2009-06-12-2008-11-01-2008-11-01

Bought co. with assets in Harmattan area, gaining 1,900 BOE/d, 8.4 MMBOE proved.

Pengrowth Energy Trust, Calgary, (Toronto: PGF.UN; NYSE: PGH) has closed its acquisition of junior E&P Accrete Energy Inc., Calgary, (Toronto: GZ) for C$95 million in stock and assumption of C$25 million in debt for a total deal value of C$120 million. Pengrowth paid 0.276 unit per Accrete unit and issued some 5 million units to acquire Accrete assets in the Harmattan area in Alberta. Accrete shareholders received C$0.225 per Pengrowth trust unit distribution on Oct. 15. Production is approximately 1,900 barrels equivalent per day. Reserves are approximately 8.4 million barrels equivalent as evaluated by GLJ Petroleum Consultants Ltd. The Harmattan assets feature a 75% working interest with predictable production histories, low decline rates and low operating costs of approximately C$6 per barrel equivalent. Potential upside includes infill and step-out drilling. Accrete shareholders also received 0.25 share of new growth-focused E&P company Argosy Energy Inc. and warrants to purchase additional Argosy shares at 0.125 warrant for each Accrete share formerly held. Argosy will acquire approximately 3.8 million barrels equivalent with production of approximately 1,100 barrels equivalent per day. Growth areas include the Claresholm, Granum and Pearce regions in southern Alberta with some 70 high-working-interest drilling locations targeting light oil and sweet natural gas identified. The land base includes a 100% working interest in 23 three-quarter sections in the Saxon area with exposure to the Montney shale play. The new E&P will be led by Peter Salamon as president and key members of Accrete's current management. The board will consist of Accrete's current board. Accrete's existing credit facility will be assumed in part by the new company. GMP Securities LP was advisor to Accrete.