TSX SYMBOL: PEY.UN
CALGARY, Nov. 13 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") today confirms the cash distributions for December 2007 and announces a Special Meeting of Unitholders will be held on December 14, 2007, to consider a proposed internal reorganization.
Special Meeting
A Special Meeting of Unitholders will be held on December 14, 2007 at 2:30 p.m. in Room 16-1, at the offices of Burnet, Duckworth & Palmer LLP, Suite 1400, 350-7th Avenue SW, Calgary, Alberta, Canada. The Record Date for the determination of those Unitholders entitled to receive notice of, and vote at the meeting is November 13, 2007.
At the Special Meeting, Unitholders will be asked to provide conditional approval of an internal reorganization of the Trust and its subsidiaries. The internal reorganization does not involve the acquisition of any additional interests in any operating assets or the disposition of any of the Trust's existing interests in operating assets. Following completion of the reorganization, the Unitholders will continue to hold units and the Trust will continue to own, directly and indirectly, the same proportionate interests in the operating assets that it held immediately prior thereto. As a result of the internal reorganization Unitholders should generally not recognize any income, gain or loss for Canadian or United States income tax purposes.
The reorganization, if completed, would result in the existing business of the Trust, which is currently carried on through a combination of Peyto Exploration & Development Corp. and Peyto Operating Trust, being carried on entirely through a limited partnership indirectly owned by the Trust. The reorganization, which is similar in substance to reorganizations completed by a number of other income trusts, will provide the Trust with a "flow through" structure that should maximize the cash available for distribution. The reorganization is also subject to certain regulatory and third-party approvals and follows an advance tax ruling received from the Canada Revenue Agency.
For Unitholders, the reorganization will not result in a change to the number, type and ownership of the outstanding units of the Trust nor will it change the monthly distribution paid out to Unitholders. A detailed description of the reorganization will be included in the Notice of Special Meeting and Management Information Circular that will be mailed to Unitholders on or about November 19, 2007. The Management Information Circular is also expected to be available electronically on www.sedar.com on or about November 19, 2007.
Given the specific purpose of the Meeting, it is not currently anticipated that there will be any management presentation or discussion at the Meeting.
Confirmation of December 2007 Distributions
Peyto confirms that the monthly distribution with respect to November 2007 of $0.14 per trust unit is to be paid on December 14, 2007, for Unitholders of record on November 30, 2007. The ex-distribution date is November 28, 2007. This distribution represents the 22nd consecutive month since February 2006 that distributions have been sustained at this level.
Peyto believes that the foundation for sustainable distributions comes from long life, high quality reserves combined with a business of profitably finding and developing new reserves. Our business remains committed to this strategy and our asset base continues to lead the industry in reserve life and operating costs. As our current distribution level is well balanced with our business needs and high quality assets, we believe it is sustainable and continues to offer the prospect of growth in the future.
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.
Certain information set forth in this document and Management's Discussion and Analysis, 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 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.
%SEDAR: 00019597E