CALGARY, July 15 /CNW/ - Keyera Facilities Income Fund ("Keyera") (TSX:KEY.UN; KEY.DB; KEY.DB.A) announced today that it has closed all of the acquisitions of plant interests announced in June.
As part of these transactions, Keyera acquired a 19% ownership interest in the Edson gas plant, a 36.5% ownership interest in the Minnehik Buck Lake gas plant and various ownership interests in the Keyera-operated West Pembina, Nordegg River, Gilby and Brazeau River gas plants. Keyera has also been appointed operator of the Minnehik Buck Lake gas plant. The combined purchase price for these acquisitions was approximately $50 million.
Keyera had originally agreed to purchase a 57% interest in the Minnehik Buck Lake gas plant and certain related reserves, along with various interests in associated other assets and reserves. However, the actual interests that were acquired by Keyera were lower as a result of one of the other plant owners exercising its right of first refusal ("ROFR") in connection with the acquisition. With the exercise of the ROFR in the Minnehik Buck Lake transaction, total reserves acquired in connection with these transactions were approximately 8.4 billion cubic feet of proved plus probable natural gas reserves and approximately 505 thousand barrels of natural gas liquids.
The two new gas plants, Edson and Minnehik Buck Lake, are located in the heart of Keyera's operations in west central Alberta and are capable of extracting NGLs and handling sour gas. As a result of these transactions, Keyera now has ownership interests in 17 gas plants and with net gas processing capacity of 126 million cubic feet per day.
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: future operating results of the assets, including the related reserves; 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; liabilities inherent in oil and natural gas operations; 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. All statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future. All information regarding the reserves, production and throughput information, 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.
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For further information: about Keyera Facilities Income Fund, please visit our website at www.keyera.com or contact: John Cobb, Director, Investor Relations or Bradley White, Investor Relations Advisor, E-mail: ir@keyera.com, Telephone: (403) 205-7670, Toll Free: (888) 699-4853, Facsimile: (403) 205-8425
