TKE Energy Trust

TKE Energy Trust

March 01, 2005 15:22 ET

TKE Energy Trust Announces $31.8 Million Bought Deal Equity Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TKE ENERGY TRUST

TSX SYMBOL: TKE.UN

MARCH 1, 2005 - 15:22 ET

TKE Energy Trust Announces $31.8 Million Bought Deal
Equity Financing

CALGARY, ALBERTA--(CCNMatthews - March 1, 2005) - NOT FOR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES

TKE Energy Trust (the "Trust") (TSX:TKE.UN) is pleased to announce that
it has entered into an agreement with a syndicate of underwriters to
sell 2,900,000 Trust Units at $10.95 per unit to raise gross proceeds of
$31,755,000.

The underwriting syndicate, led by CIBC World Markets Inc., also
includes Orion Securities Inc., Canaccord Capital Corporation, Raymond
James Ltd. and National Bank Financial Inc. The issue will be offered in
British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia
and New Brunswick through a short form prospectus. Closing of the
offering is expected to occur on or about March 22, 2005, subject to
regulatory approval.

Net proceeds from the financing will be used to accelerate the Trust's
ongoing capital expenditure program, repay outstanding borrowings under
the Trust's existing credit facilities, and for general corporate
purposes.

The securities offered have not been and will not be registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), and may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons except in
certain transactions exempt from the registration requirements of the
U.S. Securities Act.

TKE Energy Trust is a sustainable energy trust, currently producing
approximately 4,200 boepd, with approximately 16 million trust units and
1.7 million exchangeable shares outstanding. The current distribution
level is $0.12 per unit per month ($1.44 per unit annualized), which
represents, assuming the conversion of all outstanding exchangeable
shares, a payout level of approximately 65%. TKE Energy Trust aims to
provide stable, consistent monthly distributions to its unitholders. For
further information on TKE Energy Trust, please visit www.tketrust.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TKE Energy Trust
    Norman W. Holton
    Chairman & Chief Executive Officer
    (403) 264-8875
    or
    TKE Energy Trust
    Gordon K. Case
    Vice President, Finance and Chief Financial Officer
    (403) 264-8875