Attention Business Editors:
Enterra Energy Trust announces agreement to make a takeover bid
CALGARY, April 4 /CNW/ - Enterra Energy Trust ("Enterra" or the "Trust")
(TSX: ENT.UN, NYSE: ENT) is pleased to announce that it has entered into a
definitive agreement with a private company ("PrivateCo.") active in oil and
gas exploration and development in western Saskatchewan, pursuant to which
Enterra has agreed to make an offer to acquire all of the common shares of
PrivateCo. PrivateCo.'s current production is approximately 2,400 boe/day
consisting of 1,400 bbls/day of oil and 6,000 mcf/day of natural gas.
Pursuant to the proposed transaction, the holders of common shares of
PrivateCo. will be offered Cdn$2.09 in cash for each common share held, for
aggregate cash consideration to be paid by Enterra of approximately Cdn$63.0
million. Enterra expects to mail an offer to purchase to PrivateCo.'s
shareholders on or about April 11, 2007. It is a condition to Enterra making
the offer that pre-tender agreements in support of the offer be entered into
with all of the directors, officers and certain other shareholders of
PrivateCo. representing not less than 50% of the outstanding common shares of
PrivateCo. (on a fully-diluted basis).
ACQUISITION HIGHLIGHTS
- Current production of approximately 2,400 boe/day;
- Proved reserves totaling 2.94 mmboe and proved plus probable reserves
totaling 4.66 mmboe (as per Sproule Reserve evaluation dated September
30, 2006 and mechanically updated to December 31, 2006);
- New core area with 100% working interest in principal assets with year
round access;
- All producing fields are operated including related gathering systems
and facilities;
- Approximately 62,000 net undeveloped acres;
- Significant drilling and development potential, with over 30 currently
defined oil and gas prospects that meet the Trust's risk profile;
- Low operating costs of approximately Cdn$5.65 per boe;
- Attractive acquisition metrics of approximately Cdn$27,350 per flowing
boe, and Cdn$14.10 per boe for proven plus probable reserves (based on
a total purchase price, including working capital adjustments, of
Cdn$65.7 million); and
- Accretive to production, cash flow and reserves per unit.
Certain key members of PrivateCo.'s management and technical teams have
agreed to continue to work with Enterra personnel directing the exploitation
of PrivateCo.'s asset base to ensure an orderly transition of the assets to
Enterra.
Enterra's president Keith Conrad commented, "This acquisition brings a
tremendous range of opportunities to Enterra. It offers an excellent suite of
concentrated 100% working interest producing assets. Equally important,
PrivateCo. has established a firm inventory of development and exploration
drill targets with year round access. This combination of solid production and
organic growth potential truly builds momentum for Enterra as it steps out
from a foundation carefully laid over the last 18 months."
References herein to "boe" mean barrels of oil equivalent derived by
converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to
one barrel (bbl) of oil. Boe may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf:1 bbl is based upon an energy
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
About Enterra Energy Trust
Enterra Energy Trust is a conventional oil and gas trust based in
Calgary, Alberta. The Trust acquires, operates and exploits petroleum and
natural gas assets principally in Alberta and British Columbia, Canada, and in
Oklahoma, U.S.A.
Forward-Looking Statements
Certain information in this press release constitutes forward-looking
statements under applicable securities law. Any statements that are contained
in this press release that are not statements of historical fact may be deemed
to be forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate", "expects" and
similar expressions. Forward-looking statements in this press release include,
but are not limited to, statements with respect to the mailing of the offer
and anticipated benefits of the proposed acquisition. Forward-looking
statements necessarily involve known and unknown risks, including, without
limitation, risks associated with oil and gas production, marketing and
transportation; loss of markets; volatility of commodity prices; currency and
interest rate fluctuations; imprecision of reserve estimates; environmental
risks; competition; incorrect assessment of the value of acquisitions; failure
to realize the anticipated benefits of acquisitions; inability to access
sufficient capital from internal and external sources; changes in legislation,
including but not limited to income tax, environmental laws and regulatory
matters. Readers are cautioned that the foregoing list of factors is not
exhaustive.
Readers are cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such information, although
considered reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those anticipated.
Forward looking statements contained in this press release are expressly
qualified by this cautionary statement.
Additional information on these and other factors that could affect
Enterra's operations or financial results are included in Enterra's reports on
file with Canadian and U.S. securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com), the SEC's website
(www.sec.gov), Enterra's website (www.enterraenergy.com) or by contacting
Enterra. Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and Enterra does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as expressly required by securities law.
For further information: E. Keith Conrad, President & CEO, Enterra Energy
Trust, Telephone: (403) 263-0262 or (877) 263-0262, E-mail:
ekconrad@enterraenergy.com; Victor Roskey, Senior Vice President & CFO,
Enterra Energy Trust, Telephone: (403) 263-0262 or (877) 263-0262, E-mail:
vroskey@enterraenergy.com; www.enterraenergy.com
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Enterra Energy Trust
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CODE : ENT |
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Enterra Energy est une société de production minière basée au Canada. Enterra Energy est cotée au Canada et aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 162,1 millions US$ (137,7 millions €). La valeur de son action a atteint son plus haut niveau récent le 31 mars 2000 à 99,94 US$, et son plus bas niveau récent le 20 mars 2020 à 0,06 US$. Enterra Energy possède 85 310 000 actions en circulation. |