2009-05-20-2007-06-01-2007-07-01

Acquired co., gaining 30 MMBOE proved & probable in AB & BC.

Provident Energy Trust, Calgary, (Toronto: PVE-UN; NYSE: PVX) has acquired approximately 96.2% of the outstanding shares of Capitol Energy Resources Ltd., Calgary, (Toronto: CPX) for C$416 million. Once completed, Provident will pay 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 as of May 3, 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%. Provident president and chief executive Tom Buchanan says, "Capitol has the best asset base of the numerous opportunities we have assessed since our Rainbow acquisition in mid-2006." Capitol president and CEO Monty Bowers says, "Dixonville has been an exciting asset for us. Exploration success on this scale is rare, and we take pride in the achievement. As we have moved Dixonville from an exploration opportunity to a low-risk resource play, it is ideally suited for Provident to develop it as a long-life, low-decline asset." Provident plans to increase production to 4,800 barrels equivalent per day for the remainder of 2007, 6,000 barrels in 2008 and 7,000 barrels in 2009. The development plan for the Dixonville pool features a multi-year drilling inventory of more than 120 identified horizontal well locations designed to optimize pool recovery. Provident will fund the deal through an offering of subscription receipts of approximately C$373.8 million and existing credit facilities. National Bank Financial Inc. is financial advisor to Provident and FirstEnergy Capital Corp. is financial advisor to Capitol. FirstEnergy and Paradigm Capital Inc. provided Capitol with fairness opinions.