StarPoint makes $318-million buy

Release Date: July 18, 2005
StarPoint Energy Trust said Monday it has bought a group of light oil properties in southeastern Saskatchewan for $318-million from an unidentified senior Canadian oil and gas company.

The trust said the assets have production of 6,100 barrels of oil equivalent per day, with 16.6 million barrels of oil equivalent of proven plus probable reserves.

The acquisition is expected to close on or about Aug. 9.

To help fund the deal, StarPoint said it has arranged with a syndicate of underwriters led by BMO Nesbitt Burns to sell 12 million units at $18.65 each to raise $223.8-million.

The underwriters have an option on up to an additional one million units.

StarPoint units fell 3 cents to $19.20 on the Toronto Stock Exchange.

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