StarPoint Energy Trust, which operates in the Weyburn area, has merged with Acclaim to form North America's third largest conventional oil and gas trust with a enterprise value of over $5 billion.

The merger puts both trusts in a more dominant operating position, stronger financial position and there are unit-holder benefits.

The new trust will now have access to long-life reserves and high quality production.

They will have access to 1,100 locations with a large four-year development program for these areas. The new trust's assets will put them in a dominant position in Southeastern Saskatchewan.

The company will also be in a strong financial position for a couple of reasons. The trust will be able to lower the cost of capital by accessing alternate debt markets and their pay-out ratio will be about 60 per cent with a focus on sustainability.

StarPoint's merger will also benefit any unit-holders because they will get greater distributions than they did before the merger on an equivalent basis. StarPoint will also be increasing their distribution by three times its current rate with the merger.

A name for the new trust will be released after the completion of transactions for the merger.