By OGJ editors
HOUSTON, Jan. 25 -- Enterra Energy Trust announced that its board unanimously approved the conversion of the trust to a corporation to be named Equal Energy Ltd. In response to changes in Canada’s tax laws regards trusts, effective Jan. 1, 2011.
Don Klapko, Enterra president and chief executive officer, said, “We are relaunching Enterra as Equal Energy to create a new market brand with the conversion.” Canada changed its tax laws regarding trusts as that all Canadian trusts must essentially pay taxes in the same manner that corporations are taxed.
The conversion would be subject to the approval of the trust’s unitholders as well as customary court and regulatory approvals. The conversion is expected by May 31.
Equal Energy will continue to pursue the exploration and development of Enterra Energy Trust, which involve the Hunton natural gas and NGL play in Oklahoma. The company also wants to further develop its oil play in the west-central Alberta Cardium formation, and other Western Canadian Sedimentary Basin oil and gas prospects.