Essential Energy Services Trust
TSX : ESN.UN

Essential Energy Services Trust

September 11, 2007 17:00 ET

Essential Energy Services Trust Announces Executive Appointment and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Sept. 11, 2007) - Essential Energy Services Trust (TSX:ESN.UN) ("Essential", or the "Trust") is pleased to announce the appointment of Don Webster as Vice President, Rig Operations. In this capacity Mr. Webster will have responsibility for all day to day operations of Essential's fleet of 67 rigs. This fleet includes 15 service rigs, 20 rod rigs (specialized service rigs that work on oil wells), 25 coil tubing units and 7 swab rigs. Essential also operates a fleet of 226 units in the transport division of the Trust.

Mr. Webster brings 24 years of experience to the position, starting as a roughneck and working his way up to his most recent position as Vice President Operations for the Canadian subsidiary of a major US based oil and gas company where he had responsibility for all drilling, completions, surface land administration and associated regulatory compliance. Mr. Webster has worked in both the oil and gas service industry and for oil and gas producers. He has extensive experience in all aspects of oil and gas field operations, a strong network of industry contacts and has worked at the executive management level in both large and small organizations.

Essential has seen dramatic improvement in utilization rates in the third quarter of 2007 as compared to the second quarter. Strong oil prices have provided for robust demand for Essential's fleet of rod rigs which work exclusively on pumping oil wells, and other oil related services. This demand for oil well servicing has helped offset weakness in those parts of the Trust that are more focused on natural gas, such as coil tubing. Overall activity levels in the third quarter are somewhat lower than is typical for this time of year due to a relatively slow August as a result of wet weather in our operating areas. However, steady improvement has been seen in September. "After the frenzied pace of activity levels over the past several years, the current slowdown in oilfield service activity will require a stronger emphasis on marketing and sales and Essential has made significant progress in recent months in bolstering sales and marketing efforts as well as improving operational management strength, culminating in the hiring of Don Webster," said James Burns, President and Chief Executive Officer.

Essential completed the acquisition of four private service companies in late June and early July 2007 and the integration of these new operations into Essential has proceeded smoothly. It is anticipated that the full impact of these new operations will be felt late in the third quarter and throughout the winter season which is typically the most active and generates the highest utilization of the Trust's equipment.

Essential is an energy service trust that provides a range of essential production services to oil and gas producers across western Canada from northeast British Columbia to southwest Saskatchewan including service rigs, coil tubing, rod rigs, swab rigs, vacuum trucks, pressure trucks, tank trucks, hydro-vacs, steaming and hot oiling along with other related services. Essential focuses on post drilling production maintenance and enhancement services to ensure stable cash flows for Essential unitholders.

Forward-Looking Statements: Certain information set forth in this press release, including a discussion of future plans and operations, contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. Actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements.

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

Contact Information

  • Essential Energy Services Trust
    Suite 950, 330 - 5th Avenue SW
    Calgary, Alberta T2P 0L4
    (403) 263-6778
    (403) 263-6737 (FAX)
    or
    Essential Energy Services Trust
    James Burns
    Chief Executive Officer
    (403) 263-6778
    or
    Essential Energy Services Trust
    Duncan Au
    Chief Financial Officer
    (403) 263-6778