Deepwell announces full subscription of rights offering


    CALGARY, Aug. 1 /CNW/ - Deepwell Energy Services Trust (Deepwell or the
Trust) (TSX:DWL.UN) is pleased to announce that its rights offering, which
expired on July 31, 2007 (the Rights Offering) is fully subscribed. A total of
2,180,515 Trust units will be issued at a price of $6.01 per Trust unit for
gross proceeds of $13,104,895.
    The number of units subscribed for under the basic subscription right
(the Basic Subscriptions) was 1,815,324, or approximately 85% of the units
offered. An additional 1,234,610 Trust units were subscribed for under the
additional subscription privilege (the Additional Subscriptions) which,
combined with the Basic Subscriptions, exceeds the total number of units
offered by 904,089 units.
    Due to the oversubscription, the number of units actually issued under
the Additional Subscriptions will be 330,521, and allocation of the
subscriptions for these units will be in accordance with the terms of the
Trust's short form prospectus dated June 26, 2007 (the Prospectus). CIBC
Mellon Trust Company will return any excess funds received from subscribers as
    As a result of the strong response under the Basic Subscriptions and
Additional Subscriptions, no units will be available for subscription by the
standby purchaser under the standby commitment.
    Deepwell intends to use proceeds of the Rights Offering and a previously
closed Private Placement in the amount of $3,500,000 (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. Construction of
the Claresholm Facility commenced in July 2007, with completion planned
approximately six months after the start of construction.
    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 and on the Trust's website at
    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

    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, labour disputes, work stoppages, equipment delivery
delays, and the potential for delays arising from injuries and safety concerns
at the worksite. 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 Ltd., administrator of the Trust, (403) 508-6001; Or: Scott
Gerecke, Vice-President Finance and CFO, Deepwell Energy Services Ltd.,
administrator of the Trust, (403) 508-6005, Email:

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