2009-08-11-2008-01-01-2008-01-01

Bought co., gaining 17,900 net acres undeveloped land, 100 gross drilling opportunities in Steelman, Crystal Hills & Ingoldsby areas. Production 1,300 BO/d (97% operated), 2P 3.6 MMBO.

Provident Energy Trust, Calgary, (Toronto: PVE-UN; NYSE: PVX) through subsidiary Provident Energy Resources Inc. has closed its acquisition of privately held Triwest Energy Inc., Calgary, for approximately C$64.6 million in stock, C$1.5 million in cash and C$13 million in assumed debt for a total deal value of approximately C$78 million. Provident paid 0.6539 trust unit and C$0.1569 in cash per Triwest share, issuing some 6.25 million trust units. The total deal value decreased by C$14 million from the time of announcement on Oct. 22 due to the devaluation of Provident shares from C$12.21 to C$10.34 each at closing. Provident now owns 99% of Triwest and will acquire the remaining shares through a compulsory acquisition procedure. The assets include 17,900 net acres of undeveloped land and approximately 100 gross drilling opportunities, principally in the Steelman, Crystal Hills and Ingoldsby areas in southwestern Saskatchewan. Production is approximately 1,300 barrels of oil per day (97% operated) and Provident expects production to increase by approximately 20% in 2008. Proved and probable reserves are approximately 3.6 million barrels of oil. Provident's southeastern Saskatchewan asset team will be manager. Provident president and chief executive Tom Buchanan says, "The Triwest transaction reflects our ongoing efforts to supplement our Canadian upstream business with accretive and strategic acquisitions. The technical and operational capability we have developed in this region over the past decade, combined with competitive royalty rates and strong economics on these new assets, position us for high capital efficiency in the region." Provident is an energy income trust that operates upstream and midstream assets in Western Canada and the U.S.