Daylight Resources Trust
TSX : DAY.UN

Daylight Resources Trust

October 23, 2006 08:00 ET

Daylight Resources Trust Announces Cash Distributions for Fourth Quarter 2006, Provides Hedging Summary and Operational Update

CALGARY, ALBERTA--(CCNMatthews - Oct. 23, 2006) -

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Daylight Resources Trust ("Daylight") (TSX:DAY.UN) is pleased to announce today that a cash distribution of Cdn$0.195 per trust unit will be payable to unitholders for each of the months of October, November and December, 2006 as per the following table. In addition, Daylight is providing a hedging summary, with a recent natural gas transaction added to the program, and an operational update on current production which is estimated at 22,800 to 23,000 boe per day.

Cash Distributions

Daylight is providing a fourth quarter 2006 cash distribution commitment to unitholders based on our solid and sustained production volumes and our recently expanded hedging program. The daily spot market prices for natural gas have improved significantly over recent weeks and the current 12 month forward strip commodity prices are relatively strong at approximately Cdn$7.85 per mcf AECO for natural gas and US$64 per bbl WTI for crude oil.



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Record Ex-Distribution Distribution Distribution
Date Date Payment Date Per Unit
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October 31, 2006 October 27, 2006 November 15, 2006 $0.195
November 30, 2006 November 28, 2006 December 15, 2006 $0.195
December 31, 2006 December 27, 2006 January 15, 2007 $0.195
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Hedging Summary

Daylight is undertaking to provide downside risk protection to realized commodity prices through its hedging program with the objective of preserving cash flow for the benefit of unitholders. Daylight's hedging program is primarily focused on natural gas as this is our most significant commodity price exposure. The hedging program is designed to reduce exposure to commodity price downside while still maintaining participation in commodity price upside.

As detailed in the following table, Daylight has hedged 30,000 GJs per day, approximately 28,400 mcf per day, of natural gas production for the winter months of December 2006 through to the end of March 2007. This volume represents over 30% of Daylight's natural gas production for the winter with a weighted average floor price at AECO of $7.00 per GJ which is approximately $7.40 per mcf. Daylight may consider entering into additional natural gas hedging transactions through these winter months as well as the 2007 summer months of April through to the end of October. As at October 20, 2006, Daylight had the following financial commodity price contracts in place:



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Hedged Hedged
Type of Contract Commodity Volume (3) Price
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Financial - Collar
(1) Natural Gas 10,000 GJs/d Cdn$8.50-$14.10/GJ
Financial - Collar
(1) Natural Gas 10,000 GJs/d Cdn$7.50-$12.77/GJ
Financial - Funded
Collar (2) Natural Gas 20,000 GJs/d Cdn$6.75-$9.50/GJ
Financial - Collar
(1) Crude Oil 1,000 Bbls/d US$55.00-$77.80/Bbl
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Hedged
Type of Contract Period
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Financial - Collar
(1) Apr 1/06 to Oct 31/06
Financial - Collar
(1) Nov 1/06 to Mar 31/07
Financial - Funded
Collar (2) Dec 1/06 to Mar 31/07
Financial - Collar
(1) Oct 1/06 to Dec 31/06
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(1) Collar price indicates floor (minimum) and ceiling (maximum).
Collar has no premium payable.
(2) Funded Collar price indicates floor (minimum) and ceiling (maximum).
Funded Collar has a premium payable of $0.10/GJ.
(3) GJs convert to Mcf at a rate of 1.055056 GJs per mcf.


Operational Update

Current production through the first weeks of October, 2006 is estimated at 22,800 to 23,000 boe per day and Daylight reaffirms its proforma 2006 production guidance of 22,500 to 23,500 boe per day. Daylight's production is weighted approximately 65 percent to natural gas, 25 percent to light oil and NGLs, and 10 percent to heavy oil. Subsequent to the closing of our recent Plan of Arrangement on September 21, 2006 the integration of our asset base and technical teams has proceeded very well. The technical teams, which includes over 40 professionals, are working together to develop a comprehensive 2007 program and budget to create significant value for our unitholders while continuing to maintain our strong focus on current operations and production levels.

Daylight Resources Trust is a Calgary-based open-ended unincorporated investment trust with a high quality balanced natural gas and crude oil property base, extensive prospect inventory and large undeveloped land base that is managed by a team of highly skilled technical professionals. Daylight's properties include focused high potential assets in the Peace River Arch and West Central Alberta complemented by stable production and repeatable opportunities in Southern and Eastern Alberta. Daylight's prospect inventory is balanced across natural gas and crude oil with near, medium, long term and high impact opportunities that will generate significant increased value into the future. Daylight's large undeveloped land base will provide additional opportunities to create value through our highly skilled technical teams as well as selective farm out's to targeted industry partners. Daylight has approximately 72 million trust units currently outstanding.

ADVISORY: Certain information regarding Daylight Resources 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.

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