Calgary, December 5, 2005 – Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) announced today that it has agreed to acquire an additional 24.8% ownership interest in the Strachan gas plant, along with interests in associated plant facilities and pipelines. The $24 million purchase increases Keyera’s ownership position in this facility to 85.8%. The transaction is expected to close on December 19, 2005, with an effective date of September 1, 2005.
The Strachan gas plant is located approximately 20 kilometres southwest of Rocky Mountain House in west central Alberta. With a raw gas inlet capacity of 275 million cubic feet per day, the plant has the ability to remove hydrogen sulphide and recover natural gas liquids from the raw gas stream. Keyera operates the facility as well as most of the plant’s 500 kilometres of gathering pipelines.
In addition to the 24.8% interest in the Strachan gas plant, Keyera will acquire additional ownership interests in the Strachan sulphur priller and remelt facilities, the Strachan rail spur, the Strachan North inlet compressor, and various other pipelines connected to the Strachan gas plant as well as an interest in a gathering system connected to Keyera’s Nordegg River gas plant.
“We are pleased to increase our ownership in one of the most strategic assets in our portfolio,” said Jim Bertram, President and CEO of Keyera. “Strachan is well positioned to benefit from the increased exploration and development activities that are occurring in this geologically prospective area of our operations. This acquisition is consistent with our strategy of increasing our ownership in existing core facilities and provides greater control over the implementation and timing of our business development initiatives. It will be accretive to per-unit distributable cash flow and is expected to enhance our long-term cash flow stability.”
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.
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.
This document contains certain forward-looking statements that involve significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, many of which are beyond the control of Keyera. Some of these factors are discussed in Keyera’s public filings with Canadian Securities Administrators, filed on www.sedar.com. No assurances can be given that actual results will be consistent with these forward-looking statements.
For further information about Keyera Facilities Income Fund, please visit our website at www.keyera.com or contact:
John Cobb, Director, Investor Relations, E-mail: ir@keyera.com
Telephone: (403) 205-7670 Toll Free: (888) 699-4853 Facsimile: (403) 205-8303
