Argent Energy Trust Closes $102 Million Wyoming Acquisition

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Purchased producing oil properties in Campbell, Johnson, Crook, Weston and Niobrara counties.

Argent Energy (US) Holdings Inc., a subsidiary of Argent Energy Trust (TSX: AET.UN), has completed the acquisition of producing petroleum properties in Wyoming from a private company for $102 million.

The Wyoming assets are principally oil properties in Campbell, Johnson, Crook, Weston and Niobrara counties in Wyoming. Wyoming borders Colorado, where the trust also has producing assets, providing for a contiguous corridor to Texas.

The Wyoming assets are characterized by long-lived, low decline production and are expected to generate significant free cash flow. The acquisition is consistent with the trust's business plan of building a high netback, low decline production base.

Working interest oil production from the Wyoming assets currently exceeds 1,000 barrels of oil equivalent per day (BOE/d), 95% oil & NGLs. Argent expects to maintain production levels of at least 1,000 BOE/d through 2014 with minimal operational activity or capital investment.

The majority of the Wyoming assets will be operated by Argent.

Estimated working interest proved plus probable reserves of 7.5 million BOE, according to an evaluation by Cawley, Gillespie & Associates Inc., of which proved developed producing reserves account for 55%.

The Wyoming assets also produce significant free cash flow beyond the capital required to maintain production from the acquired assets.