Groppe-Middlefield Energy Fund - Initial public offering

    TORONTO, May 6 /CNW/ - Middlefield Group, on behalf of the
Groppe-Middlefield Energy Fund (the "Groppe Fund" or the "Fund"), is pleased
to announce that it has filed a preliminary prospectus in relation to the
initial public offering of Units at a price of $12.00 per Unit. It is expected
that the Fund will pay monthly distributions over the next 12 months amounting
to $0.60/Unit, which represents an annualized yield of 5% on the original
subscription price.
    Groppe, Long & Littell ("GLL"), a Houston, Texas based oil and gas
consulting firm, will be Special Advisor to the Fund, providing it with
tactical asset allocation advice as well as on-going analysis of the global
economic and political forces impacting the prices of oil and natural gas.
Henry Groppe, the founder of GLL, will be the individual primarily involved in
providing services to the Fund. Mr. Groppe has over 50 years of experience in
the oil, natural gas and petrochemical industries. Middlefield Capital
Corporation will be responsible for advising in respect of the Fund's
investments. With approximately $3 billion in assets under management,
Middlefield has specialized in the oil and gas and mining sectors for over a
quarter of a century.
    The Groppe Fund has been designed to capitalize on the Advisor's positive
long-term outlook for the oil and gas sector through a strategy of active
asset allocation and security selection. The Fund will invest in a diversified
portfolio comprised primarily of equity and fixed income securities of issuers
that operate in or have exposure to the oil and gas industry. GLL will provide
advice with respect to the Fund's exposure to oil or gas securities, to equity
or fixed income securities or to cash or cash equivalents as well as the
Fund's leverage.
    Based upon the analysis provided by GLL, the Advisor believes the oil and
gas sector will provide a favourable long-term environment for growth and
attractive investment opportunities due to a combination of depleting oil and
gas reserves, global demand growth and on-going geopolitical instability. In
the near to mid-term, recent reductions in planned capital spending as well as
decreases in production by the Organization of the Petroleum Exporting
Countries, should result in production shortfalls which will provide support
for oil and gas prices.
    Individuals investing in the Groppe Fund will have the option of paying
for Units by exchanging securities of certain specified issuers, subject to
the terms and conditions set forth in the prospectus. By exchanging securities
for Units of the Fund, investors are able to achieve the benefits of
diversification and professional management.
    The syndicate of agents is being co-led by CIBC and RBC Capital Markets,
and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia
Capital Inc., TD Securities Inc., Blackmont Capital Inc., Canaccord Capital
Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc.,
Manulife Securities Incorporated, Middlefield Capital Corporation, Raymond
James Ltd., Richardson Partners Financial Limited, GMP Securities L.P.,
Haywood Securities Inc., Research Capital Corporation and Wellington West
Capital Markets Inc.

    A preliminary prospectus relating to these securities has been filed with
securities commissions or similar authorities in all of the provinces and
territories of Canada but has not yet become final for the purpose of a
distribution to the public. This material shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale or
any acceptance of an offer to buy these securities in any province or
territory of Canada prior to the time a receipt for the final prospectus or
other authorization is obtained from the securities commission or similar
authority in such province or territory.

For further information:

For further information: please visit our website at
or contact Nancy Tham, Senior Vice-President, at (416) 847-5349 or at

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