APF Energy Trust

APF Energy Trust

March 03, 2005 16:22 ET

APF Announces Tax Treatment for Non-Resident Investors


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: APF ENERGY TRUST

TSX SYMBOL: AY.UN
TSX SYMBOL: AY.DB

MARCH 3, 2005 - 16:22 ET

APF Announces Tax Treatment for Non-Resident Investors

CALGARY, ABERTA--(CCNMatthews - March 3, 2005) - APF Energy Trust
(TSX:AY.UN) (TSX:AY.DB) ("APF") announces that for U.S. tax reporting
purposes, cash distributions paid to Unitholders in the 2004 taxation
year were 72.600% taxable and 27.400% return of capital.

APF has been advised that "Qualified Dividends" should be reported on
Line 9b of the U.S. Federal individual income tax return unless the
situation of the U.S. individual Unitholder determines otherwise.
Commentary on page 20 of the IRS 2004 Form 1040 instruction booklet with
respect to "Qualified Dividends" provides examples of individual
situations where the dividends would not be "Qualified Dividends".
Where, due to individual situations, the dividends are not "Qualified
Dividends", the amount should be reported on Schedule B - Part 11 -
Ordinary Dividends, Line 9a of your U.S. federal income tax return.

FOR NON-RESIDENT UNITHOLDERS

This information is not exhaustive of all possible U.S. income tax
considerations, but is provided as a general guideline and is not
intended to be legal or tax advice to any particular holder of APF
Energy Trust units. Holders of APF Energy Trust units should consult
their own legal and tax advisors as to their particular tax consequences
of holding APF Energy Trust units and guidance with respect to the
appropriate tax treatment of their distributions.

U.S. Residents Invested in APF

After consulting with its tax advisors, APF is of the opinion that
distributions paid by APF to non-corporate Unitholders who are U.S.
residents or citizens during 2004 should be treated as "Qualified
Dividends" under the Jobs and Growth Tax Relief Reconciliation Act of
2003, and generally should be eligible for the reduced U.S. dividend tax
rate.

APF has calculated its current and accumulated earnings and profits in
accordance with U.S. tax principles, which enables U.S. Unitholders to
determine the taxable percentage of the distributions paid to them. For
the 2004 taxation year APF distributions paid to U.S. residents were
72.600% taxable and 27.400% return of capital. Detailed information
regarding historical distribution payments is available on the Trust's
website, www.apfenergy.com



2004 U.S. INVESTOR TAX SUMMARY

Taxable
Amount Return Total Cash
(Other of Distribution
Record Date Payment Date Income) Capital Paid
------------------------------------------------------------------------
December 31, 2003 January 15, 2004 $0.1270 $0.0480 $0.1750
January 31, 2004 February 16, 2004 $0.1270 $0.0480 $0.1750
February 28, 2004 March 15, 2004 $0.1270 $0.0480 $0.1750
March 31, 2004 April 15, 2004 $0.1270 $0.0480 $0.1750
April 30, 2004 May 17, 2004 $0.1270 $0.0480 $0.1750
May 31, 2004 June 15, 2004 $0.1270 $0.0480 $0.1750
June 30, 2004 July 15, 2004 $0.1162 $0.0438 $0.1600
July 31, 2004 August 16, 2004 $0.1162 $0.0438 $0.1600
August 29, 2004 September 15, 2004 $0.1162 $0.0438 $0.1600
September 30, 2004 October 15, 2004 $0.1162 $0.0438 $0.1600
October 31, 2004 November 15, 2004 $0.1162 $0.0438 $0.1600
November 30, 2004 December 15, 2004 $0.1162 $0.0438 $0.1600
------------------------------------------------------------------------
Total Paid During
2004 Taxation Year $1.4592 $0.5508 $2.0100
------------------------------------------------------------------------
------------------------------------------------------------------------


The Tax Treaty between Canada and the U.S. allows for a reduction to the
25% withholding tax for U.S. residents. The current rate after the
reduction is prescribed at 15% with some U.S. taxpayers being eligible
for a foreign tax credit with respect to the Canadian withholding taxes
paid.

Effective January 1, 2005 a 15% withholding tax was applied to all
distributions paid to non-resident investors.

Subject to advice from your legal and tax advisors, you may reference
this news release as support for your treatment of the 2004
distributions from APF Energy Trust.

Certain statements in this material may be "forward-looking statements"
including outlook on oil and gas prices, estimates of future production,
estimated completion dates of acquisitions and construction and
development projects, business plans for drilling and exploration,
estimated amounts and timing of capital expenditures and anticipated
future debt levels and royalty rates. Information concerning reserves
contained in this material may also be deemed to be forward-looking
statements as such estimates involve the implied assessment that the
resources described can be profitably produced in the future. These
statements are based on current expectations, estimates and projections
that involve a number of risks and uncertainties, which could cause
actual results to differ from those anticipated by APF. This news
release is not for distribution to U.S. newswire services or for
distribution in the U.S.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    APF Energy Trust
    Steve Cloutier
    President
    (403) 294-1000 or Toll Free (800) 838-9206
    or
    APF Energy Trust
    Alan MacDonald
    V.P. Finance
    (403) 294-1000 or Toll Free (800) 838-9206
    or
    APF Energy Trust
    Christine Ezinga
    Corporate Planning Analyst
    (403) 294-1000 or Toll Free (800) 838-9206
    (403) 294-1074 (FAX)
    Email: invest@apfenergy.com
    Website: www.apfenergy.com
    The Toronto Stock Exchange has neither approved nor disapproved of the
    contents of this news release.