March 2, 2009) -


Deepwell Energy Services Trust ("Deepwell" or the "Trust"), (TSX:DWL.UN) is pleased to announce the 2008 tax treatment of distributions for unitholders who are resident in Canada for Canadian income tax purposes.

Deepwell is a mutual fund trust as defined in the Income Tax Act (Canada) ("Tax Act"). The following information is intended to assist Canadian resident individual holders of Deepwell trust units ("Units") in the preparation of a 2008 T1 Income Tax Return. The Units are qualified investments for registered retirement savings plans ("RRSPs"), registered retirement income funds ("RRIFs"), deferred profit sharing plans ("DPSPs") and registered education savings plans ("RESPs") as defined in the Tax Act.

The following information is based on Deepwell's understanding of the Tax Act and is provided as general information only. This information is not exhaustive of all possible income tax considerations under the Tax Act and is not intended to be legal or tax advice to any particular holder of Units. Unitholders or potential unitholders should consult their own legal, business and/or tax advisors as to the tax implications of holding Units in their particular circumstances.

Registered unitholders should receive a "T3 - Statement of Trust Income Allocations and Designations" ("T3 slip") from the transfer agent, CIBC Mellon Trust Company. Unitholders who hold their Units through brokers or investment dealers should receive T3 slips directly from their broker or investment dealer. The deadline for mailing T3 slips is March 30, 2009.

Distributions paid by Deepwell can be both a return of capital (i.e. tax deferred) and a return on capital (i.e. income). For the 2008 taxation year, the distributions to unitholders are 100% designated as a return of capital (tax deferred).

Units held outside of an RRSP, RRIF, DPSP or RESP

If a unitholder holds his or her Units outside an RRSP, RRIF, DPSP or RESP, for the calendar year ended December 31, 2008, the unitholder must report distributions allocated by Deepwell to the unitholder as "Non Taxable Amount" (also referred to as a return of capital), which is Box 42 on the T3 slip within the unitholder's 2008 T1 Income Tax Return.

Units held inside of an RRSP, RRIF, DPSP or RESP

If a unitholder holds his or her Units in an RRSP, RRIF, DPSP or RESP, no amounts are required to be reported by the unitholder in the unitholder's 2008 T1 Income Tax Return.

The following table sets out the tax treatment of the Canadian 2008 monthly

Tax Deferred
Taxable Amount Amount Total
Record Date Payment Date (Income) (Return of Capital) Distributions
31-Jan-08 15-Feb-08 $0.00 $0.06 $0.06
29-Feb-08 14-Mar-08 $0.00 $0.06 $0.06
31-Mar-08 15-Apr-08 $0.00 $0.06 $0.06
30-Apr-08 15-May-08 $0.00 $0.06 $0.06
30-May-08 13-Jun-08 $0.00 $0.06 $0.06
30-Jun-08 15-Jul-08 $0.00 $0.06 $0.06
31-Jul-08 15-Aug-08 $0.00 $0.06 $0.06
29-Aug-08 15-Sep-08 $0.00 $0.06 $0.06
30-Sep-08 15-Oct-08 $0.00 $0.06 $0.06
31-Oct-08 14-Nov-08 $0.00 $0.06 $0.06
28-Nov-08 14-Dec-08 $0.00 $0.01 $0.01
31-Dec-08 15-Jan-09 N/A N/A N/A
Total $0.00 $0.61 $0.61


This summary does not contain information regarding the non-Canadian income tax consequences of holding Units for unitholders who are subject to tax outside of Canada. All non-resident unitholders should consult their tax advisors with respect to the tax implications of holding Units, including any associated filing requirements, in jurisdictions outside of Canada.

Deepwell Energy Services Trust is a Calgary, Alberta-based income trust focused exclusively on providing waste treatment and disposal services to the oil and natural gas industry in western Canada.

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 its subsidiaries, 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.

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