Wellco Expands Production Services Division

Wellco Energy Services Trust has acquired all of the issued and outstanding shares of Brett Energy Services Ltd., a private company engaged in the rental of 95 flow-back tanks and related production services equipment in S.E. Alberta. Consideration for the transaction, in the amount of $1.85 million, consisted of $0.37 million in Wellco trust units at a price of $9.90 per trust unit, and $1.48 million in cash. Wellco utilized its available cash on hand to complete the transaction.

It is expected that Brett will generate earnings before interest, taxes, depreciation and amortization of approximately $0.55 million to $0.65 million during the 2005 fiscal year. This transaction was successfully closed December 6, 2004 with an effective date of December 1, 2004.

Brett has a strong and well established client base that includes a number of major oil and gas producers, and its Medicine Hat, Alberta based operations will serve to complement Wellco's current fleet of six service rigs, which is based in the neighboring community of Brooks. This acquisition represents another step towards Wellco's stated goal of achieving a strategic balance between drilling and production related service activities.

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