Argent Energy Trust Announces Terms of Initial Public Offering

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

CALGARY, Aug. 1, 2012 /CNW/ - Argent Energy Trust ("Argent" or the "Trust") is pleased to announce it has priced its previously announced initial public offering of trust units. Argent has filed a final prospectus dated August 1, 2012 with the securities regulatory authorities in all provinces of Canada in connection with the proposed offering. Closing of the offering is scheduled for August 10, 2012, subject to customary closing conditions.

Argent will issue 21.23 million trust units at a price of $10.00 per trust unit for total gross proceeds of $212.3 million. The offering is being made through a syndicate of underwriters co-led by Scotiabank, CIBC and RBC Capital Markets, and including BMO Capital Markets, TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Acumen Capital Finance Partners Limited, AltaCorp Capital Inc., Cormark Securities Inc., Desjardins Securities Inc., Dundee Securities Ltd., FirstEnergy Capital Corp. and GMP Securities L.P.

The net proceeds of the offering, together with an advance under credit facilities, will be used to acquire operated interests in certain oil and natural gas assets located in Texas for US$166.7 million net of US$36.6 million to be held in escrow and applied to Argent's capital expenditures and general and administrative expenses for the 24 month period following the closing of the offering.  The initial assets of the Trust are characterized by long-life reserves, a balanced commodity weighting and a significant inventory of low-risk light oil development locations, which will be managed by an experienced team joining Argent that has operated the assets for several years.

The underwriters have also been granted an over-allotment option, exercisable for a period of 30 days from the date of the closing of the offering, to purchase up to an additional 3.18 million trust units at the offering price of $10.00 per trust unit to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised to result in net proceeds of at least $25 million, Argent will acquire certain additional properties from the same seller for US$20 million, with the remaining proceeds to be used to reduce the amount outstanding under the credit facilities and for general corporate purposes. If the over-allotment option is exercised to result in net proceeds of less than $25 million, the proceeds will be used to reduce the amount outstanding under the credit facilities and for general corporate purposes.

The Trust expects that the initial monthly cash distribution rate will be $0.0875 per trust unit. The initial cash distribution, which will be for the period from and including the date of closing of the offering to August 31, 2012, is expected to be paid on September 24, 2012 to unitholders of record on August 31, 2012 and is estimated to be $0.0621 per trust unit (assuming that the closing of the offering occurs on August 10, 2012).

Argent has received conditional approval for the listing of its trust units on the Toronto Stock Exchange ("TSX") under the symbol "AET.UN", subject to the Trust fulfilling all of the listing requirements of the TSX.

The offering is only made by prospectus.  The prospectus contains important detailed information about the securities being offered.  A copy of the prospectus may be obtained from the SEDAR website at www.sedar.com under Argent's profile.  Investors should read the prospectus before making an investment decision.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Argent Energy Trust in any jurisdiction.

ABOUT ARGENT ENERGY TRUST
Argent's objective is to create stable, consistent returns for investors through the acquisition and development of oil and natural gas reserves and production with low risk exploration potential, located primarily in the United States and to pay out a portion of available cash to holders of trust units on a monthly basis.

Argent intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restrictions which preclude the Trust from holding any "non-portfolio property" (as defined in the Tax Act).

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Argent, including, without limitation, those listed under "Risk Factors" and "Notice to Investors-Forward-Looking Statements" in Argent's final prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, information concerning the proposed initial public offering,  Argent's objective, an advance under credit facilities to be established, the acquisition of the Trust's initial assets, use of net proceeds from any exercise of the over-allotment option and monthly and initial cash distributions. Argent cautions investors in its securities about important factors that could cause Argent's actual results to differ materially from those projected in any forward-looking information included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking information. No assurance can be given that the expectations set out in Argent's final prospectus or herein will prove to be correct and accordingly, prospective investors should not place undue reliance on this forward-looking information. These statements speak only as of the date of this press release and, except as required by law, Argent does not assume any obligation to update or revise them to reflect new events or circumstances.

SOURCE: Argent Energy Trust