2009-08-05-2009-07-08-2009-07-30

To bought SK assets, gaining 3,000 BOE/d, 63,333 net undeveloped acres in Ferrier area of AB.

True Energy Trust, Calgary, (TSX: TUI) plans to sell the majority of its Saskatchewan oil and gas assets to Baytex Energy Trust, Calgary, (NYSE, TSX: BTE) for $93 million. Production from the assets is estimated to average 3,000 barrels of oil equivalent per day during the third and fourth quarters of 2009. The deal also includes 128 square-kilometers of 3-D proprietary seismic data, 389.7 kilometers of 2-D proprietary seismic data and 63,333 net acres of undeveloped mineral leases. True's interest in three sections in the Ferrier area of west-central Alberta will also be divested of in the transaction. The acquisition increases Baytex's production to approximately 43,000 barrels of oil equivalent per day. The company says the heavy oil assets will provide it with opportunities for cold infill drilling and steam-assisted gravity-drainage optimization. The sale, which was expected to close by July 30, excludes the company's Cypress and Mantario properties. Proceeds from the sale will be used to reduce bank indebtedness. Tristone Capital acted as advisor to True. In a separate transaction to a private buyer, True sold 145 barrels of oil equivalent per day from the Penhold area of central Alberta for $4.75 million. Proceeds from the transaction, which closed on June 30, were also used to reduce indebtedness. True's total net debt upon completion of the Saskatchewan sale is expected to be approximately $110 million, comprising approximately $28 million in debt outstanding on its credit facility and $82 million in convertible debentures. After both divestitures, True says its production is expected to be approximately 6,500 barrels of oil equivalent per day; the company is forecasting a 2009 exit production rate of 7,000 barrels of oil equivalent per day. According to GLJ Petroleum Consultants Ltd., who evaluated True's reserves effective Dec. 31, 2008, the company will have 26.1 million barrels of oil equivalent in proved and probable reserves post-divestitures.