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20

Pengrowth-ConocoPhillips Deal Increases Former's Production

Properties in Alberta and Saskatchewan were among the assets ConocoPhillips acquired in its takeover...

Pengrowth Energy Trust boght four oil and gas subsidiaries from U.S. energy giant ConocoPhillips for $1.04 billion.

The deal, the first blockbuster deal involving an energy trust since Ottawa announced plans to tax the industry, is expected to increase Calgary-based Pengrowth's total production to about 100,000 barrels of oil equivalent per day.

Properties in Alberta and Saskatchewan were among the assets ConocoPhillips acquired in its takeover of Burlington Resources in March and had been for sale for months.

The Pengrowth-ConocoPhillips deal was originally to have been announced the week that Federal Finance Minister Jim Flaherty stunned business by declaring on Halloween that the government was changing the favourable tax policy for income trusts.

As well as its intention to tax trusts more like corporations, the government is introducing new restrictions on their growth, although details have not yet been released.