Penn West and Canetic Merge to Create Canada's Flagship Energy Trust
The Penn West and Canetic combination will form the largest conventional oil and gas trust in North America and create a world-class Canadian platform to compete against global energy companies and deliver superior unit-holder returns. The Combined Trust will have a diverse and high quality asset base, a large portfolio of development opportunities, an experienced and strong organization, and a healthy balance sheet with significant financial capacity.
The Combined Trust will be the largest conventional oil and gas trust in North America with an enterprise value of over C$15 billion and current production of over 200,000 boe/d. The combined asset portfolio will include interests in a significant number of Western Canada's highest quality conventional oil and natural gas pools and will also include a number of non-conventional growth opportunities including oil sands, coalbed methane, shale gas and enhanced oil recovery. At closing, this strategic merger of assets and people will operate under the Penn West name and will be led by a combined management team and Board of Directors.
> On completion of the combination, Penn West unit-holders will own approximately 67% and Canetic unit-holders will own approximately 33% of the Combined Trust. Penn West units will continue to be listed on both the TSX and the New York Stock Exchange ("NYSE").
The combination is subject to stock exchange, court and regulatory approval, and the approval of at least 66 2/3 % of Canetic unit-holders. It is expected that the Canetic unit-holder meeting to vote on the combination and closing will occur in mid January 2008. An Information Circular is expected to be mailed to unit-holders of Canetic in December 2007.
J. Paul Charron, President and Chief Executive Officer of Canetic, commented, "As I have stated many times in the past, sitting still in today's dynamic market is not an option. This strategic combination brings together two organizations with complementary strategies, asset bases and management teams resulting in a strong shared future. I believe the Combined Trust is more than the sum of its parts."
The combined Board of Directors will be drawn from the existing boards of Penn West and Canetic and will be led by John A. Brussa from the Penn West board as Chairman and by Jack C. Lee from the Canetic board as Vice Chairman.
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Company: Canetic Resources Trust more info
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