Essential Energy Services Trust
TSX : ESN.UN

Essential Energy Services Trust

June 13, 2007 09:18 ET

Essential Energy Services Trust Announces Exercise of Over-Allotment Option and Closes Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - June 13, 2007) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Essential Energy Services Trust (TSX:ESN.UN) ("Essential" or the "Trust") is pleased to announce that it has closed its previously announced bought deal financing of 5,149,254 trust units at an issue price of $6.70 per trust unit (including the full exercise of the over-allotment option) for total gross proceeds of $34,500,000 through a syndicate of underwriters (the "Underwriters") co-led by Raymond James Ltd. and GMP Securities L.P. and including BMO Capital Markets, Canaccord Capital Corporation, Orion Securities Inc., Acumen Capital Finance Partners Limited and Blackmont Capital Inc.

Net proceeds of the offering will be used to fund the previously announced accretive acquisitions, growth capital expenditures for 2007 and for general working capital purposes.

About Essential

Essential is an energy services 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 truck, pressure truck, tank truck, hydro-vac, 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.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.

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 the Trust's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of 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. As the final terms of the proposed acquisitions described above are still being negotiated, there is no assurance that these transactions will proceed to closing on exactly the terms described above. As well, certain closing risks do remain that Essential would not proceed with one or more of the acquisitions.

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

Contact Information

  • Essential Energy Services Trust
    James Burns
    President & CEO
    (403) 263-6778
    (403) 263-6737 (FAX)
    or
    Essential Energy Services Trust
    Duncan Au
    Vice President, Business Development & CFO
    (403) 263-6778
    (403) 263-6737 (FAX)
    or
    Essential Energy Services Trust
    Suite 950, 330 - 5th Avenue SW
    Calgary, Alberta T2P 0L4