Bonavista Energy Trust

Bonavista Energy Trust

January 16, 2006 10:58 ET

Bonavista Energy Trust Maintains Monthly Distributions at CDN $0.33 per Trust Unit

CALGARY, ALBERTA--(CCNMatthews - Jan. 16, 2006) - Bonavista Energy Trust (TSX:BNP.UN) ("Bonavista") is pleased to announce today that the Board of Directors has set the distribution policy for the first quarter of 2006, maintaining monthly distributions at $0.33 per trust unit. This monthly distribution is comprised of the regular base distribution of $0.28 per trust unit plus a supplementary distribution of $0.05 per trust unit due to the significant strength in commodity prices currently being realized. The base distribution rate assumes realized commodity prices of $8.00 CDN per gj at AECO for natural gas and $58.00 CDN per barrel at Edmonton for light crude (this equates to approximately $8.40 US per mmbtu NYMEX natural gas and $50.00 US per barrel WTI crude oil). Our supplementary distribution is anticipated to be maintained while commodity prices remain strong. Consequently, Bonavista has declared a distribution of $0.33 per trust unit in respect of January production, to be paid on February 15, 2006 for unitholders of record on January 31, 2006. The ex-distribution date is January 27, 2006. The combined regular base and supplementary cash distribution incorporates the withholding of sufficient cash flow to be used for the financing of capital expenditures in order to maintain the current production base and provide sustainable distributions in the long-term. Based upon the strong commodity price environment, it is anticipated that this level of combined cash distributions will be maintained throughout the first quarter of 2006. In the event that a further cash surplus develops during the first quarter, resulting from either higher commodity prices or stronger operational results, this surplus may be used to increase distributions, reduce debt, and/or increase the capital expenditure programs.

Ex-Distribution Distribution
Record Date Date Distribution Date per Unit

January 31, 2006 January 27, 2006 February 15, 2006 $0.33

February 28, 2006 February 24, 2006 March 15, 2006 $0.33(1)

March 31, 2006 March 29, 2006 April 17, 2006 $0.33(1)

(1) The above reflects an anticipated combined regular base and
supplementary distribution based on the Bonavista's current
projected commodity prices, commodity hedge position 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 80.3 million Trust Units and 14.1 million Exchangeable Shares. The Exchangeable Shares are convertible into 19.4 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
    Ronald J. Poelzer
    Executive Vice President & CFO
    (403) 213-4300
    700, 311 - 6th Avenue SW
    Calgary, AB T2P 3H2
    (403) 213-4300