Keyera Announces Closing of Simonette Midstream Assets

CALGARY, Dec. 14 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB; KEY.DB.A) ("Keyera") announced today that it has closed the acquisition of the Simonette area midstream assets announced on November 10, 2010. As part of the transaction, Keyera acquired a 62.5% ownership interest in the Simonette gas plant, as well as an additional 66.7% of the North Cabin pipeline and 50% of the Solomon and Cabin Creek pipeline and compressor station.

Keyera now has 100% ownership of the Simonette gas plant, a compression facility, and the North Cabin and Solomon and Cabin Creek gathering pipelines that deliver gas to the plant for processing. Closing of the acquisition of 100% of the 37 kilometre Findley pipeline and an average 30.4% interest in the 72 kilometre Lynx pipeline is expected to occur in the first quarter of 2011. The ownership interest in the Lynx pipeline is subject to rights of first refusal.

Disclaimer

This document contains forward-looking statements based on management's current expectations and assumptions relating to Keyera's business, the environment in which it operates, anticipated timing and closing of the acquisitions and the future operations and performance of the assets. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: the completion of a purchase and sale agreement for the Findley and Lynx pipelines; the exercise of rights of first refusal by other owners of the Lynx pipeline; future operating results of the assets; future operating results of Keyera's business segments and the components of those results; Keyera's ability to execute its strategic initiatives; commodity supply/demand balances and prices; activities of producers, competitors, customers, business partners and others; overall economic conditions; access to capital and financing alternatives; operational risks in developing and producing natural gas; and potential delays or changes in plans with respect to development projects or capital expenditures or the results therefrom; the legislative, regulatory and tax environment; and other known or unknown factors. There can be no assurance that the results or developments anticipated by Keyera will be realized or that they will have the expected consequences for or effects on Keyera. As Keyera does not yet own some of the assets to be acquired, information regarding such assets contained herein has been derived by necessity from information provided by the vendors and other third parties.

For additional information on these and other factors, see Keyera's public filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.