Viking Energy Royalty Trust
TSX : VKR.UN
TSX : VKR.DB

Viking Energy Royalty Trust

October 20, 2005 09:08 ET

Viking Energy Royalty Trust Announces Closing of Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Viking Energy Royalty Trust ("Viking") (TSX:VKR.UN) (TSX:VKR.DB) announces that it has closed its previously announced convertible debenture bought-deal financing. At closing, Viking issued $175 million principal amount of 6.40% convertible unsecured subordinated debentures (the "Debentures").

The Debentures have a face value of $1,000 per Debenture, a coupon of 6.40%, a maturity date of October 31, 2012 and will be convertible into trust units of Viking at a price of $11.50 per Trust Unit. The Debentures will pay interest semi-annually on April 30 and October 31 each year commencing April 30, 2006. The Debentures will trade on the Toronto Stock Exchange (the "TSX") under the symbol "VKR.DB.A".

All of the net proceeds of this offering will be used to repay a portion of Viking's outstanding bank loans under its existing credit facilities, including the termination of its $75 million Senior Bridge Credit Facility, thereby increasing its unused credit capacity to fund ongoing capital expenditures and future acquisitions as well as general trust purposes.

The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons. This news release shall not constitute an offer to sell or the solicitation to buy
securities in any jurisdiction.

Viking Energy Royalty Trust is an open-ended 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 its Trust Units who receive monthly distributions of the cash flow generated from the income. Viking currently has 174,989,124 Trust Units outstanding which trade on the TSX under the symbol "VKR.UN". Also listed on the TSX are $63.9 million of principal amount of Viking's 10.5% convertible unsecured subordinated debentures which trade under the symbol "VKR.DB".

Contact Information

  • 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
    VP 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