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Cathedral Energy Services Announces Bought Deal Financing

Apr 28, 2009


    CALGARY, April 28 /CNW/ - Cathedral Energy Services Income Trust (the
"Trust" - TSX: CET.UN) is pleased to announce that it has entered into an
agreement with a syndicate of underwriters led by Wellington West Capital
Markets Inc. (the "Underwriters") to sell to the Underwriters, on a bought
deal basis, 3,144,000 trust units (the "Trust Units") at $4.15 per Trust Unit
(the "Offering Price") for gross proceeds of $13,047,600 (the "Offering"). In
addition, the Trust has granted the Underwriters an option exercisable at any
time prior to 5pm (Calgary time) on the 30th day following the closing of the
Offering to purchase up to an additional 471,600 Trust Units at the Offering
Price for additional gross proceeds of up to $1,957,140.
    The Trust Units will be offered by way of short form prospectus in the
provinces of British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario
and in other jurisdictions via applicable exemptions from prospectus and
registration requirements. The Offering is expected to close on or about May
19, 2009, subject to certain conditions including, without limitation, the
receipt of all necessary regulatory approvals including the approval of the
Toronto Stock Exchange.
    The net proceeds of the offering will be used for general corporate
    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. The Trust
Units will not and have not been registered under the United States Securities
Act of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements.

    About Cathedral Energy Services Income Trust

    Cathedral Energy Services Income Trust is a limited purpose trust which
owns the securities of Cathedral Energy Services Ltd. and Cathedral Energy
Services Limited Partnership (collectively "Cathedral") represents 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 and Williston
Basin regions of the United States and currently provides drilling services
and related equipment rentals, production testing services and wireline
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

    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 the closing date of the Offering, 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
    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

    %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.