Cathedral Energy Services announces 10% increase in distribution

CALGARY, May 10 /CNW/ - Cathedral Energy Services Income Trust (the
"Trust"; TSX: CET.UN) is pleased to announce that the Trustees have approved a
10% increase in the Trust's monthly distribution to $0.0275 per Trust Unit
from $0.025 per Trust Unit effective with the May distribution. On an
annualized basis the distribution increases from $0.30 to $0.33 per Trust
Unit. The May 2005 distribution will be $0.0275 per Trust Unit in the form of
cash. The distribution will be paid on June 15, 2005 to Unitholders of record
on May 31, 2005.
The increased distribution is a direct reflection of the strength of the
Trust's balance sheet and its financial performance as well as the continuing
strength in the industry fundamentals. Management and the Trustees believe
that the increased distribution level is sustainable. It is the intention of
the Trust to have equal monthly distributions to Unitholders, subject to the
operating results of Cathedral Energy Services Ltd.

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This news release may contain forward-looking statements concerning the
anticipated performance of the Trust. Forward-looking statements are based on
the estimates and opinions of management at the date the statements are made,
and the Trust undertakes no obligation to update forward-looking statements if
conditions or opinions should change.
Cathedral Energy Services Income Trust is a limited purpose trust which
owns the securities of Cathedral Energy Services Ltd. ("Cathedral")
representing the right to receive cash flow available for distribution from
Cathedral. Cathedral is engaged in the business of providing selected oilfield
services to oil and natural gas companies in Western Canada and the Rocky
Mountain region of the United States and currently provides drilling services
and related equipment rentals and production testing services. Cathedral
markets its services under four brand names: Directional Plus and The
Directional Company which provide horizontal and directional drilling
services; CAT Downhole Tools which provides downhole equipment including
drilling jars, shock subs and high performance drilling motors on a rental
basis; and Tier One Oil Services which provides oil and natural gas production
testing services. Cathedral strives to provide its clients with value added
technologies and solutions to meet their drilling and production testing
requirements. Its mandate is to supply "Best in Class, Best in Service"
equipment and personnel to its clients. The trust units trade on the TSX under
the symbol: CET.UN. For more information, visit
www.cathedralenergyservices.com.
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