2010-04-09-2010-03-05

To acquire Pembina, Alberta-focused company, gaining 19.3 MMBOE reserves, 5,800 BOE/d.

Daylight Resources Trust, Calgary, (Toronto: DAY) plans to acquire West Energy Ltd. in a deal valued at C$570 million.

Daylight will pay 0.465 unit or C$5.50 in cash per West share, representing a 25% premium to the 10-day weighted average. Net debt and transaction costs are $135 million.

Daylight estimates it will pay approximately C$79,300 per barrel of oil equivalent per day. The estimated proved plus probable reserve acquisition cost is approximately C$23.84 per barrel equivalent.

More than 90% of West's assets are in the Pembina fairway of central Alberta, with a concentration on the east side of the major Pembina Cardium pool. The acquisition will add 40 net sections of Cardium rights to Daylight's existing 100 sections and increase Daylight's light oil horizontal drilling locations to between 300 and 600.

West's proved plus probable reserves total 19.3 million barrels of oil equivalent (84% oil and gas liquids) as of Dec. 31, 2009. Production from West's assets is approximately 5,800 barrels of oil equivalent per day (81% oil and gas liquids). The acquisition will increase Daylight's leverage to oil to approximately 45%.

The deal is expected to close in mid-to-late May, after Daylight's proposed conversion to a corporation.

GMP Securities LP is financial advisor to Daylight. CIBC World Markets Inc. is financial advisor to West.