Fairborne Energy Trust

Fairborne Energy Trust

October 31, 2006 08:25 ET

Fairborne Energy Trust Announces Closing of $100 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 31, 2006) - Fairborne Energy Trust ("Fairborne" or the "Trust") (TSX:FEL.UN) announced today the closing of its previously announced "bought deal" financing. At closing, $100,000,000 principal amount of 6.50% convertible unsecured subordinated debentures (the "Debentures") were issued. The Debentures are listed and posted for trading on the TSX under the symbol "FEL.DB".

The Debentures have a face value of $1,000 per Debenture, a coupon of 6.50%, a maturity date of December 31, 2011, and are convertible into trust units of Fairborne at a price of $13.50 per trust unit. The Debentures pay interest semi-annually on December 31 and June 30, with the initial interest payment on June 30, 2007.

The offering was underwritten by an underwriting syndicate led by RBC Capital Markets and included Canaccord Capital Corporation, CIBC World Markets Inc., National Bank Financial Inc., Sprott Securities Inc. and FirstEnergy Capital Corp.

Net proceeds from the financing will be used to reduce outstanding indebtedness of the Trust, to fund exploration and development activities and for general corporate purposes.

Fairborne is an oil and gas trust. Trust units of the Trust are traded on the Toronto Stock Exchange under the symbol "FEL.UN".

ADVISORY: This press release contains forward-looking statements. Although Fairborne believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Fairborne 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.

The intended use of the net proceeds of the offering by Fairborne might change if the board of directors of Fairborne Energy Ltd., the administrator of Fairborne, determines that it would be in the best interests of Fairborne to deploy the proceeds for some other purpose.

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

Contact Information