Daylight Resources Trust

Daylight Resources Trust

June 07, 2009 19:09 ET

Daylight Resources Trust Announces Closing of Intrepid Acquisition

CALGARY, ALBERTA--(Marketwire - June 7, 2009) - Daylight Resources Trust ("Daylight" or the "Trust") (TSX:DAY.UN) is pleased to announce the closing of our previously announced strategic acquisition of Intrepid Energy Corporation ("Intrepid"). This acquisition adds high-impact drilling opportunities in our multi-zone Cretaceous development area at Obed and adds to our low risk drilling inventory in our core West Central asset through the addition of the Whitecourt property. The transaction added 75,000 net acres of undeveloped land including highly prospective lands for Montney drilling adjacent to Daylight's Kaybob property. The assets acquired in the Intrepid transaction are expected to produce at an average rate of 2,400 barrels of oil equivalent ("boe") per day for H2 2009. Daylight's internal evaluation of these assets indicates Proved plus Probable ("2P") reserves of approximately 6.9 million boe, which represents an increase to Daylight's 2P reserves of approximately 10%. For further details and information regarding this acquisition, please refer to Daylight's press release issued on April 27, 2009.

Daylight's high-end technical team integrates and emphasizes our exploitation, reservoir engineering, production optimization, geological and geophysical expertise to identify and capture reserves and production addition opportunities for the delivery of long-term value creation to our unitholders. Our team has developed a multi-year inventory of repeatable, low risk exploitation projects with substantial potential reserve additions on assets we currently own and control. Daylight's inventory includes a significant depth of prospects across our high quality asset base. Daylight has approximately 122 million Trust Units currently outstanding which trade on the TSX under the symbol DAY.UN. Daylight Series A, Series B, and Series C convertible debentures trade on the TSX under the symbols DAY.DB, DAY.DB.B and DAY.DB.C respectively.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements" and "forward-looking information" (collectively "forward-looking statements") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "guide", "will", "should", "believe", "plans" and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward-looking statements concerning: the acquisition of Intrepid, estimates of petroleum and natural gas production, reserves, undeveloped land holdings, business strategy, future development and growth opportunities, prospects and asset base.

The forward-looking statements in this press release are based on certain key expectations and assumptions made by Daylight, including expectations and assumptions concerning: prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, reserve and resource volumes, the performance of existing and acquired wells, the success obtained in drilling new wells, the sufficiency of budgeted capital expenditures in carrying out planned activities, and the availability and cost of labour and services. Although Daylight believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Daylight can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the oil and gas industry in general such as: operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of reserve estimates, the uncertainty of estimates and projections relating to reserves, production, costs and expenses, health, safety and environmental risks, commodity price and exchange rate fluctuations, marketing and transportation of petroleum and natural gas and loss of markets, environmental risks, competition, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, ability to access sufficient capital from internal and external sources and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations. There are risks also inherent in the nature of the acquisition of Intrepid, including: failure to realize anticipated synergies or cost savings, risks regarding the integration of the two entities and incorrect assessments of the value of Intrepid. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this press release concerning these times.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Daylight are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (

The forward-looking statements contained in this press release are made as of the date hereof and Daylight undertakes no obligation to update publicly or revise any forward-looking statements whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Barrels of Oil Equivalent

"Boe" means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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