Provident acquiring two Canadian oil and gas companies

Provident Energy Trust, Calgary, reached agreements to purchase two Canadian energy companies in transactions that will bring Provident's production to more than 34,000 boed.

April 15, 2004

By OGJ editors
HOUSTON, Apr. 15 -- Provident Energy Trust, Calgary, reached agreements to purchase two Canadian energy companies in transactions that will bring Provident's production to more than 34,000 boed. Provident's reserves will rise to 62 million boe, a 48% increase.

Provident will acquire Olympia Energy Inc. for $217.6 million (Canadian) and Viracocha Energy Inc. for $205.9 million. Closing is expected in early June 2004.

Olympia's main producing properties are in Provident's west central Alberta core area. Viracocha's producing properties greatly overlap with Provident's operations in southern and east central Alberta.

Following the acquisitions, Provident's production will be weighted 45% natural gas, 33% light-medium oil and natural gas liquids, and 22% heavy oil.

Provident said the transactions will not affect its $46 million existing 2004 internal development program but that the company will "review a broader range of capital opportunities with a view to high grade its capital spending for the remainder of the year."