Chamaelo Energy converts to a trust

Date Closed: 6/22/2005

Value: $330 million

On June 22, 2005, Chamaelo Energy Inc. completed a plan of arrangement under the ABCA (the arrangement) whereby Chamaelo reorganized into a new energy trust, Vault Energy Trust, and a new, publicly listed, exploration-focused, oil and gas producer, Chamaelo Exploration Ltd. As part of the arrangement, Chamaelo acquired certain oil and natural gas properties for $375,000 and completed a bought deal equity financing for aggregate gross proceeds of $330,028,000 with a syndicate of underwriters co-led by Orion Securities Inc. and GMP Securities Ltd., and including CIBC World Markets Inc., National Bank Financial Inc., Sprott Securities Inc., TD Securities Inc., Trilon Securities Corp. and Tristone Capital Inc. Bank financing was also provided by a senior credit facility of lenders led by CIBC and the Toronto-Dominion Bank for aggregate gross proceeds of $150,000. Brascan Bridge Lending Fund Inc. also provided bridge financing of $240 million.

The underwriters were represented by BLG with a team led by Scott Wilson that included Gil Malfair, Brian Roberts, Britta Wagner, Melinda Park and Lloyd McLellan (corporate/securities), Ross Freeman and Jim Williams (tax) and Marilyn Paterson (oil and gas).