Fairborne Energy creates Fairborne Energy Trust

Date Closed: 6/01/2005

Value: $140 million 

On June 1, 2005, Fairborne Energy Ltd. (Fairborne), an oil and gas exploration development company headquartered in Calgary, completed a $700 million plan of arrangement and trust conversion resulting in the creation of Fairborne Energy Trust (the Trust), a new oil and gas energy trust that acquired approximately 90 per cent of Fairborne’s existing producing assets, and the creation of Fairquest Energy Ltd. (Fairquest), a junior oil and natural gas exploration and development company, which acquired the balance of Fairborne’s oil and natural gas assets and certain undeveloped land.

A $140 million credit facility was provided to the Trust by a syndicate of lenders led by the Royal Bank of Canada, who were represented by Bill Guinan, and George Kelly (corporate securities) and Suzanne Davies (corporate commercial) of BLG in Calgary.