ENERGY TRUSTS - MISC / Viking Energy Royalty Trust Acquires Propewrty
VIKING ENERGY ROYALTY TRUST COMPLETES MAJOR OIL PROPERTY ACQUISITION
CALGARY, ALBERTA--
Further to its announcement of December 9, 1998, Viking Energy
Royalty Trust is pleased to report it has completed a significant
acquisition of oil properties in a new core area in Central
Alberta. Viking and a 50% partner acquired the properties from a
major oil company for $25.3 million before adjustments. The
transaction was funded through bank financing. The partner will
operate the properties
Viking's net production from the properties will be in excess of
2,600 BOE/d, 80% of which comes from the Bellshill Lake unit.
This will increase Viking's 1999 forecast production by more than
54%, and amounts to an average cost of $9,700 per daily flowing
barrel. The acquisition will increase Viking's established
reserves by approximately 6.0 million BOE, as determined by an
independent engineer, at a cost of $4.20 per BOE. It also results
in Viking replacing its 1998 production by more than 280%.
The Trust has identified numerous exploitation opportunities from
existing 3-D seismic and believes the properties have significant
development and operating efficiency potential. "This acquisition
represents a confident step for the Trust, which will add value
for Viking Unitholders in every reasonable crude oil pricing
environment," said Kirk Purdy, President of Viking Management
Ltd.
Viking Energy Royalty Trust is an open-end investment Trust that
generates income from long-life oil and natural gas producing
properties in Saskatchewan and Alberta. The beneficiaries of
Viking are the holders of the Trust Units who receive monthly
distributions of the cash flow from the income. The Units are
listed on The Toronto Stock Exchange (TSE) under the symbol
"VKR.UN". Viking is managed by Viking Management Ltd., a Calgary
based company.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
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