Daylight Energy Trust

Daylight Energy Trust

March 07, 2005 17:31 ET

Daylight Announces Year End 2004 Reserves


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DAYLIGHT ENERGY TRUST

TSX SYMBOL: DAY.UN
TSX SYMBOL: DAY.DB

MARCH 7, 2005 - 17:31 ET

Daylight Announces Year End 2004 Reserves

CALGARY, ALBERTA--(CCNMatthews - March 7, 2005) - Daylight Energy Trust
(TSX:DAY.UN) ("Daylight") Daylight Energy Trust is pleased to announce
the results of its year end reserve evaluation which is based on an
independent engineering study conducted by Gilbert Laustsen Jung
Associates Ltd. ("GLJ") prepared in accordance with National Instrument
51-101.

Daylight's proved reserves total 21.6 million barrels of oil equivalent
("boe"), and proved plus probable (P + P) reserves total 30.8 million
boe.



Working Interest Reserves Summary as at December 31, 2004 using GLJ
price and cost forecasts:

Light
and Natural
Medium Heavy Gas Natural Oil
Oil Oil Liquids Gas Equivalent
(mbbl) (mbbl) (mbbl) (mmcf) (mboe)

Proved Producing 2,238 97 1,486 84,254 17,862
Proved Non-Producing 835 - 135 10,169 2,665
Proved Undeveloped - - 97 5,945 1,088
---------------------------------------------
Total Proved 3,073 97 1,717 100,368 21,615
Total Probable 3,177 128 621 31,719 9,213
---------------------------------------------
Proved plus Probable 6,250 225 2,338 132,087 30,828
---------------------------------------------
---------------------------------------------

The Net Present Value estimates discounted at ten percent using GLJ's
price forecast of January 01, 2005 is $276.6 million for total proved
and $355.0 million for total proved plus probable reserves.

Net Present Value of Future Net Revenue using GLJ price and cost
forecasts ($,000):

Before Income Taxes
Discounted at: 0% 5% 10% 15% 20%
($,000) ($,000) ($,000) ($,000) ($,000)

Proved Producing 322,974 271,561 238,157 214,160 195,821
Proved Non-Producing 45,831 37,364 31,581 27,371 24,160
Proved Undeveloped 10,849 8,409 6,818 5,703 4,882
---------------------------------------------
Total Proved 379,655 317,335 276,557 247,234 224,863
Total Probable 149,568 102,931 78,477 63,326 52,958
---------------------------------------------
Proved plus Probable 529,222 420,266 355,033 310,559 277,822
---------------------------------------------
---------------------------------------------

The Net Present Values shown above include ARTC, and are reported before
income taxes.

GLJ Price Forecasts

The net present value of future net revenue at December 31, 2004 was
based upon crude oil and natural gas pricing assumptions prepared by GLJ
effective December 31, 2004. These prices are adjusted for reserve
quality, transportation charges and the provision of any applicable
sales contracts. The price assumptions used over the next eleven years
are summarized in the table below:

------------------------------------------------------------------------
Edmonton Henry
WTI Light Natural Hub
Crude Crude Gas at Natural Exchange
Oil Oil AECO Gas Rate
Year ($US/bbl) ($Cdn/bbl) ($Cdn/mmbtu) ($US/mmbtu) ($US/$Cdn)
------------------------------------------------------------------------
2005 42.00 50.25 6.60 6.20 0.82
2006 40.00 47.75 6.35 6.00 0.82
2007 38.00 45.50 6.15 5.75 0.82
2008 36.00 43.25 6.00 5.50 0.82
2009 34.00 40.75 6.00 5.50 0.82
2010 33.00 39.50 6.00 5.50 0.82
2011 33.00 39.50 6.00 5.50 0.82
2012 33.00 39.50 6.00 5.50 0.82
2013 33.50 40.00 6.10 5.60 0.82
2014 34.00 40.75 6.20 5.65 0.82
2015 34.50 41.25 6.30 5.75 0.82
------------------------------------------------------------------------


Acquisition of Flowing Energy

The Acquisition of Flowing Energy Corporation, which is expected to
close in early April, 2005, will significantly increase Daylight's
reserve life index. Based on expected production of 16,600 boe per day,
subsequent to the Flowing acquisition, Daylight's proven reserve life
index will be approximately 5.4 years and on a proven plus probable
basis 7.3 years.

Daylight Energy Trust is a Calgary-based open-ended unincorporated
investment trust with a natural gas weighted quality property base,
large prospect inventory and approximately 420,000 net undeveloped
acres. Daylight's properties are focused in the multi-zone high
potential areas of the Peace River Arch and West Central Alberta and
select large reserve oil pools. Daylight Energy was formed through the
corporate reorganization of Midnight Oil and Gas Ltd., completed on
November 30, 2004.

Flowing Energy is a Calgary-based oil and natural gas exploration and
development company.

Daylight Trust Units trade on the Toronto Stock Exchange under the
symbol "DAY.UN". Flowing Energy's common shares trade on the TSX under
the symbol "FLO".

ADVISORY: Certain information regarding Daylight Energy Trust including
management's assessment of future plans and operations, may constitute
forward-looking statements under applicable securities law and
necessarily involve risks associated with oil and gas exploration,
production, marketing and transportation such as loss of market,
volatility of prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers and
ability to access sufficient capital from internal and external sources;
as a consequence, actual results may differ materially from those
anticipated in the forward-looking statements.

Natural gas reserves and production references contained herein are
converted to barrels of oil equivalent ('boe") based upon the relevant
energy content (6 mcf equals 1 boe). A barrel of oil equivalent is
determined by converting a volume of natural gas to barrels using the
ratio of six mcf to one barrel. Boes may be misleading, particularly if
used in isolation. The boe conversion ratio of 6 mcf:1 bbl is based on
an energy equivalency method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead.

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