CALGARY, April 1 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN;
KEY.DB) ("Keyera") announced today that it has agreed to acquire a 35.6%
ownership interest in the ATCO West Pembina gas plant from three plant owners
for a purchase price of approximately $26 million. The plant has 145 million
cubic feet per day of sour gas processing capacity, natural gas liquids
extraction capability and significant sulphur handling capacity. The
acquisition is subject to typical closing conditions and to waiver of rights
of first refusal held by two third parties. The transaction is expected to
close on May 1, 2008 and has an effective date of January 1, 2008.
The West Pembina gas plant is located approximately 12 kilometres north
of Keyera's Brazeau River gas plant in the Pembina region of Alberta. The
plant currently has unutilized sweet and sour processing capacity and "deep
cut" natural gas liquids extraction capabilities. With 520 tonnes per day of
licensed sulphur handling capacity, it is able to handle the highly sour raw
gas streams in the area. The plant has approximately 70 kilometres of
gathering pipelines, which provide an extensive reach into the gas producing
areas of the Pembina region.
As part of the transaction, the plant's operations, maintenance and
administrative staff will be joining Keyera. As the largest owner in the
facility, Keyera will be submitting a proposal to the plant's operating
committee to become operator of the plant.
"I am very pleased to be able to acquire a significant ownership interest
in another sour gas processing facility in this important gas producing
region" said Jim Bertram, President and CEO of Keyera. "This acquisition fits
our strategy of expanding our gathering and processing presence in the
foothills area of Alberta, where the geology is very prospective. As Producers
continue to develop sweet and sour gas plays, including the Nisku formation,
sour gas processing capacity is becoming more valuable. This facility will
complement our existing five gas processing plants and extensive gathering
systems in this region and allow us to expand the services we offer to gas
producers in the area."
"In addition, we are delighted to have such a strong group of employees
join the Keyera team" Bertram noted.
About Keyera Facilities Income Fund
Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) operates one of the
largest natural gas midstream businesses in Canada. Its business consists of
natural gas gathering and processing as well as the processing,
transportation, storage and marketing of natural gas liquids (NGLs) and crude
oil midstream activities.
Keyera's gas processing plants and associated facilities are
strategically located in the west central and foothills natural gas production
areas of the Western Canadian Sedimentary Basin. Its NGL and crude oil
infrastructure includes pipelines, terminals and processing and storage
facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American
NGL hub. Keyera markets propane, butane and condensate to customers in Canada
and the United States.
Advisory
This document contains forward-looking statements that involve known and
unknown risks and uncertainties, many of which are beyond Keyera's control.
The forward-looking statements are based on management's current expectations
and assumptions relating to Keyera's business and the environment in which it
operates. As the results or events predicted or implied in these
forward-looking statements depend upon future events, actual results or events
may differ materially from those predicted. Some of the factors which could
cause actual results or events to differ materially include Keyera's ability
to successfully implement planned initiatives, whether those initiatives yield
the expected benefits, the impact of government and industry initiatives,
operating and other costs, future operating results, fluctuations in the
demand for natural gas, NGLs and crude oil, the activities of producers,
competitors and others, the weather, overall economic conditions 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. 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.
%SEDAR: 00019203E
