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Cathedral Energy Services announces amendment to option plan at specialmeeting for conversion to a growth-oriented corporation

Dec 14, 2009



CALGARY, Dec. 14 /CNW/ - Cathedral Energy Services Income Trust (the "Trust" - TSX: CET.UN) announces that the Board of Trustees have approved amendments to the incentive stock option plan (the "Option Plan") that unitholders will be asked to approve in connection with the proposed plan of arrangement for the conversion of the Trust to a growth-oriented corporation (the "Arrangement") at the special meeting of the Trust's unitholders scheduled for 9:00 a.m. on Friday, December 18, 2009 in the Royal Meeting Room of the Metropolitan Conference Centre, 333 - 4th Avenue S.W., Calgary, Alberta.


The Option Plan has been amended as follows:


    -   to include a new provision which will provide that the number of
        common shares of the Corporation ("Shares") reserved for issue under
        options granted to non-employee directors of the corporation be
        limited to 1% of the Shares outstanding from time to time;

    -   to include a new provision which will provide for a maximum annual
        equity grant to non-employee directors of the Corporation to be
        limited to $100,000 per non-employee director as calculated under the
        Black-Scholes pricing model of share options granted during the year;

    -   to provide that approval of the shareholders of the Corporation will
        be required to effect any amendment of the Option Plan which may
        reduce the exercise or purchase price of any options held by any
        person, regardless of whether such person is an insider of the
        Corporation; extend the term any options held by any person,
        regardless of whether such person is an insider of the Corporation;
        permit options to become transferrable or assignable, other than for
        normal estate planning purposes; or amend the amendment provisions of
        the Plan.


The amendments will result in RiskMetrics revising its recommendation to a "FOR" vote in connection with the resolution on the option plan


%SEDAR: 00018316E

For further information: Mark L. Bentsen, President and Chief Executive Officer or P. Scott MacFarlane, Chief Financial Officer, Cathedral Energy Services Ltd., 1700, 715 - 5th Avenue S.W., Calgary, Alberta, T2P 2X6, Telephone: (403) 265-2560, Fax: (403) 262-4682,

Cathedral opens a 36,000 square foot full service operation facility in Oklahoma City, Oklahoma and Estevan, Saskatchewan operations migrate to Emerald Park, Saskatchewan.