Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (43448)	7/26/2006 1:19:56 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70981

True Energy to acquire Prairie Schooner Petroleum in $431M stock-swap deal Related Symbols: T.TUI.UN 7/26/2006 9:39:00 AM CALGARY (CP) - True Energy Trust (TSX:TUI.UN) has struck a deal to acquire Prairie Schooner Petroleum (TSX:PSL) in a friendly stock swap transaction valued at $431 million, including $54 million of assumed debt. Stockholders of Prairie Schooner would receive 1.22 trust units for each common share of Prairie Schooner, resulting in the issuance of about 26.2 million units if all Prairie Schooner options are exercised. "I'm really excited that we've got the opportunity to combine these two entities," True Energy CEO Paul Baay said in a conference call with analysts. "I think it really helps strengthen the trust and really increases the opportunities we have on the drilling front, the inventory and the sustainability of the distributions on a go-forward basis." Acquiring Prairie Schooner will improve True's natural gas position, Baay said, adding that the transaction would set a production target of 20,000 barrels of oil per day for the trust. True said it will acquire "an attractive suite" of liquids-rich natural gas-focused properties in Alberta. Prairie Schooner's current production is about 6,800 boe per day, 89 per cent of which is natural gas. About 30 per cent of the combined entity's winter production would be hedged, Baay said. After the acquisition,, True's production mix would be about 67 per cent natural gas, 23 per cent heavy oil and 10 per cent light oil and natural gas liquids. "One of the biggest challenges in my mind in this business today is inventory for the future and the beauty of what True has today is. . . true doesn't have to go out and do another transaction in the next two months from an inventory perspective," said Jim Saunders, chairman and CEO of Prairie Schooner. "They have a number of years of inventory here, which is very, very attractive." The arrangement, approved by the boards of directors of both companies, is subject to regulatory and court approval and support by two-thirds of votes cast by shareholders and optionholders of Prairie Schooner. A shareholders' meeting to vote on the deal will be held in September. Shareholders representing about 14 per cent of Prairie Schooner's stock, including insiders, have agreed to tender to the bid. Units of True fell 13 cents to $14.27 in morning trading on the Toronto Stock Exchange. Prairie Schooner shares added $1.15, 7.6 per cent, to $16.30.