Sustainable Production Energy Trust
TSX : SPU.UN

Sustainable Production Energy Trust

October 17, 2005 12:24 ET

Sustainable Production Energy Trust Announces Closing and Exchange Offer Results

CALGARY, ALBERTA--(CCNMatthews - Oct. 17, 2005) -

This press release is not for distribution in the United States.

Sustainable Production Energy Trust (TSX:SPU.UN) (the "Fund"), announced today that it completed its initial public offering of 8.0 million trust units at a price of $10.00 per trust unit for gross proceeds of $80,000,000. Gross cash proceeds of the offering were $77,396,480 on the issuance of 7,739,648 trust units. In addition, under the offering's exchange option, the Fund received and accepted units/shares of selected Canadian oil & gas trusts and oil & gas corporations in exchange for 260,352 trust units of Sustainable Production Energy Trust for proceeds of $2,603,520. Details of the exchange offering are set out below.

The offering was made through a syndicate of agents co-led by CIBC World Markets Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities and TD Securities Inc. and includes National Bank Financial Inc., Scotia Capital Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Dundee Securities Corporation, Blackmont Capital Inc., Raymond James Ltd., Research Capital Corporation, Wellington West Capital Inc., Bieber Securities Inc. and McFarlane Gordon Inc.

Sustainable Production Energy Trust's units commenced trading today on the Toronto Stock Exchange under the symbol "SPU.un". Sustainable Production Energy Trust is an actively-managed, closed-end investment trust seeking to provide monthly cash distributions to unitholders while maintaining the production and reserves per trust unit over time by combining a portfolio of oil & gas trusts and oil & gas corporations. The Fund's Investment Manager, Galileo Equity Management Inc., led by Michael Waring has an extensive track record of successfully investing in the oil and gas sector.

The Fund's first distribution will be payable to unitholders of record on November 30, 2005 and paid on December 15, 2005.

Under the exchange option, the Fund received approximately $44.6 million pursuant to its initial public offering of trust units by long form prospectus. The number of trust units issued in exchange for the units of each respective Issuer was based on an exchange ratio determined by dividing the weighted average trading price of the Issuer's units or shares over the three consecutive trading days up to and including October 4, 2005 by the offering price.

With the exception of two Issuers which did not meet Portfolio criteria and were therefore not accepted, Sustainable took up all other units and shares tendered pursuant to the exchange option. The following table indicates the weighted average trading prices of the units or shares of the tendered Issuers, the number of Issuer units or shares to be acquired by Sustainable, the exchange ratios used to determine the number of trust units issued for each Issuer unit or share, and the number of trust units issued in respect of the units or shares of each Issuer.



Percentage Exchange
Issuer of Ratio
Units or Issuer Tendered (Trust
Weighted Shares Units or Units or Units or Trust
Average Tendered Shares Shares Shares Units
Price(1) and Not to be Taken-up per Issuer to be
($) Withdrawn Acquired (%) Unit) Issued
------------------------------------------------------------
ISSUER
Oil & Gas
Trusts
Advantage
Energy
Income
Fund 20.96 600 600 100 2.0956 1,257
ARC Energy
Trust 23.91 36,295 36,295 100 2.3905 86,763
Baytex
Energy
Trust 18.33 253 253 100 1.8330 463
Bonavista
Energy
Trust 37.09 200 200 100 3.7092 741
Canadian Oil
Sands Trust 130.04 140 140 100 13.0035 1,820
Freehold
Royalty
Trust 18.67 7,014 7,014 100 1.8671 13,095
Ketch
Resources
Trust 12.91 500 500 100 1.2913 645
NAL Oil &
Gas Trust 20.62 6,000 6,000 100 2.0616 12,369
Pengrowth
Energy
Trust 20.43 17,020 17,020 100 2.0426 34,765
Penn West
Energy
Trust 36.14 13,000 13,000 100 3.6139 46,980
Petrofund
Energy
Trust 22.68 395 395 100 2.2680 895
Peyto
Energy
Trust 30.40 50 50 100 3.0399 151
PrimeWest
Energy
Trust 34.26 250 250 100 3.4260 856
Shiningbank
Energy
Income
Fund 26.45 1,183 1,183 100 2.6445 3,128
Starpoint
Energy
Trust 23.74 14,000 14,000 100 2.3740 33,236
Thunder
Energy
Trust 13.54 202 202 100 1.3537 273
Vermilion
Energy
Trust 28.86 2,500 2,500 100 2.8862 7,215

Oil & Gas
Corporations
Iteration
Energy Ltd. 5.78 175 175 100 0.5778 101
Ivanhoe
Energy Inc. 2.24 1,000 1,000 100 0.2236 223
Kensington
Resources
Ltd. 4.25 575,000 0 0 0.4249 0
Nelson
Resources
Limited 2.59 40 40 100 0.2592 10
Nexen Inc. 54.61 2,404 2,404 100 5.4608 13,127
Petrokazakhstan
Inc. 63.22 626,370 0 0 6.3219 0
ProspEx
Resources
Ltd. 3.84 400 400 100 0.3844 153
Purcell
Energy Ltd. 3.39 1,500 1,500 100 0.3392 508
Stylus
Energy Inc. 3.67 3,333 3,333 100 0.3666 1,221
True Energy
Inc. 5.96 600 600 100 0.5959 357

Total 260,352


(1) Based on information obtained from Bloomberg. There may be some
minor differences in the calculation of exchange ratios due
to rounding.


Sustainable Production Energy Trust is the newest addition to the Citadel Group of Funds.

Contact Information

  • Sustainable Production Energy Trust
    Joe MacDonald
    Executive Vice President, Sales and Marketing
    (403) 261-9674
    Email: info@citadelfunds.com