/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, April 17 /CNW/ - Deepwell Energy Services Trust ("Deepwell" or
the "Trust") (TSX:DWL.UN) announces that it has adopted a Distribution
Reinvestment Plan (the "Plan"). The Plan, to the extent that unitholders
participate, will provide Deepwell with additional cash for growth. The CEO,
CFO and the Board of Directors, to the extent they are eligible, currently
intend to reinvest their monthly distributions through participation in the
The Trust also announces today that the cash distribution for the period
of April 1, 2007 to April 30, 2007 has been set at $0.06 per Trust unit. The
cash distribution is payable on May 15, 2007 to unitholders of record on
April 30, 2007.
Eligible unitholders may elect to participate in the Plan commencing with
the monthly cash distribution payable on May 15, 2007. The Plan allows
eligible unitholders of Deepwell to direct that their cash distributions be
reinvested in additional trust units. The cash distributions will be
reinvested at the discretion of Deepwell Energy Services Ltd. either by
acquiring trust units issued from treasury at 95% of the Average Market Price
(as defined in the Plan) or by acquiring trust units at prevailing market
rates. The Plan is subject to final regulatory approval.
Deepwell reserves the right to limit the amount of new equity available
under the Plan on any particular distribution date. Accordingly, participants
may receive the cash distribution to which they would otherwise be entitled on
such distribution date or participation may be prorated such that participants
receive the portion of the cash distribution to which they would otherwise be
entitled on such date which is not reinvested as a result of such proration.
Eligible registered unitholders who wish to enroll the Plan, must fax or
otherwise deliver a properly completed and signed authorization form to CIBC
Mellon Trust Company, at the fax number or address specified in the form, not
later than 3:00 pm (Calgary time) on the fifth day immediately preceding a
distribution record date in order for the cash distribution to which such
record date relates to be reinvested under the Plan. The deadline for
delivering an authorization form to CIBC Mellon Trust Company for purposes of
the cash distribution payable on May 15, 2007 is 3:00 pm (Calgary time) on
April 23, 2007.
Beneficial unitholders (i.e., owners of trust units that are held through
a nominee such as a broker or custodian) who wish to participate in the Plan
should contact the broker, investment dealer, financial institution or other
nominee who holds their trust units to enquire about the applicable enrolment
deadline and to request enrolment in the Plan.
Generally, no commissions, service charges or brokerage fees will be
payable by Plan participants in connection with their purchase of trust units
under the Plan, but beneficial unitholders should make enquiries of the
broker, investment dealer or financial institution through which their trust
units are held as to any policies of such party that might result in any
commissions, charges or fees being payable.
Please note that registered and beneficial owners of Deepwell trust units
who are not resident in Canada are not eligible to participate in the Plan.
Participation in the Plan does not relieve unitholders of any liability
for taxes that may be payable on distributions. Unitholders should consult
their tax advisors concerning the tax implications of their participation in
the Plan having regard to their particular circumstances.
Unitholders should carefully read the complete text of the Plan before
making any decisions regarding their participation in the Plan. The Plan, an
introductory letter and the authorization form are available on Deepwell's
website at www.deepwellenergy.com.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction.
Additional information about the Trust is available at www.sedar.com and
on the Trust's website at www.deepwellenergy.com.
Certain statements in this press release constitute "forward looking"
statements that involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements of the
Trust or Deepwell LP, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such
forward looking statements. Forward looking statements involve significant
risks and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of
whether or not such results will be achieved. A number of factors could cause
actual results to differ materially from the results discussed in the forward
looking statements. In particular, final regulatory approval of the Plan may
not be obtained.
For further information:
For further information: Deepwell Energy Services Trust, Tel: (403)
508-6000, Email: email@example.com, Robert Dodds, President and
CEO, Or: Scott Gerecke, Vice-President Finance and CFO