Pro-Active Response to Industry Slowdown



    Bonnett's Energy Services Trust Responds to Industry Slowdown

    CALGARY, March 12 /CNW/ - As a result of uncertainty surrounding industry
activity levels in 2007 and in an effort to maximize profitability while at
the same time positioning Bonnett's for long term viability, Bonnett's is
implementing the following measures:

    
      -  The capital budget for 2007 has been reduced from the originally
         approved amount of $25.7 million to $11.7 million. Capital
         expenditures relating to the third fracturing spread have been
         deferred until market conditions improve.

      -  Management has undertaken a cost control program. All divisions have
         been reviewed with the intention of streamlining and creating
         efficiencies. These efficiencies are expected to generate
         approximately $7 million in cost savings on an annualized basis. In
         conjunction with this initiative, three operating entities have been
         eliminated by consolidating their operations with others. In
         addition, resources have been reallocated to geographic areas with
         the highest utilization levels.

      -  Effective April 1, 2007 the CEO and CFO of the Trust have agreed to
         a 15% salary rollback.
    

    2006 was a year of significant internal and external growth for the
Trust. Management intends to use 2007 to integrate this growth and ensure
operational efficiency.

    March Distribution

    The distribution for March of 2007 has been set at $0.10 per unit. This
is a decrease of 33% from the February distribution of $0.15 per unit. The
distribution will be paid on April 16, 2007 to unitholders of record on March
30, 2007.

    Introduction of a DRIP

    Bonnett's intends to implement a Distribution Reinvestment Purchase Plan
(DRIP) to allow unitholders to reinvest their distributions to acquire
additional units of the Trust. The details of the DRIP will be announced
within the next 2 weeks. The CEO, CFO and Board of Directors, who in aggregate
control 3.3 million units or approximately 29% of the outstanding units of the
Trust, currently intend to reinvest their monthly distributions through
participation in the DRIP. The reduced distribution together with the
insiders' intention to participate in the DRIP will result in annualized cash
savings to Bonnett's of approximately $11 million.

    2007 Guidance

    Based on current information available, the Trust is forecasting 2007
revenue to be between $160 million and $175 million. The Trust is also
forecasting 2007 EBITDAC (earnings before interest, taxes, depreciation,
amortization and unit based compensation) to be between $47 million and $52
million and funds flow from operations to be between $42 and $47 or $3.65 to
$4.09 per unit.
    Long term debt is estimated to be approximately $78 million at March 31,
2007. Net long term debt, after deducting working capital, is estimated to be
$52 million. Based on forecasted 2007 EBITDAC, long term debt to EBITDAC is
estimated to be 1.5 to 1.7 times while net long term debt to EBITDAC is
estimated to be 1.0 to 1.1 times. With the measures announced above, the long
term debt and associated ratios are expected to improve from these current
levels.

    Bonnett's Energy Services Trust (TSX: BT.UN) is a completion and
production focused trust that provides cased hole wireline, testing, acid
stimulation, fracturing stimulation, nitrogen pumping as well as a line of
oilfield completion/fishing rental equipment and related services to oil and
natural gas exploration and production companies operating in the Western
Canadian Sedimentary Basin ("WCSB").
    %SEDAR: 00022595E




For further information:

For further information: Bonnett's Energy Services Trust,
info@bonnettsenergy.com, Tel: (780) 830-2705; Murray Toews, President and CEO,
(780) 513-3400; Kelvin Torgerson, CFO, (780) 830-2705

Organization Profile

BONNETT'S ENERGY SERVICES TRUST

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