Canetic Resources Trust announces special distribution
07 January 2008 - 10:00PM
PR Newswire (US)
CALGARY, Jan. 7 /PRNewswire-FirstCall/ -- (CNE.UN - TSX; CNE -
NYSE) Canetic Resources Trust ("Canetic") is pleased to announce
that a one-time special cash distribution of C$0.09 per trust unit
will be paid to Canetic Unitholders of record at the close of
business on January 10, 2008. Canetic trust units will commence
trading on an ex-distribution basis on January 8, 2008 and the
distribution will be paid on January 11, 2008 to Computershare
Trust Company of Canada ("Computershare"), Canetic's transfer
agent, in trust for further payment to Canetic Unitholders on or
about January 17, 2008. Using a Canadian to U.S. dollar exchange
rate of $1.00, the distribution amount is approximately US$0.09 per
trust unit. The actual U.S. dollar equivalent distribution for
unitholders who hold Canetic trust units through a brokerage firm
will be based upon the Canadian to U.S. dollar exchange rate in
effect on the payment date, net of applicable Canadian withholding
taxes. Registered unitholders will be paid directly by
Computershare, and the distribution will be based on the Canadian
to U.S. dollar exchange rate as of the date of record, net of
applicable Canadian withholding taxes. This special distribution is
in addition to the regular monthly January distribution of $0.19
per Canetic trust unit which will be paid on January 15, 2008 to
unitholders of record on December 31, 2007. The special
distribution, together with the distributions payable on the Penn
West trust units following completion of the Arrangement (assuming
no changes to the current distribution policies of Penn West), will
effectively maintain the equivalent of Canetic's pre-Arrangement
monthly cash distributions to Canetic Unitholders for six months
following completion of the Arrangement, taking into account the
trust unit exchange ratio and the current monthly distributions of
Penn West and Canetic. On October 31, 2007, Canetic announced that
it had entered into an agreement with Penn West Energy Trust ("Penn
West") providing for the combination of Penn West and Canetic (the
"Arrangement"). Pursuant to the Arrangement, each Canetic trust
unit will be exchanged for 0.515 of a Penn West trust unit.
Completion of the Arrangement is subject to a number of conditions
including, but not limited to, the approval of at least 66 2/3
percent of votes cast in person or by proxy at the Special Meeting
of Canetic Unitholders to be held on January 9, 2008, as well as
court approvals and other conditions that are typical of
transactions of this nature. Provided that Canetic Unitholders
approve the Arrangement at the Special Meeting, and that all of the
other conditions to the completion of the Arrangement are
satisfied, the Arrangement is expected to become effective on or
about January 11, 2008. Canetic Unitholders are invited to attend
the Special Meeting of Canetic Unitholders to be held in the
Ballroom of the Metropolitan Conference Centre, 333 - 4th Avenue
S.W., Calgary, Alberta, Canada at 9:00 a.m. (Calgary time) on
Wednesday, January 9, 2008. The business of the Special Meeting
will be to consider and vote upon the Arrangement. The record date
for the determination of Canetic Unitholders entitled to vote at
the Special Meeting was November 30, 2007. Canetic is one of
Canada's largest oil and gas royalty trusts. Canetic trust units
and debentures are listed on the Toronto Stock Exchange under the
symbols CNE.UN, CNE.DB.A, CNE.DB.B, CNE.DB.C and CNE.DB.E, and the
trust units are listed on the New York Stock Exchange under the
symbol CNE. ADVISORY: Certain information contained in this news
release, including statements with respect to the timing of the
payment of the special distribution, the closing date of the
Arrangement and future cash distributions, may constitute
forward-looking statements under applicable securities law and
necessarily involve risks, including, without limitation, risks
associated with obtaining unitholder and required court approvals.
As a consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Readers are
cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect
Canetic's and Penn West's operations or financial results are
included in reports on file with applicable securities regulatory
authorities and may be accessed through the SEDAR website
(http://www.sedar.com/), the SEC's website (http://www.sec.gov/)
or, in the case of Canetic, at Canetic's website
(http://www.canetictrust.com/) and, in the case of Penn West, at
Penn West's website (http://www.pennwest.com/). DATASOURCE: Canetic
Resources Trust CONTACT: Investor Relations: (403) 539-6300, Toll
Free 1-877-539-6300, , http://www.canetictrust.com/
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