Cathedral Energy Services announces the acquisition of Tier One Oil Services Ltd.

CALGARY, May 9 /CNW/ - Cathedral Energy Services Income Trust (the
"Trust"; TSX: CET.UN) and it's wholly-owned subsidiary, Cathedral Energy
Services Ltd. ("Cathedral"), are pleased to announce the closing of the
acquisition of Tier One Oil Services Ltd. ("Tier One") for total consideration
of $6.5 million (subject to a working capital adjustment) and the assumption
of long-term debt of $0.7 million. The acquisition was financed through the
issuance of 636,364 trust units at the 20 day weighted average trading price
on the Toronto Stock Exchange of $4.40 and for cash consideration of
$3.7 million.
Tier One is a privately owned provider of oil and gas production testing
services in Western Canada. Tier One currently has 9 field testing units
(averaged 7.9 units over its fiscal year ended April 30, 2005) and Cathedral
is expecting to expand this fleet by adding 5 units during the balance of
calendar year 2005. It is estimated that Tier One's revenue for its fiscal
year ended April 30, 2005 will be approximately $6.4 million and EBITDA before
shareholder bonuses of $1.9 million. Tier One will operate as a separate
division of Cathedral and will be managed by its current management group.

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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 drilling services
and related equipment rentals to oil and natural gas companies in western
Canada and the Rocky Mountain region of the United States. Cathedral markets
its services under two brand names: Directional Plus which provides horizontal
and directional drilling services; and CAT Downhole Tools which provides
downhole equipment including drilling jars, shock subs and high performance
drilling motors on a rental basis. Cathedral strives to provide its clients
with value added technologies and solutions to meet their drilling
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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