Viking Energy Royalty Trust

Viking Energy Royalty Trust
Calpine Natural Gas Trust

Calpine Natural Gas Trust

February 01, 2005 13:12 ET

Viking Energy Royalty Trust Closes Merger with Calpine Natural Gas Trust


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIKING ENERGY ROYALTY TRUST

TSX SYMBOL: VKR.UN
TSX SYMBOL: VKR.DB

AND CALPINE NATURAL GAS TRUST

TSX SYMBOL: CXT.UN

FEBRUARY 1, 2005 - 13:12 ET

Viking Energy Royalty Trust Closes Merger with Calpine
Natural Gas Trust

CALGARY, ALBERTA--(CCNMatthews - Feb. 1, 2005) - Viking Energy Royalty
Trust (TSX:VKR.UN) ("Viking") announces that it has closed its merger
with Calpine Natural Gas Trust (TSX:CXT.UN) ("Calpine"). As previously
announced, each Calpine trust unit has been exchanged for 2.0 Viking
trust units on a tax-deferred rollover basis.

The merger with Calpine results in Viking's production growing to 23,000
boe/d and an enterprise value of approximately $1.3 billion. Viking now
has a balanced oil and gas production profile with significant
operations in central and southern Alberta and operatorship on over 80%
of the total production.

Viking currently has a cash offer outstanding for all of the Class A
shares of Kensington Energy Ltd. which is open until 12:00 midnight
(Calgary time) on February 18, 2005. Kensington's assets include a
significant presence in the Markerville area as well as southern Alberta
that are complementary to Viking. In addition, Kensington's undeveloped
lands will increase Viking's future growth opportunities.

Viking Energy Royalty Trust is an open-end investment Trust that
generates income from long-life oil and natural gas producing properties
in Alberta and Saskatchewan. The beneficiaries of Viking are the holders
of the Trust Units who receive monthly distributions of the cash flow
from the income. The Trust now has 165,916,627 units outstanding which
trade on the Toronto Stock Exchange ("TSX") under the symbol "VKR.UN".
Also listed on the TSX are the Trust's $74.3 million principal amounts
of 10.5% convertible unsecured subordinated debentures which trade under
the symbol "VKR.DB".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Viking Energy Royalty Trust
    John Zahary
    President and CEO
    (403) 268-3175 or Toll Free: 1-877-292-2527
    or
    Viking Energy Royalty Trust
    Robert Fotheringham
    Vice President Finance and CFO
    (403) 268-3175 or Toll Free: 1-877-292-2527
    or
    Viking Energy Royalty Trust
    Diane Phillips
    Investor Relations
    (403) 268-3175 or Toll Free: 1-877-292-2527
    Email: vikingin@viking-roy.com
    Website: www.vikingenergy.com
    or
    Viking Energy Royalty Trust
    Suite 400, 330-5th Avenue S.W.
    Calgary, Alberta, T2P 0L4