Canetic Resources Trust Announces Closing of Private Company Asset Acquisition
August 31 2006 - 4:26PM
PR Newswire (US)
CALGARY, Aug. 31 /PRNewswire-FirstCall/ -- (CNE.UN - TSX; CNE -
NYSE) Canetic Resources Trust ("Canetic" or the "Trust") is pleased
to announce that it has successfully closed the previously
announced acquisition of a private company's natural gas and oil
interests in central Alberta and northeastern British Columbia (the
"Acquisition"). Canetic financed the Acquisition with a $690
million bought deal Subscription Receipt and Debenture financing,
which closed August 24, 2006, as well as through available credit
facilities. Production from the acquired assets is approximately
13,500 boe/d comprised of 70.0 mmcf/d of natural gas and 1,600
bbls/d of crude oil and natural gas liquids (NGLs). The Acquisition
increases Canetic's overall current production to approximately
86,000 boe/d and balances the portfolio to 53 percent crude oil and
NGLs and 47 percent natural gas. The Acquisition also increases
Canetic's total proved plus probable reserves to nearly 275 mboe.
The assets are complementary to Canetic's current properties in the
Peace River Arch and Rocky areas and include 230,000 net acres of
undeveloped land in large contiguous land blocks with high working
interests and over 300 identified development drilling
opportunities. Under the bought deal financing, which closed August
24, 2006, Canetic issued 20,769,000 Subscription Receipts at $22.15
per Subscription Receipt for gross proceeds of $460 million and
$230 million principal amount of 6.5% convertible extendible
unsecured subordinated debentures (the "Debentures"). With the
closing of the Acquisition, trading in the Subscription Receipts
will be halted and the Subscription Receipts will remain halted
until the close of business today, August 31, 2006, at which time
the Subscription Receipts will be de-listed. Holders of
Subscription Receipts will receive one trust unit for each
Subscription Receipt held, effective at 5:00 p.m. (Calgary time),
August 31, 2006. Canetic's previously announced cash distribution
of C$0.23 per trust unit for August 2006 will be paid on September
15, 2006 to unitholders of record at the close of business on
August 31, 2006. Holders of Subscription Receipts will be deemed to
have exchanged their Subscription Receipts for trust units at the
close of business on August 31, 2006. Holders of Subscription
Receipts (other than certain United States holders who were issued
legended certificates) need not take any action in order to receive
the trust units to which they are entitled. In addition, with the
closing of the Acquisition, the maturity date of the 6.5%
Debentures has automatically been extended from September 30, 2006
to December 31, 2011. The TSX trading symbol of the Debentures is
CNE.DB.E. Canetic is one of Canada's largest oil and gas royalty
trusts. Canetic trust units and debentures are listed on the
Toronto Stock Exchange under the symbols CNE.UN, CNE.DB.A,
CNE.DB.B, CNE.DB.C, CNE.DB.D, and CNE.DB.E and the trust units are
listed on the New York Stock Exchange under the symbol CNE. For
further information, please see the website at
http://www.canetictrust.com/ or contact Canetic investor relations
by email at: or toll free telephone at 1-877-539-6300. ADVISORY:
Certain information in this press release constitutes
forward-looking statements under applicable securities law. Any
statements that are contained in this press release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expects" and similar
expressions. Forward-looking statements in this press release
include, but are not limited to, statements with respect to the
closing of the Acquisition, reserve estimates, production of oil
and natural gas volumes, estimates of undeveloped net acreage and
funding for development programs. Forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with oil and gas production, marketing
and transportation; loss of markets; volatility of commodity
prices; currency and interest rate fluctuations; imprecision of
reserve estimates; environmental risks; competition; incorrect
assessment of the value of acquisitions; failure to realize the
anticipated benefits of acquisitions; inability to access
sufficient capital from internal and external sources; changes in
legislation, including but not limited to income tax, environmental
laws and regulatory matters. Readers are cautioned that the
foregoing list of factors is not exhaustive. Readers are cautioned
not to place undue reliance on forward-looking statements as there
can be no assurance that the plans, intentions or expectations upon
which they are placed will occur. Such information, although
considered reasonable by management at the time of preparation, may
prove to be incorrect and actual results may differ materially from
those anticipated. Forward looking statements contained in this
press release are expressly qualified by this cautionary statement.
Additional information on these and other factors that could affect
Canetic's operations or financial results are included in Canetic's
reports on file with Canadian and U.S. securities regulatory
authorities and may be accessed through the SEDAR website
(http://www.sedar.com/), the SEC's website (http://www.sec.gov/),
Canetic's website (http://www.canetictrust.com/) or by contacting
Canetic. Furthermore, the forward-looking statements contained in
this news release are made as of the date of this news release, and
Canetic does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by securities law. DATASOURCE: Canetic Resources
Trust CONTACT: Investor Relations, (403) 539-6300, Toll Free -
1-877-539-6300, , http://www.canetictrust.com/
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