Viking Energy Royalty Trust

Viking Energy Royalty Trust

January 04, 2005 13:13 ET

Viking Energy Royalty Trust Announces Distributions for First Quarter 2005


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIKING ENERGY ROYALTY TRUST

TSX SYMBOL: VKR.UN

JANUARY 4, 2005 - 13:13 ET

Viking Energy Royalty Trust Announces Distributions
for First Quarter 2005

CALGARY, ALBERTA--(CCNMatthews - Jan. 4, 2005) - Viking Energy Royalty
Trust (TSX:VKR.UN) (the "Trust") announces that it has declared
Unitholder distributions of $0.08 per Unit for each of the months of
January, February and March 2005 as follows:



Distribution Ex-Distribution Distribution
Record Date Date Date per Unit
------------------------------------------------------------------------
January 24, 2005 February 15, 2005 January 20, 2005 $0.08
February 22, 2005 March 15, 2005 February 18, 2005 $0.08
March 22, 2005 April 15, 2005 March 18, 2005 $0.08


In 2004 Viking introduced its Premium Distribution™, Distribution
Reinvestment and Optional Trust Unit Purchase Plan (the "Plan") which
offers eligible Unitholders an opportunity to direct that their monthly
cash distributions be reinvested in additional Units at 95% of the
average market price on the applicable distribution date. The Plan also
includes a feature which allows eligible Unitholders to elect, under the
Premium Distribution™ component of the Plan, to have these additional
Units delivered to a designated broker in exchange for a premium cash
distribution equal to 102% of the cash distribution that such
Unitholders would have otherwise been entitled to receive on the
applicable distribution date.

With respect to the previously announced combination of Viking and
Calpine Natural Gas Trust ("CNGT"), the Management Information Circular,
Notice of Meeting and Proxy were mailed to CNGT Unitholders on December
22, 2004. Each CNGT unit will be exchange for 2.0 Viking trust units on
a tax-deferred rollover basis. The combination of Viking and CNGT is
subject to regulatory approvals and the approval by a majority of
two-thirds of the CNGT Unitholders at a meeting to be held on January
27, 2005 with the transaction expected to close on February 1, 2005.
CNGT Unitholders will be eligible to participate in Viking's Premium
Distribution™, Distribution Reinvestment and Optional Trust Unit
Purchase Plan effective with the February 2005 distribution payable
March 15, 2005.

Also announced on December 20, 2004 is Viking's offer to acquire
Kensington Energy Ltd. for cash consideration of $0.52 per share with an
aggregate consideration of $34 million. Viking plans to fund this
acquisition from its undrawn credit facilities. The mailing of the offer
to Kensington shareholders is expected to be completed in early January
with an anticipated closing in February 2005.

Viking Energy Royalty Trust is an open-end investment Trust that
generates income from long-life oil and natural gas producing properties
in Alberta and Saskatchewan. The beneficiaries of Viking are the holders
of the Trust Units who receive monthly distributions of the cash flow
from the income. The Trust currently has 111,118,079 Units outstanding
which trade on the Toronto Stock Exchange ("TSX") under the symbol
"VKR.UN". Also listed on the TSX are the Trust's $74.3 million principal
amount of 10.5% convertible unsecured subordinated debentures which
trade under the symbol "VKR.DB".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Viking Energy Royalty Trust
    John Zahary
    President and CEO
    (403) 268-3175 or Toll Free: 1-877-292-2527
    or
    Viking Energy Royalty Trust
    Robert Fotheringham
    Vice President Finance and CFO
    (403) 268-3175 or Toll Free: 1-877-292-2527
    or
    Viking Energy Royalty Trust
    Diane Phillips
    Investor Relations
    (403) 268-3175 or Toll Free: 1-877-292-2527
    or
    Viking Energy Royalty Trust
    Suite 400, 330-5th Avenue S.W.
    Calgary, Alberta T2P 0L4
    Email: vikingin@viking-roy.com
    Website: www.vikingenergy.com