Investment > Mergers & Acquisitions

Accrete

In 2008, Pengrowth Management acquired Accrete Energy Inc., on behalf of Pengrowth Energy Trust, for $122 million. This allowed the Trust to expand its participation in the Harmattan field near Olds, Alberta. The deal also provided Accrete with the necessary capital for the development of their exploration prospects in other parts of Alberta. Again, Pengrowth Management helped to engineer a spin-off exploration company, Argosy Energy Inc. As part of the deal, the Trust assumed a minority interest in a new exploration company and is exposed to potential new discoveries without taking on any of the risk associated with exploration.

Crispin

In 2005, Pengrowth Management acquired, on behalf of the Trust, Crispin Energy, a publicly listed Canadian company for $88 million. The purchase was a strategic fit; the properties are complementary to those held in the Swan Hills area. The Crispin acquisition was also a solution to the challenge posed by the Federal government’s Canadian ownership requirement for income trusts.

In the following year, Pengrowth Management was able to form a company with the former Crispin managers by taking a minority interest in Monterey Exploration Limited. Together they entered into a combination property disposition and farm-out agreement of some properties in British Columbia. Pengrowth Management thereby accelerated the Trust’s participation in exploration and development activities while minimizing any risk to the Trust.