2010-01-12-2009-10-28-2009-11-30

Acquired Lloydminster assets in AB, gaining 2,200 BOE/d, 4.4MMBOE 2P.

Privately held, Calgary-based Emerge Oil & Gas Inc. has closed on its previously announced acquisition of the Lloydminster assets of Provident Energy Trust, Calgary, (Toronto: PVE-UN NYSE: PVX) for C$68 million in cash and C$17 million in shares, for a total C$85 million. The deal values production as C$39,545 per flowing barrel of oil equivalent per day and proved and probable reserves at C$19.77 per barrel equivalent, according to Provident. The Lloydminster operating area includes the assets in the vicinity of Lloydminster on the Alberta and Saskatchewan border and around Provost, Alberta. Production during the third quarter was 2,200 barrels equivalent per day. Proved and probable reserves as of June 30 were 4.4 million barrels equivalent. As a result of the closing, Emerge has production of approximately 4,300 barrels equivalent per day (94% oil) and proved and probable reserves of approximately 9 million barrels equivalent. Emerge chairman, president and chief executive Tom Greschner says, "This asset acquisition [complements] our core Lloydminster heavy oil asset base where we have achieved success and are currently producing nearly 1,800 barrels equivalent per day. We are also extremely excited to add a new light and medium oil core area in the Provost/Thompson Lake area of Alberta. Emerge has added exceptional value for our shareholders and we intend to continue to increase shareholder value on accretive per-share metrics." Provident president and CEO Tom Buchanan says, "We are pleased with this asset sale and have realized excellent value for Provident's unit holders. This transaction is an important step towards repositioning Provident upstream for long-term sustainability and growth." Emerge funded the cash portion of the acquisition with bank debt and a C$50-million equity financing. Provident now has approximately C$285 million drawn against its revolving-term credit facility. Scotia Waterous was financial advisor to Provident. FirstEnergy Capital Corp. was financial advisor to Emerge.