Bonnett's Energy Services Trust takes proactive steps to address industry downturn and positions itself for future growth



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    TSX SYMBOL: BT.UN

    CALGARY, Sept. 19 /CNW/ - Bonnett's Energy Services Trust (the "Trust" or
"Bonnett's") is pleased to announce the following steps to address the current
and potential prolonged industry downturn:

    Operational Update:
    -------------------
    On August 16, 2007, the Trust expanded its cost reduction plan announced
on March 12, 2007 to further reduce its wage and salary expense by 8%.
Management estimates the additional annualized savings to be close to
$2 million. This has been achieved through a combination of broad reduction in
salary levels, the implementation of capital expenditure controls and reduced
expenditure limits. Management believes that vigilant cost control is an
important element of the Trust's strategy while dealing with the current
uncertain industry conditions and the potential prolonged industry downturn.

    Conversion to a Growth Oriented Energy Services Company:
    --------------------------------------------------------
    Bonnett's is pleased to announce its intention to convert into a growth
oriented energy services company (the "Reorganization"). The Trust has been
investigating a number of restructuring alternatives subsequent to the Federal
Government's October 31, 2006 announcement on tax policy relating to income
trusts and subsequent legislation. The board of directors of the Trust's
administrator (the "Board") has determined, based on a complete review of the
current income trust landscape and industry activity levels, that:

    
    i)   The current price of the Trust Units is not reflecting the value of
         the Trust and the cash return realized by Unitholders through the
         Trust's monthly distributions: This is evidenced by the fact that on
         the enterprise value to earnings before interest, taxes,
         depreciation and amortization ("EBITDA") multiple, Bonnett's trades
         lower than its corporate peers.

    ii)  Commencing in 2011, the tax savings to the Trust from distributions
         to Unitholders will be eliminated pursuant to new legislation,
         thereby removing a significant benefit of the trust structure;

    iii) The potential access to equity capital has become more limited as a
         result of the uncertainty surrounding the trust sector; and

    iv)  The reduction in industry activity levels and the trust tax changes
         are expected to limit Bonnett's ability to execute on its growth
         plans as a result of limited financial flexibility and reduced
         access to capital. As a result, the Board believes the increased
         financial flexibility provided by a corporate structure will enhance
         Bonnett's ability to continue to create value through growth.
    

    Pursuant to the Reorganization, it is currently contemplated that holders
of Trust Units will receive an equal number of shares (subject to rounding of
fractional Trust Units) of the new corporate entity that will hold the assets
previously held, directly or indirectly, by the Trust. This will result in
approximately 11.8 million shares being issued and outstanding immediately
following the Reorganization. The Board has unanimously determined the
Reorganization is in the best interest of the Trust and the Unitholders. The
Reorganization will be subject to all required regulatory approvals and to
Unitholder approval to be sought at a special meeting of Unitholders to be
held in Q4 2007. Management and directors holding 33% of Trust units
outstanding intend to vote in favor of the reorganization.
    While the Reorganization is underway, the Trust is announcing the
suspension of monthly distributions. The Trust was paying over $14 million in
distributions per year made up of approximately $10 million in cash and
$4 million in new units under the DRIP program. Significant tax pools are
expected to shelter Bonnett's from cash taxes until 2009. The added cash flow
provided by the above measures, along with the new debt facility discussed
below will provide the Trust the flexibility to operate and continue to
develop its business lines.
    Raymond James Ltd. is acting as financial advisor to Bonnett's with
respect to the Reorganization and has provided the Board with a verbal opinion
that, subject to the review of final documentation, the proposed
Reorganization is fair, from a financial point of view, to Bonnett's
Unitholders.

    Debt Restructuring:
    -------------------
    Bonnett's is pleased to announce that is has entered into a letter of
intent for a $90 million senior secured revolving credit facility with
Brookfield Bridge Lending Fund. The proceeds from this facility will be used
to retire the Trust's current syndicated credit facility and for working
capital purposes. The new facility will mature on January 5, 2009. No
principal repayments will be required prior to that date. The interest rate on
the new facility has been set at the CIBC prime lending rate plus 2.25%. The
new facility will provide Bonnett's with financial flexibility on a go forward
basis as it continues to manage its operations through this time of reduced
industry activity.

    This news release shall not constitute an offer to sell or the
solicitation of any offer to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful. The securities offered will not be and have not been registered
under the United States Securities Act of 1933 as amended or the securities
laws of any state and may not be offered or sold in the United States unless
an exemption from registration is available.

    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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