Bonavista Energy Trust
TSX : BNP.UN

Bonavista Energy Trust

December 15, 2006 12:59 ET

Bonavista Energy Trust Confirms Cash Distribution for January 15, 2007

CALGARY, ALBERTA--(CCNMatthews - Dec. 15, 2006) - Bonavista Energy Trust (TSX:BNP.UN) announces that the monthly cash distribution generated from December 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 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 are slightly lower than 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 December production, to be paid on January 15, 2007 for unitholders of record on December 31, 2006. The ex-distribution date is December 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 current strip of future commodity prices. 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.

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