CALGARY, ALBERTA--(Marketwire - May 28, 2009)
- Enterra Energy Trust ("Enterra", "We",
"Our" or the "Trust") announces that it has made
the necessary filings, and received the necessary approvals, to make a
normal course issuer bid for its 8.25% convertible unsecured
subordinated debentures (the "8.25% Debentures") and its
8.00% convertible unsecured subordinated debentures (the "8.00%
Debentures" and with the 8.25% Debentures, the
"Debentures") through the facilities of the Toronto Stock
Exchange (the "TSX") commencing June 1, 2009 and ending May
31, 2010, or on such earlier date as Enterra may complete its maximum
allowable purchases under the bid as described below.
The 8.25% Debentures have a face value of $1,000 per debenture, a
maturity date of December 31, 2012 and are convertible into trust units
of Enterra at a price of $6.80 per trust unit. The 8.25% Debentures pay
interest semi-annually on June 30 and December 31.
The 8.00% Debentures have a face value of $1,000 per debenture, a
maturity date of December 31, 2011 and are convertible into trust units
of Enterra at a price of $9.25 per trust unit. The 8.00% Debentures pay
interest semi-annually on June 30 and December 31.
Enterra currently has $40,000,000 principal amount of the 8.25%
Debentures outstanding. A total of $4,000,000 principal amount of the
8.25% Debentures may be acquired under the bid, representing 10% of the
"public float" of the 8.25% Debentures. Enterra's daily
purchase restriction under the bid is $4,000 principal amount of the
8.25% Debentures, subject to "block purchase" exemptions
permitted by the rules of the TSX. Enterra will acquire the 8.25%
Debentures under the bid at the market price at the time of purchase,
with the acquired 8.25% Debentures being cancelled.
Enterra currently has $80,331,000 principal amount of the 8.00%
Debentures outstanding. A total of $8,033,100 principal amount of the
8.00% Debentures may be acquired under the bid, representing 10% of the
"public float" of the 8.00% Debentures. Enterra's daily
purchase restriction under the bid is $11,000 principal amount of the
8.00% Debentures, subject to "block purchase" exemptions
permitted by the rules of the TSX. Enterra will acquire the 8.00%
Debentures under the bid at the market price at the time of purchase,
with the acquired 8.00% Debentures being cancelled.
In the opinion of the board of directors of Enterra's administrator,
the Debentures may be, from time to time, undervalued by the market,
and the cost to Enterra of acquiring the Debentures under a normal
course issuer bid is an expense prudently incurred by Enterra to
increase unitholder value.
About Enterra Energy Trust
Enterra is an exploration and production oil and gas trust based in
Calgary, Alberta, Canada with its United States operations office
located in Oklahoma City, Oklahoma. Enterra's trust units and
debentures are listed on the Toronto Stock Exchange under the symbols
(TSX:ENT.UN) (TSX:ENT.DB) (TSX:ENT.DB.A) and Enterra's trust units are
listed on the New York Stock Exchange under the symbol (NYSE:ENT). The
Trust's portfolio of oil and gas properties is geographically
diversified with producing properties located principally in Alberta,
British Columbia, Saskatchewan and Oklahoma. Production is comprised of
approximately 58 percent natural gas and 42 percent crude oil and
natural gas liquids. Enterra has compiled a multi-year drilling
inventory for its properties.
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,"
"seeks" and similar expressions. 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 or dispositions; 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.
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