Viking Energy Royalty Trust

Viking Energy Royalty Trust

March 08, 2005 06:00 ET

Viking Energy Royalty Trust Acquires 93.6% of Kensington Energy Ltd. Shares


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIKING ENERGY ROYALTY TRUST

TSX SYMBOL: VKR.UN
TSX SYMBOL: VKR.DB

MARCH 8, 2005 - 06:00 ET

Viking Energy Royalty Trust Acquires 93.6% of
Kensington Energy Ltd. Shares

CALGARY, ALBERTA--(CCNMatthews - March 8, 2005) - Viking Energy Royalty
Trust (TSX:VKR.UN) (TSX:VKR.DB) ("Viking") and Kensington Energy Ltd.
(TSX:KNN) ("Kensington") announce that in addition to the 58.36 million
Class A shares of Kensington tendered on February 18, 2005, an
additional 2.41 million Kensington shares have been tendered under the
extended offer. Viking has given instructions to the depository to take
up and pay for all validly deposited shares of Kensington, under its
extended offer. Subsequently, Viking will hold 60.8 million Kensington
shares representing approximately 93.6% of Kensington's issued and
outstanding shares. The previously announced offer by Viking's indirect
wholly-owned subsidiary, Viking Kensington Inc. ("VKI") to acquire all
of the shares of Kensington at a price of $0.52 per share expired at
7:00 p.m. (Calgary time) on March 7, 2005.

VKI intends to acquire all of the remaining Kensington Shares not
deposited under the Offer pursuant to the compulsory acquisition
provisions of the Business Corporations Act (Alberta) and the shares
will be de-listed from the Toronto Stock Exchange.

Viking Energy Royalty Trust is an open-end investment Trust that
generates income from long-life oil and natural gas producing properties
in Alberta and Saskatchewan. The beneficiaries of Viking are the holders
of the Trust Units who receive monthly distributions of the cash flow
from the income. The Trust now has 166,759,465 units outstanding which
trade on the Toronto Stock Exchange ("TSX") under the symbol "VKR.UN".
Also listed on the TSX are the Trust's $74.3 million principal amounts
of 10.5% convertible unsecured subordinated debentures which trade under
the symbol "VKR.DB".

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Viking Energy Royalty Trust
    John Zahary
    President and CEO
    (403) 268-3175 or Toll Free: 1-877-292-2527
    or
    Viking Energy Royalty Trust
    Robert Fotheringham
    Vice President Finance and CFO
    (403) 268-3175 or Toll Free: 1-877-292-2527
    or
    Viking Energy Royalty Trust
    Diane Phillips
    Investor Relations
    (403) 268-3175 or Toll Free: 1-877-292-2527
    Email: vikingin@viking-roy.com
    Website: www.vikingenergy.com
    or
    Viking Energy Royalty Trust
    Suite 400, 330-5th Avenue S.W.
    Calgary, Alberta, T2P 0L4