Paramount Energy Trust to buy Cavell for C$148 million - May 30, 2004

Providing coverage of Alaska and northern Canada's oil and gas industryMay 2004

Vol. 9, No. 22

Week of May 30, 2004

Paramount Energy Trust to buy Cavell for C$148 million

Don Whiteley

Petroleum News contributing writer

Paramount Energy Trust of Calgary said May 26 that it has reached an agreement to purchase Cavell Energy Corp. in a stock (units) and cash deal worth C$148 million.

“The Cavell acquisition fits PET’s business plan perfectly, providing substantial geographic diversification outside the trust’s northeast Alberta core areas while maintaining its technical focus on shallow natural gas,” Paramount President Sue Riddell said in a release. “We are excited about the quality of the upside opportunities that the Cavell team has compiled on their focused asset base.”

The deal is valued at $2.40 a share. A minimum of $30 million and a maximum of $98 million in cash would be paid to Cavell shareholders pursuant to the arrangement.

Cavell’s natural gas production is located in west-central Saskatchewan, southern Saskatchewan and the Mitsue area of north-central Alberta. Paramount Energy Trust is a natural gas-focused energy trust.

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