/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, Dec. 17 /CNW/ - Cathedral Energy Services Income Trust (TSX: CET.UN; the "Trust") and its operating divisions have built a strong reputation for technology and service and is proud to announce its 2nd generation ("G2") Electro-Magnetic ("EM") Measurement-While-Drilling ("MWD") system has completed its field testing and is presently operating on a commercial basis. The G2 EM-MWD system includes bi-directional (talk down) communication which allows for surface control of the tool to change data rates, power levels and data formats. The result is increased efficiency and power management, which by default, allows for greater depth capability. To meet our customers' demand for advanced technology in providing directional drilling services, this innovational technology is currently being deployed on several projects.
The board of directors of the Trust's Administrator, Cathedral Energy Services Ltd., has approved an initial 2008 capital budget program of $8.6 million including approximately $400,000 for maintenance capital. Most of the 2008 capital budget is targeted for expanding the current fleet of directional drilling equipment including at least 10 G2 EM-MWD systems to meet the Trust's additional demand. The Trust will also be adding to its mud motor and drill collar fleet to complement the expanded directional drilling job capacity. Three of these MWD systems will be allocated to the U.S. Rocky Mountain region. The Trust has received 5 G2 EM-MWD systems in 2007 Q4. With the 2007 Q4 additions the Trust expects to exit 2007 with a total of 78 MWD systems of which 23 are located in the U.S. Rocky Mountain region.
Certain statements in this news release including (i) statements that may contain words such as "anticipate", "could", "expect", "seek", "may" "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which the Trust/Cathedral operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by the Trust/Cathedral. Forward-looking statements in this news release include, but are not limited to, statements with respect to future capital expenditures, including the amount, nature and timing thereof; oil and natural gas prices and demand; other development trends within the oil and natural gas industry; business strategy; expansion and growth of the Trust's/Cathedral's business and operations and other such matters. Such forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect the Trust's/Cathedral's operations, including, but are not limited to: the impact of general economic conditions; industry conditions; government and regulatory developments; oil and natural gas product supply and demand; competition; and the Trust's/Cathedral's ability to attract and retain qualified personnel. The Trust's/Cathedral's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits the Trust/Cathedral will derive therefrom. Subject to applicable law, the Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Trust's current Annual Information Form and Annual Report which have been filed with Canadian provincial securities commissions and are available on www.sedar.com.
%SEDAR: 00018316E