Wellco Energy Services Acquires 3rd Catering Company

Wellco Energy Services Trust has entered into a letter of intent to acquire an established northern based supplier of camp rental and catering services, that will both strengthen and further diversify Wellco's camp operations.

Consideration, in the amount of $2.5 million will consist of $1.5 million cash and $1 million worth of Wellco trust units. Wellco will also provide funding for an additional camp currently under construction.

The transaction is subject to regulatory approval, Wellco's due diligence, the approval of its board of directors and other conditions including the completion of satisfactory management agreements with key management.

Wellco is a growth oriented income trust that provides a diversified suite of oilfield services to the Canadian energy industry.