CALGARY, Oct. 3 /CNW/ - Petrowest Energy Services Trust ("Petrowest")
(TSX - "PRW.UN") announced today that it has entered into an agreement with
its lenders to extend its $120 million revolving term credit facility to
November 6, 2008. The agreement entered into by Petrowest with its lenders,
which are comprised of a syndicate of Canadian charter banks, also amends the
"funded debt to EBITDA" covenant in the credit facility from the current level
of "2.25 to 1.00" to "2.50 to 1.00" on a temporary basis effective until
June 30, 2008. This amendment provides Petrowest with improved covenant
flexibility in light of the reduced equipment utilization rates caused by the
reduction in natural gas drilling activity. Petrowest did not contravene of
any terms or conditions of the credit facility prior to the extension.
Petrowest is a leading provider of pre-drilling and post-completion
energy and civil infrastructure services to the northern region of the western
Canadian sedimentary basin. Petrowest is an unincorporated, open-ended,
limited purpose, mutual fund trust established under the laws of Alberta.
This news release contains forward-looking statements that involve
substantial known and unknown risks and uncertainties. These forward-looking
statements are identified by their use of terms and phrases such as
"anticipate," "achievable," "believe," "expect," "estimate," "plan," "intend,"
"project," "may," "should", "could", "predict", "may," "will," or similar
words suggesting future outcomes or language suggesting an outlook.
Forward-looking statements and information are based on Petrowest's current
beliefs as well as assumptions made by and information currently available to
Petrowest concerning anticipated business performance. Although management of
Petrowest considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to many external variables that
are beyond Petrowest's control, such as fluctuating prices for crude oil and
natural gas, changes in drilling activity, and general local and global
economic, political, business and weather conditions. If any of these, or
other uncertainties, materialize the actual results of Petrowest may vary
materially from those expected.
For further information:
For further information: Kenneth N. Drysdale, President and Chief
Executive Officer, or John B. Paul, Chief Financial Officer, at (780) 830-0881