Eagle Energy Trust Announces Closing Of Bought Deal Financing And Acquisition

Eagle Energy Trust announced that it has completed its previously announced bought deal financing of 7,730,000 trust units of the Trust (the Trust Units) at a price of $11.00 per Trust Unit for total proceeds of CAD85,030,000 (the Offering). The Offering was undertaken by a syndicate of underwriters led by Scotiabank. The underwriters have been granted an over-allotment option to purchase up to an additional 1,159,500 Trust Units at a price of $11.00 per Trust Unit, exercisable in whole or in part, from time to time, for a period of 30 days from the closing date of the Offering. If the over-allotment option is exercised in full, total proceeds of the Offering will be CAD97,784,500. Eagle is also announced the closing of its previously announced acquisition (the Acquisition) of producing petroleum properties in the Permian Basin located near Midland, Texas (the Acquired Assets). The purchase price of the Acquired Assets was USD113.4 million, subject to closing adjustments. The Acquisition was funded by the net proceeds of the Offering, an advance of approximately USD28.8 million under Eagle's credit facility and approximately USD6.6 million of working capital. In conjunction with the closing of the Acquisition, Eagle has also received final approval from its lender with respect to the increase of the borrowing base under its credit facility to USD48.5 million from USD31 million.