Pengrowth Buys ConocoPhillips Properties For $1 Billion

Pengrowth Energy Trust, a Canadian closed-end investment trust, on Wednesday said it bought oil and gas properties and undeveloped lands from ConocoPhillips for $1.04 billion.

The acquisition was made effective Nov. 1.

The acquisition increases Pengrowth's current production by 27% and its work force to more than 640 employees. Pengrowth said its market capitalization would grow to about $5 billion.

Pengrowth said the Canadian properties contain proved plus probable reserves of 65.8 million barrels of oil equivalent and proved reserves of 51.4 million barrels of oil equivalent.

In morning trading, Pengrowth shares fell 33 cents to $17.68, while shares of Houston-based ConocoPhillips added 58 cents to $65.49.