/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN
THE UNITED STATES/
CALGARY, April 30 /CNW/ - Enterra Energy Trust ("Enterra" or the "Trust")
(TSX: ENT.UN, NYSE: ENT) is pleased to announce that it has completed the
purchase of all of the issued and outstanding shares of Trigger Resources Ltd.
("Trigger"). The aggregate purchase price, including a working capital
deficit, was Cdn$63.2 million and was funded with the proceeds of the
previously announced bought deal financing. Trigger is active in oil and gas
exploration and development in western Saskatchewan, and realized average
first quarter production of approximately 2,400 boe/day consisting of 1,400
bbls/day of oil and 6,000 mcf/day of natural gas.
"We are very pleased to have added this new core area to our solid
production base" said President and Chief Executive Officer Keith Conrad.
"This accretive acquisition provides Enterra with reliable production and new
organic growth opportunities, both key growth strategies for Enterra."
Some key financial and operational benefits from the acquisition include:
- Accretive to production, cash flow and reserves;
- Low operating costs of approximately Cdn$5.65 per boe;
- 100% working interest in principal assets with year round access;
- Proved reserves totaling 2.94 mmboe and proved plus probable reserves
totaling 4.66 mmboe; and
- Approximately 62,000 net undeveloped acres with significant drilling
and development potential.
Enterra also announces that Scotia Capital Inc., CIBC World Markets Inc.,
HSBC Securities (Canada) Inc. and Orion Securities Inc. have fully exercised
the over-allotment option granted as part of the above mentioned bought deal
financing of trust units and debentures. As a result, an additional 645,000
units of the Trust have been issued at Cdn$5.90 per trust unit for gross
proceeds of approximately Cdn$3.8 million.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any sale of
securities in any state in the United States in which such offer, solicitation
or sale would be unlawful. The securities referred to herein have not been and
will not be registered under the United States Securities Act of 1933, as
amended and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
About Enterra Energy Trust
Enterra Energy Trust is a conventional oil and gas trust based in
Calgary, Alberta. The Trust acquires, operates and exploits petroleum and
natural gas assets principally in Alberta and British Columbia, Canada, and in
Certain information regarding the Trust contained herein constitutes
forward-looking statements under the meaning of applicable securities laws,
including the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements include estimates, plans, expectations, opinions,
forecasts, projections, guidance, or other statements that are not statements
of fact, including statements regarding risks and uncertainties described from
time to time in the reports and filings made by the Trust with securities
regulatory authorities. Although the Trust believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct. There are
many factors that could cause forward-looking statements not to be correct,
including risks and uncertainties inherent in the Trust's business. These
risks include, but are not limited to: crude oil and natural gas price
volatility, exchange rate fluctuations, availability of services and supplies,
operating hazards and mechanical failures, uncertainties in the estimates of
reserves and in projection of future rates of production and timing of
development expenditures, general economic conditions, and the actions or
inactions of third-party operators. The Trust may, as considered necessary in
the circumstances, update or revise forward looking information, whether as a
result of new information, future events, or otherwise. The Trust's
forward-looking statements are expressly qualified in their entirety by this
For further information:
For further information: E. Keith Conrad, President & CEO, Enterra
Energy Trust, Telephone: (403) 263-0262 or (877) 263-0262, E-mail:
email@example.com; Victor Roskey, Senior Vice President & CFO,
Enterra Energy Trust, Telephone: (403) 263-0262 or (877) 263-0262, E-mail: