Shiningbank Energy Income Fund Internalizes Management Structure

On October 9, 2002, Calgary-headquartered Shiningbank Energy Income Fund internalized its management structure through the acquisition of all the outstanding shares of its manager, Shiningbank Energy Management Inc. This internalization transaction eliminates future management and acquisition fees. The consideration paid by the fund was $19.4 million (comprised of $2.91 million in cash, plus the equivalent of $16.49 million in exchangeable shares, exchangeable into trust units), net of $1.8 million to be provided for as part of the creation of a performance/retention bonus pool.

Gowling Lafleur Henderson LLP acted for the vendors and the fund, with a team comprised of Richard Clark, Brian Mainwaring, Marcia Johnston, Robert McCue, Gail Black, Rick Myers, Tom Cumming, Alan Rautenberg and Gary Rose. Fraser Milner Casgrain LLP acted for the special committee of the directors of the fund’s operating company, with a team comprised of David Robottom, Bill Gilliland, Craig Story and Scott Bodie. Macleod Dixon LLP acted for the lenders, with a team comprised of Howard MacKichan and Michael Wylie.