SYMBOL: PEY.UN - TSX
CALGARY, Jan. 2 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") is pleased to announce the completion of its previously announced internal reorganization. The reorganization was approved by Peyto's unitholders ("Unitholders") at a special meeting held on December 14, 2007 and was completed on January 1, 2008. Pursuant to the Reorganization the Trust's business operations were simplified and consolidated, such that all assets and all exploration and development activities will now be conducted entirely through the new limited partnership, indirectly held by the Trust.
Pursuant to the reorganization and certain related post-reorganization transactions, all Unitholders of record on January 1, 2008, will receive a special distribution in the form of securities of the Trust and its affiliates. The composition of this "distribution in kind" will depend on the residency status of each Unitholder. The securities issued will then be automatically redeemed and consolidated pursuant to the reorganization such that Unitholders' interest will be represented by the same number of Units as the Unitholder had prior to the reorganization. The securities issued pursuant to the special distribution will not be reflected in any confirmations or statements received by a Unitholder from such Unitholder's broker. A withholding tax on the special distribution is required by the Income Tax Act (Canada) to be remitted to the Receiver General on behalf of non-resident Unitholders. Canadian Unitholders will receive a special cash distribution that will be equivalent to the withholding tax being remitted on behalf of non-resident Unitholders. This special cash distribution will equate to approximately $0.0035 per trust unit, will be paid concurrently with the January 15, 2008 distribution and will be classified as a return of capital for tax purposes. Canadian Unitholders will be required to reduce the adjusted cost base of the Unitholder's units by the fair market value of the special cash distribution.
For Unitholders, the reorganization has not resulted in a change to the number, type and ownership of the outstanding units of the Trust. In addition, there has been no impact on the daily operations of the Trust.
Peyto is a natural gas weighted energy trust. Peyto currently has 105.7 million trust units outstanding and is committed to maintaining its emphasis on building value through the exploration and development of high quality gas properties.
Peyto trust units trade on the TSX under the symbol PEY.UN.
We encourage you to actively visit Peyto's website located at www.peyto.com. There you will find an updated presentation along with monthly reports from the President and Chief Executive Officer regarding ongoing activity.
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. Unitholders or potential Unitholders should consult their own legal or tax advisors as to their particular tax consequences.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
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