ARC Energy Trust is formed with the acquisition of 21 properties from Mobil Oil Canada. An initial IPO of 18 million units priced at $10 per share raises $180 million. ARC begins trading on the TSX July 11, 1996, under the symbol AET.UN.
ARC completes its first full year as a trust and closes seven transactions totaling $94 million of net acquisitions. Year-end reserves and total production increase by 40 per cent.
With oil prices averaging just $14.40 U.S per barrel, ARC weathers the storm and maintains distributions at $0.10 per unit per month.
ARC has a year of growth and success. ARC acquires Starcor Energy Royalty Fund and Orion Energy Trust in March, resulting in increased production. Market capitalization increases 200 per cent. Units outstanding rise 109 per cent. All of the growth coupled with rising oil prices resulted in a 42 per cent increase in the unit price.