Peak Energy Services Trust

Peak Energy Services Trust

April 12, 2006 09:00 ET

Peak Energy Services Trust Announces Adoption of a Premium Distribution'TM', Distribution Reinvestment and Optional Trust Unit Purchase Plan

CALGARY, ALBERTA--(CCNMatthews - April 12, 2006) -


Peak Energy Services Trust (TSX:PES.UN) ("Peak") announces that it has adopted a Premium Distribution™, Distribution Reinvestment and Optional Trust Unit Purchase Plan (the "Plan"). Eligible unitholders may elect to participate in the Plan commencing with the monthly cash distribution payable on or about May 15, 2006 to unitholders of record on April 24, 2006.

The Plan allows eligible unitholders of Peak to direct that their cash distributions be reinvested in additional trust units at 95% of the Average Market Price (as defined in the Plan) on the applicable distribution payment date. The Plan further allows eligible unitholders to elect, under the Premium Distribution™ component of the Plan, to have these additional trust units delivered to the designated Plan broker in exchange for a premium cash distribution equal to 102% of the cash distribution that such unitholders would otherwise have received on the applicable distribution payment date if they did not participate in the Plan (subject to proration in certain events as provided in the Plan). Canaccord Capital Corporation will act as the Plan broker for the Premium Distribution™ component of the Plan.

In addition, the Plan allows those unitholders who participate in either the distribution reinvestment component or the Premium Distribution™ component of the Plan to purchase additional trust units from treasury at a purchase price equal to the Average Market Price (with no discount) in minimum amounts of $1,000 per remittance up to a maximum aggregate amount of $100,000 per month by any one unitholder, all subject to an overall annual limit of 2% of the total number of outstanding trust units.

Peak reserves the right to limit the amount of new equity available under the Plan on any particular distribution date. Accordingly, participation may be prorated in certain circumstances, in which case participant unitholders will receive from Peak the regular cash distributions to which they would otherwise be entitled on such date and which are not reinvested as a result of such proration.

Eligible registered unitholders who wish to enrol in either the distribution reinvestment component or the Premium Distribution™ component of the Plan must fax or otherwise deliver a properly completed and signed authorization form to Valiant Trust Company, at the fax number or address specified in the form, not later than 3:00 pm (Calgary time) on the business day immediately preceding a distribution record date in order for the cash distribution to which such record date relates to be reinvested under the Plan component of their choosing. The deadline for delivering an authorization form to Valiant Trust Company for purposes of the cash distribution payable on or about May 15, 2006 is 3:00 pm (Calgary time) on April 21, 2006.

Beneficial unitholders (i.e., owners of trust units that are held through a nominee such as a broker or custodian) who wish to participate in the Plan should contact the broker, investment dealer, financial institution or other nominee who holds their trust units to enquire about the applicable enrolment deadline and to request enrolment in the Plan.

Generally, no commissions, service charges or brokerage fees will be payable by Plan participants in connection with their purchase of trust units under the Plan, but beneficial unitholders should make enquiries with the broker, investment dealer or financial institution through which their trust units are held as to any policies of such party that might result in any commissions, charges or fees being payable.

Please note that registered and beneficial owners of Peak trust units who are not resident in Canada are not eligible to participate in the Plan.

Participation in the Plan does not relieve unitholders of any liability for taxes that may be payable on distributions. Unitholders should consult their tax advisors concerning the tax implications of their participation in the Plan having regard to their particular circumstances.

Copies of the Plan, a related series of Questions and Answers and the applicable forms are available on Peak's website at under the heading "Investor Information", or directly from Peak by calling (403) 543-7325.

Unitholders should carefully read the complete text of the Plan before making any decisions regarding their participation in the Plan.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

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 and mid-western United States. Peak's trust units are listed on the Toronto Stock Exchange under the symbol "PES.UN".

Certain information set forth in this news release, 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, competition from other industry participants, volatility of commodity prices, currency fluctuations, environmental risks, 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.

'TM' denotes trademark of Canaccord Capital Corporation

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

Contact Information

  • Peak Energy Services Trust
    Mr. Curtis W. Whitteron
    President and Chief Operating Officer
    (403) 543-7325
    Peak Energy Services Trust
    Mr. Matthew J. Huber
    Chief Financial Officer
    (403) 543-7325
    Peak Energy Services Trust
    Suite 1800, 530 - 8th Avenue S.W.
    Calgary, Alberta T2P 3S8
    (403) 543-7335 (FAX)