ENERGY TRUSTS / APF Announces Major Transaction
TSE SYMBOL: AY.UN
MAY 13, 1998
CALGARY, ALBERTA--APF Energy Inc., on behalf of APF Energy Trust,
announced today that it has agreed to acquire assets for $8.8
million. The transaction is scheduled to close on June 8, 1998,
following completion of due diligence.
The assets, located in the Wayne-Rosedale area of southeastern
Alberta 16 kilometers south of Drumheller, are expected to produce
approximately 385 boe per day during 1998, comprised of 332 bbls
of oil and natural gas liquids, and 530 mcf of gas. APF has
assigned reserves of 2,611 mboe (proved plus one-half probable) as
of January 1, 1998.
Significant development potential exists through infill drilling,
waterflood implementation and re-fracing certain wells. APF has
estimated that peak production could exceed 1,050 boe per day by
the year 2000.
The established reserve life index of these assets exceeds 18
years. Together with APF's recently announced acquisitions at
Gleneath, Saskatchewan and Pembina, Alberta, APF's corporate
reserve life index will be 11.2 years. In addition to increasing
the reserve life index, APF believes that current distribution
levels will be sustained, based on expected 1998 production and
netbacks. |
