Bonavista Energy Trust

Bonavista Energy Trust

November 15, 2007 11:21 ET

Bonavista Energy Trust Confirms Cash Distribution for December 17, 2007

CALGARY, ALBERTA--(Marketwire - Nov. 15, 2007) - Bonavista Energy Trust (TSX:BNP.UN) ("Bonavista") announces that the monthly cash distribution generated from November production will be $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. The supplementary distribution results from the expectation that average realized commodity prices will be in excess of budgeted 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 $8.80 per mmbtu for NYMEX natural gas and US $55.00 per barrel for WTI crude oil). Although current spot natural gas prices are much weaker than the base assumption level, the significant strength in current oil prices has partially offset the shortfall in natural gas prices. In addition, average commodity prices in the futures market remain above pricing thresholds set for Bonavista's base distribution rate. However, should the current weakness in spot natural gas prices persist into 2008, Bonavista will need to review its current distribution policy, which could result in an adjustment to our monthly distribution. Consequently, Bonavista has declared a distribution of $0.30 per trust unit in respect of November production, to be paid on December 17, 2007 for unitholders of record on November 30, 2007. The ex-distribution date is November 28, 2007. The combined base and supplementary distributions incorporate the withholding of sufficient funds to finance capital expenditures required to maintain or modestly grow the current production base and provide sustainable distributions into the future. Our long-term objective is to distribute between 50% and 60% of our cash flow. Our distribution policy is reviewed monthly and is based upon the current and future commodity price and foreign exchange rate environment, our commodity hedging program, our current operations and available investment opportunities.

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
    Ronald J. Poelzer
    Executive Vice President & CFO
    (403) 213-4300