Capitol Energy Resources Ltd. Announces All Cash Offer From Provident Energy Trust for Approximately $508 million to Acquire Capitol Energy

Abstract

(CCNMatthews - May 3, 2007) - Capitol Energy Resources Ltd. (TSX:CPX) ("Capitol") announces today that it has entered into an agreement (the "Agreement") pursuant to which Provident Energy Ltd. ("Provident"), a wholly owned direct subsidiary of Provident Energy Trust, will make an all cash offer (the "Offer") to acquire all of the issued and outstanding common shares on a fully diluted basis (the "Shares") of Capitol by way of a take-over bid. Under the Offer, Provident will acquire the Shares at a price of $8.16 per Share, valuing the proposed transaction at approximately $508 million, including the assumption of $41 million in net debt (net of option proceeds and transaction costs).