ALBERTA

Argent Energy Trust to buy properties in Texas and Oklahoma for US$132.5 million

10/03/2012 04:00 EDT | Updated 12/03/2012 05:12 EST
CALGARY - Argent Energy Trust (TSX:AET.UN) said Wednesday it has signed a deal to buy a group of producing properties in Texas and Oklahoma for US$132.5 million.

The trust said it will acquire a group of properties in the Manvel Field in Brazoria County, Texas and the NE Davis, SW Mayville and Payne Fields in Oklahoma.

The properties have total estimated gross reserves of approximately 3.9 million barrels of oil equivalent on a proved basis and approximately 5.7 million boe on a proved plus probable basis as at Dec. 31, 2011.

Roughly 94 per cent of the proved plus probable reserves are oil while the remainder is natural gas.

To help fund the deal, the company said it would raise $110 million in an offering of 11 million units at a price of $10 per unit. If the over-allotment is fully exercised, Argent will raise $126 million.

Shares in Argent, which were halted pending the announcement, were up 10 cents at $10.59 on the Toronto Stock Exchange on Wednesday afternoon.

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