Peak Energy Services Trust
TSX : PES.UN

Peak Energy Services Trust

August 18, 2008 09:15 ET

Peak Energy Services Trust Acquires Amwest Transport Ltd.

CALGARY, ALBERTA--(Marketwire - Aug. 18, 2008) - Peak Energy Services Trust ("Peak" or the "Trust")(TSX:PES.UN) is pleased to announce that it has completed the acquisition of all of the issued and outstanding shares of Amwest Transport Ltd. ("Amwest") effective August 15, 2008 for total cash consideration of $3.4 million. Amwest is a well established privately owned and operated fluids handling company located in east Calgary that primarily operates in southern Alberta and southwest Saskatchewan. In addition to the purchase of this business, Peak will be acquiring the land and facility where Amwest is currently located with the intention of selling and leasing back the facility in the near future.

Curt Whitteron, President and Chief Executive Officer stated that "although this acquisition is relatively small, it is very strategic in nature. Peak is very pleased to be expanding its fluids handling presence to the Calgary region as this transaction presents a unique opportunity to significantly expand a relationship with an existing customer and positions Peak to capitalize on new growth opportunities in the southern regions of the Western Canadian Sedimentary Basin ("WCSB"). This type of strategic acquisition will also further assist in insulating the Trust's revenue and cash flow stream from the seasonality and cyclicality of the conventional drill bit in the WCSB."

Amwest generated trailing revenue and normalized EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of approximately $3.8 million and $1.2 million, respectively, based on a three year average ending April 30, 2008. Management expects this acquisition to generate revenue of approximately $5.0 million and EBITDA of $1.5 million in 2009. This growth will be financed through the combination of operating cash flow and the use of Peak's existing banking facilities. This acquisition also brings approximately 12 experienced employees that will remain a key part of the future and success of this business line for Peak.

Peak Energy Services Trust is a diversified energy services organization operating in western Canada and the mid-west United States of America. Through its various operating divisions, Peak provides drilling and production services to its customers both in the conventional oil and gas industry as well as the oil sands regions of western Canada. The Trust also provides water technology solutions to a variety of customers throughout North America. Peak's units are listed on the Toronto Stock Exchange under the symbol "PES.UN".

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

Contact Information

  • Peak Energy Services Trust
    Mr. Curtis W. Whitteron
    President and Chief Executive Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    or
    Peak Energy Services Trust
    Mr. Matt J. Huber
    Executive Vice President
    (403) 543-7325
    (403) 543-7335 (FAX)