Total Energy Services Trust

Total Energy Services Trust

September 13, 2005 10:06 ET

Total Energy Services Trust to Acquire Operating Assets of Black Gold Rentals and Transport

CALGARY, ALBERTA--(CCNMatthews - Sept. 13, 2005) - Total Energy Services Trust (TSX:TOT.UN) is pleased to announce that its wholly-owned subsidiary, Total Energy Services Ltd ("Total"), has signed a letter of intent to acquire the operating assets of Black Gold Tank Rentals 2001 Corp. and Black Gold Transport Ltd. (collectively, "Black Gold") for $4.3 million cash. Closing of the transaction is scheduled for October 3, 2005 (with an effective date of October 1, 2005) and is subject to customary terms and conditions. This acquisition is in addition to Total's previously announced 2005 consolidated capital expenditure budget of $44.8 million.

Based in Bonanza, Alberta, Black Gold has been in business since 1991 and provides quality surface drilling and production rental equipment and light oilfield transportation services to oil and natural gas companies operating in northwestern Alberta and northeastern British Columbia. The assets to be acquired include approximately 150 pieces of rental equipment and seven heavy trucks. Total currently owns approximately 2900 pieces of rental equipment and 50 heavy trucks and operates out of eleven branch locations. The business of Black Gold is complementary to Total's existing rental and transportation business and this acquisition represents a strategic consolidation opportunity in Total's core area of operations in time for the upcoming winter drilling season. Following completion of the acquisition, the operations of Black Gold will be integrated into Total's drilling and production rental division, Total Oilfield Rentals, as part of the recently established Dawson Creek, British Columbia branch. It is anticipated that many of the employees of Black Gold will join Total following closing as the principals of Black Gold have agreed to enter into five year non-competition agreements.

Total Energy Services Trust is a growth oriented oil and gas service income trust involved in contract drilling services, drilling and production rentals and natural gas compression equipment fabrication, sales, rental and service. The trust units of Total Energy Services Trust are listed and trade on the TSX under the symbol "TOT.UN".

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Total Energy Services Trust
    Mr. Daniel K. Halyk
    Chief Executive Officer
    (403) 216-3921
    Total Energy Services Trust
    Mr. David A. Hawkins
    Vice-President Finance and Chief Financial Officer
    (403) 216-3920