TSX SYMBOL: PEY.UN
CALGARY, Nov. 13 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust")
today confirms the cash distributions for December 2007 and announces a
Special Meeting of Unitholders will be held on December 14, 2007, to consider
a proposed internal reorganization.
A Special Meeting of Unitholders will be held on December 14, 2007 at
2:30 p.m. in Room 16-1, at the offices of Burnet, Duckworth & Palmer LLP,
Suite 1400, 350-7th Avenue SW, Calgary, Alberta, Canada. The Record Date for
the determination of those Unitholders entitled to receive notice of, and vote
at the meeting is November 13, 2007.
At the Special Meeting, Unitholders will be asked to provide conditional
approval of an internal reorganization of the Trust and its subsidiaries. The
internal reorganization does not involve the acquisition of any additional
interests in any operating assets or the disposition of any of the Trust's
existing interests in operating assets. Following completion of the
reorganization, the Unitholders will continue to hold units and the Trust will
continue to own, directly and indirectly, the same proportionate interests in
the operating assets that it held immediately prior thereto. As a result of
the internal reorganization Unitholders should generally not recognize any
income, gain or loss for Canadian or United States income tax purposes.
The reorganization, if completed, would result in the existing business
of the Trust, which is currently carried on through a combination of Peyto
Exploration & Development Corp. and Peyto Operating Trust, being carried on
entirely through a limited partnership indirectly owned by the Trust. The
reorganization, which is similar in substance to reorganizations completed by
a number of other income trusts, will provide the Trust with a "flow through"
structure that should maximize the cash available for distribution. The
reorganization is also subject to certain regulatory and third-party approvals
and follows an advance tax ruling received from the Canada Revenue Agency.
For Unitholders, the reorganization will not result in a change to the
number, type and ownership of the outstanding units of the Trust nor will it
change the monthly distribution paid out to Unitholders. A detailed
description of the reorganization will be included in the Notice of Special
Meeting and Management Information Circular that will be mailed to Unitholders
on or about November 19, 2007. The Management Information Circular is also
expected to be available electronically on www.sedar.com on or about
November 19, 2007.
Given the specific purpose of the Meeting, it is not currently
anticipated that there will be any management presentation or discussion at
Confirmation of December 2007 Distributions
Peyto confirms that the monthly distribution with respect to November
2007 of $0.14 per trust unit is to be paid on December 14, 2007, for
Unitholders of record on November 30, 2007. The ex-distribution date is
November 28, 2007. This distribution represents the 22nd consecutive month
since February 2006 that distributions have been sustained at this level.
Peyto believes that the foundation for sustainable distributions comes
from long life, high quality reserves combined with a business of profitably
finding and developing new reserves. Our business remains committed to this
strategy and our asset base continues to lead the industry in reserve life and
operating costs. As our current distribution level is well balanced with our
business needs and high quality assets, we believe it is sustainable and
continues to offer the prospect of growth in the future.
Peyto is a natural gas weighted energy trust. Peyto currently has
105.7 million trust units outstanding and is committed to maintaining its
emphasis on building value through the exploration and development of high
quality gas properties.
Peyto trust units trade on the TSX under the symbol PEY.UN.
We encourage you to actively visit Peyto's website located at
Certain information set forth in this document and Management's
Discussion and Analysis, including management's assessment of Peyto's future
plans and operations, contains forward-looking statements. By their nature,
forward-looking statements are subject to numerous risks and uncertainties,
some of which are beyond these parties' control, including the impact of
general economic conditions, industry conditions, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates, environmental
risks, competition from other industry participants, the lack of availability
of qualified personnel or management, stock market volatility and ability to
access sufficient capital from internal and external sources. Readers are
cautioned that the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on forward-looking
statements. Peyto's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if
any of them do so, what benefits Peyto will derive therefrom. Peyto disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
For further information:
For further information: Darren Gee, President and CEO, Phone: (403)
237-8911, Fax: (403) 451-4100