Provident Energy Trust, Calgary, (Toronto: PVE-UN; NYSE: PVX) plans to acquire Capitol Energy Resources Ltd., Calgary, (Toronto: CPX) for C$467 million in cash and C$41 million in assumed debt in a total deal valued at C$508 million. The offer for C$8.16 per share represents a 6.5% premium for Capitol's 20-day average trading price and a 10% premium to the 30-day average, and values the production at C$113,000 per average daily flowing barrel of oil equivalent and proved and probable reserves at C$16.60 per barrel equivalent. Capitol's assets are in western Alberta and eastern British Columbia, including the Montney C pool in Dixonville, Alberta, that Provident has assigned approximately 90% of the deal value. The pool contains original oil in place of 263 million barrels of oil. All of the production is operated with 100% working interest. Production is 4,400 barrels equivalent per day (75% oil). Proved and probable reserves are 30 million barrels equivalent, and proved, probable and possible reserves are 57.1 million barrels equivalent. Pro forma, Provident's Canadian proved and probable reserves will increase 40%.
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