Bonavista Energy Trust
TSX : BNP.UN

Bonavista Energy Trust

October 13, 2006 15:00 ET

Bonavista Energy Trust Announces Q4 Distributions

CALGARY, ALBERTA--(CCNMatthews - Oct. 13, 2006) - Bonavista Energy Trust (TSX:BNP.UN) ("Bonavista") announces today that the Board of Directors has set the distribution policy for the fourth quarter of 2006 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 due to the average realized commodity prices 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 $8.40 per mmbtu for NYMEX natural gas and US $50.00 per barrel for WTI crude oil). Although natural gas prices have recently weakened from these levels, the current strength in oil prices offsets the majority of the shortfall in natural gas prices and over the next year, average commodity prices in the futures markets currently remain above pricing thresholds for Bonavista's distribution policy. Consequently, Bonavista has declared a distribution of $0.30 per trust unit in respect of October production, to be paid on November 15, 2006 for unitholders of record on October 31, 2006. The ex-distribution date is October 27, 2006. The combined base and supplementary distribution incorporate the withholding of sufficient cash flow to fund capital expenditures required to maintain or modestly grow the current production base and provide sustainable distributions in the long-term. Our long-term objective is to distribute between 50% and 60% of our cash flow. The $0.30 per trust unit per month distribution rate places us in the middle of this range for 2007, based on the future commodity price strip as at closing on October 12, 2006. Our distribution policy is reviewed monthly and is based upon the current and future commodity price environment, our commodity hedging program, our current operations and investment opportunities available to us at the time.



Record Ex-Distribution Distribution Distribution
Date Date Date per Unit
------------------------------------------------------------------------

October 31, 2006 October 27, 2006 November 15, 2006 $0.30

November 30, 2006 November 28, 2006 December 15, 2006 $0.30(1)

December 31, 2006 December 27, 2006 January 15, 2007 $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 84.6 million trust units and 12.4 million exchangeable shares. The exchangeable shares are convertible into 18.3 million trust units based on the current exchange ratio, which is adjusted monthly to reflect the distribution paid on the trust units. Cash distributions are not paid on the exchangeable shares nor are the exchangeable shares publicly traded on the open market.

Bonavista Energy Trust 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
    or
    Ronald J. Poelzer
    Executive Vice President & CFO
    (403) 213-4300
    or
    700, 311 - 6th Avenue SW
    Calgary, AB T2P 3H2
    (403) 213-4300
    Website: www.bonavistaenergy.com