/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, June 19 /CNW/ - Cathedral Energy Services Income Trust (the "Trust" - TSX: CET.UN) announces that effective June 16, 2009, the Trust has realigned the operations of its Wireline division. Currently, the Trust has electric line ("E-line") operations in the U.S. market which it serves from facilities in North Dakota and Wyoming. Based upon a review of supply and demand for E-line services, Trust management believe the U.S. market offers increased utilization and operating margins superior to that currently being realized in Canada. Over the next few months, the Trust will transfer existing Canadian E-line units to the U.S. and expects to develop a third U.S. base of operations during 2009 Q3.
The Trust's Canadian Wireline division will continue to provide slickline services but will discontinue providing E-Line services to the Canadian energy market. District offices directly supporting Canadian E-line operations will be closed or reassigned to the Trust's other Canadian divisions. The Trust believes that this action, combined with previous undertakings, will further support its efforts to be strategically positioned for the return of a more favorable operating environment.
In addition, the Trust has commenced providing directional drilling services, using its generation 3 ("G3") Electro-Magnetic Measurement-While-Drilling ("EM/MWD") system in the Marcellus basin in eastern U.S. The Trust is very pleased with the operational results of the G3 EM/MWD tool in this basin and is expanding operations in this region. To facilitate this expansion, the Trust will establish a new operations facility in Pennsylvania in 2009 Q3.
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