Petrofund Energy Trust said Tuesday it purchased about 4 million boe in western Canadian gas and oil reserves (84% gas) through a combination of three property and corporate transactions for a total purchase price of C$66.4 million. The majority of the production is located in Alberta and British Columbia with minor interests in Saskatchewan.

Current production is 1,365 boe/d and the trust said the assets fit closely with its existing operations. They also are complementary to Petrofund’s internal development program and contain 12 drilling locations so far. The majority of the drilling is expected to take place in 2005 and 2006, the company said.

Petrofund estimated the purchase price at $16.55/boe of reserves and $48,500/boe/d of production. The trust said the package is accretive under several measures, but is slightly dilutive in terms of reserve life index, which moves from 11.3 to 11.2 years.

The purchases were financed using Petrofund’s existing credit facilities. Proceeds of the $75 million equity offering announced last week will offset the impact of the acquisitions on those credit facilities, the trust said.

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.