TORONTO, Dec. 20 /CNW/ - TRF General Partner Inc., the General Partner of Triax Resource Limited Partnership (the "Partnership"), announced today that it has revised the carrying value of RMX Exploration Ltd. from $12,000,000 to $7,200,000. Altamira Management Ltd., the Partnership's investment management sub-advisor, has recommended the writedown primarily as a result of a preliminary engineering report. This represents a 6.73% decrease in the net assets of the Partnership from $65,083,602.18 to $60,712,160.66 and a corresponding decrease in NAV per unit to $8.76.
RMX Exploration Ltd. was established in 1996 to undertake a $52 million joint exploration program with Canadian 88 Energy Corp., which was substantially completed in the fourth quarter of 2001. Pending completion of the program the Partnership's interest in RMX was carried at cost. RMX has now provided a preliminary independent reserve evaluation of the program results and this evaluation has been used by Altamira to establish the new carrying value.
New drilling results on some key projects have not impacted production levels as strongly as anticipated. Production from the Blackstone natural gas well, scheduled to begin in the first quarter of 2002, is expected to be restricted to 1/3 of estimated production capacity due to restrictions in the existing gathering system. The well will reach its full production rate by late 2002 when expansion of the gathering system is completed. Market conditions and production levels also affected the company's cash position. Cash flow projections for 2002 have been revised to reflect current gas prices and increased production anticipated on the Blackstone property.
Declining gas and commodity prices and negative capital market conditions have also impacted valuation of the Partnership's portfolio.
Altamira says that the Partnership's diversified portfolio of holdings in the resource sector positions the portfolio for stronger performance as the global economy improves. Triax Resource Limited Partnership trades on The Toronto Stock Exchange under the symbol TRF.UN.
For further information: please call the General Partner at (416) 362-2929 or (800) 407-0287