Pengrowth Energy Trust Closes Bought Deal Equity Offering
Pengrowth Corporation, administrator of Pengrowth Energy Trust, (TSX:PGF.UN) (NYSE:PGH) has closed the previously announced bought deal equity offering. Pengrowth issued 23,310,000 trust units at $22.60 per trust unit for gross proceeds of $526,806,000. This includes the full exercise by the underwriters of their option to purchase up to an additional 4,725,000 trust units. A portion of the net proceeds from this offering will be used to fund the previously announced Carson Creek acquisition. The remaining net proceeds will be applied to Pengrowth's 2006 capital expansion program, repayment of Pengrowth's revolving credit facility or for general corporate purposes. Purchasers of Pengrowth trust units issued pursuant to the offering will be eligible for the $0.25 per unit distribution payable on October 15, 2006.
The offering was underwritten by a group of underwriters led by RBC Capital Markets and including BMO Capital Markets, CIBC World Markets Inc., Scotia Capital Inc., National Bank Financial Inc., TD Securities Inc., Merrill Lynch Canada, Inc., HSBC Securities (Canada) Inc., Sprott Securities Inc., Canaccord Capital Corporation, Raymond James Ltd., Dundee Securities Corporation, FirstEnergy Capital Corp. and Peters & Co. Limited.
Pengrowth Energy Trust is one of the largest energy royalty trusts in North America. Trust units trade on the Toronto Stock Exchange (PGF.un) and the New York Stock Exchange (PGH). Through the purchase of trust units, unitholders participate in the ownership of a large portfolio of crude oil and natural gas properties, receiving the net cash flow (after expenses and other withholdings), paid monthly, as the oil and gas reserves are produced. Pengrowth's property portfolio is one of the strongest in the energy trust sector with a proved plus probable reserve life index of 10.6 years and a reserve base of 219.4 million boe at December 31, 2005. Pengrowth's assets are characterized by low decline rates and high development potential allowing for stable production.