Cathedral Energy Services announces commercialization of its 2nd generation EM-MWD tool and 2008 capital budget



    /NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

    CALGARY, Dec. 17 /CNW/ - Cathedral Energy Services Income Trust (TSX:
CET.UN; the "Trust") and its operating divisions have built a strong
reputation for technology and service and is proud to announce its 2nd
generation ("G2") Electro-Magnetic ("EM") Measurement-While-Drilling ("MWD")
system has completed its field testing and is presently operating on a
commercial basis. The G2 EM-MWD system includes bi-directional (talk down)
communication which allows for surface control of the tool to change data
rates, power levels and data formats. The result is increased efficiency and
power management, which by default, allows for greater depth capability. To
meet our customers' demand for advanced technology in providing directional
drilling services, this innovational technology is currently being deployed on
several projects.
    The board of directors of the Trust's Administrator, Cathedral Energy
Services Ltd., has approved an initial 2008 capital budget program of $8.6
million including approximately $400,000 for maintenance capital. Most of the
2008 capital budget is targeted for expanding the current fleet of directional
drilling equipment including at least 10 G2 EM-MWD systems to meet the Trust's
additional demand. The Trust will also be adding to its mud motor and drill
collar fleet to complement the expanded directional drilling job capacity.
Three of these MWD systems will be allocated to the U.S. Rocky Mountain
region. The Trust has received 5 G2 EM-MWD systems in 2007 Q4. With the 2007
Q4 additions the Trust expects to exit 2007 with a total of 78 MWD systems of
which 23 are located in the U.S. Rocky Mountain region.

    Certain statements in this news release including (i) statements that may
contain words such as "anticipate", "could", "expect", "seek", "may" "intend",
"will", "believe", "should", "project", "forecast", "plan" and similar
expressions, including the negatives thereof, (ii) statements that are based
on current expectations and estimates about the markets in which the
Trust/Cathedral operates and (iii) statements of belief, intentions and
expectations about developments, results and events that will or may occur in
the future, constitute "forward-looking statements" and are based on certain
assumptions and analysis made by the Trust/Cathedral. Forward-looking
statements in this news release include, but are not limited to, statements
with respect to future capital expenditures, including the amount, nature and
timing thereof; oil and natural gas prices and demand; other development
trends within the oil and natural gas industry; business strategy; expansion
and growth of the Trust's/Cathedral's business and operations and other such
matters. Such forward-looking statements are subject to important risks and
uncertainties, which are difficult to predict and that may affect the
Trust's/Cathedral's operations, including, but are not limited to: the impact
of general economic conditions; industry conditions; government and regulatory
developments; oil and natural gas product supply and demand; competition; and
the Trust's/Cathedral's ability to attract and retain qualified personnel. The
Trust's/Cathedral's actual results, performance or achievements 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 transpire or occur, what benefits the Trust/Cathedral will
derive therefrom. Subject to applicable law, the Trust disclaims any intention
or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

    All forward-looking statements contained in this document are expressly
qualified by this cautionary statement. Further information about the factors
affecting forward-looking statements is available in the Trust's current
Annual Information Form and Annual Report which have been filed with Canadian
provincial securities commissions and are available on www.sedar.com.

    %SEDAR: 00018316E




For further information:

For further information: Mark L. Bentsen, President and Chief Executive
Officer or P. Scott MacFarlane, Chief Financial Officer, Cathedral Energy
Services Ltd., 1700, 715 - 5th Avenue S.W., Calgary, Alberta, T2P 2X6,
Telephone: (403) 265-2560, Fax: (403) 262-4682;
www.cathedralenergyservices.com


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