Viking Energy Royalty Trust

Viking Energy Royalty Trust
Kensington Energy Ltd.

Kensington Energy Ltd.

February 21, 2005 08:00 ET

Viking Energy Royalty Trust Takes Control of Kensington Energy Ltd. and Extends Offer to Purchase


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIKING ENERGY ROYALTY TRUST

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

AND KENSINGTON ENERGY LTD.

TSX SYMBOL: KNN

FEBRUARY 21, 2005 - 08:00 ET

Viking Energy Royalty Trust Takes Control of
Kensington Energy Ltd. and Extends Offer to Purchase

CALGARY, ALBERTA--(CCNMatthews - Feb. 21, 2005) - Viking Energy Royalty
Trust (TSX:VKR.UN) ("Viking") and Kensington Energy Ltd. (TSX:KNN)
("Kensington") announce that 58.3 million Class A shares of Kensington,
representing approximately 89.8% of the issued and outstanding shares,
have been tendered to the previously announced offer by Viking's
indirect wholly-owned subsidiary, Viking Kensington Inc. ("VKI"), to
acquire all of the shares of Kensington at a price of $0.52 per share.
The Offer expired at 12:00 midnight (Calgary time) on February 18, 2005.
Viking has instructed the depository under the Offer to take up and pay
for all validly deposited shares of Kensington as of the expiry time of
the Offer.

VKI has extended its Offer to 7:00 p.m. (Calgary time) on March 7, 2005
to allow additional time for the Kensington Shareholders who have not
deposited their shares of Kensington to tender their shares to the
Offer. Subsequent thereto, VKI intends to acquire all of the remaining
Kensington Shares not deposited under the Offer either by the compulsory
acquisition provisions of the Business Corporations Act (Alberta) or
pursuant to a subsequent acquisition transaction.

Pursuant to the Pre-Acquisition Agreement, the Kensington's directors
and officers resigned upon VKI acquiring the Kensington Shares and all
unexercised options to acquire Kensington shares have been terminated.
Nominees of Viking have filled the Kensington director and officer
vacancies.

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 166,723,865 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