EXHIBIT 99.85
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NEWS RELEASE
ADVANTAGE ENERGY INCOME FUND
COMPLETES $186 MILLION PROPERTY ACQUISITION
September 15, 2004
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CALGARY, ALBERTA - Advantage Energy Income Fund ("Advantage" or "the Fund")
(AVN.UN-TSX) announced today the closing of its previously announced acquisition
of certain petroleum and natural gas properties and related assets in central
Alberta, southern Alberta and southeast Saskatchewan from Anadarko Canada
Corporation for total consideration of approximately $186 million (subject to
adjustment). The transaction has an effective date of July 1, 2004. The Fund
financed the acquisition with a $191 million bought deal financing through a
syndicate of underwriters, led by Scotia Capital Inc., which was completed on
September 14, 2004.
Under the bought deal financing, Advantage issued 3,500,000 Subscription
Receipts (the "Subscription Receipts") at a price of $18.80 per Subscription
Receipt for gross proceeds of $65,800,000, $75 million aggregate principal
amount of 7.50% extendible convertible unsecured subordinated debentures (the
"7.50% Debentures") and $50 million aggregate principal amount of 7.75%
extendible convertible unsecured subordinated debentures (the "7.75%
Debentures").
With the closing of the acquisition, trading in the Subscription Receipts will
be halted, and the Subscription Receipts will remain halted until the close of
business today, September 15, at which time they will be delisted. Holders of
Subscription Receipts will receive one trust unit of the Fund for each
Subscription Receipt held, effective at 5:00 p.m. (Calgary time) today,
September 15. Advantage's previously-announced cash distribution of $0.23 per
trust unit for September 2004 will be paid on October 15 to unitholders of
record at the close of business on September 30, 2004. Holders of Subscription
Receipts will be entitled as unitholders to receive that distribution, provided
they continue to hold their trust units on the record date. With the closing of
the acquisition, Advantage's cash distribution to be paid on November 15, 2004
to unitholders of record on October 29, 2004 will be $0.25 per trust unit, being
an increase of 8.7% form its previous distribution level.
As the Subscription Receipts trade in the "book-entry" system and no individual
certificates are issued, holders of Subscription Receipts are not required to
take any action in order to receive the trust units to which they are entitled.
In addition, with the closing of the acquisition, the maturity dates of the
7.50% Debentures and 7.75% Debentures have been automatically extended from
November 1, 2004 in each case to October 1, 2009 and December 1, 2011,
respectively. The TSX trading symbols of the 7.50% Debentures and 7.75%
Debentures are AVN.DB.D and AVN.DB.C, respectively.
Advantage's trust units and outstanding convertible debentures are listed on the
TSX under the symbols "AVN.UN", "AVN.DB", "AVN.DB.A", "AVN.DB.B", respectively.
Further information with respect to Advantage can be found at its website at
www.advantageincome.com.
The Subscription Receipts, the 7.50% Debentures and the 7.75% Debentures have
not been registered under the U.S. Securities Act and were not offered or sold
in the United States.
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THIS PRESS RELEASE IS NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES.
The information in this news release contains certain forward-looking
statements that involve substantial known and unknown risks and uncertainties,
certain of which are beyond Advantage's control, including: the impact of
general economic conditions, industry conditions, changes in laws and
regulations including the adoption of new environmental laws and regulations
and changes in how they are interpreted and enforced, increased competition,
fluctuations in commodity prices and foreign exchange and interest rates, stock
market volatility and obtaining required approvals of regulatory authorities.
Advantage's actual results, performance or achievement could differ materially
from those expressed in, or implied by, such forward-looking statements and,
accordingly, no assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur or, if any of them do,
what benefits that Advantage will derive from them.
For further information from Advantage contact:
Mr. Gary F. Bourgeois, VP Corporate Development
Ph: (416) 945-6636
Toll free: 1-866-393-0393
ADVANTAGE ENERGY INCOME FUND
3100, 150 - 6th Avenue SW
Calgary, Alberta
T2P 3Y7
Ph: (403) 261-8810
Fax: (403) 262-0723
Web: www.advantageincome.com
E-mail: advantage@advantageincome.com