Penn West Energy Trust and Canetic Resources Trust complete merger

Posted by Tim

January 15, 2008

Penn West Energy Trust and Canetic Resources Trust announce the closing of their combination and the creation of North America’s largest conventional oil and gas energy trust: Financial News - Yahoo! Finance

I think this is good news for shareholders, especially longer term. Quote is from the press release:

The combination of Penn West and Canetic has created the largest conventional oil and gas energy trust in North America with an enterprise value of approximately $14 billion, a significant portfolio of unconventional opportunities and a dominant position in light oil in Canada. In addition, the new Penn West has a diversified portfolio of conventional oil and natural gas assets plus significant resource-play potential in the Peace River oil sands of Northern Alberta, CO2 enhanced oil recovery in the Pembina, Swan Hills, Midale and Weyburn light oil pools and coalbed methane producing assets. Penn West is well positioned to create long-term value for Penn West Unitholders through its high-quality, long-life asset base, a strong balance sheet, and an extensive drilling inventory, together with improved access to equity and debt markets resulting from Penn West’s increased size and strength.

PWE is a component of this site’s 20 Stock Portfolio. I personally have a long position in PWE.