Founders Energy Ltd. established as an independent, junior oil and natural gas producer grows to 4,200 boe per day, with a market cap of less than $200 million.

During 2000, management believed that Founders, along with the vast majority of other junior E & P companies, was significantly undervalued by the market. As a result, Founders' board of directors reviewed several options for the company with a view to increasing shareholder value.

It was the collective view of the board of directors that the Western Canadian Sedimentary Basin had become largely a mature basin with an operating emphasis on exploitation. In reviewing appropriate structures for a maturing basin, management believed the trust structure was clearly the most suited structure for acquiring mid-life to mature assets and for harvesting and paying out the cash flow in a low risk, cost effective manner.

Provident completed a treasury and secondary offering of approximately 2.4 million trust units for gross proceeds of $26.4 million.

During the 301 days of 2001 in which Provident Energy Trust existed, production volumes averaged 9,767 boed, of which approximately 51 percent was oil, 22 percent was light/med oil and NGLs, and 27 percent was natural gas; undeveloped land totaled 157,056 net acres; and total established reserves were 28,007 MMboe, divided 72 percent crude oil, 4 percent NGLs, and 24 percent natural gas.

Provident completed the acquisition of certain Southeast Alberta oil and gas properties, including 3,600 boe of mostly light oil and natural gas production and 78,000 undeveloped acres of land for a cash purchase price of approximately $72 million. In conjunction with the acquisition of the oil and gas properties, the Trust completed a concurrent treasury offering of 3.9 million trust units and $64.41 million principal amount of 10.5 percent convertible unsecured subordinated debentures for gross proceeds of $103.8 million. Provident was the first conventional oil and gas trust to issue convertible debentures.

During the second quarter, Provident also launched its Distribution Reinvestment, Premium Distribution Reinvestment and Optional Unit Purchase Plan (“DRIP”).

For 2002 Provident reported production volumes averaged 21,801 boed, of which approximately 28 percent was heavy oil, 29 percent was light/med oil and NGLs, and 43 percent was natural gas; undeveloped land totaled 442,000 net acres; and total established reserves were 64,501 MMboe, split 46 percent crude oil, 4 percent NGLs, and 50 percent natural gas.