Deepwell Announces Rights Offering And Private Placement Of Trust Units To Fund Construction Of Claresholm Facility And Capital Expenditures



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

    CALGARY, June 14 /CNW/ - Deepwell Energy Services Trust ("Deepwell" or
the "Trust") (TSX:DWL.UN) announced today that it anticipates construction of
its proposed oilfield waste management facility near Claresholm, Alberta will
commence in July 2007, and that it intends to fund construction of the
facility and other initiatives through a private placement of $3.5 million
(the "Private Placement"), as well as a rights offering (the "Rights
Offering") by way of a short form prospectus.

    Claresholm Facility Approval Status

    The Alberta Energy and Utilities Board (EUB) has issued Class Ib Approval
for the disposal well associated with Deepwell's proposed oilfield waste
management facility near Claresholm, Alberta. Deepwell anticipates that the
EUB will grant final approval to construct and operate the surface facility in
time for construction to commence in July 2007, with completion approximately
six months after the start of construction.

    Private Placement

    Pursuant to the Private Placement, Deepwell intends to issue $3.5 million
of its trust units ("Trust Units") to Manvest Inc. ("Manvest") at $6.01 per
Trust Unit, a price which is equal to the exercise price under the proposed
Rights Offering. It is anticipated that the Private Placement will close prior
to the closing of the Rights Offering, but after the record date, such that
any Trust Units issued to Manvest pursuant to the Private Placement will not
receive rights ("Rights") under the Rights Offering.

    Rights Offering

    The Rights Offering will be made to Unitholders resident in Canada and
eligible Unitholders in other jurisdictions (collectively the "Eligible
Unitholders"). Each Eligible Unitholder will receive one transferable Right
for every Trust Unit held. Two Rights and $6.01 will entitle Eligible
Unitholders to purchase one Trust Unit. The issue price of the Trust Units
under both the Private Placement and the Rights Offering represents a 10%
discount of $6.67 which is the twenty day volume-weighted average price of the
Trust Units on the Toronto Stock Exchange (TSX) ending on June 13, 2007. The
Rights are offered pursuant to a short form prospectus filed today and which
will be mailed to all Unitholders when final receipt for the short form
prospectus is received. Deepwell has engaged Raymond James Ltd. as soliciting
dealer manager in connection with the proposed Rights Offering.
    In addition to the Private Placement, Manvest has agreed to provide a
standby commitment ("Standby Commitment") of up to $2.5 million. Under the
Standby Commitment, Manvest will not participate in the Rights Offering as a
Unitholder, but has agreed to subscribe for Trust Units offered under the
Rights Offering and not otherwise subscribed for. The terms of Manvest's
subscription under the Standby Commitment will be identical in all respects to
those of existing Unitholders of the Trust.

    Use of Proceeds

    Proceeds of the Rights Offering and Private Placement are intended to
fund construction of the Claresholm facility, expansions and improvements at
Deepwell's existing facilities, preliminary costs for proposed future
facilities and for general corporate purposes.
    The proposed Private Placement and Rights Offering are subject to receipt
of necessary regulatory approvals, including that of the TSX.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities offered will not be and have not been registered under the United
States Securities Act of 1933 and may not be offered or sold in the United
States or to a U.S. person, absent registration, or an applicable exemption
therefrom.

    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. Without limiting the foregoing, such
forward-looking statements include statements made in this press release
regarding the anticipated timing for commencing construction of the oilfield
waste management facility and the anticipated completion date of the facility.
There is no assurance that the expected timeframes will be met as all are
subject to risks which include, without limitation, the possibility for
equipment failures, labor disputes, work stoppages, equipment delivery delays,
and the potential for delays arising from injuries and safety concerns at the
worksite. There can be no assurance that the EUB will provide final approval
of the Claresholm facility in the anticipated time frame nor can there be any
assurance that the proposed Private Placement or Rights Offering will be
completed. 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, including those discussed
above, could cause actual results to differ materially from the results
discussed in the forward-looking statements. Deepwell's forward-looking
statements are expressly qualified in their entirety by this cautionary
statement. Unless otherwise required by applicable securities laws, Deepwell
does not intend nor does it undertake any obligation to update or review any
forward-looking statements to reflect subsequent information, events, results
or circumstances or otherwise.




For further information:

For further information: Robert Dodds, President and CEO, Deepwell
Energy Services Trust, (403) 508-6001 Or: Scott Gerecke, Vice-President
Finance and CFO, Deepwell Energy Services Trust, (403) 508-6005, Email:
investing@deepwellenergy.com

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DEEPWELL ENERGY SERVICES TRUST

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