Peak Energy Services Trust
TSX : PES.UN

Peak Energy Services Trust

June 02, 2006 18:29 ET

Peak Energy Services Trust Acquires All of the Outstanding Shares of Premium Rentals Inc.

CALGARY, ALBERTA--(CCNMatthews - June 2, 2006) - Peak Energy Services Trust ("Peak" or the "Trust") (TSX:PES.UN) has acquired all of the issued and outstanding shares of Premium Rentals Inc. ("Premium") for $2.5 million.

Premium provides a fleet of high quality flare tanks and related equipment to the drilling industry in western Canada. This acquisition will approximately double Peak's fleet of flare tanks and will allow Peak to continue to satisfy its increasing customer demand. The key operating personnel of Premium will be retained by Peak to ensure a high level of continuity and customer service.

Peak will utilize its existing cash resources and acquisition facility to finance this acquisition. Post transaction, the Trust will have net debt of approximately $35 million, working capital of $32 million, tangible assets of $226 million and trust equity of $183 million.

These assets will be fully integrated into the Trust's existing infrastructure and will provide Peak with an immediate cash flow stream. This acquisition is further testament to Peak's commitment of being a dominant supplier of oilfield rental equipment and related services throughout all of the regions in which it operates.

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 in western Canada. Peak Energy Services Trust units are list 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. Curt W. Whitteron
    President & Chief Operating Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    or
    Peak Energy Services Trust
    Mr. Matt 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