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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: David Culver who wrote (626)	12/6/2000 12:20:43 AM
From: Lorne Larson	Read Replies (2) of 11633

Big announcement by MXT concerning the acquisition. Lots to digest, but my initial reaction is that it looks real good. They acquire an additional 2400 BOE/Day without exposing their existing assets to any risk. About 3/4 of this production is hedged until mid-2002. Hedge prices aren't great - $24-$26, but I assume this was factored into the purchase price. Looks to me like this will be immediately accretive to the monthly distribution. They confirmed distributions will start in January, but still have not stated an amount. Big change in management - Proudfoot is gone. Anyone know anything about the new guys - Gieni and Lee? Private placement completed for 2.8 million units at $3.5 for proceeds of $10,000,000, which was applied to debt. They assumed debt of $77,000,000 as part of the acquisition but this debt is without recourse to MXT's other assets. In other words the only risk taken by MXT relating to this transaction is the $3.3 million they put up as cash for the new assets. Very interested in seeing the markets read on this tomorrow.

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