TSX SYMBOL: PEY.UN
CALGARY, Jan. 17 /CNW/ - Peyto Energy Trust ("Peyto") announces that it
has received all necessary approvals in respect of its amended distribution
reinvestment and optional trust unit purchase plan (the "Amended DRIP Plan").
The Amended DRIP Plan is identical in all respects to the former
distribution reinvestment and optional trust unit purchase plan, except that
the trading period used to calculate the price at which trust units are
purchased now commences the first trading day of a particular month and ends
at the close of trading on the third last trading day of such month. This
change will allow unitholders to know the price at which trust units may be
purchased, prior to making their decision to participate in the Amended DRIP
Plan. The changes to the Amended DRIP Plan are highlighted in the description
below.
The Amended DRIP Plan is available for the January, 2006 distribution to
be paid on February 15, 2006 to Peyto unitholders of record on January 30,
2006. Unitholders who wish to participate in the Amended DRIP Plan must send a
properly completed enrolment form to Valiant Trust Company no later than 3:00
p.m. (Calgary time) on the business day prior to a distribution record date
(January 30, 2006 for the January, 2006 distribution).
The Amended DRIP Plan provides eligible holders of trust units of Peyto
the advantage of accumulating additional trust units by reinvesting their cash
distributions paid by Peyto. The cash distributions will be reinvested at the
discretion of Peyto, either by acquiring trust units issued from treasury at
95% of the average market price (calculated by the arithmetic average of the
daily volume weighted average trading prices of the trust units on the Toronto
Stock Exchange for the period (the "Trading Period") commencing at the start
of trading on the first trading day subsequent to the last distribution record
date (i.e. the first trading day of a calendar month) and ending at the close
of trading on the third last trading day of such month (emphasis added) or by
acquiring trust units at prevailing market rates. It is the current intention
of Peyto to issue trust units from treasury to satisfy its obligation under
the Amended DRIP Plan and Peyto will inform participants if this changes.
Neither Peyto nor the administrator of the Amended DRIP Plan charge a fee to
participants. Generally, no brokerage fees or commissions will be payable by
participants for the purchase of trust units under the Amended DRIP Plan, but
unitholders should make inquiries with their broker, investment dealer or
financial institution through which their trust units are held as to any
policies of such party that would result in any fees or commissions being
payable.
The Amended DRIP Plan provides unitholders who are enrolled with the
opportunity to purchase new trust units at a 5% discount to the Average Market
Price over the Trading Period. Under the optional trust unit purchase
("OTUPP") component of the Amended DRIP Plan, eligible unitholders can elect
to purchase additional trust units from treasury for cash at a purchase price
equal to 95% of the Average Market Price over the Trading Period, in minimum
amounts of $1,000 per remittance by a unitholder in any calendar month. There
is a monthly limit on the aggregate amount of trust units to be issued by
Peyto under the OTUPP component equal to 0.33% of the issued and outstanding
trust units as of January 1 of the given year (the monthly limit being
approximately 338,000 trust units for fiscal 2006). In addition, there is an
overall annual limit on trust units issued pursuant to the OTUPP of 2% of the
outstanding trust units at January 1 of the given year (the annual limit being
approximately 2,046,000 million trust units for fiscal 2006). Accordingly,
participation may be prorated in certain circumstances. Participants electing
the OTUPP, will be prorated according to the number of trust units each such
participant has registered in the Amended DRIP Plan. Neither Peyto nor the
administrator of the Amended DRIP Plan charge a fee to participants.
Generally, no brokerage fees or commissions will be payable by participants
for the purchase of trust units under the Amended DRIP Plan, but unitholders
should make inquiries with their broker, investment dealer or financial
institution through which their trust units are held as to any policies of
such party that would result in any fees or commissions being payable.
The Amended DRIP Plan is presently available to Canadian registered
holders. Non-residents of Canada, including residents of the United States,
may not participate in the Amended DRIP Plan. Residents of the United States
may not participate in the Amended DRIP Plan, as Peyto is not a registrant
with the United States Securities and Exchange Commission.
Detailed information about the Amended DRIP Plan can be obtained from the
Peyto website at www.peyto.com. Information and enrolment forms are also
available from Valiant Trust Company at 310, 606 - 4th Street S.W., Calgary,
Alberta, T2P 1T1, Attention: Manager, Income Trusts (403) 233 2801 or
facsimile: (403) 233 2857.
Peyto is a natural gas weighted energy trust. Peyto is committed to
maintaining its emphasis on building value through the exploration and
development of high quality gas properties.
Certain information set forth in this document, including management's
assessment of Peyto's future plans and operations, contains forward-looking
statements. By their nature, forward-looking statements are subject to
numerous risks and uncertainties, some of which are beyond these parties'
control, including the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations, imprecision
of reserve estimates, environmental risks, competition from other industry
participants, the lack of availability of qualified personnel or management,
stock market volatility and ability to access sufficient capital from internal
and external sources. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance should not
be placed on forward-looking statements. Peyto's actual results, performance
or achievement could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurance can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits that Peyto will
derive therefrom. Peyto disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
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