Penn West Energy Trust announces the closing of a property acquisition, additional bank facilities and the pricing of a U.S. private placement of notes

    PENN WEST ENERGY TRUST (TSX - PWT.UN; NYSE - PWE) announces the closing
    of a property acquisition, additional bank facilities and pricing of a
    U.S. private placement of notes

    CALGARY, April 18 /CNW/ - Penn West Energy Trust ("Penn West") is pleased
to announce it has closed the acquisition of oil and natural gas assets
previously announced on February 9, 2007 (the "Acquisition"), has entered into
additional bank credit facilities and has priced a proposed offering of notes
to be issued on a private placement basis, primarily in the United States,
with an aggregate principal amount of US $475 million.
    The Acquisition, which closed on April 11, 2007, was financed through
Penn West's existing syndicated credit facility and a new, $250 million
unsecured, demand credit facility. The demand credit facility is priced at the
same rates as Penn West's existing syndicated credit facility and expires on
December 31, 2008.
    The private placement consists of US $160 million of 5.68% notes due in
2015, US $155 million of 5.80% notes due in 2017, US $140 million of 5.90%
notes due in 2019 and US $20 million of 6.05% notes due in 2022. The notes
will be unsecured and rank equally with Penn West's bank facilities. Subject
to the completion of due diligence and the satisfaction of other customary
closing conditions, the debt offering is expected to close on or about May 31,
2007. Penn West intends to use the proceeds of the notes to repay a portion of
its outstanding bank debt under its credit facilities.
    The notes have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "Securities Act"), and may not
be offered or sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities Act.

    Penn West Energy Trust is a senior oil and natural gas energy trust based
in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol
PWT.UN and on the New York Stock Exchange under the symbol PWE.

    Forward looking statements

    In the interest of providing Penn West's unitholders and potential
investors with information regarding Penn West, including management's
assessment of Penn West's future plans and operations, certain statements
contained in this document constitute forward-looking statements or
information (collectively "forward-looking statements") within the meaning of
the "safe harbour" provisions of applicable securities legislation.
Forward-looking statements are typically identified by words such as
"anticipate", "continue", "estimate", "expect", "forecast", "may", "will",
"project", "could", "plan", "intend", "should", "believe", "outlook",
"potential", "target" and similar words suggesting future events or future
performance. In addition, statements relating to "reserves" or "resources" are
deemed to be forward-looking statements as they involve the implied
assessment, based on certain estimates and assumptions, that the reserves and
resources described exist in the quantities predicted or estimated and can be
profitably produced in the future. In particular, this document contains
forward-looking statements pertaining to, without limitation, the offering
size, terms and closing date of the proposed debt offering.
    With respect to forward-looking statements contained in this document, we
have made assumptions regarding, among other things: investor demand for Penn
West's notes; the successful completion of due diligence; future oil and
natural gas prices and differentials between light, medium and heavy oil
prices; future oil and natural gas production levels; future exchange rates;
our ability to obtain financing on acceptable terms; and our ability to obtain
all necessary approvals.
    Although Penn West believes that the expectations reflected in the
forward-looking statements contained in this document, and the assumptions on
which such forward-looking statements are made, are reasonable, there can be
no assurance that such expectations will prove to be correct. Readers are
cautioned not to place undue reliance on forward-looking statements included
in this document, as there can be no assurance that the plans, intentions or
expectations upon which the forward-looking statements are based will occur.
By their nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties that contribute to the possibility
that the predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause Penn West's actual performance and
financial results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things: volatility in market prices for oil and natural gas; general economic
conditions in Canada, the U.S. and globally; industry conditions, including
fluctuations in the price of oil and natural gas; royalties payable in respect
of Penn West's oil and natural gas production; changes in government
regulation of the oil and natural gas industry, including environmental
regulation; fluctuations in foreign exchange or interest rates; unanticipated
operating events that can reduce production or cause production to be shut-in
or delayed; OPEC's ability to control production and balance global supply and
demand of crude oil at desired price levels; political uncertainty, including
the risks of hostilities, in the petroleum producing regions of the world; the
need to obtain required approvals from regulatory authorities from time to
time; failure to realize the anticipated benefits of acquisitions, including
the merger with Petrofund Energy Trust and the Acquisition; and the other
factors described in Penn West's public filings (including our Annual
Information Form) available in Canada at and in the United
States at Readers are cautioned that this list of risk factors
should not be construed as exhaustive.
    The forward-looking statements contained in this document speak only as
of the date of this document. Except as expressly required by applicable
securities laws, Penn West does not undertake any obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking statements
contained in this document are expressly qualified by this cautionary

    %SEDAR: 00022266E          %CIK: 0001334388

For further information:

For further information: PENN WEST ENERGY TRUST, Suite 2200, 425 - First
Street S.W., Calgary, Alberta, T2P 3L8, Website:, Toll-free:
1-866-693-2707, Phone: (403) 777-2500, Fax: (403) 777-2699; Investor
Relations: William Andrew, President and CEO, Phone (403) 777-2502, Toll-free:
1-888-770-2633, E-mail:

Organization Profile

Penn West

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890