If approved, the Arrangement will result in the reorganization of the Trust into a growth-oriented corporation that will be named "Equal Energy Ltd.". The Board of Directors and senior management of Equal Energy will be comprised of the current members of the Board of Directors and senior management of Enterra Energy Corp., the current administrator of the Trust. Additional information regarding the Arrangement and various other matters to be dealt with at the Meeting can be found in the Information Circular which is available on the Enterra website at www.enterraenergy.com.
Equal Energy will pursue the continued development of the
Rationale for the Arrangement
Management of Enterra Energy Corp. and the Board of Directors have determined that enhanced unitholder and asset value could be realized and delivered more effectively through the reorganized structure rather than through the existing trust structure. In addition, in recommending the Arrangement to the Trust's unitholders, management and the Board of Directors believe that the Arrangement provides a number of strategic benefits to the Trust and its unitholders including, without limitation, the following:
- the Arrangement will provide for a simplified and more efficient corporate structure; - the Arrangement will provide greater flexibility for growth and retention of capital; - the Arrangement will enhance Equal Energy's access to capital; - the Arrangement will eliminate the uncertainty and risks facing the Trust as a result of the changes to the tax legislation relating to income trusts; and - the Arrangement will allow for rebranding under the name "Equal Energy" and allow the go-forward entity to have broader recognition in the capital markets.
Approvals and Timing
The completion of the Arrangement will be subject to receipt of all required regulatory, stock exchange and Court of Queen's Bench of
About Enterra Energy Trust
Enterra is an exploration and production oil and gas trust based in
Forward-Looking Statements
Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may," "should," "anticipate," "expects," "seeks" and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with oil and gas production; marketing and transportation; loss of markets; volatility of commodity prices; currency and interest rate fluctuations; imprecision of reserve estimates; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions or dispositions; inability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters. Readers are cautioned that the foregoing list of factors is not exhaustive.
Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Additional information on these and other factors that could affect Enterra's operations or financial results are included in Enterra's reports on file with Canadian and U.S. securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), the SEC's website (www.sec.gov), Enterra's website (www.enterraenergy.com) or by contacting Enterra. Furthermore, the forward looking statements contained in this news release are made as of the date of this news release, and Enterra does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.
SOURCE Enterra Energy Trust