Provident Energy Trust has reached an agreement with a private company, Storm Ventures International Inc., to sell Provident's oil and natural gas assets in West Central Alberta for cash consideration of C$190 million, prior to normal closing adjustments. The divestiture of the West Central Alberta package is part of an asset rationalization initiative which also included the recent sale of the Trust's Lloydminster and Southern Saskatchewan properties.

This divestiture program has repositioned Provident's portfolio for growth by monetizing non-core properties and focusing financial and technical resources on those assets with significant growth potential. Provident's previously announced consolidated 2010 capital budget of C$142 million remains unchanged with approximately C$55 million directed towards our Upstream assets in the areas of Peace River Arch/Dixonville, Northwest Alberta and Southern Alberta.

"This transaction is another key step towards repositioning Provident as a sustainable growth vehicle and further enhances our financial flexibility moving forward," said Tom Buchanan, President and Chief Executive Officer. "Management and the Board of Directors wish to sincerely thank the Provident staff associated with these assets for their dedication and service to Provident."

Tags: Provident Energy Trust