NCE PETROFUND ("NCF.UN-T") - Purchase
Of $40 Million Of Oil And Gas Properties
NCE Petrofund is pleased to announce that NCE Petrofund Corp. has reached an agreement with a
Canadian oil and gas company to purchase a package of oil and gas producing properties for a total price
of $40.2 million, subject to adjustment on closing.
Property details
The package includes two gas-producing properties and two oil-producing properties. Three of the
properties are unitized and one is operated. The properties are all located in central Alberta.
Production details
The production details for properties are: * The reserves are approximately 67% oil; * Proven reserves
account for 80% of the total value; * The acquired properties contain a large percentage of unitized
production; * Current production net to the acquired interest is approximately 1,800 barrels of oil
equivalent per day (boe/d) with gas converted at 6:1; and * The properties generated an annualized cash
flow of $9.7 million in 2001.
Economic indicators
The economic indicators for the purchase are as follows (on a 6:1 basis):
Reserves purchase price: $4.60 per barrel of oil equivalent (boe)
Production purchase price: $22,400 per boe/d
Cash flow multiple (2001): 4.2 times
Reserve life index: 13.4 years
Reserves
Net established (proven plus 50% probable) reserves are estimated to be 8.8 million boe (barrels of oil
equivalent) on a 6:1 basis. This estimate is supported by an independent engineering evaluation performed
by Gilbert Laustsen Jung Associates Ltd.
Effective purchase date
The purchase is effective December 31, 2001. Approximately 25% of the value is subject to rights of first
refusal.
NCE Petrofund
NCE Petrofund is one of Canada's leading oil and gas investment trusts. Established in 1988, NCE
Petrofund is an income trust that acquires and manages producing oil and gas properties in Western
Canada. The Trust derives its income from producing oil and gas properties and distributes monthly cash
flow to unitholders. It trades on the Toronto Stock Exchange under the symbol NCF.UN. It is also the
first Canadian royalty trust to list in the United States. It trades on the American Stock Exchange (AMEX)
under the symbol NCN.
NCE Resources Group
NCE Petrofund is a member of NCE Resources Group. NCE Resources Group was formed in 1984 as
an oil and gas investment management organization. The company has invested or manages the investment
of over $1.3 billion on behalf of approximately 85,000 investors. NCE employs approximately 200 people
in the areas of engineering, land management, geology, accounting, finance and investor services.
Disclaimer
This news release shall not constitute an offer to sell, or the solicitation of an offer to buy NCE Petrofund
trust units in the United States, or any province or territory of Canada, nor shall there be any sale of NCE
Petrofund trust units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such jurisdiction.
Forward looking statements
This news release may include statements about expected future events and/or financial results that are
forward-looking in nature and subject to risks and uncertainties. For those statements, we claim the
protection of the safe harbor for forward-looking statements provisions contained in the U.S. Private
Securities Litigation Reform Act of 1995. NCE Petrofund cautions that actual performance will be affected
by a number of factors, many of which are beyond its control. Future events and results may vary
substantially from what NCE Petrofund currently foresees. Discussion of the various factors that may affect
future results is contained in NCE Petrofund's recent filings with the Securities and Exchange Commission
and Canadian securities regulatory authorities.
The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4
TEL: (416) 364-9297 Investor Services TOLL FREE: 1-888-739-4623 TEL: (416) 364-8788 Jim
Wright, Media Enquiries TOLL FREE: 1-800-563-4623 TEL: (403) 218-8625 Chris Dutcher, Analyst
Enquiries E-MAIL: info@nceresources.com WEBSITE: www.nceresources.com
______________________________________
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