News Releases

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

FOR IMMEDIATE RELEASE: July 5, 2007

TSX SYMBOL: TDG.UN

CALGARY, ALBERTA – Trinidad Energy Services Income Trust (the “Trust” or “Trinidad”) is pleased to announce the closing of its previously announced acquisition of the assets of Drilling Productivity Realized, L.L.C., P.C. Axxis, L.L.C., DPR International, L.L.C. and DPR Rentals, L.L.C. (collectively, “Axxis”). The assets acquired include four land based drilling rigs and one barge drilling rig, together with related inventory, crewboats and spare parts (the "Axxis Acquisition"). Trinidad will assume the remaining construction commitments of a second barge drilling rig currently under construction, and will reimburse Axxis for construction costs undertaken to the date of closing. Concurrently with the closing of the Axxis Acquisition, Trinidad has closed its previously announced convertible debenture financing. $325,000,000 aggregate principal amount of 7.75% convertible unsecured subordinated debentures (“Debentures”) were sold by a syndicate of underwriters co-led by TD Securities Inc. and Raymond James Ltd., and including BMO Capital Markets, Canaccord Adams, RBC Capital Markets, Scotia Capital Inc., CIBC World Markets Inc., Blackmont Capital Inc., Wellington West Capital Markets Inc., and Haywood Securities Inc. (collectively, the "Underwriters").

The Debentures have a face value of $1,000 per Debenture, a coupon of 7.75%, a maturity date of July 31, 2012, and are convertible at any time prior to maturity or the date fixed for redemption at the option of the holder, into trust units of Trinidad at a price of $19.30 per trust unit. The Debentures pay interest semi-annually on June 30 and December 31, with the initial interest payment to be made on December 31, 2007.

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 Axxis acquisition and the current rig construction programs, the Trust will have 110 land drilling rigs and two barge rigs ranging in depths from 1,000 – 6,500 metres. In addition to its drilling rigs, Trinidad has 21 service rigs that have been completely retrofitted or are new within the past five years and 17 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 shall not constitute an offer to sell or the solicitation of an offer to buy the trust units in any jurisdiction. The convertible debentures offered and the trust units issuable upon the conversion of the debentures 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 of to a

U.S. person, absent registration, or an applicable exemption therefrom.

For further information please contact:

Michael Heier, Chairman and Chief Executive Officer or Brent Conway, Chief Financial Office r 
At 403.265.652 5 
Fax: 403.265.416 8 
E-mail: twood@trinidaddrilling.co m 

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

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "might" and similar expressions are intended to identify forward- looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: (i) the benefits to be achieved by Trinidad from the Axxis Acquisition; (ii) the timing for completion and cost of the barge drilling rig under construction; (iii) other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.

The forward-looking information and statements contained in this news release reflect several material factors, expectations and assumptions including, without limitation: (i) demand for Trinidad's and Axxis Drilling's services by oil and gas exploration and production companies;

(ii) capital expenditure programs and other expenditures by oil and gas exploration and production companies; (iii) commodity prices, foreign currency exchange rates and interest rates; (iv) supply and demand for commodities; (v) expectations regarding the Trust's ability to raise capital; (vi) schedules and timing of certain projects and Trinidad's strategy for growth;

(vii) Trinidad's future operating and financial results; (viii) treatment under governmental regulatory regimes and tax, environmental and other laws; (ix) the timing of the delivery of the barge drilling rig under construction; and (x) the ability to attract and retain qualified crews to crew Trinidad's and Axxis Drilling's drilling rigs.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.

The Trust cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Trust assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.