Deepwell Proceeds With Rights Offering



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

    CALGARY, June 27 /CNW/ - Deepwell Energy Services Trust (Deepwell or the
Trust) (TSX:DWL.UN) announced today that it has finalized the terms of a
proposed rights offering (the Rights Offering) originally announced in the
Trust's news release dated June 14, 2007, and has filed a final short form
prospectus dated June 26, 2007 (the Prospectus) with securities regulators in
each province and territory in Canada. The Rights Offering is being made to
unitholders resident in Canada and eligible unitholders in other jurisdictions
(collectively the Eligible Unitholders).
    Under the Rights Offering, each unitholder of record on July 5, 2007 (the
Record Date) will receive one transferable right (Right) for each unit of the
Trust held. Two Rights will entitle Eligible Unitholders to purchase one unit
of the Trust at the subscription price of $6.01, until the expiration of the
Rights Offering which is 4:30 pm mountain time on July 31, 2007. Deepwell has
engaged Raymond James Ltd. as soliciting dealer manager in connection with the
Rights Offering.
    The Rights will be posted for trading on the Toronto Stock Exchange
(TSX). Units of the Trust will commence trading on an ex Rights basis, two
trading days before the Record Date.
    Any holder of a Rights certificate who subscribes for all of the units to
which the holder is entitled has the privilege (the Additional Subscription
Privilege) to subscribe for additional units at the subscription price on a
pro rata basis with other such unitholders. The number of units available
under the Additional Subscription Privilege will be those units that have not
been subscribed for under basic subscription rights. Unitholders wishing to
purchase units under the Additional Subscription Privilege must indicate such
desire and pay for any additional units at the time they exercise their
Rights. If a sufficient number of units are not available to satisfy all
requests made under the Additional Subscription Privilege, the available units
will be issued on a pro rata basis, based upon the number of units subscribed
for under the Additional Subscription Privilege by each unitholder.
    The net proceeds of the Rights Offering (assuming full exercise of all of
the Rights) and a previously announced private placement with Manvest Inc. of
$3.5 million (the Private Placement), are estimated to be approximately
$15.5 million. Deepwell intends to use proceeds of the Rights Offering and the
Private Placement to fund the estimated $9 million construction cost of an
oilfield waste management facility near Claresholm, Alberta (the Claresholm
Facility), to fund improvements and expansions at existing facilities, to fund
preliminary costs of future facilities and for general corporate purposes. On
June 22, 2007, Deepwell received approval from the Alberta Energy and
Utilities Board (EUB) to construct and operate the Claresholm Facility.
Construction of the Claresholm Facility is slated to commence in early July
2007, with completion planned approximately six months after the start of
construction.
    A Prospectus and a Rights Certificate will be mailed to all Eligible
Unitholders on or about July 10, 2007. CIBC Mellon Trust Company, as
subscription agent under the Rights Offering, has agreed to sell the Rights of
all ineligible unitholders on a best-efforts basis on their behalf and remit
the pro rata net proceeds (if any) from such sale to the ineligible
unitholders following completion of the Rights Offering.
    Beneficial unitholders (i.e., owners of Trust units that are held through
a nominee such as a broker or custodian) who wish to participate should
contact the broker, investment dealer, financial institution or other nominee
who holds their Trust units to enquire about participating in the Rights
Offering.
    Assuming full exercise of all of the Rights, the Trust will issue a
maximum of 2,180,515 units. Directors and officers of the Trust have indicated
that they will exercise, in aggregate, approximately 438,000 Rights for the
purchase of approximately 219,000 units of the Trust, however no commitments
to do so have been made.
    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.
    For further information on the Private Placement and Rights Offering,
please refer to the Prospectus. The Prospectus and additional information
about the Trust are available at www.sedar.com and on the Trust's website at
www.deepwellenergy.com.

    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.

    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 its subsidiaries, 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 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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