Bonavista Energy Trust

Bonavista Energy Trust

September 17, 2007 15:42 ET

Bonavista Energy Trust Confirms Cash Distribution for October 15, 2007

CALGARY, ALBERTA--(Marketwire - Sept. 17, 2007) - Bonavista Energy Trust ("Bonavista") (TSX:BNP.UN) announces that the monthly cash distribution generated from September 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 expectation that average realized commodity prices will be 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 $8.70 per mmbtu for NYMEX natural gas and US $54.00 per barrel for WTI crude oil). Although current natural gas prices have weakened considerably from these levels, the significant strength in current oil prices has offset the majority of the shortfall in natural gas prices. In addition, average commodity prices in the futures markets currently remain above pricing thresholds set for Bonavista's base distribution rate. Consequently, Bonavista has declared a distribution of $0.30 per trust unit in respect of September production, to be paid on October 15, 2007 for unitholders of record on September 30, 2007. The ex-distribution date is September 26, 2007. The combined base and supplementary distribution 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
    700, 311 - 6th Avenue SW
    Calgary, AB T2P 3H2