Penn West Energy, Canetic combine to form 'Canada's flagship energy trust'

By Lisa Kerner

Charlotte, N.C., Jan. 11 - Penn West Energy Trust completed its acquisition of Canetic Resources Trust to form North America's largest conventional oil and gas energy trust, the companies announced on Friday.

Under the plan of arrangement, Canetic unitholders will receive 0.515 of a Penn West trust unit for each Canetic trust unit exchanged.

In addition, Canetic unitholders of record at the close of business on Jan. 10 will receive a special one-time distribution of C$0.09 per Canetic trust unit, according to a company news release.

Canetic units are expected to be delisted from the Toronto Stock Exchange and the New York Stock Exchange within a few trading days.

Penn West trust units will continue to trade on the TSX under the symbol "PWT.UN" and on the NYSE under the symbol "PWE."

The arrangement called for Penn West to assume all of the covenants and obligations of Canetic in four separate classes of outstanding Canetic convertible debentures. Holders of Canetic debentures are entitled to receive 0.515 of a Penn West trust unit in lieu of each Canetic trust unit that the holder was previously entitled to receive on conversion, the release stated.

In October, Penn West and Canetic agreed to a strategic combination to form "Canada's flagship energy trust" operating under the Penn West name with an enterprise value in excess of C$15 billion, or C$15.84 per unit.

Penn West, an oil and natural gas energy trust, and Canetic, an oil and gas energy trust, are both based in Calgary, Alta.

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