Bonavista Energy Trust

Bonavista Energy Trust

October 15, 2007 12:06 ET

Bonavista Energy Trust Announces Q4 Distributions

CALGARY, ALBERTA--(Marketwire - Oct. 15, 2007) - Bonavista Energy Trust (TSX:BNP.UN) ("Bonavista") announces today that its Board of Directors has set the distribution policy for the fourth quarter of 2007 at a monthly distribution rate of $0.30 per trust unit. This monthly distribution is comprised of the regular base distribution of $0.28 per trust unit, plus a supplementary distribution of $0.02 per trust unit. The supplementary distribution results from the expectation that average realized commodity prices will be in excess of budget prices. The base distribution rate assumes commodity prices of CDN $8.00 per gj at AECO for natural gas and CDN $58.00 per barrel at Edmonton for light crude (this equates to approximately US $8.70 per mmbtu for NYMEX natural gas and US $54.00 per barrel for WTI crude oil). Although current spot natural gas prices are much weaker than the base assumption level, the significant strength in current oil prices has partially offset the shortfall in natural gas prices. In addition, average commodity prices in the futures markets currently remain above pricing thresholds set for Bonavista's monthly base distribution rate. However, should the current weakness in spot natural gas prices persist into the 2007/08 winter season or if the recent Alberta royalty review recommendations are enacted, Bonavista will need to review its current distribution policy which could result in an adjustment to our monthly distributions. Based on the strength of the forward curve, Bonavista has declared a distribution of $0.30 per trust unit in respect of October production, to be paid on November 15, 2007 for unitholders of record on October 31, 2007. The ex-distribution date is October 29, 2007. The combined base and supplementary distribution incorporates the withholding of sufficient funds to finance capital expenditures required to maintain or modestly grow the current production base and provide sustainable distributions into the future. Our long-term objective is to distribute between 50% and 60% of our cash flow. Our distribution policy is reviewed monthly and is based upon the current and future commodity price and foreign exchange rate environment, our commodity hedging program, our current operations and available investment opportunities.

Record Date Ex-Distribution Date Distribution Date per Unit
October 31, 2007 October 29, 2007 November 15, 2007 $0.30
November 30, 2007 November 28, 2007 December 17, 2007 $0.30 (1)
December 31, 2007 December 27, 2007 January 15, 2008 $0.30 (1)

(1) The above reflects an anticipated combined regular base and
supplementary distributions based on the Bonavista's current projected
commodity prices, commodity hedge positions and production volumes.
Distributions are subject to change should there be a material change
in expected cash flow for the respective periods.

Currently, Bonavista has 85.6 million trust units and 12.3 million exchangeable shares outstanding. The exchangeable shares are convertible into 20.7 million trust units based on the current exchange ratio, which is adjusted monthly to reflect the distributions paid on the trust units. Cash distributions are not paid on the exchangeable shares, nor are the exchangeable shares publicly traded.

Bonavista is focused on a balanced commodity approach and is committed to maintaining its emphasis on operating high quality oil and natural gas properties, delivering consistent distributions to unitholders and ensuring financial strength and sustainability.

Forward Looking Statements

Corporate information provided herein contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, particularly those pertaining to cash distributions, production volumes, commodity prices, operating costs and drilling results, which are considered reasonable by Bonavista at the time of preparation, may be proven to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. There is no representation by Bonavista that actual results achieved during the forecast period will be the same in whole or in part as those forecast.

Contact Information

  • Bonavista Energy Trust
    Keith A. MacPhail
    President & CEO
    (403) 213-4300
    Ronald J. Poelzer
    Executive Vice President & CFO
    (403) 213-4300
    700, 311 - 6th Avenue SW
    Calgary, AB T2P 3H2
    (403) 213-4300