Total Energy Services Trust
TSX : TOT.UN

Total Energy Services Trust

September 01, 2005 08:15 ET

Total Energy Services Trust Announces $27.0 Million Bought Deal Private Placement

CALGARY, ALBERTA--(CCNMatthews - Sept. 1, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Total Energy Services Trust ("Total Energy")(TSX:TOT.UN) is pleased to announce that it has entered into an agreement to issue, on a "bought deal" private placement basis, 2,000,000 trust units at a price of $13.50 per trust unit for gross proceeds of $27.0 million. Proceeds from the issue will be used to increase Total Energy's 2005 capital expenditure budget by approximately $11.0 million to $44.8 million, for future growth opportunities and for general trust and corporate purposes. Total Energy's increased 2005 capital expenditure program is primarily directed to establishing a new drilling and production rentals location in Dawson Creek, British Columbia. The addition of an eleventh drilling and production rentals location in northeastern British Columbia will further expand Total Energy's presence in this active medium to deeper natural gas drilling area in time for the upcoming winter drilling season.

The trust units will be issued through a syndicate of underwriters led by Sprott Securities Inc. Closing of the issue is subject to certain conditions including receipt of required regulatory approvals and is anticipated to close on or about September 22, 2005.

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 are listed and trade on the TSX under the symbol "TOT.UN".

The trust units 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. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Total Energy Service Trust
    Daniel K. Halyk
    Chief Executive Officer
    (403) 216-3921
    or
    Total Energy Service Trust
    David A. Hawkins
    Chief Financial Officer
    (403) 216-3920