Acclaim Energy Trust and StarPoint Energy Trust announced they have agreed to merge to form a new benchmark energy trust that would be one of the largest conventional oil and gas trusts in North America, with an enterprise value of more than $5 billion.

Under the terms of the deal, the merger of equals will be accomplished by way of a trust unit exchange on a tax-deferred basis in Canada, the companies said in a release today.

On completion of the merger, Acclaim unitholders will own about 47% and StarPoint unitholders about 53% of the new trust. The merger agreement provides that the parties will make application to inter-list the new trust units on the New York Stock Exchange. Unitholders in both trusts will receive common shares in a new publicly listed growth oriented junior exploration company, Exploreco, with assets from both Acclaim and StarPoint.

The transaction is subject to regulatory approval and at least 66.66% unitholder approval. Acclaim and StarPoint unitholders will receive information circulars in November and be asked to vote on the deal at meetings in December. The transaction is expected to close in early January, the companies said.