On June 30, 2006, Penn West Energy Trust and Petrofund Energy Trust completed a plan of arrangement merging the two trusts, which will continue under the name Penn West Energy Trust. The merger of the trusts has created the largest oil and gas energy trust in North America with an enterprise value of approximately $11 billion.
Based in Calgary, Penn West operates in five core areas throughout the Western Canada Sedimentary Basin. Penn West's production averaged 96,713 boe per day at March 31, 2006, and is expected to average approximately 140,000 boe per day after the merger.
In connection with the merger, Penn West entered into a $650 million unsecured bridge facility with Canadian Imperial Bank of Commerce, increasing its total bank facilities to approximately $1.85 billion.
Penn West was represented by Burnet, Duckworth & Palmer LLP with a team that included Allan Twa, Q.C., Grant Zawalsky, Jeff Oke and James Kidd (securities), John Brussa and Jeff Fortin (tax), Alicia Quesnel (competition), John Cuthbertson and John Goetz (energy), John Wilmot (banking), Gina Ross (employment) and Dan McDonald (litigation); and by Penn West's US counsel, Daniel Miller of Dorsey & Whitney LLP.
Petrofund was represented by Macleod Dixon LLP with a team that included Robert Engbloom, Q.C., Neville Jugnauth, Kirk Litvenenko and Rashi Sengar (securities), Orville Pyrcz, Q.C., and Craig Maurice (tax), Chrysten Perry (energy) and Howard Gorman (litigation). With respect to US matters, Petrofund was advised by David Wilson (securities) and Laurence Crouch (tax) of Shearman & Sterling LLP. CIBC was represented by Blake, Cassels & Graydon LLP with a team that included Kevin Fougere.