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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (9876)	4/2/1998
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / PrimeWest Property Acquisition PRIMEWEST CLOSES GRAND FORKS ACQUISITION 1998-04-01 CALGARY, ALBERTA PrimeWest Energy Trust announced today that it has closed the acquisition of the Grand Forks property, located in Southeastern Alberta. This acquisition represents the larger of the two acquisitions that PrimeWest announced on March 3, 1998. PrimeWest expects the closing of the second, previously announced, transaction will occur later this week. The purchase price for the Grand Forks property is $33.5 million before adjustments, and was funded with proceeds from an equity offering which closed on March 31, 1998 which resulted in PrimeWest receiving net proceeds of $59.1 million. With the Grand Forks property acquisition, PrimeWest acquired established reserves (proved plus half probable) of approximately 5.22 million barrels of oil equivalent and average production of 2,800 barrels of oil equivalent per day. The Grand Forks acquisition will have an impact on PrimeWest operating performance effective March 1, 1998. As part of the Grand Forks transaction, PrimeWest has negotiated an oil price collar that, subject to specified limitations, provides oil price stability for the oil production from this property for 1998 and 1999. PrimeWest believes the Grand Forks property, which will be operated by PrimeWest, will provide several benefits to Unitholders: * increase total unit distributions paid to Unitholders in 1998; * provide the asset base for property enhancements to add to future distributions; * maintain PrimeWest's reserve base by replacing over 100% of PrimeWest's entire production during 1998; * when coupled with the associated equity financing, increase PrimeWest's financial flexibility to enable the Trust to pursue new property enhancement and value adding acquisition opportunities this year. The trust units of PrimeWest Energy Trust trade on the Toronto Stock Exchange under the symbol "PWI.UN".