CALGARY, Dec. 6 /CNW/ - (CNE.UN - TSX; CNE - NYSE) Canetic Resources
Trust ("Canetic") wishes to inform unitholders that the Notice of Special
Meeting, Information Circular and related documents in respect of the proposed
combination of Penn West Energy Trust and Canetic has been filed effective
December 6, 2007. Mailing of the Information Circular and related documents to
Canetic unitholders commenced on December 6, 2007.
The Information Circular contains a detailed description of the
Arrangement and is available on SEDAR (www.sedar.com) and EDGAR (www.sec.gov),
as well as on the Canetic website at www.canetictrust.com. The Special Meeting
of Canetic Unitholders to vote on the Arrangement will be held on Wednesday,
January 9, 2008 at the Metropolitan Conference Centre, 333 - 4th Avenue S.W.,
Calgary, Alberta at 9:00 a.m. Mountain Standard Time.
Under the terms of Arrangement, each Canetic unit will be exchanged for
0.515 of a Penn West unit. Canetic unitholders will also receive a one-time
special distribution of CDN $0.09 per Canetic unit intended to equalize the
distribution payment of both entities for a period of six months.
The Arrangement should generally not give rise to any capital gain or
capital loss to Canetic Unitholders under Canadian federal income tax laws and
is intended to qualify as a tax-free reorganization under U.S. federal income
tax laws. Canadian unitholders will have the option to elect to have the
exchange carried out as a taxable exchange for Canadian federal tax purposes
as outlined in the Information Circular. Canetic unitholders resident in
jurisdictions other than Canada or the U.S. should consult their own legal and
tax advisors with respect to the tax consequences associated with this
The Arrangement is subject to a number of conditions including, but not
limited to, the approval of at least 66 2/3 percent of votes cast in person or
by proxy at the Special Meeting of Canetic Unitholders, as well as court and
regulatory approvals and other conditions that are typical of transactions of
this nature. Provided that Canetic Unitholders approve the Arrangement at the
Special Meeting, and that all of the other conditions to the completion of the
Arrangement are satisfied, the earliest completion date for the transaction is
anticipated to be January 11, 2008 and may be later depending upon the timing
of the receipt of regulatory approvals.
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 www.canetictrust.com or
contact Canetic investor relations by email at: Info@canetictrust.com or toll
free telephone at 1-877-539-6300.
ADVISORY: Certain information contained in this news release, including
statements with respect to the closing date and tax treatment of the merger
with Penn West Energy Trust may constitute forward-looking statements under
applicable securities law and necessarily involve risks, including, without
limitation, risks associated with obtaining unitholder and required regulatory
approvals, risks associated with taxation authorities disagreeing with the tax
analysis described above, and changes in tax laws or the application thereof.
As a consequence, actual results may differ materially from those anticipated
in the forward-looking statements. Readers are cautioned that the foregoing
list of factors is not exhaustive. Additional information on these and other
factors that could affect Canetic's operations or financial results are
included in reports on file with applicable securities regulatory authorities
and may be accessed through the SEDAR website (www.sedar.com), the SEC's
website (www.sec.gov) or at Canetic's website (www.canetictrust.com).
%SEDAR: 00023165E %CIK: 0001349237
For further information:
For further information: Investor Relations, (403) 539-6300, Toll Free -
1-877-539-6300, email@example.com, www.canetictrust.com