Advantages of a U.S. Asset Trust
Argent Energy Trust operates as a foreign asset trust with properties held in the U.S. therefore the Trust is not subject to the same taxation rules applicable to a Canadian SIFT trust. This structure enjoys an advantage over taxable Canadian products.
Southern U.S. assets typically enjoy higher realized prices for oil and natural gas compared to Canadian assets.
The Trust was strongly focused on long-lived, predictable, productive assets and was driven by the development and exploitation of low risk opportunities to further increase net asset value.
Due to the prolonged period of lower commodity prices and the forced termination of hedge contracts by its counterparties, the Trust entered into a CCAA process in February 2016, which resulted in the sale of all the oil and gas assets of the Trust in May 2016.