Bonnett's Energy Services Trust provides an update on its outstanding credit facilities and announces the adoption of a unitholder rights plan



    TSX SYMBOL: BT.UN

    CALGARY, Oct. 31 /CNW/ - Bonnett's Energy Services Trust (the "Trust" or
"Bonnett's") provides the following update with respect to matters relating to
its outstanding credit facilities:

    
    -  Following extensive negotiations, Bonnett's will not be proceeding
       with the previously announced $90 million senior secured revolving
       credit facility with Brookfield Bridge Lending Fund.

    -  Bonnett's is in breach of certain financial covenants under its
       syndicated credit facility. Following negotiations with its lenders,
       Bonnett's lenders have agreed to waive the breaches of the financial
       covenants and will not accelerate the indebtedness under the
       syndicated credit facility or otherwise exercise their remedies as a
       result of such breaches.

    -  Bonnett's and its lenders have agreed to certain amendments to the
       loan documents under the syndicated credit facility. In particular,
       each of the Trust's revolving operating facility (which is currently
       drawn as to $8.6 million), revolving capital acquisition facility
       (which is currently drawn as to $24 million), and non-revolving term
       facility (which is currently drawn as to $50 million) will now mature
       on January 31, 2008. Advances to Bonnett's under the revolving
       operating facility may continue to be made during this period subject
       to the discretion of the lenders.
    

    Management is currently negotiating with its lenders with a view to
putting longer term credit facilities in place for the Trust. As well,
management is considering various alternatives to optimize the composition of
its assets.

    Unitholder Rights Plan

    Bonnett's also announced today that the Board of Directors of its
administrator, Bonnett's Energy Services Ltd., has adopted a Unitholder Rights
Plan (the "Plan"), similar to existing rights plans adopted by other Canadian
public companies.
    The objectives of the Plan are to ensure, to the extent possible, that
all Unitholders of the Trust are treated equally and fairly in connection with
any takeover bid for the Trust. The Plan discourages discriminatory, coercive
or unfair takeovers of the Trust and gives the Board of Directors time if, in
the circumstances, the Board of Directors determines it is appropriate to take
such time, to pursue alternatives to maximize unitholder value in the event an
unsolicited takeover bid is made for all or a portion of the outstanding trust
units of the Trust.
    In order to implement the adoption of the Plan, the Board of Directors
has authorized the issuance of one right in respect of each trust unit of the
Trust outstanding at the close of business on October 31, 2007 (the "Record
Time"). In addition, the Board authorized the issuance of one Right in respect
of each additional trust unit issued after the Record Time. The rights trade
with and are represented by the Trust's trust unit certificates, including
certificates issued prior to the Record Time. Until such time as the rights
separate from the trust units and become exercisable, rights certificates will
not be distributed to Unitholders.
    If a person, or a group acting in concert, acquires (other than pursuant
to an exemption available under the Plan) beneficial ownership of 20% or more
of the trust units, rights (other than those held by such acquiring person
which will become void) will separate from the trust units and permit the
holder thereof to purchase trust units at a substantial discount to their then
prevailing market price. A person, or a group acting in concert, who is the
beneficial owner of 20% or more of outstanding trust units as of the Record
Time is exempt from the dilutive effects of the Plan provided such person (or
persons) does not increase its beneficial ownership by more than 1% (other
than in accordance with the terms of the Plan). At any time prior to the
rights becoming exercisable, the Board of Directors may waive the operation of
the Plan with respect to certain events before they occur.
    The issuance of the rights is not dilutive and will not affect reported
earnings or cash flow per unit until the rights separate from the underlying
trust units and become exercisable or until the exercise of the rights. The
issuance of the rights will not change the manner in which Unitholders
currently trade their trust units.
    The Plan is subject to approval of the Toronto Stock Exchange, and
requires confirmation by the Trust's Unitholders at a meeting of Unitholders
to be held prior to April 30, 2008. If the Plan is not confirmed by
Unitholders, the Plan and all outstanding rights will terminate and be void
and of no further force and effect.
    The Board of Directors did not adopt the Plan to prevent a takeover of
the Trust, to secure the continuance of management or the directors in their
respective offices or to deter fair offers for the trust units of the Trust.

    Disclosure Regarding Forward-Looking Statements

    Certain statements contained in this news release constitute
forward-looking statements. When used in this document, the words "may",
"would", "could", "will", "intend", "plan", "anticipate", "believe", "seek",
"propose", "estimate", "expect", and similar expressions, as they relate to
the Trust, are intended to identify forward-looking statements. Such
statements reflect the Trust's current views with respect to future events and
are subject to certain risks, uncertainties and assumptions. Many factors
could cause the Trust's actual results, performance or achievements to vary
from those anticipated in this news release. Should one or more of these risks
or uncertainties materialize, or should assumptions underlying forward-looking
statements prove incorrect, actual results may vary materially from those
described in this news release as intended, planned, anticipated, believed,
estimated or expected. Except where required by law, the Trust does not assume
any obligation to update these forward-looking statements if conditions or
opinions should change. Readers should not place undue reliance on
forward-looking statements.

    Additional Information

    Additional information relating to the Trust is filed on SEDAR and can be
viewed at www.sedar.com. This information includes the Trust's Annual
Information Form dated March 31, 2007. Information can also be obtained by
contacting the Trust at Bonnett's Energy Services Ltd., R.R. 2, Site 33, Box
1, Grande Prairie, Alberta T8V 2Z9. Information is also available at the
Trust's website at www.bonnettsenergy.com.

    %SEDAR: 00022595E




For further information:

For further information: Murray Toews, Chief Executive Officer or Kelvin
Torgerson, Chief Financial Officer At (780) 830-2705, Fax: (780) 532-4811,
E-mail: info@bonnettsenergy.com

Organization Profile

BONNETT'S ENERGY SERVICES TRUST

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