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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Kitskid who wrote (701)	1/15/2001 11:32:03 AM
From: gg cox	Respond to of 11633

NCE ENERGY TRUST - NCE PETROFUND TRUST - Agreements To Purchase A Total Of $47.5M Of Oil And Gas Properties [156] Canadian Market News from Market News Publishing, Monday, January 15, 2001 at 10:15 NCE Resources Group is pleased to announce that its two oil and gas trusts, NCE Petrofund and NCE Energy Trust, have entered into agreements with a major Canadian oil and gas company to purchase a diverse and long life group of oil and gas producing properties. Purchase price and date The combined purchase price for the package is $47.5 million, subject to adjustment. NCE Energy Trust and NCE Petrofund will each acquire a one-half interest in these properties, for $23.8 million respectively. The purchases are effective January 1, 2001 and are expected to close in late January or early February. Reserves and production details The reserves and production details of the properties are: * The reserves and production are approximately 45% gas. * Proven reserves account for over 85% of the total value. * A large percentage of the acquired properties consist of unitized properties. * Acquired average production was 1120 boepd (barrels of oil equivalent per day) for the first three quarters of 2000. * The properties generated an annualized cash flow of $10.4 million based on the first three quarters of 2000. * Net Established (proven plus 50% probable) reserves are estimated to be 5.8 million boe (barrels of oil equivalent). //st Economic indicators The economic indicators for the purchase are as follows: Reserves Purchase Price: $8.14 per boe Production Purchase Price: $42,500 per boepd Cash Flow Multiple (2000): 4.5x Reserve Life Index: 14.2 years //et Location The properties are located in Central Alberta and include interests in several Pembina area oil Units, several producing properties in the Medicine River and a gas property in Sunchild Alberta. The Sunchild property is believed to contain significant upside in the form of new drilling opportunities. Terms and conditions The acquisition is subject to certain terms and conditions contained in the executed Purchase & Sale Agreements including the completion of title review. A minor percentage of the assets are subject to first rights of refusal. NCE Petrofund acquisitions Since January, 2000 NCE Petrofund has made acquisitions totalling over $130 million. These include the following purchases: * Effective March 31, 2000 a $5.7 million gas property in the July Lake area of British Columbia; * Effective January 1, 2000 an interest in the Weyburn Unit in Saskatchewan for $48.3 million; * Effective January 4, 2000 an interest in the Kaybob Beaverhill Lake Unit #1 in Alberta for $3.8 million; * Effective in the third quarter of 2000, $16.7 million was paid for several properties in the House Mountain area of Alberta and the July Lake and Inga areas of British Columbia; * The $30 million purchase of Pacific Cassiar Limited and three private companies was closed Nov 28, 2000; and * Effective January 1, 2001 a $23.8 million purchase in the Pembina, Medicine River and Sunchild areas of Alberta. This acquisition is expected to close in February, 2001. NCE Energy Trust acquisitions In the last 12 months, NCE Energy Trust has made acquisitions totalling $33.6 million. The following is the list of the purchases: * Effective July 1, 2000 a $9.8 million property package in the Grand Prairie area of Alberta; and * Effective January 1, 2001 a $23.8 million purchase in the Pembina, Medicine River and Sunchild areas of Alberta. This acquisition is expected to close in February, 2001. NCE Resources Group NCE Resources Group was formed in 1984 as an oil and gas investment management organization. NCE Resources Group has invested or manages the investment of over CDN$1.2 billion on behalf of more than 60,000 investors. NCE employs approximately 160 people in the areas of engineering, land management, marketing, geology, accounting, finance and investor services. //st The Exchange Tower 130 King Street West Suite 2850, P.O. Box 104 Toronto, Ontario M5X 1A4 //et TEL: (416) 364-9297 Investor Services (investor enquiries) TOLL FREE: 1-888-739-4623 E-mail: info@nceresources.com TEL: (416) 364-8788 Jim Wright (media enquiries) TOLL FREE: 1-800-563-4623 INET : www.nceresources.com (c) Market News Publishing Inc. Tel:(604) 689-1101 All rights reserved. Fax:(604) 689-1106 MarketbyFax(tm) - To get the NEWS as it happens, call (604) 689-3041. Companies or Securities discussed in this article: Symbol Name TSE:NCA.UN TSE:NCF.UN