Peak Energy Services Trust reports its financial results for the three and
nine months ended September 30, 2010

TSX SYMBOL: PES.UN

CALGARY, Nov. 10 /CNW/ -

Financial and Industry Highlights (unaudited)

(in '000 of CAD, except otherwise noted)	Three months ended September 30			Nine months ended September 30
	2010	2009	Change	2010	2009	Change
Revenue	38,264	21,107	81%	104,966	89,649	17%
EBITDA ^(1)	7,397	(1,517)	588%	13,963	7,709	81%
Per unit - diluted	0.04	(0.03)	233%	0.10	0.16	-38%
As a percentage of revenue	19%	-7%		13%	9%
Net income (loss)	2,454	(4,695)	152%	(3,272)	(14,904)	78%
Per unit - diluted	0.01	(0.10)	110%	(0.02)	(0.31)	94%
Funds from operations ^(1)	6,638	(2,695)	346%	10,921	4,851	125%
Per unit - diluted	0.04	(0.06)	167%	0.08	0.10	-20%
Trust Units outstanding (thousands)	172,383	48,398	256%	172,383	48,398	256%
Industry activity ^(2)
Cdn drilling rig operating days	29,990	16,362	83%	83,356	53,017	57%
US average active drilling rigs ^(3)	334	178	88%	289	176	64%
Cdn service rig utilization	54%	37%	46%	51%	38%	34%

^{(1)     Refer to the "Non-GAAP Measures" section for further details.
(2)     Sources: Canadian Association of Oilwell Drilling Contractors ("CAODC"), the Daily Oil Bulletin ("DOB"), Petroleum Services Association of Canada ("PSAC") and Baker Hughes Incorporated ("BHI").
(3)     Represents drilling rigs active in regions which Peak operates (Wyoming, Colorado, North Dakota, Montana and Pennsylvania).}

This News Release focuses on key information and statistics from Peak Energy Services Trust's ("Peak" or the "Trust") consolidated financial statements and oilfield services industry which contains known and unknown risks and uncertainties.  Furthermore, certain statements contained in this News Release are forward-looking. Please review the discussion of these statements in the "Forward-Looking Information" section of this News Release.

Throughout this News Release certain measures are used that are not recognized measures under Canadian generally accepted accounting principles ("GAAP"). Specific measures used are earnings before interest, taxes, depreciation, amortization and other certain items ("EBITDA"), funds from operations, working capital, funded debt, net debt and long-term debt to equity ratio. Please review the discussion of these measures in the "Non-GAAP Measures" section of this News Release.

INDUSTRY ACTIVITY

During the third quarter of 2010, industry activity levels were significantly higher than the same period of 2009 as increased activity levels followed the same trend from the first two quarters of the year. Canadian drilling operating days for the third quarter were 83 percent higher than the prior year period and wells drilled increased by 65 percent to 3,233 wells. Year-to-date, Canadian drilling rig operating days were 57 percent higher than the prior year period and wells drilled increased by 40 percent to 7,978 wells. Wells drilled in Canada year-to-date for 2010 has increased, however it still compares very negatively with the ten year average of 13,383 wells. Meanwhile, Canadian service rig utility increased 46 percent to an average utility of 54 percent for the third quarter of 2010.

The decrease as compared to the ten year average has been the result of lingering effects from the recent global economic down-turn and its impact on demand for oil and natural gas and liquidity within the capital markets and an over supply of natural gas which has resulted in downward pressure on natural gas prices.

Analysts are forecasting that Canadian oil and natural gas drilling activity levels will increase in 2010 from 2009, with the current trend of a lower number of wells with a longer duration for each well being drilled, continuing. Analyst estimates now forecast a range of between 11,000 and 12,200 wells to be drilled this year in Canada. Based upon the results of the first nine months of 2010, management believes annual activity should reach levels of 11,500 wells. Although activity has rebounded from 2009 lows, it is still significantly below historical levels for the past decade. Although some progress is being made, it will be challenging for overall pricing of services to improve materially from 2009 for 2010, as there is excess rental equipment in several of the oilfield service industry segments that Peak competes in.

In the regions that Peak is active in the United States, which includes Wyoming, Colorado, North Dakota, Montana and Pennsylvania, the number of active rigs has improved. For the three months ended September 30, 2010, there were 334 rigs operating in these regions compared to 178 rigs for the same period in 2009. This translates to an 88 percent increase in active rigs within Peak's regions of scope. It is uncertain if this rate of activity in these regions will continue over the longer-term considering natural gas storage and pricing levels. However, with the exception of Wyoming, where Peak is more established, Peak believes it has significant opportunities to gain market share with a flat to slight decrease in current rig activity within these regions.

Management believes the outlook for the oil and natural gas industry in North America remains positive over the longer term and is positioning the Trust strategically to take advantage of improved activity levels.

SELECTED FINANCIAL AND OPERATING INFORMATION

For the three months ended September 30, 2010, Peak:

• generated revenue of $38.3 million which was an 81 percent or $17.2 million increase over the same prior year period revenue of $21.1 million. The primary driver of the increase was increased activity levels in both the US and Canadian markets. Peak's US operations contributed $8.0 million (46 percent) of the increase;
• realized EBITDA of $7.4 million ($0.04 per Unit diluted or 19 percent of revenue), an increase of 588 percent or $8.9 million over EBITDA for the prior year period of negative $1.5 million (negative $0.03 per Unit diluted or negative 7 percent of revenue). On a margin basis, the primary positive impact was the significant increase in industry activity levels;
• realized a net income from continuing operations of $2.5 million ($0.01 per Unit diluted), which was an increase of 157 percent or $6.7 million as compared to a net loss for the same prior year period of $4.3 million (loss of $0.09 per Unit diluted); and
• generated funds from operations of $6.6 million or $0.04 per Unit diluted (2009 - negative $2.7 million or negative $0.06 per Unit diluted).

For the nine months ended September 30, 2010, Peak:

• generated revenue of $105.0 million which was a 17 percent or $15.4 million increase over the same prior year period revenue of $89.6 million. The primary driver of the increase was increased activity levels in both the US and Canadian markets. The positive variance would have been larger but was negatively impacted by significant pricing pressure in the first four months of 2010 and decreased activity levels in Peak's Oil Sands reporting segment during first quarter of 2010 when compared to the same period of 2009;
• realized EBITDA of $14.0 million ($0.10 per Unit diluted or 13 percent of revenue), an increase of 81 percent or $6.3 million over EBITDA for the prior year period of $7.7 million ($0.16 per Unit diluted or 9 percent of revenue). On a margin basis, the primary positive impact was the significant increase in industry activity levels;
• recognized a loss on sale of equipment of $4.4 million. The loss was the result of the current negative market conditions for selling of used equipment;
• realized a net loss from continuing operations of $3.3 million (loss of $0.02 per Unit diluted), which was a decrease of 24 percent or $1.0 million as compared to a net loss for the same prior year period of $4.3 (loss of $0.09 per Unit diluted);
• generated funds from operations of $10.9 million or $0.08 per Unit diluted (2009 - $4.9 million or $0.10 per Unit diluted);
• negotiated amendments to its long-term debt agreements resulting in total debt facility capacity of $65.0 million; and
• issued 124.0 million Trust Units for net proceeds of $23.6 million.

CAPITAL RESOURCES

As compared to December 31, 2009, Peak:

• increased working capital by $20.2 million to $30.4 million;
• decreased tangible capital assets by $11.5 million to $194.0 million;
• decreased funded debt by $21.0 million to $39.6 million; and
• increased Unitholders' equity by $20.7 million to $171.4 million.

LONG-TERM DEBT

The Trust's long-term debt including current portion decreased to $49.2 million at September 30, 2010, as compared to $60.5 million at December 31, 2009. Funded debt was $39.6 million at September 30, 2010, as compared to $60.5 million at December 31, 2009. Meanwhile, net debt was $18.9 million at September 30, 2010, as compared to $50.4 million at December 31, 2009. The long-term debt to equity ratio decreased to 0.29 to 1.00 at September 30, 2010 (December 31, 2009 - 0.40 to 1.00). As at September 30, 2010, the Trust is in compliance with is financial covenants.

UNITHOLDERS' EQUITY

Unitholders' equity increased $20.7 million to $171.4 million at September 30, 2010, from $150.7 million at December 31, 2009. The increase over the prior year-end was the result of a net loss of $3.3 million incurred and 124.0 million Trust Units issued for net proceeds of $23.6 million.

The Trust intends to convert to a growth-oriented corporation (the "Conversion") pursuant to a plan of arrangement under the Business Corporations Act (Alberta). The Trust will be seeking approval from securityholders at a special meeting on December 3, 2010 and expects to complete the Conversion by December 31, 2010.

OUTLOOK

Industry activity for the third quarter continued to gain momentum with Canadian drilling rig activity more than doubling the third quarter of last year's activity of 20 percent. Peak expects that in Canada the industry will drill 11,500 wells which would be an increase in activity of approximately 35 percent over 2009. Based on activity for the early part of the fourth quarter and interaction with our customers, Peak is comfortable with this 2010 forecasted activity level.

Peak expects to see the continuation of more activity in the prolific shale natural gas plays, liquids rich natural gas plays and oil focused resource plays such as the Horn River (British Columbia), Montney (British Columbia / Alberta), Cardium (Alberta), Bakken (Saskatchewan and North Dakota) and the Oil Sands (Alberta) regions. Peak has taken advantage of these more active areas by re-deploying assets into these regions and the signing of several contracts with producers active in these areas (see news releases dated May 17, 2010, August 25, 2010, November 3, 2010 and November 8, 2010 for details).

The propensity to continue to drill prolific shale natural gas resource plays throughout certain areas of North America has facilitated market share growth into new geographic regions for Peak, as evidenced by our significant growth in market share in the US where our revenue has more than tripled in 2010 year-to-date versus the same period in 2009. The majority of this growth was realized in the Marcellus shale region of Pennsylvania and other US regions are currently being explored as possible growth areas for several of Peak's product offerings. With this expected growth profile and our current run rate, we expect to see our US operation more than triple in size, to approximately $35.0 million in revenue for 2010 as compared to 2009.

With Peak's first quarter equity financing of $23.6 million, combined with our more flexible debt structure and re-negotiated bank covenants, management believes that Peak is in a much improved position of strength in that it has satisfied all of the requirements of the Trust's senior lenders and improved its financial position. The Trust's operating line is currently undrawn putting Peak in a net positive cash position. Peak currently has a net debt of approximately $19.0 million. This debt level is backed by a tangible asset base of approximately $194.0 million. With the completion of Peak's conversion to a growth-oriented corporation at the end of this year, management believes it will have the appropriate debt and equity structure to increase its focus on looking for further opportunities of growth including the addition of new assets in select products offerings and regions.

Financial discipline remains at the forefront of priorities for management. Peak continues to look for opportunities to further reduce its infrastructure cost to augment the significant reductions already achieved over the past 21 months. Management is executing on its pricing strategy, whereby increased pricing will allow the Trust to take advantage of the significant leverage that it will enjoy when the combination of reduced costs and higher pricing gains traction. We are currently making some progress with increased pricing in certain markets and expect this trend to continue.

Management remains cautiously optimistic at this time that both the global economy and the oil and natural gas industry are starting to show some signs of a recovery. We believe that at the very least we are on the back side of the bottom of this cycle and that we now have the resources and opportunities to once again prosper and grow as the climate in our industry continues to improve.

CONFERENCE CALL

Management will hold a conference call to discuss the quarter end results at 9:30 a.m. MT (11:30 a.m. ET) on Friday, November 12, 2010. To participate, please dial 1 [phone] or 1 [phone]. Participants are asked to call at least 10 minutes before the start of the call. The call is also available by webcast by going to Peak's website at www.peak-energy.com or by directly going to http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3287460. For those unable to participate in the live call, a replay will be available until Friday, November 19, 2010 by dialing 1 [phone] or if preferred 1 [phone], pass code 21037479. The replay will also be available by webcast at the URL's indicated above.

NON-GAAP MEASURES

EBITDA is defined as earnings before interest, taxes, depreciation and amortization and other items (non-cash expenses, gains / losses and non-operating items). EBITDA is not a recognized measure under Canadian GAAP. Management believes, in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by Peak's principle business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions. Readers should be cautioned that EBITDA should not be construed as an alternative to net income determined in accordance with Canadian GAAP as an indicator of the Trust's performance. Peak's method of calculating EBITDA may differ from other companies and, accordingly, EBITDA may not be comparable to measures used by other entities.

Funds from operations is defined as cash flow from operating activities, as reported in the Canadian GAAP financial statements, before non-cash changes in working capital and funds from discontinued operations. Funds from operations is not a recognized measure under Canadian GAAP. Management believes funds from operations is a useful supplemental measure as it provides an indication of the Trust's cash generating abilities from continuing operations before consideration of capital impacts. Readers should be cautioned that funds from operations should not be construed as an alternative to cash flow from operating activities, as an indicator of the Trust's performance. Peak's method of calculating funds from operations may differ from other companies and, accordingly, funds from operations may not be comparable to measures used by other entities.

Working capital is defined as current assets less current liabilities excluding current portion of long-term debt. Working capital is not a recognized measure under Canadian GAAP. Management believes working capital provides an indication of the current liquidity available to the Trust before considering long-term debt facilities or equity financing considerations. The Trust's method of calculating working capital may differ from those used by other entities and, accordingly, may not be comparable to measures used by other entities.

Funded debt is defined as long-term debt including current portion of long-term debt less cash and cash equivalents. Net debt is defined as long-term debt including current portion of long-term debt less working capital. Funded debt and net debt are not recognized measures under Canadian GAAP. Management believes funded debt and net debt provide an indication of the Trust's debt position after consideration for assets and liabilities that are considered relatively liquid in nature. The Trust's method of calculating funded debt and net debt may differ from those used by other entities and, accordingly, may not be comparable to measures used by other entities.

Long-term debt to equity ratio is defined as long-term debt including current portion of long-term debt divided by Unitholders' equity. Long-term debt to equity ratio is not a recognized measure under Canadian GAAP. Management believes the long-term debt to equity ratio provides an indication of how the Trust's operations are financed. The Trust's method of calculating long-term debt to equity ratio may differ from those used by other entities and, accordingly, may not be comparable to measures used by other entities.

FORWARD-LOOKING INFORMATION

This news release contains forward-looking information within the meaning of applicable Canadian securities legislation regarding expected future events and financial and operating results of the Trust. By its nature, forward-looking information requires the Trust to make assumptions and is subject to numerous inherent risks and uncertainties. There is significant risk that assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking information as a number of factors could cause actual future results, conditions, actions or events to differ materially from expectations, estimations or intentions expressed in the forward-looking information. The Trust disclaims any intention or otherwise to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. It is the current policy of the Trust to evaluate its past forward-looking information and where it deems appropriate, provide updates subject to requirements by law. The forward-looking statements contained in this news release are made as of the date hereof. Additionally, the Trust undertakes no obligation to comment on expectations of, or statements made by, third parties in respect of this news release.

In particular, forward-looking information includes the following statements within this news release regarding the expectations of: oil and natural gas industry activity levels; type/orientation of drilling activities; completion and timing of and when the Trust will convert to a corporation; the geopolitical and global economic future; improvement in future oil and natural gas industry activity levels, hydrocarbon supply/demand balance and associated hydrocarbon commodity pricing; the cyclical and seasonal nature of activity within the oil and natural gas industry; the future provision of Peak's services and its impact on equipment utility, pricing, forecasted financial performance and ability to continue as a going concern; management's business plan and cash flows provided by continuing operations; the Trust's ability to increase market share in various geographical regions; the future financial impact of Peak's cost restructuring initiatives; Peak's future capital expenditures; access to and affordability of debt, including the associated interest cost, and equity capital markets for Peak and its customers; the realignment of Peak's capital resources will improve liquidity and financial flexibility; the Trust's financing strategy and compliance with debt covenants; Peak's working capital changes; and management's financing strategy for managing Peak's liquidity and capital resources.

As a result, you are cautioned not to place undue reliance on these forward-looking statements. These statements are based on certain assumptions and analysis made by the Trust in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Trust's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Trust's expectations. Such risks and uncertainties include, but are not limited to: fluctuations in the price and demand for oil and natural gas; currency fluctuations; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for oilfield services that the Trust provides; the effects of weather conditions on operations; the existence of competition from other oilfield service entities; general economic, market or business conditions including the consequences of the recent global economic recession; public market volatility and the related ability to access sufficient capital to fund activities; availability to access debt financing to fund activities; government policy changes; changes in laws or regulations, including taxation and environmental regulations; liabilities inherent in the oil and natural gas field services business; the lack of availability of qualified personnel or management; and other unforeseen conditions which could impact the use of services supplied by the Trust.

Consequently, all of the forward-looking information made in this document are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Trust will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Trust or its business or operations.

FINANCIAL RESULTS

The following selected financial information summarizes Peak's consolidated financial results for the three and nine months ended September 30, 2010. Peak's quarterly report is available at www.sedar.com or www.peak-energy.com.

CONSOLIDATED BALANCE SHEETS
			September 30,			December 31,
(in thousands of CAD) (unaudited)			2010			2009
ASSETS
Current assets:
	Cash and cash equivalents		$              9,663			$                    -
	Accounts receivable		34,895			23,394
	Income taxes recoverable		-			726
	Prepaid expenses		2,523			2,172
	Inventory		960			1,425
			48,041			27,717
Property and equipment			194,015			205,524
Intangibles			1,464			1,943
			$          243,520			$           235,184
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities:
	Accounts payable and accrued liabilities		$            17,395			$             16,335
	Bridge loan		-			1,000
	Income taxes payable		92			-
	Current portion of long-term debt		-			10,856
	Current portion of deferred lease inducements		201			201
			17,688			28,392
Long-term debt			49,235			49,692
Deferred lease inducements			1,572			1,723
Future income taxes			3,614			4,664
Unitholders' equity:
	Trust Unit capital		250,970			227,347
	Contributed surplus		2,201			1,854
	Deficit		(81,760)			(78,488)
			171,411			150,713
			$          243,520			$           235,184

CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE INCOME (LOSS) AND DEFICIT
			Three months ended September 30,				Nine months ended September 30,
(in thousands of CAD, except per Unit amounts) (unaudited)			2010		2009		2010		2009
Revenue			$     38,264		$     21,107		$   104,966		$     89,649
Expenses:
	Operating		23,407		16,026		68,001		58,775
	General and administrative		7,240		6,431		22,929		22,795
	Unit-based compensation		43		60		347		312
	Depreciation and amortization		3,093		3,228		10,063		10,237
	Interest on long-term debt		1,127		1,107		3,504		3,208
	Foreign exchange loss		220		167		73		370
			35,130		27,019		104,917		95,697
Income (loss) before other items from continuing operations			3,134		(5,912)		49		(6,048)
Other items:
	Loss on sale of equipment		298		2		4,382		96
			298		2		4,382		96
Income (loss) before income taxes from continuing operations			2,836		(5,914)		(4,333)		(6,144)
Provision for income taxes:
	Current expense (recovery)		-		187		-		(528)
	Future expense (reduction)		382		(1,817)		(1,061)		(1,332)
			382		(1,630)		(1,061)		(1,860)
Net income (loss) from continuing operations			2,454		(4,284)		(3,272)		(4,284)
Net loss from discontinued operations			-		(411)		-		(10,620)
Net income (loss) and comprehensive loss			2,454		(4,695)		(3,272)		(14,904)
Deficit, beginning of period			(84,214)		(65,222)		(78,488)		(55,013)
Deficit, end of period			$    (81,760)		$    (69,917)		$    (81,760)		$    (69,917)
Earnings (loss) per Unit from continuing operations:
	Basic		$          0.01		$        (0.09)		$        (0.02)		$        (0.09)
	Diluted		$          0.01		$        (0.09)		$        (0.02)		$        (0.09)
Loss per Unit from discontinued operations:
	Basic		$              -		$        (0.01)		$              -		$        (0.22)
	Diluted		$              -		$        (0.01)		$              -		$        (0.22)
Earnings (loss) per Unit:
	Basic		$          0.01		$        (0.10)		$        (0.02)		$        (0.31)
	Diluted		$          0.01		$        (0.10)		$        (0.02)		$        (0.31)

CONSOLIDATED STATEMENTS OF CASH FLOWS
			Three months ended September 30,				Nine months ended September 30,
(in thousands of CAD) (unaudited)			2010		2009		2010		2009
Operating activities:
	Net income (loss) from continuing operations		$        2,454		$      (4,284)		$      (3,272)		$      (4,284)
	Add (deduct) items not affecting cash:
	Unit-based compensation		43		60		347		312
	Depreciation and amortization		3,093		3,228		10,063		10,237
	Amortization of long-term debt financing fees		83		-		236		-
	Unrealized foreign exchange gain		285		116		226		(178)
	Loss on sale of equipment		298		2		4,382		96
	Future income taxes (reduction)		382		(1,817)		(1,061)		(1,332)
			6,638		(2,695)		10,921		4,851
	Changes in non-cash working capital items		(5,547)		5,163		(9,800)		12,943
			1,091		2,468		1,121		17,794
	Discontinued operations:
	Funds provided by discontinued operations		-		(501)		-		(736)
	Changes in non-cash working capital items          of discontinued operations		-		(32)		-		1,124
			-		(533)		-		388
			1,091		1,935		1,121		18,182
Investing activities:
	Purchase of equipment		(2,122)		(1,554)		(5,288)		(3,794)
	Proceeds on sale of equipment		74		48		2,818		611
	Proceeds on sale of property held for sale		-		-		-		3,580
			(2,048)		(1,506)		(2,470)		397
	Changes in non-cash working capital items		(33)		(11)		48		(977)
			(2,081)		(1,517)		(2,422)		(580)
	Discontinued operations:
	Funds used in discontinued operations		-		5,318		-		5,150
			-		5,318		-		5,150
			(2,081)		3,801		(2,422)		4,570
Financing activities:
	Increase in bridge loan		-		-		1,000		-
	Repayment of bridge loan		-		-		(2,000)		-
	Repayment of long-term debt		-		(5,400)		(10,856)		(28,967)
	Long-term debt financing costs		-		-		(693)		-
	Issuance of Trust Units		-		-		24,797		-
	Trust Units issue cost		-		-		(1,175)		-
			-		(5,400)		11,073		(28,967)
Foreign exchange gain (loss) on cash held in foreign currency			(110)		(61)		(109)		1
Increase (decrease) in cash and cash equivalents			(1,100)		275		9,663		(6,214)
Cash and cash equivalents, beginning of period			10,763		2,076		-		8,565
Cash and cash equivalents, end of period			$        9,663		$        2,351		$        9,663		$        2,351

About Peak Energy Services Trust

Peak Energy Services Trust is a diversified energy services organization operating in western Canada and the United States of America. Through its various operating divisions, Peak provides drilling and production services to its customers both in the conventional and unconventional oil and natural gas industry as well as the oil sands regions of western Canada. The Trust also provides water technology solutions to a variety of customers throughout North America. Peak's units are listed on the Toronto Stock Exchange under the symbol "PES.UN".

The TSX have neither approved nor disapproved the information contained herein.

%SEDAR: 00020683E

For further information:

Peak Energy Services Trust
Mr. Curtis W. Whitteron
President and Chief Executive Officer
Livingston Place, South Tower
Suite 900, 222 - 3^rd Avenue SW  T2P 0B4
Tel: [phone]
Fax: [phone]

or

Peak Energy Services Trust
Mr. Monty R. Balderston
Chief Financial Officer
Livingston Place, South Tower
Suite 900, 222 - 3^rd Avenue SW  T2P 0B4
Tel: [phone]
Fax: [phone]