PrimeWest Announces Successful Acquisition of Seventh Energy
16 März 2004 - 1:00PM
PR Newswire (US)
PrimeWest Announces Successful Acquisition of Seventh Energy
CALGARY, March 16 /PRNewswire-FirstCall/ -- (TSX: PWI.UN; PWX;
NYSE: PWI) - PrimeWest Energy Trust through its subsidiary
PrimeWest Gas Corp. ("PrimeWest") today announces approximately 92%
of the issued and outstanding common shares of Seventh Energy Ltd.
("Seventh") have been tendered in accordance with the terms of the
PrimeWest offer dated February 6th, 2004. All terms of the offer
have been satisfied and PrimeWest has taken up and paid for all of
the tendered Seventh shares, and has acquired all of the remaining
Seventh shares by providing notice and necessary consideration to
the Valiant Trust Company, the Depositary under the offer, in
accordance with the compulsory acquisition provisions of applicable
corporate legislation. The total consideration paid by PrimeWest
for Seventh was $34.6 million plus assumed debt and working capital
adjustments. The Seventh assets are predominantly comprised of
natural gas adjacent to PrimeWest's existing assets in the
Princess, Hays and Taber areas and currently produce 1,300 BOE per
day, of which 72% is natural gas and 28% is crude oil and natural
gas liquids. In the near-term PrimeWest will be investing
approximately $7 million in drilling, facilities, and waterflood
opportunities that will significantly enhance both the production
volumes and reserve recovery from the acquired assets. PrimeWest
expects the acquisition to be accretive to its unitholders during
2004 on both a cashflow and net asset value per unit basis.
PrimeWest is a Calgary-based conventional oil and gas royalty trust
that actively acquires, develops, produces, and sells natural gas,
crude oil, and natural gas liquids for the generation of monthly
cash distributions to unitholders. Trust units of PrimeWest are
traded on the Toronto Stock Exchange (TSX) under the symbol
"PWI.UN" and on the New York Stock Exchange under the symbol "PWI".
Exchangeable shares of PrimeWest Energy Inc. are listed on the TSX
under the symbol "PWX". Learn more about PrimeWest on our Web site,
http://www.primewestenergy.com/. DATASOURCE: PrimeWest Energy Trust
CONTACT: George Kesteven, Manager, Investor Relations,
403-699-7367, Toll-free: 1-877-968-7878, Cindy Gray, Investor
Relations Advisor, 403-699-7356, e-mail: ; To request a free copy
of this organization's annual report, please go to
http://www.newswire.ca/ and click on reports@cnw.
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