CALGARY, Dec. 14 /PRNewswire-FirstCall/ -- Peyto Energy Trust ("Peyto" or the "Trust") today confirms the cash distributions for January 2008 and announces a special distribution pursuant to the proposed internal reorganization.
Confirmation of January 15, 2008 Distributions
Peyto confirms that the monthly distribution with respect to December 2007 of $0.14 per trust unit is to be paid on January 15, 2008, for Unitholders of record on December 31, 2007. The ex-distribution date is December 27, 2007. This distribution represents the 23rd consecutive month since February 2006 that distributions have been sustained at this level.
Special Distribution
The previously announced internal reorganization was approved by Peyto's unitholders ("Unitholders") at a special meeting held on December 14, 2007 and is expected to be completed on January 1, 2008. Pursuant to the reorganization, all Unitholders will receive a special distribution in kind and Canadian Unitholders will also receive a special cash distribution that will be equivalent to the withholding tax that is being remitted to the Receiver General on behalf of each non-resident Unitholder. This special cash distribution, which equates to approximately $0.0035 per trust unit, will be paid concurrently with the January 15, 2008 distribution and classified as a return of capital for tax purposes. Unitholders will be required to reduce the adjusted cost base of the Unitholder's units by the fair market value of the special cash distributions.
Pursuant to the Reorganization, the Trust's business operations are being simplified and consolidated, such that all assets and all exploration and development activities will be conducted entirely through a new limited partnership, indirectly held by the Trust. Previously, Peyto's business operations were being conducted partially in Peyto Exploration & Development Corp. and partially in Peyto Operating Trust. The purpose of the reorganization is to maximize value and cash distributable to Unitholders and to increase the value of the business by providing for a simplified operating structure.
Peyto is a natural gas weighted energy trust. Peyto currently has 105.7 million trust units outstanding and is committed to maintaining its emphasis on building value through the exploration and development of high quality gas properties.
Peyto trust units trade on the TSX under the symbol PEY.UN.
We encourage you to actively visit Peyto's website located at http://www.peyto.com/.
Certain information set forth in this document, including management's assessment of Peyto's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Peyto's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Peyto will derive therefrom. Peyto disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Unitholders or potential Unitholders should consult their own legal or tax advisors as to their particular tax consequences.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
