Thunder Energy Trust
TSX : THY.UN

Thunder Energy Trust

January 25, 2007 14:10 ET

Thunder Updates Hedging Program

CALGARY, ALBERTA--(CCNMatthews - Jan. 25, 2007) - Thunder Energy Trust (TSX:THY.UN) is pleased to announce it has completed additional natural gas hedging. The Trust has entered into costless collar arrangements for natural gas with AECO pricing for 8,000 GJ/d from April 1 to October 31, 2007 with a floor of Cdn$6.50 per GJ and a ceiling of Cdn$8.00 per GJ.



The following table contains all of the current hedges in place:

---------------------------------------------------------------------------
Gas Volume Pricing Strike
Contract GJ/d Point Price per GJ Cost Term
---------------------------------------------------------------------------
Nov 1/06 to
Costless Collar 10,000 AECO Cdn$8.00 to Cdn$9.40 n/a Mar 31/07
Nov 1/06 to
Costless Collar 10,000 AECO Cdn$8.00 to Cdn$10.00 n/a Mar 31/07

Apr 1/07 to
Costless Collar 10,000 AECO Cdn$6.50 to Cdn$8.10 n/a Oct 31/07
Apr 1/07 to
Costless Collar 8,000 AECO Cdn$6.50 to Cdn$8.00 n/a Oct 31/07
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Oil Volume Pricing Strike
Contract bbl/d Point Price per bbl Cost Term
---------------------------------------------------------------------------
Jan 1/07 to
Costless Collar 800 WTI Nymex US$61.00 to US$73.05 n/a Mar 31/07
Jan 1/07 to
Costless Collar 800 WTI Nymex US$65.00 to US$80.00 n/a Mar 31/07

Apr 1/07 to
Costless Collar 800 WTI Nymex US$60.00 to US$70.50 n/a Jun 30/07

Jul 1/07 to
Costless Collar 800 WTI Nymex US$60.00 to US$72.50 n/a Sep 30/07
---------------------------------------------------------------------------


Thunder uses a hedging strategy to mitigate the effects of changes in commodity prices. This strategy is not used to speculate on future prices, but to help stabilize cash flow, thereby protecting the near term capital expenditure budget and cash distributions to unitholders. The strategy calls for the Trust to hedge up to 50% of its total production and allows for the use of various hedging techniques including costless collars and net puts with no ceiling.

Thunder Energy Trust is an oil and gas income trust having been created in July 2005.

Contact Information

  • Thunder Energy Trust and Thunder Energy Inc.
    Stuart Keck
    President & C.E.O.
    (403) 294-1635
    or
    Thunder Energy Trust and Thunder Energy Inc.
    Brent Kirkby
    Vice President, Finance and C.F.O.
    (403) 294-1635
    (403) 232-1317 (FAX)
    Email: thunder@thunderenergy.com
    Website: www.thunderenergy.com