Acclaim Energy Trust Acquires Elk Point Resources

Acclaim Energy Trust acquired Elk Point Resources Inc. for approximately $174 million, including assumed debt, by plan of arrangement under which Elk Point shareholders elected to receive cash or Acclaim trust units. Concurrently, each Elk Point shareholder received a share of Burmis Energy Inc., a new junior exploration company. Burmis acquired the U.S. operations of Elk Point, as well as certain minor Canadian properties. The transaction closed on January 28, 2003.

Acclaim financed the acquisition and reduced its bank indebtedness, with proceeds from a $45 million bought deal for 11 per cent convertible extendible unsecured subordinated debentures completed on December 17, 2002. Burnet, Duckworth & Palmer LLP represented Acclaim, with a team that included Bill Maslechko (securities), John Cuthbertson (oil and gas), Fred Davidson (securities), John Brussa (tax), Gina Ross (employment) and Alicia Quesnel (competition).

Blake, Cassels & Graydon LLP represented Elk Point and Burmis Energy, with a team that included Dallas Droppo, Q.C., Ross Bentley, Dan Mcleod and Shona Smith (securities), Ben Rogers (oil and gas), Ron Mar and Ed Gill (tax) and Gord Kettyle (employment). Lee Corbett and Alyson Goldman (securities) and David Weekes (tax) of Stikeman Elliott LLP acted for the underwriters, Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., FirstEnergy Capital Corp. and TD Securities Inc., on the bought deal.