Date Closed

December 19, 2007

Lead Office

Calgary

Value

650.00 Million CAD

On December 19, 2007 Fairborne Energy Trust, an oil and gas trust operating in Western Canada and Fairborne Energy Ltd. completed a plan of arrangement pursuant to which the Trust was converted into a growth-oriented exploration and production company which continued under the name of Fairborne Energy Ltd., with an enterprise value of approximately $650 million, and which issued, on a private placement basis, approximately 13.4 million common shares to Denham Commodity Partners Fund IV LP, a U.S.-based private equity fund, at a subscription price of $7.45 per share, for aggregate proceeds of approximately $100 million. The Trust was the first oil and gas exploration and production trust to reconvert to a corporation from a trust structure. In connection with the conversion, a syndicated credit facility was established with the Royal Bank of Canada, National Bank of Canada, the Bank of Nova Scotia and Alberta Treasury Branches.