Pengrowth Energy Trust extends tender for Esprit Energy Trust's 6.5% convertibles

New York, Dec. 1 - Pengrowth Energy Trust said it has extended its offer to buy back all of Esprit Energy Trust's 6.5% convertible extendible unsecured subordinated debentures due Dec. 31, 2010.

The offer will now end at 7 p.m. ET on Dec. 12, pushed back from 7 p.m. ET on Dec. 6.

Pengrowth said it was allowing more time because on Nov. 29 it announced an agreement to acquire Canadian oil and natural gas producing properties and undeveloped lands through the acquisition of four subsidiaries of Burlington Resources Limited, a subsidiary of ConocoPhillips for a purchase price of C$1.0375 billion. To raise funds it will sell 20 million trust units.

Under the terms of the tender, Pengrowth agreed to allow 10 days' notice after a significant event.

The tender was announced on Nov. 2. The Calgary, Alta., energy royalty trust said that after completing its business combination with Esprit on Oct. 2, Pengrowth assumed all the covenants and obligations under the debenture indenture.

As a result of the change of control provisions, Pengrowth is required to make the purchase offer within 30 days of the change of control.

The company added it will purchase all of the debentures at a price equal to 101% plus accrued interest.

According to the company, the securities have traded on the Toronto Stock Exchange in the range of C$99.45 to C$107.00 over the past 12 months. They closed at C$101.50 on Oct. 31.

Each C$1,000 principal amount of debentures is convertible into Pengrowth trust units at C$25.54 per trust unit, which is a rate of 39.16144 Pengrowth trust units.

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