Acclaim, StarPoint to create $4.5B megatrust

AIMING ITSELF AT U.S. LISTING

CALGARY • Acclaim Energy Trust and StarPoint Energy Trust are merging in what was hailed yesterday as the largest trust transaction to date in Canada and a pact that will lead to a prompt listing on the New York Stock Exchange to lure capital from U.S. investors.

The two intermediate-sized oil and natural gas trusts, both based in Calgary, will become Canada’s third- largest conventional oil and natural gas trust, with initial production averaging about 75,000 barrels of oil equivalent a day after the deal closes in January.

Only Penn West Energy Trust, with production of about 100,000 BOEs, and Enerplus Resources Fund at about 78,000 BOEs, would be larger.

Paul Charron, president and chief executive of Calgary-based Acclaim, will retain the same role with the as-yet-unnamed company. The combined firm will be run largely by Acclaim’s current management team. Paul Colborne, president and CEO of StarPoint, will lead a small exploration company to be spun off once the transaction is complete.