Peak Energy Services Trust
TSX : PES.UN

Peak Energy Services Trust

December 12, 2008 15:03 ET

Peak Energy Services Trust Announces the Renewal of a Significant Contract in the Alberta Oil Sands Region

CALGARY, ALBERTA--(Marketwire - Dec. 12, 2008) - Peak Energy Services Trust ("Peak" or the "Trust") (TSX:PES.UN) is pleased to announce the renewal of its contract with a major oil sands company for an additional five year period commencing January 1, 2009. Under the terms of the agreement Peak will continue to supply fluids handling services to this customer on their site in Fort McMurray. The scope of the contract has also been amended to enable Peak to expand the services it offers to this customer over the longer term.

Curt Whitteron, President and Chief Executive Officer stated that "Peak is very pleased to be renewing the agreement with this client given its presence in the oil sands region and is pleased to be partnered for another five years with such an established player in the region. Peak has enjoyed a long standing relationship with this firm that dates back to 1978 through a predecessor organization. This renewal will assist the Trust in further insulating its revenue and cash flow stream from the seasonality and cyclicality of the conventional drill bit in the Western Canadian Sedimentary Basin."

Management expects this contract renewal to generate approximately $40.0 to $50.0 million of revenue ($8.5 to $10.0 million per year) during the five year term. Peak plans on utilizing its current asset base to service the scope of this contract and anticipates additional capital may be required to accommodate the expanded scope of the agreement. This growth will be financed through a combination of operating cash flow and the use of Peak's existing banking facilities.

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