Merger Details

Effective September 21, 2006, Sequoia Oil & Gas Trust and Daylight Energy Trust merged to form Daylight Resources Trust. Unitholders of Sequoia Oil & Gas Trust received 0.825 units of Daylight Resources Trust for each unit of Sequoia held, and unitholders of Daylight Energy Trust received 0.6642 units of Daylight Resources Trust for each unit of Daylight Energy Trust held. In both cases, approximately 2% of the units of the predecessor trusts were deemed to be disposed of at Fair Market Value, with the remaining units exchanged at the applicable adjusted cost base. Also in both cases, there was a fractional distribution of common shares and warrants of Trafalgar Energy Ltd. Because of the complex nature of this transaction, we advise you to refer to the Daylight Resources website. The ACB Calculator will process this merger as a tax-deferred rollover.