CALGARY, Nov. 10 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB; KEY.DB.A) ("Keyera") announced today that it has agreed to acquire an additional 33% ownership interest in the West Pembina gas plant ("West Pembina"), increasing Keyera's ownership to approximately 69%. In addition to the plant interests, Keyera is also acquiring other ancillary assets associated with the West Pembina plant, including a sour gas gathering pipeline, as well as sulphur and water handling and disposal facilities. As part of the agreement, Keyera has also entered into long-term processing agreements at the facility with the vendors.
The total combined cost of the acquisitions is approximately $27 million. One of the two transactions closed November 10, 2009 and the other is expected to close in December 2009 (subject to normal closing conditions). Both transactions are subject to rights of first refusal on a small portion of the acquired assets.
"We are very pleased to increase our ownership in the West Pembina gas plant. These acquisitions support our strategy of increasing ownership in existing facilities and enhancing our presence in the geologically prospective Foothills region of Alberta" said Jim Bertram, President and CEO of Keyera Facilities Income Fund. "West Pembina is located in an area of significant geological potential, and one that has seen an increase in the use of horizontal drilling and multi stage fracturing techniques to target tight gas reservoirs. The West Pembina plant is interconnected with other Keyera facilities in the area and provides producers with broad access to gathering systems and increased processing flexibility".
This document contains forward-looking statements that involve known and unknown risks and uncertainties, many of which are beyond Keyera's control. The forward-looking statements are based on management's current expectations and assumptions relating to Keyera's business and the environment in which it operates. As the results or events predicted or implied in these forward-looking statements depend upon future events, actual results or events may differ materially from those predicted. Some of the factors which could cause actual results or events to differ materially include Keyera's ability to successfully implement planned initiatives, whether those initiatives yield the expected benefits, the impact of government and industry initiatives, operating and other costs, future operating results, fluctuations in the demand for natural gas, NGLs and crude oil, the activities of producers, competitors and others, the weather, overall economic conditions and other known or unknown factors. There can be no assurance that the results or developments anticipated by Keyera will be realized or that they will have the expected consequences for or effects on Keyera. For additional information on these and other factors, see Keyera's public filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Keyera Corp.
For further information: For further information: about Keyera Facilities Income Fund, please visit our website at www.keyera.com or contact: John Cobb, Director, Investor Relations, or Bradley White, Investor Relations Advisor, E-mail: email@example.com, Telephone: (403) 205-7670, Toll Free: (888) 699-4853, Facsimile: (403) 205-8440