Peak Energy Services Trust

Peak Energy Services Trust

February 24, 2005 19:21 ET

Peak Energy Services Trust Reports its Financial Results for the Year Ended December 31, 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PEAK ENERGY SERVICES TRUST

TSX SYMBOL: PES.UN

FEBRUARY 24, 2005 - 19:21 ET

Peak Energy Services Trust Reports its Financial
Results for the Year Ended December 31, 2004

CALGARY, ALBERTA--(CCNMatthews - Feb. 24, 2005) - Peak Energy Services
Trust (TSX:PES.UN) ("Peak" or the "Trust") posted revenue of $23.9
million for the three month period ended December 31, 2004 and $70.3
million for the year ended December 31, 2004. EBITDA was $9.8 million
for the fourth quarter and $24.6 million for fiscal 2004. Meanwhile,
normalized cash flow was $9.4 million ($0.46 per unit diluted) and $22.3
million ($1.16 per unit diluted) for the three and twelve months ended
December 31, 2004, respectively. Income before reorganization costs and
impairment losses was $4.9 million ($0.24 per unit diluted) for the
three months ended December 31, 2004 and $11.1 million ($0.57 per unit
diluted) for the year ended December 31, 2004. Lastly, net income was
$4.5 million ($0.22 per unit diluted) for the fourth quarter and $8.1
million ($0.42 per unit diluted) for fiscal 2004.

Financial Summary

Compared to the 14 percent increase in drilling rig operating days
during the fourth quarter, Peak's revenue performance was solid compared
to the same period of 2003 increasing $7.4 million or 45 percent to
$23.9 million. EBITDA increased $3.5 million or 56 percent to $9.8
million, while cash flow increased $3.4 million or 55 percent to $9.4
million ($0.46 per unit diluted). Net income was $4.5 million ($0.22 per
unit diluted), an increase of $6.0 million or 410 percent.

Peak's revenue for the year ended December 31, 2004 as compared to the
prior year period, increased by $14.8 million or 27 percent to $70.3
million. EBITDA increased $5.4 million or 28 percent to $24.6 million,
while cash flow increased $2.1 million or 12 percent to $19.5 million
($1.01 per unit diluted). Normalized cash flow increased $4.9 million or
29 percent to $22.3 million ($1.16 per unit diluted). Income before
reorganization costs and equipment impairment losses was $11.1 million
($0.57 per unit diluted) an increase of $4.4 million or 67 percent and
net income was $8.1 million ($0.42 per unit diluted) an increase of $5.0
million or 165 percent.

Revenue

For the three month period ended December 31, 2004, Peak generated
revenue of $23.9 million compared to $16.5 million for the same period
of 2003, representing an increase of 45 percent compared to a 14 percent
increase in drilling rig operating days over this time period. For the
year ended December 31, 2004, Peak generated revenue of $70.3 million
compared to $55.6 million for the same period of 2003, representing an
increase of 27 percent compared to an increase of 5 percent in drilling
rig utilization over the prior year.

Drilling Services Revenue

The Drilling Services operating segment (represented by solids control,
well-sites, access matting and waste treatment) increased revenue by 47
percent or $5.8 million as it generated $18.3 million in revenue or 76
percent of the Trust's total revenue during the fourth quarter. For the
year ended December 31, 2004, revenue increased $11.2 million or 28
percent as Drilling Services generated $50.7 million in revenue or 72
percent of the Trust's total revenue compared to $39.5 million or 71
percent for the prior year period.

Production Services Revenue

The Production Services operating segment (represented by production
equipment and specialized fluids handling) increased revenue by 37
percent or $1.5 million as it generated $5.6 million in revenue or 24
percent of the Trust's total revenue during the three months ended
December 31, 2004. Meanwhile, revenue increased $3.6 million or 22
percent as Production Services contributed $19.6 million in revenue or
28 percent of the Trust's total revenue for the year ended December 31,
2004, compared to $16.1 million or 29 percent for the prior year period.

Relative to the industry activity increase, Peak's incremental increase
in revenue was attributed to strategic business acquisitions,
significant growth capital expenditures made to improve Peak's rental
equipment product mix, strong rental equipment utilizations and enhanced
rental equipment day rates.

Expenses

Operating expenses - For the quarter ended December 31, 2004, operating
expenses were $8.9 million compared to $6.6 million in the prior year
period, representing a $2.3 million or 34 percent increase. As a
percentage of revenue, operating costs were 37 percent for the quarter
compared to the prior year period of 40 percent. For the year ended
December 31, 2004, operating expenses were higher than the prior year
period by $6.4 million or 28 percent. As a percentage of revenue,
operating costs were consistent year-over-year at 41 percent for 2004,
compared to the prior year period of 40 percent. Wet weather experienced
throughout the second quarter and in certain areas of the Western
Canadian Sedimentary Basin ("WCSB") in the third quarter created a
challenging operating environment, whereby a significant amount of
operating activity did not result in a correlated amount of revenue,
which negatively impacted operating margins. However, weather in the
fourth quarter improved significantly, which the industry was able to
take advantage of as producers attempted to catch up on their 2004
programs, resulting in a large increase in drilling activity that Peak
was able to capitalize on.

General and administrative expenses - General and administrative ("G&A")
expenses for the fourth quarter of 2004 were $5.2 million compared to
$3.6 million in the prior year period, translating into an increase of
$1.6 million or 44 percent. Meanwhile, G&A expenses were $17.0 million
compared to $14.0 million in the prior year period, representing a $3.0
million or 22 percent increase for the year ended December 31, 2004 as
compared to the year ended December 31, 2003. Higher employee related
costs, insurance, rent on facilities and professional services were the
primary increases in costs and were related to the Trust's efforts to
internally reorganize its infrastructure to support Peak's future growth
plans. As a percentage of revenue, G&A was consistent at 22 percent for
both the fourth quarter of 2004 and 2003 was 24 percent for fiscal 2004
compared to the prior year period of 25 percent.

Depreciation and amortization expenses - For the three months ended
December 31, 2004, depreciation and amortization expenses were higher
than the prior year period by $1.2 million or 65 percent, and for the
year ended December 31, 2004, depreciation and amortization expenses
were higher than the prior year period by $3.8 million or 62 percent.
The increase was attributed to the straight-line depreciation of the
access matting product line whose fleet size has tripled since
acquisition in March 2003, significant capital expenditures which has
increased the asset base to be depreciated and higher activity levels
experienced during the year, as depreciation associated with the Trust's
assets that are depreciated based on actual utilization was increased
accordingly.

Interest on long-term debt expense - Interest on long-term debt expense
for the three months ended December 31, 2004, was $0.1 million lower
than the prior year period and for the year ended December 31, 2004, was
$0.7 million lower than the prior year period.

Reorganization costs - There were no reorganization costs incurred
during the fourth quarter. For the year ended December 31, 2004,
reorganization costs totaled $3.9 million. These costs were incurred to
complete the reorganization of Peak Energy Services Ltd. ("PESL") into
the Trust and included expenses for financial advisors, tax advisors,
legal, internal costs and other associated costs.

Impairment loss on equipment held for sale - During the fourth quarter
of 2004, the Trust incurred an impairment loss on equipment held for
sale in the amount of $0.6 million ($0.4 million, net of tax impact).
This was in addition to the impairment loss recorded in 2003 of $4.0
million ($2.6 million, net of tax impact). During 2004, Peak disposed of
a significant portion of the equipment it classified as held for sale at
December 31, 2003 and the equipment remaining at December 31, 2004
represents the more difficult items to dispose of and management
determined that a further impairment loss was necessary to reflect the
remaining equipment's net fair value. It is expected that these assets
will be disposed of during the coming fiscal period, however the
specific timing of the disposals is not determinable.

Impairment loss on equipment - During fiscal 2004 there were no
impairment losses on equipment. Meanwhile for the year ended December
31, 2003, the Trust incurred an impairment loss on equipment of $1.6
million ($1.0 million, net of tax impact).

Loss on sale of equipment - For the fourth quarter of 2004, the loss on
sale of equipment amounted to $1.2 million compared to a loss of $0.1
million for the prior year period. For the year ended December 31, 2004,
the loss on sale of equipment amounted to $2.6 million compared to a
loss of $0.4 million for the prior year period. The loss was the result
of the Trust's ongoing asset rationalization program, whereby equipment
identified during the year that was not generating an appropriate rate
of return was sold and the proceeds were reinvested in equipment that is
expected to generate improved returns on invested capital.

Recovery of loss on equity investment - There was no recovery of loss
during the fourth quarter. For the year ended December 31, 2004, Peak
sold its 34 percent equity interest in Petrowave Solutions, Inc.
("Petrowave") to a third party for $0.1 million. During 2002, Peak had
written off its equity investment in Petrowave, hence the full proceeds
received have been recognized as a recovery of loss on equity investment.

Provision for income taxes - The total provision for income taxes in the
fourth quarter of 2004 resulted in a provision of $0.2 million compared
to a reduction of $0.1 million in the prior year period. For the year
ended December 31, 2004, the total provision for income taxes resulted
in a reduction of $1.4 million and an effective income tax rate of
negative 21 percent compared to a provision of $2.5 million and an
effective income tax rate of 45 percent in the prior year. The variance
of $3.7 million in the provision from the expected federal and
provincial statutory income tax rate of 34 percent was the result of a
reduction of $3.6 million in the provision for amounts included in Trust
income, a reduction of $0.8 million in the provision for the effect of
tax rate changes, an increase of $0.3 million in the provision for large
corporations tax, an increase of $0.4 million in the provision for
non-deductible items for tax purposes and a net increase of $0.1 million
in the provision for other items.

Net Income (loss)

Income for the three month period ended December 31, 2004, before
equipment impairment losses was $4.9 million ($0.24 per unit diluted)
compared to the prior year period of $2.0 million ($0.13 per unit
diluted). Net income for the fourth quarter of 2004 was $4.5 million
($0.22 per unit diluted) compared to the prior year period's net loss of
$1.5 million (loss of $0.10 per unit diluted). For the year ended
December 31, 2004 and 2003, income before reorganization costs (net of
taxes: 2004 - $2.6 million; 2003 - $nil) and equipment impairment losses
(net of taxes: 2004 - $0.4 million; 2003 - $3.6 million) was $11.1
million ($0.57 per unit diluted) and $6.7 million ($0.44 per unit
diluted), respectively. The net income for the year ended December 31,
2004, was $8.1 million ($0.42 per unit diluted) compared to net income
of $3.0 million ($0.20 per unit diluted) for the year ended December 31,
2003.

Balance Sheet

The Trust's balance sheet remains strong with working capital (defined
as current assets less current liabilities excluding current portion of
long-term debt) of $19.7 million, net debt (defined as interest bearing
debt less cash and cash equivalents) of $12.8 million on tangible assets
of $144.6 million and unitholders' equity of $141.5 million at December
31, 2004.

Cash Flow

Cash flow was $9.4 million ($0.46 per unit diluted) for the three months
ended December 31, 2004, representing a 55 percent increase over the
prior year. Cash provided by operating activities was $19.5 million
($1.01 per unit diluted) for the year ended December 31, 2004, which
translates into a 12 percent increase over the prior year. Excluding
cash reorganization costs, cash provided by operating activities was
$22.3 million ($1.16 per unit diluted) representing a 29 percent
year-over-year increase. This increase was directly attributed to the
higher industry activity levels, revenues realized and associated income
before non-cash items experienced during the fourth quarter and fiscal
2004 as compared to the relevant 2003 periods.

Net cash used in investing activities during the fourth quarter of 2004
was $33.6 million (2003 - $5.1 million) and for fiscal 2004 was $52.7
million (2003 - $25.6 million). These activities included the business
acquisition of the operating assets of BF Oilfield Rentals Ltd. on May
18, 2004 for cash consideration of $3.5 million, the business
acquisition of all of the issued and outstanding shares of Davlin
Holdings Ltd., Grand Tank (International) Inc. and DavCan Holdings Ltd.
effective November 1, 2004 for cash consideration of $29.0 million and
$20.4 million of net equipment purchases (includes proceeds on sale of
equipment and the purchase of certain operating assets of Tecumseh
Industries Ltd. on March 16, 2004 for $5.0 million).

Net cash provided by financing activities for the fourth quarter of 2004
was $31.7 million (2003 - net cash used $0.3 million) and for the year
ended December 31, 2004 was $42.2 million (2003 - $11.9 million). The
net cash provided was the result of the repayment of the operating line
of credit in the amount of $2.1 million, the payment of $9.7 million in
trust distributions to unitholders, an increase in long-term debt of
$20.0 million used to fund internal capital expenditures and business
acquisitions, the repayment and retirement of $20.8 million representing
all of Peak's debt facilities outstanding at December 31, 2003 as part
of the reorganization into the Trust, the issuance of Trust Units
(includes issuance of trust units, net of costs) in the amount $35.2
million, the issuance of share capital (includes issuance of share
capital, net of costs) in the amount of $24.0 million and the $4.3
million payment associated with the cancellation of PESL's stock option
plan as part of the reorganization into the Trust.

Trust Distributions

The Trust declared distributions of $0.61 per unit for a total of $11.5
million, of which $1.8 million was paid on January 15, 2005, in respect
of earnings to December 31, 2004. Distributions declared represented 59
percent of cash flow (this does not take into account the impact of
maintenance capital expenditures) for the year ended December 31, 2004.
It should be noted that distributions declared were only for the period
May 1, 2004 to December 31, 2004 as the effective date of the Trust's
activities was May 1, 2004. For the period of the year that the
organization was a Trust, distributions declared represented 71 percent
of cash flow for the period. The Trust currently plans on distributing
in the range of 60 to 70 percent of its cash flow on a go-forward basis.

Holders of Exchangeable Shares do not receive distributions declared by
the Trust. Rather, on each distribution payment date, the number of
Trust units which one Exchangeable Share is exchangeable into is
increased on a cumulative basis in respect of distributions. At December
31, 2004, there were 0.8 million Exchangeable Shares outstanding and the
associated exchange ratio was 1 Exchangeable Share to 1.06677 Trust
units (equivalent to 0.9 million Trust units).

Outlook

The outlook for Peak continues to be very positive. The momentum
generated in the fourth quarter of 2004 has carried into 2005 with
record levels of activity in the early part of the first quarter.
Analysts are predicting that 2005 should see a 10 percent overall
increase in industry activity from 2004. The combination of these
increased activity levels come to fruition, management's aggressive
internal capital expenditure program in the last half of 2004,
acquisitions completed during 2004, along with higher pricing for Peak's
equipment and services, should allow Peak to generate record results in
2005.

The management team continues to execute on its growth strategy. Having
invested $28.4 million on equipment and $32.5 million on business
acquisitions during 2004, the focus in 2005 will be on generating new
avenues of growth for Peak in complementary business lines, likely to be
achieved through acquisition followed by additional internal growth. One
of management's key strategic goals is to have an equitable balance
between production related services and drilling services. Currently, in
excess of 70 percent of Peak's revenue is drilling related. As a result,
while management will continue to be opportunistic acquirers in both
drilling and production related services, its bias will be toward
production related opportunities to achieve a better balance to Peak's
overall revenue stream.

Peak is well positioned to capitalize on these opportunities with its
low debt levels, strong cash flow and access to capital markets.

Non-GAAP Measures

EBITDA is defined as earnings before interest, taxes, depreciation and
amortization and other items. EBITDA is not a recognized measure under
Canadian generally accepted accounting principles ("GAAP"). Management
believes, in addition to net income, EBITDA is a useful supplemental
measure as it provides an indication of the results generated by Peak's
principle business activities prior to consideration of how these
activities are financed or how the results are taxed in various
jurisdictions. Investors should be cautioned, however, that EBITDA,
should not be construed as an alternative to net income determined in
accordance with GAAP as an indicator of the Trust's performance. Peak's
method of calculating EBITDA may differ from other companies and,
accordingly, EBITDA may not be comparable to measures used by other
companies.

Cash flow is defined as cash flow from operating activities before
changes in non-cash working capital balances. Cash flow is not a
recognized measure under GAAP. Management believes, in addition to cash
flow provided by (used in) operating activities, cash flow is a useful
supplemental measure as it provides an indication of cash flow generated
by operations before working capital adjustments.

Normalized cash flow is defined as cash flow from operating activities,
before changes in non-cash working capital balances and cash
reorganization costs. Normalized cash flow is not a recognized measure
under GAAP. Management believes, in addition to cash flow provided by
(used in) operating activities, normalized cash flow is a useful
supplemental measure as it provides an indication of cash flow generated
by operations before working capital adjustments and non-recurring items.

Investors should be cautioned, however, that cash flow and normalized
cash flow should not be construed as an alternative to cash flow
provided by (used in) operating activities determined in accordance with
GAAP as an indicator of the Trust's performance. Peak's method of
calculating cash flow and normalized cash flow may differ from other
companies and, accordingly, cash flow and normalized cash flow may not
be comparable to measures used by other companies.

Conference Call

Management will hold a conference call to discuss the year end results
at 9:30 a.m. MST (11:30 a.m. EST) on Friday, February 25, 2005. To
participate, please dial 1-888-789-0150 or 1-416-695-5261. Participants
are asked to call at least 10 minutes before the start of the call. For
those unable to participate in the live event, a rebroadcast will be
available until March 4, 2005 by dialing 1-866-518-1010 or
1-416-695-5275.

Financial Results

The following selected financial information summarizes Peak's
consolidated financial results for the three and twelve months ended
December 31, 2004. Peak's annual report, including the consolidated
financial statements and management's discussion and analysis for the
years ended December 31, 2004 and 2003 will be available at
www.sedar.com on or about March 29, 2004.




CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED EARNINGS
(in thousands of Canadian dollars)


Three months ended Twelve months ended
December 31 December 31
(unaudited) (audited)
------------------------------------------------------------------------
2004 2003 2004 2003
------------------------------------------------------------------------

Revenue $ 23,888 $ 16,515 $ 70,325 $ 55,573

Expenses:
Operating 8,850 6,592 28,687 22,335
General and administrative 5,217 3,634 16,989 13,953
Depreciation and amortization 2,927 1,769 9,806 6,052
Interest on long-term debt 376 487 1,154 1,851
------------------------------------------------------------------------
17,370 12,482 56,636 44,191

------------------------------------------------------------------------
Income before other items 6,518 4,033 13,689 11,382

Other items:
Reorganization costs - - (3,927) -
Impairment loss on equipment
held for sale (590) (3,961) (590) (3,961)
Gain (loss) on sale of
equipment held for sale 26 - (17) -
Impairment loss on equipment - (1,558) - (1,558)
Loss on sale of equipment (1,161) (64) (2,601) (384)
Recovery of loss on equity
investment - - 114 -
Gain on sale of marketable
securities - - - 110
------------------------------------------------------------------------
(1,725) (5,583) (7,021) (5,793)
------------------------------------------------------------------------
Income before income taxes 4,793 (1,550) 6,668 5,589

Provision for income taxes:
Current (14) (62) 1,567 447
Future (reduction) 258 (22) (2,987) 2,094
------------------------------------------------------------------------
244 (84) (1,420) 2,541

------------------------------------------------------------------------
Net income 4,549 (1,466) 8,088 3,048

Accumulated earnings,
beginning of period
As previously reported 7,281 7,557 5,860 2,899
Change in method of
accounting for stock-based
compensation - (231) - (87)
------------------------------------------------------------------------
As restated 7,281 7,326 5,860 2,812

Reorganization costs - - (2,118) -

------------------------------------------------------------------------
Accumulated earnings,
end of period $ 11,830 $ 5,860 $ 11,830 $ 5,860
------------------------------------------------------------------------
------------------------------------------------------------------------

Earnings per unit:
Basic $ 0.22 $ (0.10) $ 0.42 $ 0.20
Diluted $ 0.22 $ (0.10) $ 0.42 $ 0.20
------------------------------------------------------------------------
------------------------------------------------------------------------


CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars)

Three months ended Twelve months ended
December 31 December 31
(unaudited) (audited)
------------------------------------------------------------------------
2004 2003 2004 2003
------------------------------------------------------------------------

Operating activities:
Net income (loss) $ 4,549 $ (1,466) $ 8,088 $ 3,048
Add (deduct) items not
affecting cash:
Stock based compensation - 87 119 232
Amortization of deferred
financing costs (25) 31 126 121
Depreciation and
amortization 2,927 1,859 9,806 6,052
Reorganization costs - - 1,114 -
Impairment loss on
equipment held for sale 590 3,961 590 3,961
(Gain) loss on sale of
equipment held for sale (26) - 17 -
Impairment loss on equipment - 1,558 - 1,558
Loss on sale of equipment 1,161 65 2,601 384
Gain on sale of marketable
securities - - - (110)
Future income taxes
(reduction) 258 (22) (2,987) 2,094
------------------------------------------------------------------------
9,434 6,073 19,474 17,340

Changes in non-cash
working capital items (3,241) (743) (1,822) (6,851)
------------------------------------------------------------------------

Cash flow from operations 6,193 5,330 17,652 10,489
------------------------------------------------------------------------

Investing activities:
Proceeds from sale of
marketable securities - - - 780
Increase in loan receivable - (25) (120) (125)
Repayment of loan receivable - 162 318 162
Business acquisitions (28,972) - (32,485) (13,493)
Purchase of equipment (7,005) (5,818) (28,416) (14,723)
Proceeds on sale of
equipment and equipment
held for sale 2,426 623 8,032 1,770
------------------------------------------------------------------------
(33,551) (5,058) (52,671) (25,629)
Financing activities:
Increase in deferred
financing costs (45) (349) (237) (349)
Increase in operating
line of credit - 990 - 2,078
Repayment in operating
line of credit - - (2,078) -
Repayment of demand loan - - - (1,000)
Distributions to
Unitholders (4,242) - (9,659) -
Increase in long-term debt 1,750 1 20,000 15,028
Repayment of long-term debt - (9,737) (20,773) (11,967)
Issue of trust units,
net of costs 34,275 - 35,242 -
Issue of share capital,
net of costs - 8,822 23,987 8,961
Repurchase of share capital,
net of costs - 1 - (886)
Cancellation of stock
option plan - - (4,268) -
------------------------------------------------------------------------
31,738 (272) 42,214 11,865

Increase (decrease) in cash 4,380 - 7,195 (3,275)
Cash, beginning of period 2,815 - - 3,275
------------------------------------------------------------------------

Cash, end of period $ 7,195 $ - $ 7,195 $ -
------------------------------------------------------------------------

Supplemental information:
Interest paid $ 376 $ 488 $ 1,154 $ 1,851
Income taxes paid $ 2,781 $ 14 $ 4,282 $ 400
------------------------------------------------------------------------
------------------------------------------------------------------------


CONSOLIDATED BALANCE SHEETS

December 31
(in thousands of Canadian dollars) (audited) 2004 2003
------------------------------------------------------------------------
Assets

Current assets:
Cash and cash equivalents $ 7,195 $ -
Accounts receivable 24,583 16,061
Income taxes recoverable 153 36
Prepaid expenses 845 593
Inventory - 2,812
------------------------------------------------------------------------
32,776 19,502

Property and equipment 144,034 113,847

Equipment held for sale 517 1,773

Loan receivable - 198

Deferred financing costs 176 535

Intangibles 5,022 1,277

Goodwill 16,836 2,700

------------------------------------------------------------------------
$ 199,361 $ 139,832
------------------------------------------------------------------------
------------------------------------------------------------------------

Liabilities and Unitholders' Equity

Current liabilities:
Operating line of credit $ - $ 2,078
Accounts payable and accrued liabilities 9,550 4,155
Distributions payable 1,834 -
Trust capital payable 1,736 -
Current portion of long-term debt 2,381 2,357
------------------------------------------------------------------------
15,501 8,590

Long-term debt 17,619 18,416

Future income taxes 24,788 25,222

Unitholders' equity:
Trust unit capital 135,343 -
Exchangeable share capital 4,290 -
Share capital - 79,942
Contributed surplus 1,483 1,802
Accumulated earnings 11,830 5,860
Accumulated cash distributions (11,493) -
------------------------------------------------------------------------
141,453 87,604

------------------------------------------------------------------------
$ 199,361 $ 139,832
------------------------------------------------------------------------
------------------------------------------------------------------------


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
throughout western Canada and mid-western United States of America. 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.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Peak Energy Services Trust
    Mr. Christopher E. Haslam
    President and Chief Executive Officer
    (403) 543-7325
    or
    Peak Energy Services Trust
    Mr. Matthew 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
    The TSX have neither approved nor disapproved the information contained
    herein.