Peak Energy Services Trust
TSX : PES.UN

Peak Energy Services Trust

July 03, 2008 17:24 ET

Peak Energy Services Trust Announces the Signing of a Significant Agreement in the Alberta Oil Sands Region

CALGARY, ALBERTA--(Marketwire - July 3, 2008) - Peak Energy Services Trust (TSX:PES.UN) ("Peak" or the "Trust") has entered in to a two year agreement with Sunshine Oilsands Ltd. ("Sunshine"). Under the terms of the agreement Peak will supply camp, catering and wastewater services for approximately 600 men along with other peripheral support equipment to Sunshine throughout its various operating locations in the Alberta oil sands region of north-eastern Alberta.

Curt Whitteron, President and Chief Executive Officer stated that "Peak is very pleased to be expanding its presence in the oil sands region and to be partnered with a significant player such as Sunshine who is a major leaseholder in the region. The Trust will continue to aggressively pursue other opportunities in this region to further insulate 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 two year contract to generate approximately $18.0 million of revenue ($9.0 million per year) with the first term of the contract slated to commence on or about December 1, 2008 and end approximately March 15, 2009. Peak plans on utilizing some of its existing asset base to service the scope of this contract but anticipates that its capital expansion requirements specific to this project will run in the $6.0 million to $7.0 million range. This growth will be financed through the 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. Monty Balderston
    Chief Financial Officer
    (403) 543-7325
    (403) 543-7335 (FAX)