Calgary-based Esprit Exploration Ltd. is one step closer to reorganizing into an income trust and an exploration and production (E&P) company, and will hold a special shareholder meeting in late September to consider the arrangement. Esprit Energy Trust would hold 90% of Esprit’s existing proved producing reserves, while ProspEx Resources Ltd. would own the balance of the assets and some of the undeveloped lands. In order to become effective, a resolution approving the arrangement must be approved by at least two-thirds of the shareholders. It also will require final approval of the Court of Queen’s Bench of Alberta. If all conditions are satisfied or waived, Esprit, known until last year as Canadian 88 Energy Corp., expects the reorganization to take effect Oct 1. The shareholder meeting is scheduled for Sept. 27 at the Westin Hotel in Calgary.

Calgary-based Baytex Energy Trust swill pay C$109 million cash to buy a private Canadian-based oil and gas company. The private company focuses its exploration in three areas around southern Alberta, and the acquisition will add 3,200 boe/d to Baytex’s current production output, including 12 MMcf/d of natural gas and 1,200 bbl/d of light crude and natural gas liquids. Baytex, which became an energy trust in September 2003, is currently producing about 34,400 boe/d of gas-weighted production in Sedalia/Garden Plains, Turin/Parkland and Crossfield, with 45% of the production complementary to its existing operations. About 92% of the production is from operated, working interest properties, and Baytex will acquire ownership and control of most of the key facilities and infrastructure within the operating areas. Baytex estimates the acquisition includes 5.5 MMboe on a proved basis and 7.5 MMboe on a proved plus probable basis. The assets also include about 102,000 acres of undeveloped land, primarily located in Alberta. Baytex estimates the cost/producing oil equivalent barrel is C$31,560, with the cost/proved boe of C$18.36. The cost/proved plus probable boe is estimated at C$13.47.

Just weeks after Berry Petroleum Co. set up a joint exploration and development agreement with the Ute Indian Tribe to develop acreage in the Uinta Basin of Utah, the Bakersfield, CA-based producer said it would increase its 2004 capital budget 68% to $70 million. It also authorized a 4-cent/share increase in its annual dividend and added a special dividend of 6 cents/share. In July, Berry announced an agreement with an undisclosed industry partner to jointly explore 125,000 acres of tribal lands in the Uinta Basin, and it agreed to purchase an interest in 46,000 acres of fee lands adjacent or near the tribal acreage. The new acreage is west of Berry’s Brundage Canyon field where it is currently producing 4,500 boe/d. The regular quarterly dividend was increased by 9%, from 11 cents/share to 12 cents, beginning with the September 2004 dividend. The regular quarterly dividend, along with the special dividend of 6 cents, will be paid on Sept. 29 to shareholders of record on Sept. 13. Berry has approximately 22.2 million shares presently outstanding.

Enterra Energy Trust said it has entered into an agreement under which a subsidiary will acquire all of the issued and outstanding common shares of Rocky Mountain Energy Corp.(RME). Under the agreement, shareholders of Rocky will receive C$6.10 in cash (subject to an aggregate maximum of $10 million cash), 0.35078 of a trust unit of Enterra, or 0.35078 of an exchangeable share (each of which is exchangeable for a trust unit of Enterra) for each share of RME held. The transaction, including assumption of RME debt, has been valued at C$55 million.

©Copyright 2004 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.