Cathedral Energy Services announces February distribution and reduced 2009 capital expenditure program



    /NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

    CALGARY, Feb. 17 /CNW/ - Cathedral Energy Services Income Trust (the
"Trust" - TSX: CET.UN) announces that the Trustees have approved a
distribution for February 2009 of $0.04 per Trust Unit in the form of cash.
This is a decrease of $0.03 per Trust Unit from the Trust's January 2009
distribution. The distribution will be paid on March 16, 2009 to Unitholders
of record on February 28, 2009. In light of the current and forecast market
conditions, the Administrator of the Trust's operating entities determined
that a reduction in distributions was a prudent measure to manage liquidity,
further strengthen the Trust's strong balance sheet and better position itself
to take advantage of opportunistic transactions which may present themselves.
The Administrator of the Trust reviews the level and nature of distributions
(cash, in-kind or a combination of cash and in-kind) on an on-going basis
giving consideration to many factors including current performance; historical
and future trends in the business and the expected sustainability of those
trends; enacted tax legislation which will affect future taxes payable;
long-term debt repayments; and maintenance capital expenditures required to
sustain performance and future growth capital expenditures.
    In addition, recognizing the expected lower activity levels, the Trust
has taken several initiatives to improve operating results and further
strengthen its balance sheet. During the fourth quarter of 2008 the approved
capital budget of $51.4 million was reduced by approximately $0.6 million with
an additional $3.6 million being deferred until 2009, resulting in total
capital expenditures of approximately $47.2 million in 2008. The initial 2009
capital budget of $17.0 million together with the $3.6 million deferred from
2008 for a total of $20.6 million has been reduced by $9.5 million to $11.1
million. The revised 2009 capital expenditure program of $11.1 million
includes approximately $0.5 million of maintenance capital. In addition, the
Trust's operating entities are undertaking a detailed review of all operating
costs and general and administrative expenditures and have initiated cost
reductions to enhance profitability.

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    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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