ENERGY TRUSTS / Canadian Oil Sands Trust enters into Agreement
Canadian Oil Sands Trust (the "Trust") announces that it has entered into an
agreement with a group of underwriters led by CIBC Wood Gundy Securities Inc.
to issue 3,000,000 trust units at $ 24.00 per unit for gross proceeds of
$ 72 million. The underwriters also have an over-allotment option for an
additional 300,000 trust Units. Closing is expected to occur on or about
February 19, 1998 which is after the record date of the fourth quarter
distribution.
The net proceeds of the issue, in conjunction with its $250 million line of
credit with a major Canadian Chartered Bank, ensures the financing of
Canadian Oil Sands' 10% share of the capital expenditures related to the
'Syncrude 21' expansion. The expansion of Syncrude, which for Canadian Oil
Sands could be the equivalent of acquiring another 10% interest in Syncrude,
is projected to double the production of an even better quality, low sulphur
crude oil at a significantly lower operating cost.
For more information, please contact Mr. Monte Montemurro at (403) 290-2332
or Mr. Bob Fotheringham at (403) 268-7825.
This media release shall not constitute an offer to sell or a solicitation of
an offer to buy the securities in any jurisdiction. The trust units will not
be and have not been registered under the United States Securities Act of
1933 and may not be offered or sold in the United States except pursuant to
available exemptions from registration.
Trading Symbol: CO.UN, Toronto Stock Exchange
THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH
ANY SERVICE WITH U.S. PARTICIPATION.
Canadian Oil Sands Trust
150 - 9th Avenue S.W.
Calgary, Alberta T2P 2S5
Phone: (403) 268-7825
Fax: (403) 268-7849 |
