BlackWatch Energy Services Trust

BlackWatch Energy Services Trust

October 20, 2008 13:08 ET

M. Bruce Chernoff Acquires Securities of Blackwatch Energy Services Trust

CALGARY, ALBERTA--(Marketwire - Oct. 20, 2008) - M. Bruce Chernoff ("Chernoff"), through an entity substantially owned by him (the "Lender"), has acquired control of 875,190 units of BlackWatch Energy Services Trust ("BlackWatch") (TSX:BWT.UN), representing approximately 2.4% of the total issued and outstanding units of BlackWatch. The units were acquired pursuant to sections of a loan agreement between BlackWatch and the Lender dated October 4, 2007 (the "Loan Agreement"), as amended, that allows for the payment of interest on the loan in the form of trust units of BlackWatch.

Mr. Chernoff, directly or indirectly through entities controlled by him, has ownership or control of securities of BlackWatch that include 7,283,175 trust units, 1,274,638 exchangeable units, 1,666,667 warrants and 33,000 options. Such BlackWatch trust units and exchangeable units represent, in aggregate, 23.3% of the outstanding trust units and exchangeable units of the Trust.

The trust units were issued by BlackWatch from treasury as a result of the conversion of interest owing on the Loan Agreement in the amount of $472,603. Pursuant to the terms of the Loan Agreement the trust units were issued at a price of $0.54. As the trust units were issued to an entity that is substantially owned by Mr. Chernoff, who is a director of BlackWatch, Section 2.24 of National Instrument 45-106 - Prospectus and Registration Exemptions was relied upon with respect to the issuance of the trust units.

Contact Information

  • M. Bruce Chernoff
    (403) 266-1717