CALGARY, ALBERTA--(Marketwire - Oct. 1, 2012) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Meranex Energy Trust ("Meranex" or the "Trust") (TSX:MXT) is pleased to announce it has filed an amended and restated preliminary prospectus dated September 28, 2012 with securities regulators in each of the provinces of Canada in connection with a proposed initial public offering of its trust units.
The net proceeds of the offering, together with an advance under a credit facility to be established, will be used to indirectly acquire operated interests in assets located in South and East Texas which produced approximately 1,800 barrels of oil equivalent per day in the month of June 2012. The majority of the assets being acquired are characterized by long-life reserves in large original-oil-in-place pools, a commodity weighting comprised of 79% light oil and liquids and a significant inventory of low-risk exploitation opportunities to create visible, low-cost production growth.
The Meranex team is led by Steve Cloutier, President & Chief Executive Officer. Mr. Cloutier was a co-founder and the President of APF Energy Trust, which grew production to more than 18,000 Boe/d and generated an average annual return of 25% from inception in late 1996 until its sale to Star Point Energy Trust in 2005. Joining Mr. Cloutier on the Meranex executive are Lonn Bate, Vice President, Finance & Chief Financial Officer and Curt Hartzler, Vice President, Engineering.
The independent members of the Meranex board of directors are Brian Straub (Chairman), John Howard, Bob Michaleski and Ali Bhojani. Mr. Cloutier will also sit on the Meranex board.
The offering is being made through a syndicate of underwriters co-led by Scotia Capital Inc., RBC Dominion Securities Inc. and CIBC World Markets Inc., and include BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., Raymond James Ltd. and Macquarie Capital Markets Canada Ltd.
The amended and restated preliminary prospectus, which contains important information relating to Meranex and the trust units, may be obtained on the SEDAR website at www.sedar.com under Meranex's profile. The amended and restated preliminary prospectus is still subject to completion or amendment. There will not be any sale or acceptance of an offer to buy the trust units until a receipt for the final prospectus has been issued.
The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States unless pursuant to an exemption there from. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Meranex Energy Trust in any jurisdiction.
ABOUT MERANEX ENERGY TRUST
Meranex's objective is to create stable, consistent returns for investors through the indirect acquisition and development of oil, liquids and natural gas reserves and production with low-risk exploitation potential, located primarily in the United States and to pay out a portion of available cash to holders of trust units on a monthly basis.
Meranex intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restrictions which preclude the Trust from holding any "non-portfolio property" (as defined in the Tax Act).
This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Meranex, including, without limitation, those listed under "Risk Factors" and "Notice to Investors - Forward-Looking Statements" in Meranex's amended and restated preliminary prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, information concerning the proposed initial public offering, the completion and receipt of necessary approvals, Meranex's objectives, advances under a credit facility to be established and the acquisition of the Trust's initial assets. Meranex cautions investors in its securities about important factors that could cause Meranex's actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out in Meranex's amended and restated preliminary prospectus or herein will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this press release and Meranex does not assume any obligation to update or revise them to reflect new events or circumstances.
NOTE REGARDING BARREL OF OIL EQUIVALENCY
Meranex has adopted the standard of 6 thousand cubic feet ("Mcf") to 1 barrel ("bbl") when converting natural gas to barrels of oil equivalency ("boe"). Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf to 1 bbl would be misleading as an indication of value.
All material information pertaining to Meranex Energy Trust may be found under the Trust's profile at www.sedar.com.
No securities regulatory authority has either approved or disapproved of the contents of this news release.