Petrocapita Income Trust

Petrocapita Income Trust

May 20, 2016 16:54 ET

Petrocapita Announces Acquisition of Hytop Well Servicing Inc.

CALGARY, ALBERTA--(Marketwired - May 20, 2016) - Petrocapita Income Trust (CSE:PCE.UN) ("Petrocapita" or the "Trust") announces that it has acquired all of the issued and outstanding shares of Hytop Well Servicing Inc. ("Hytop") effective as at April 01, 2016. The shares were acquired by issuance to the shareholders of Hytop of convertible debentures secured by the assets acquired in the total amount of $472,486.04. The debentures are for a term of 7 years, carry an interest rate of 6%, are amortized over 6 years beginning on May 15, 2017 and are convertible into common trust units of Petrocapita on or after December 31, 2017 at the volume weighted average trading price of such unit on the principal market for such units for each of the last 20 trading days prior to the date of conversion set by the exercise of the option to convert.

Hytop operates 2 heavy oil well service rigs and ancillary well servicing equipment in the Lloydminster area of operations and has worked for a number of clients in the area, including Petrocapita. Hytop will continue to operate as Hytop Well Servicing Inc. but will become a wholly owned subsidiary of Infracore Processing LP ("Infracore"), a limited partnership being formed to hold the Trust's wellsite treating and produced water disposal facilities in Alberta and Saskatchewan, a central treating and disposal facility near Landrose, Saskatchewan and other midstream assets critical to oil operations in the area.

About Petrocapita

Petrocapita Income Trust is a Specified Investment Flow Through trust developing and acquiring heavy oil production and infrastructure assets in the Lloydminster area of east central Alberta and west central Saskatchewan through its wholly owned subsidiary, Petrocapita Oil and Gas LP. It owns and operates 153 gross (144.6 net) oil wells, 9 produced water disposal facilities, a central oil processing facility, oil well service rigs, fluid haul trailers, motor graders and well site processing equipment. It is seeking accretive opportunities to acquire both oil production and complimentary midstream assets during a cyclical low in the oil markets.

Contact Information

  • Petrocapita GP I Ltd., as Administrator
    of Petrocapita Income Trust
    Mr. Alex Lemmens
    President and Chief Executive Officer

    Ms. Janet Stillwell
    Investor Relations
    (587) 887-1541