Peak Energy Services Trust

Peak Energy Services Trust

March 21, 2005 12:45 ET

Peak Energy Services Trust 2004 Canadian Income Tax Information


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PEAK ENERGY SERVICES TRUST

TSX SYMBOL: PES.UN

MARCH 21, 2005 - 12:45 ET

Peak Energy Services Trust 2004 Canadian Income Tax
Information

CALGARY, ALBERTA--(CCNMatthews - March 21, 2005) - The following
information is intended to assist Canadian holders of trust units
("Unitholder") of Peak Energy Services Trust (TSX:PES.UN) ("Peak" or the
"Trust") in preparation of their 2004 Income Tax Return. This
information is directed to a Unitholder who, for the purposes of the
Income Tax Act (Canada) is a resident of Canada and holds Trust units as
capital property. The information provided herein is intended to be
general information only and is not intended to be relied on as tax
advice. Unitholders are advised to consult with their tax advisor
concerning the tax treatment as it relates to their particular
circumstances.

Trust units held within an RRSP, RRIF, RESP or DPSP

No amounts are to be reported on the Unitholders' 2004 Income Tax Return
where Trust units are held within a Registered Retirement Savings Plan
("RRSP"), Registered Retirement Income Fund ("RRIF"), Registered
Education Savings Plan ("RESP") or a Deferred Profit Sharing Plan
("DPSP").

Trust units held outside an RRSP, RRIF, RESP or DPSP

Unitholders who hold their Trust units outside of an RRSP, RRIF, RESP or
DPSP and were entitled to receive distributions on a distribution record
date within the calendar year 2004 will receive a T3 Statement of Trust
Income Allocations and Designations slip ("T3") directly from Valiant
Trust Company or from the broker/intermediary who the Unitholder holds
their Trust units through. The amount reported in Box 26 "Other Income"
on the T3 should be reported on the Unitholders' 2004 Income Tax Return.
The deadline for mailing the 2004 T3's to Unitholders, as required by
the Canada Revenue Agency, is March 31, 2005.

Adjusted cost base of Trust units for capital gain purposes

Unitholders are required to reduce the adjusted cost base ("ACB") of
their Trust units by the amount reported in Box 42 "Amount Resulting in
Cost Base Adjustment" of the T3, which is equal to the cumulative
distribution declared during calendar 2004 less the amount reported as
"Other Income" in Box 26 of the T3. The ACB is used in determining the
capital gain or loss on the disposition of Trust units.

Schedule of tax treatment of 2004 distributions

The following schedule details the cash distributions declared in 2004
and the tax treatment of each distribution per Trust unit for income tax
purposes:



Taxable Tax Deferred
Amount Amount Total
Record Date Payment Date (T3 - Box 26) (T3 - Box 42) Distribution
-----------------------------------------------------------------------
May 31, 2004 Jun 15, 2004 $0.06828 $0.00672 $0.07500
Jun 30, 2004 Jul 15, 2004 $0.06828 $0.00672 $0.07500
Jul 30, 2004 Aug 15, 2004 $0.06828 $0.00672 $0.07500
Aug 31, 2004 Sep 15, 2004 $0.06828 $0.00672 $0.07500
Sep 30, 2004 Oct 15, 2004 $0.06828 $0.00672 $0.07500
Oct 29, 2004 Nov 15, 2004 $0.06828 $0.00672 $0.07500
Nov 30, 2004 Dec 15, 2004 $0.07283 $0.00717 $0.08000
Dec 31, 2004 Jan 17, 2005 $0.07283 $0.00717 $0.08000
-----------------------------------------------------------------------
Total $0.55534 $0.05466 $0.61000
-----------------------------------------------------------------------
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About Peak Energy Services Trust

Peak Energy Services Trust is a diversified energy services organization
providing oilfield equipment and related services to the energy industry
throughout western Canada and mid-western United States of America. Peak
Energy Services Trust units are list on the Toronto Stock Exchange under
the symbol "PES.UN".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Peak Energy Services Trust
    Mr. Christopher E. Haslam
    President and Chief Executive Officer
    (403) 543-7325
    or
    Peak Energy Services Trust
    Mr. Matthew J. Huber
    Chief Financial Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    or
    Peak Energy Services Trust
    Suite 1800, 530-8th Avenue SW
    Calgary, Alberta
    T2P 3S8
    The TSX have neither approved nor disapproved the information contained
    herein.