Impax Energy Services Income Trust

Impax Energy Services Income Trust

October 16, 2007 20:36 ET

Impax Energy Services Income Trust Announces October Cash Distribution

TORONTO, ONTARIO--(Marketwire - Oct. 16, 2007) - Impax Energy Services Income Trust (the "Trust" or "Impax") (TSX:MPX.UN) announced today a cash distribution of $0.08 per unit for the period from October 1, 2007 to October 31, 2007. The distribution will be payable to unitholders of record at the close of business on October 31, 2007 and will be paid on November 15, 2007.

The above noted distribution represents an approximate 25% reduction from previous monthly distributions. The Board of Trustees, based on management's recommendation, has determined that such a reduction is appropriate in light of the current activity in the western Canadian oil and gas services industry. The recent issuance of the Report of the Alberta Royalty Review Panel also impacted management's recommendation.

The Trust, on September 17, 2007, announced the establishment of a distribution reinvestment plan (the "Plan") which remains in effect. Under the Plan, which is available to holders of both Class A and Class B exchangeable limited partnership units, key management stakeholders holding exchangeable Class A units representing approximately 33.5% of the Trust units on a fully diluted basis, have agreed to reinvest their distributions beginning with the distribution paid on October 15, 2007. In the September 17, 2007 announcement, Impax also reported that holders of exchangeable Class B subordinated limited partnership units, representing approximately 8.2% of the Trust units on a fully diluted basis, would not receive any form of distribution commencing with the distribution in respect of the month of September.

"We believe that the combined impact of these measures will help to provide the Trust with the necessary flexibility to manage our business appropriately in this challenging environment," said Scott Delaney, President and CEO of the Trust. "We continue to focus on areas where we see increased activity and demand such as well workovers and maintenance," said Mr. Delaney.

Impax Energy Services Income Trust is an open-ended trust, providing oilfield services in western Canada. The Trust indirectly owns a 55.5% interest in Impax Energy Services Master Limited Partnership, which indirectly acquired and now operates through its subsidiaries the businesses of McClelland Oilfield Rentals Limited Partnership, EGOC Enviro Group Limited Partnership, Denray Rathole Drilling Limited Partnership and Dwayne Hommy Trucking Limited Partnership. These businesses provide services in the areas of oilfield rental, specialized equipment rental, access mat rental, waste management services, rat hole drilling and specialty fluid hauling.

This news release may contain forward-looking statements relating to expected future events and financial and operating results of the Trust that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in the Trust's March 27, 2007 Annual Information Form filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact Information

  • Impax Energy Services Income Trust
    Scott D. Delaney
    President and Chief Executive Officer
    (416) 304-6867
    Impax Energy Services Income Trust
    Jonathan Pinchuk
    Vice-President, Corporate Development
    (416) 601-2592