Essential Energy Services Trust

Essential Energy Services Trust

February 27, 2008 11:28 ET

Essential Energy Services Trust Provides 2007 Tax Information

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2008) - Essential Energy Services Trust (TSX:ESN.UN) ("Essential" or the "Trust") is pleased to provide 2007 income tax information to Canadian and U.S. resident unitholders of Essential.

The information contained herein is intended to provide information for 2007 income tax reporting for Canadian and U.S. resident individual unitholders of Essential. It is not exhaustive of all income tax considerations and is not intended to constitute legal or tax advice to any holder of Essential trust units. Unitholders should consult their own legal or tax advisors as to their particular tax consequences of holding Essential trust units.

Summary of Monthly Distributions

The calculations below have been completed on an accrual basis and include the December 2007 distribution paid on January 15, 2008. Distributions paid for 2007 totaled $0.93 per unit.

Cash Taxable Return
Distribution Income of Capital
Record Date Payment Date Per Unit Per Unit Per Unit
($Cdn) ($Cdn) ($Cdn)

January 31, 2007 February 15, 2007 $0.083 $0.083 $0.00
February 28, 2007 March 15, 2007 $0.083 $0.083 $0.00
March 30, 2007 April 16, 2007 $0.083 $0.083 $0.00
April 30, 2007 May 15, 2007 $0.083 $0.083 $0.00
May 31, 2007 June 15, 2007 $0.083 $0.083 $0.00
June 29, 2007 July 16, 2007 $0.083 $0.083 $0.00
July 31, 2007 August 15, 2007 $0.083 $0.083 $0.00
August 31, 2007 September 17, 2007 $0.083 $0.083 $0.00
September 28, 2007 October 15, 2007 $0.083 $0.083 $0.00
October 31, 2007 November 15, 2007 $0.083 $0.083 $0.00
November 30, 2007 December 17, 2007 $ 0.05 $ 0.05 $0.00
December 31, 2007 January 15, 2008 $ 0.05 $ 0.05 $0.00

Total paid (on an accrual basis) $ 0.93 $ 0.93 $0.00

2007 Canadian Unitholder Tax Information

Essential has determined that for Canadian unitholders, distributions paid in 2007 are to be 100% taxable income and no return of capital.

Canadian unitholders holding their Essential trust units in a Registered Retirement Savings Plan ("RRSP"), Registered Retirement Income Fund ("RRIF"), Registered Education Savings Plan ("RESP") or Deferred Profit Savings Plan ("DPSP") should not report any income related to distributions on their 2007 income tax return.

Unitholders holding their units outside such plans will receive a T3 Supplementary Information slip ("T3"), postmarked on or before February 29, 2008. Essential's Canadian unitholders who hold their units directly should receive a T3 from the Trust's transfer agent, Olympia Trust Company. Unitholders that hold their units through a broker or other intermediary should receive a T3 directly from their broker or intermediary and not from the transfer agent. Unitholders are required to report the taxable portion of distributions as "Other Income" on their 2007 income tax return.

2007 U.S. Unitholder Tax Information

After consultation with its U.S. tax advisors, the Trust believes that for U.S. federal income tax purposes, the units of the Trust will more likely than not be properly classified as equity, rather than debt, in a corporation and Essential understands that individual U.S. unitholders will treat the entire amount of the distributions as qualified dividends. As such, the distributions made during 2007 that are considered dividends, should qualify for the reduced rate of tax applicable to certain capital gains.

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 southeast Sasktachewan 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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

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