Peak Energy Services Trust

Peak Energy Services Trust

February 29, 2008 17:05 ET

Peak Energy Services Trust 2007 Canadian Income Tax Information

CALGARY, ALBERTA--(Marketwire - Feb. 29, 2008) - The following information is intended to assist Canadian individual holders of trust units ("Canadian Individual Unitholder") of Peak Energy Services Trust ("Peak" or the "Trust") (TSX:PES.UN) in reporting distributions received from the Trust during 2007 on their Canada Revenue Agency ("CRA") T1 General, "Canadian Individual Income Tax Return" ("T1"). This information is directed to a Canadian Individual 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 legal or tax advice to any particular Canadian Individual Unitholder or potential Canadian Individual Unitholder. Canadian Individual Unitholders or potential Canadian Individual Unitholders are advised to consult with their legal and tax advisors 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 Canadian Individual Unitholders' 2007 T1 for Trust units 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

Canadian Individual 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 2007 will receive a 2007 T3 Statement of Trust Income Allocations and Designations slip ("T3") directly from Valiant Trust Company or from the investment broker or intermediary who the Canadian Individual Unitholder holds their Trust units through. The deadline for mailing the 2007 T3's to Canadian Individual Unitholders, as required by the CRA, is March 30, 2008. Peak is not able to provide information on a particular Canadian Individual Unitholder's T3.

The amount reported in Box 26 "Other Income" on the 2007 T3 should be reported on the Canadian Individual Unitholder's 2007 T1 on line 130 "Other Income".

Canadian Individual 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 2007 T3, which is equal to the cumulative distributions declared during the 2007 calendar year that the Canadian Individual Unitholder was entitled to less the amount reported as "Other Income" in Box 26 of the 2007 T3. The ACB is then used to determine and report in the Canadian Individual Unitholder's T1 the capital gain/loss (if any) in the taxation year when the Trust units are disposed or deemed disposed of. If the ACB is reduced to zero, any further reduction to the ACB should be reported by the Canadian Individual Unitholder as a capital gain on the Canadian Individual Unitholder's T1 in the taxation year that it occurs.

With respect to distributions declared during 2007 to Canadian Individual Unitholders, 97.81 percent should be recorded as other income and 2.19 percent should be recorded as a reduction to the ACB (to the extent of the Canadian Individual Unitholders' ACB in their respective units). The following schedule details the distributions declared in 2007 and the tax treatment of each distribution per Trust unit for income tax purposes:

Taxable Deferred
Amount Amount Total
Record Date Payment Date (T3 - Box 26) (T3 - Box 42) Distribution

January 31, 2007 February 15, 2007 $ 0.08803 $ 0.00197 $ 0.09000
February 28, 2007 March 15, 2007 $ 0.05869 $ 0.00131 $ 0.06000
March 31, 2007 April 16, 2007 $ 0.05869 $ 0.00131 $ 0.06000
April 30, 2007 May 15, 2007 $ 0.05869 $ 0.00131 $ 0.06000
May 31, 2007 June 15, 2007 $ 0.05869 $ 0.00131 $ 0.06000
June 30, 2007 July 16, 2007 $ 0.05869 $ 0.00131 $ 0.06000
July 31, 2007 August 15, 2007 $ 0.05869 $ 0.00131 $ 0.06000
August 31, 2007 September 17, 2007 $ 0.03912 $ 0.00088 $ 0.04000
September 30, 2007 October 15, 2007 $ 0.03912 $ 0.00088 $ 0.04000
October 31, 2007 November 15, 2007 $ 0.03912 $ 0.00088 $ 0.04000
November 30, 2007 December 17, 2007 $ 0.03912 $ 0.00088 $ 0.04000
December 31, 2007 N/A $ 0.00000 $ 0.00000 $ 0.00000

Total $ 0.59665 $ 0.01335 $ 0.61000

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-west United States of America. Peak Energy Services Trust units are listed on the Toronto Stock Exchange under the symbol "PES.UN".

Certain information set forth in this document, including management's assessment of Peak's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Peak's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Peak will derive there from. Peak disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX have neither approved nor disapproved the information contained herein.

Contact Information

  • Peak Energy Services Trust
    Mr. Matthew J. Huber
    Chief Financial Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    Peak Energy Services Trust
    Mr. Monty R. Balderston
    Vice President, Finance and Administration
    (403) 543-7325
    (403) 543-7335 (FAX)
    Peak Energy Services Trust
    Suite 900, 222-3rd Avenue SW
    Calgary, Alberta, Canada
    T2P 0B4