Canetic Resources Trust Announces Acquisition of Private Company Assets
2006年8月3日 - 6:52AM
PRニュース・ワイアー (英語)
CALGARY, Aug. 2 /PRNewswire-FirstCall/ -- (CNE.UN - TSX; CNE -
NYSE) Canetic Resources Trust ("Canetic" or the "Trust") is pleased
to announce that it has entered into a definitive agreement to
acquire a private company's natural gas and oil interests in
central Alberta and northeastern British Columbia (the
"Acquisition"). The assets are characterized by concentrated large
gas in place pools with associated facility infrastructure and high
levels of operatorship. The properties contain a significant
portfolio of development opportunities with many having multi-zone
potential. The transaction has an effective date of June 1, 2006
and is expected to close on or about August 31, 2006, with the
closing subject to customary conditions and regulatory consents.
The cash price on closing is estimated to be approximately $900
million. Canetic will fund the acquisition through a concurrently
announced equity and convertible debenture financing as well as
available credit facilities. Acquisition Summary
------------------- Current production from the assets is
approximately 13,500 barrels of oil equivalent per day (boe/d)
comprised of 70.0 million cubic feet per day (mmcf/d) of natural
gas, 1,600 barrels per day (bbls/d) of associated natural gas
liquids (NGLs) and 230 bbls/d of light crude oil. The Acquisition
will increase Canetic's overall current production to approximately
86,000 boe/d comprised of 53 percent crude oil and NGLs and 47
percent natural gas. The Acquisition provides Canetic with a more
balanced commodity mix, increasing its exposure to natural gas from
40 percent to 47 percent. The Acquisition will also increase
Canetic's total proved plus probable reserves to nearly 275 million
barrels of oil equivalent (mmboe). The Acquisition includes 230,000
net acres of undeveloped land in large contiguous land blocks with
high net working interests. "This acquisition continues Canetic's
history of acquiring high quality assets with significant upside
potential," said President and Chief Executive Officer, J. Paul
Charron. "We believe now is the ideal time to acquire natural gas
assets to provide Canetic with a more balanced production mix."
Transaction Highlights ---------------------- The Acquisition
provides the following financial and operational benefits to
unitholders: - Accretive to Canetic's cash flow, reserves,
production and net asset value per unit and neutral to RLI; -
Lowers Canetic's payout ratio to further enhance the sustainability
of Canetic's $0.23 per unit monthly distribution; - Attractive
production and reserve acquisition costs of approximately $67,000
per flowing boe and $22.45 per boe of proved plus probable
reserves. After adjusting for the value of undeveloped land,
seismic and tax pools (internally estimated at approximately $140
million) the transaction metrics are $56,500 per flowing boe and
$18.95 per boe of proved plus probable reserves; - A more balanced
production mix through increased exposure to natural gas. As a
result of the Acquisition, Canetic's production will be comprised
of 53 percent of primarily light crude oil and NGLs and 47 percent
natural gas; - Development of a significant new core area in
northeast British Columbia that is complementary to Canetic's
current operations at Fort St. John and Blackhawk; - Substantial,
concentrated, undeveloped land base of 230,000 net undeveloped
acres with associated 2D and 3D seismic; - Over 300 identified
development drilling opportunities in both the British Columbia and
Hoadley area of central Alberta, which will allow Canetic to
continue its strategy of adding reserves and production through
internal development and optimization. Improving gas prices may add
a further 1,000 shallow gas opportunities in the Hoadley area; -
CBM potential in both the Horseshoe Canyon and Mannville
formations; - Operatorship of 80 percent of production and
facilities infrastructure; - Improves the quality of our asset
base, allowing us to continue to rationalize non-core assets and
further high grade the asset portfolio. The asset rationalization
program also increases Canetic's future financial flexibility; -
Adds large gas in place assets to existing large oil in place
assets to further enhance Canetic's sustainability model through
all points of the commodity cycle. Acquisition Financing
--------------------- As part of the Acquisition, Canetic's senior
Canadian credit facility will increase from $1.1 billion to $1.6
billion. BMO Capital Markets and TD Securities have also provided
an equity bridge facility of $650 million which can be used for
this transaction. It is expected that this facility will not be
utilized due to the concurrently announced equity and convertible
debenture financing. Hedging ------- Canetic will be providing
downside protection for this Acquisition consistent with its
current hedging strategy, which includes protection on up to 40 to
50 percent of estimated total production. Reserves -------- AJM
Petroleum Consultants ("AJM") has evaluated the acquired assets as
at April 1, 2006 in compliance with NI 51-101. The following table
represents Canetic's assessment of the reserves being acquired
which is 20 percent lower on a proved producing basis, 20 percent
lower on a total proved basis and 24 percent lower on a proved plus
probable basis as compared to the independent evaluation conducted
by AJM, mechanically updated to July 1, 2006. Crude Oil and Natural
Gas Oil Liquids Natural Gas Equivalent --------------
-------------- -------------- (mbbls) (Bcf) (Mmboe) Proved
Producing 2,909 109.7 21.2 Total Proved 3,340 133.8 25.6 Total
Proved + Probable 5,020 210.7 40.1 Updated Guidance
---------------- Consistent with previously issued guidance and
assuming an August 31, 2006 closing of the Acquisition, Canetic
expects production to be approximately 86,000 boe/d for the final
four months of 2006. Advisors -------- TD Securities Inc. is acting
as financial advisor to Canetic on the transaction. Conference Call
and Audio Webcast --------------------------------- Canetic will
host a live conference call and audio webcast at 3:00 p.m. Mountain
Time (5:00 p.m. Eastern Time) on Wednesday, August 2, 2006. To
participate by telephone, in the Toronto area, call 416-695-5261 or
elsewhere across North America, toll free: 1-877-888-3855. The call
will also be broadcast on the web by visiting
http://www.canetictrust.com/ or http://www.vcall.com/. An archived
telephone recording of the call will be available until August 31,
2006 by calling 416-695-5275 or 1-888-509-0081 (627992 verbal
passcode). Canetic Resources Trust trades on the TSX and the NYSE
and was formed on January 5, 2006, from the merger of Acclaim
Energy Trust and StarPoint Energy Trust. Canetic is one of the
largest producers in the conventional oil and gas trust sector. The
Trust has long life high quality assets in western Canada with
approximately a 9 year reserve life index on a proved and probable
basis. For further information, please see the website at
http://www.canetictrust.com/ or contact Canetic investor relations
by email at: or toll free telephone at 1-877-539-6300. ADVISORY:
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
closing of the Acquisition and concurrently announced equity and
convertible debenture financing. 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
Canetic's operations or financial results are included in Canetic's
reports on file with Canadian and U.S. securities regulatory
authorities and may be accessed through the SEDAR website
(http://www.sedar.com/), the SEC's website (http://www.sec.gov/),
Canetic's website (http://www.canetictrust.com/) or by contacting
Canetic. Furthermore, the forward-looking statements contained in
this news release are made as of the date of this news release, and
Canetic 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. DATASOURCE: Canetic Resources
Trust CONTACT: Investor Relations, (403) 539-6300, Toll Free -
1-877-539-6300, , http://www.canetictrust.com/
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