EDMONTON, Dec. 17 /CNW/ - PetroCorp Group Inc. (PCG.H: NEX) (the "Corporation"), announces today that further to its previous press release of
December 3, 2010 with respect to the planned distribution of 17,857,043
trust units of Petrowest Energy Services Trust (the "Units") held by the Corporation to its registered shareholders ("Shareholders"), on a pro rata basis, the fair market value of each Unit has been
determined by the Corporation to be $0.16 per Unit based on a five
trading day average of the Units to December 15, 2010. This valuation
is not binding on the Canada Revenue Agency.
Shareholders of the Corporation will receive 0.246907 Units for each
share held of the Corporation as of the record date on December 15,
2010. Shareholders with an adjusted cost base of their investment in
the Corporation in excess of $0.03950512 per share should not be
subject to tax as a result of this distribution, but the adjusted cost
base of their investment in the Corporation should be reduced by the
amount of the distribution they receive. A capital gain should be
realized by those Shareholders for the amount by which the return of
capital distribution exceeds their adjusted cost base. The Corporation
is not required, nor does it intend to issue any reporting slips with
respect to this distribution, and accordingly any tax reporting slips
which Shareholders may receive will not reflect this distribution.
The Corporation suggests that Shareholders obtain specific tax guidance
where required, and in particular with respect to non-residents, which
may be subject to different tax provisions and consequences according
to their local jurisdictions and tax laws.
Neither the NEX, nor its Regulatory Services Provider (as that term is
defined in the policies of the NEX) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE PETROCORP GROUP INC.
For further information: For further information:
Larry Patriquin, CEO at (780) 499-7662, or Randy Fries, Interim CFO, at (780) 910-9436