APF Energy Trust

APF Energy Trust

February 28, 2005 13:56 ET

APF Announces Tax Treatment of Distributions


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: APF ENERGY TRUST

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

FEBRUARY 28, 2005 - 13:56 ET

APF Announces Tax Treatment of Distributions

CALGARY, ALBERTA--(CCNMatthews - Feb. 28, 2005) - APF Energy Trust
(TSX:AY.UN) (TSX:AY.DB) ("APF") announces that for Canadian tax
reporting purposes, cash distributions paid to Unitholders in the 2004
taxation year were 68.345% taxable and 31.655% return of capital.

The information contained herein is based on APF's understanding of the
Canadian Income Tax Act and is provided for general information only.
Unitholders are advised to consult their personal tax advisors with
respect to their particular circumstances.

Units held within an RRSP, RRIF, or DPSP

In respect to units of APF Energy Trust held in a Registered Retirement
Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), or
Deferred Profit Sharing Plan (DPSP) during 2004, no amount should be
reported on the 2004 individual Income Tax Return ("T1").

Units held outside an RRSP, RRIF, or DPSP

Registered APF Energy Trust unitholders who held trust units outside an
RRSP, RRIF, or DPSP will receive a T3 Supplementary Slip for 2004 ("T3")
directly from APF's transfer agent, Computershare Trust Company of
Canada, and must report the taxable portion of such distributions as
"other income" in Box 26 of their T3. Beneficial unitholders who held
units through intermediaries such as investment advisers will be
receiving T3 receipts from their adviser or other intermediary.

FOR CANADIAN TAXPAYERS

The following table summarizes, on a monthly basis, cash distributions
received in 2004 by unitholders indicating what portion of each
distribution is taxable as income and what is considered return of
capital. The distribution declared by APF in December 2004 was received
by unitholders in January 2005, it is not to be included in the
calculation of a unitholder's 2004 taxable income.



2004 CANADIAN TAX SUMMARY Taxable
Amount Return Total Cash
(Other of Distribution
Record Date Payment Date Income) Capital Paid
------------------------------------------------------------------------
December 31, 2003 January 15, 2004 $0.1196 $0.0554 $0.1750
January 31, 2004 February 16, 2004 $0.1196 $0.0554 $0.1750
February 28, 2004 March 15, 2004 $0.1196 $0.0554 $0.1750
March 31, 2004 April 15, 2004 $0.1196 $0.0554 $0.1750
April 30, 2004 May 17, 2004 $0.1196 $0.0554 $0.1750
May 31, 2004 June 15, 2004 $0.1196 $0.0554 $0.1750
June 30, 2004 July 15, 2004 $0.1094 $0.0506 $0.1600
July 31, 2004 August 16, 2004 $0.1094 $0.0506 $0.1600
August 29, 2004 September 15, 2004 $0.1094 $0.0506 $0.1600
September 30, 2004 October 15, 2004 $0.1094 $0.0506 $0.1600
October 31, 2004 November 15, 2004 $0.1094 $0.0506 $0.1600
November 30, 2004 December 15, 2004 $0.1094 $0.0506 $0.1600
------------------------------------------------------------------------
Total Paid During
2004 Taxation Year $1.3740 $0.6360 $2.0100
------------------------------------------------------------------------
------------------------------------------------------------------------


Adjusted Cost Base Reduction

The Adjusted Cost Base ("ACB") of units is used in calculating capital
gains or losses upon the disposition of trust units held as capital
property by a unitholder. As set out above, the ACB of each trust unit
is reduced by the portion of distributions considered a return of
capital and accordingly is not reported on a T3. Should a taxpayer's ACB
be reduced below zero, that negative amount is deemed to be a capital
gain of the individual and the ACB is deemed to be nil. Any capital gain
realized must be reported on Schedule 3 of the unitholder's T1.

APF investors who participated in the $10.00 per Trust Unit initial
public offering in December 1996 who still hold the Trust Units at
December 31, 2004 have an ACB of $2.893 per Trust Unit. This value
adjusts for the cumulative return of capital of $7.107 as provided in
the table below.



HISTORICAL CANADIAN TAX INFORMATION

Tax
Taxable Deferred Cash
Amount Amount Distribution
Per Unit Per Unit Per Unit Tax
Payment (Other (Return of for Tax Taxable Deferred
Period Income) Capital) Purposes Percentage Percentage
------------------------------------------------------------------------
2004 $1.374 $0.636 $ 2.010 68.345% 31.655%
2003 $1.718 $0.462 $ 2.180 78.814% 21.186%
2002 $1.143 $0.657 $ 1.800 63.517% 36.483%
2001 $1.741 $1.304 $ 3.045 57.175% 42.825%
2000 $1.181 $0.719 $ 1.900 62.137% 37.863%
1999 $0.526 $1.029 $ 1.555 33.826% 66.174%
1998 $0.453 $1.387 $ 1.840 24.625% 75.375%
1997 $0.597 $0.913 $ 1.510 39.536% 60.464%
------------------------------------------------------------------------
$8.733 $7.107 $15.840
------------------------------------------------------------------------
------------------------------------------------------------------------


FOR NON-RESIDENT UNITHOLDERS

APF expects to have detailed taxation information relating to
distributions paid to U.S. residents during 2004, by March 7, 2005.

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.