Trinidad Energy Services Income Trust Closes $125 Million Dollar Bought Deal Financing

June 2, 2005

Release Date: June 2, 2005
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/

TSX SYMBOL: TDG.UN
CALGARY, June 2 /CNW/ – Trinidad Energy Services Income Trust (“Trinidad” or the “Trust”) is pleased to announce the closing of its previously announced equity financing. At closing, a total of 11,256,810 trust units were issued for gross proceeds of $124,950,591. The offering was underwritten by a syndicate of underwriters led by Raymond James Ltd. and including CIBC World Markets Inc., TD Securities Inc., First Associates Investments Inc., Haywood Securities Inc., Sprott Securities Inc. and Wellington West Capital Markets Inc.

The net proceeds of the offering will be indirectly used to partially fund the previously announced construction of 16 new drilling rigs, the support equipment required for these rigs and for general working capital purposes. The 16 rigs and related equipment will be constructed at a cost of approximately $172 million.

Ten of the 16 rigs are backed by five year take or pay contracts which provide Trinidad with a minimum number of drilling days per annum resulting in a five year guaranteed minimum utilization rate of 66% at fixed current market day rates consistent with the size and type of rig. These ten drilling rigs will be deployed in Canada and are diesel electric drilling rigs having depth capacity ratings from 3,600 metres to 4,500 metres. Delivery of these 10 rigs is anticipated to begin in October 2005 with the remaining rigs anticipated to be delivered by May 2006.

The remaining six rigs are backed by three year take or pay contracts which provide Trinidad with a minimum number of drilling days per annum resulting in a three year guaranteed minimum utilization rate of 82% at fixed competitive market day rates consistent with the size and type of rig. These six drilling rigs will be deployed in the United States and are 6,000 metre diesel electric triple drilling rigs. Delivery of these six rigs is anticipated to begin in October 2005 with the remaining rigs anticipated to be delivered between October 2005 and February 2006.

Trinidad Energy Services Income Trust is a growth oriented income trust that trades on the TSX under the symbol TDG.UN. Trinidad’s divisions operate in the drilling and well servicing sectors of the North American oil and gas industry. With the completion of the construction programs underway, the Trust will have 74 drilling rigs ranging in depths from 1,000 – 6,000 metres. In addition to the drilling rigs, Trinidad Well Servicing Ltd., another wholly owned subsidiary of the Trust, has 11 service rigs that have either been completely retrofitted or are new within the past five years and 1 more service rig currently under construction. Trinidad also operates 18 pre-set and coring rigs. Trinidad is focused on providing modern, reliable, expertly designed equipment operated by well trained and experienced personnel. Trinidad’s drilling fleet is one of the most adaptable and competitive in the industry.

This news release may contain forward-looking statements concerning the anticipated performance of the Trust. Forward-looking statements are based on the estimates and opinions of management at the date the statements are made, and the Trust undertakes no obligation to update forward-looking statements if conditions or opinions should change.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the trust units in any jurisdiction. The trust units offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States or to a U.S. person, absent registration, or an applicable exemption therefrom.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

/For further information: Michael Heier, Chairman and Chief Executive Officer or Brent Conway, Chief Financial Officer, Ph: (403) 265-6525, Fax: (403) 265-4168, E-mail: twood(at)trinidaddrilling.com/