Daylight Resources Trust

Daylight Resources Trust
Athlone Energy Ltd.

Athlone Energy Ltd.

September 17, 2008 21:00 ET

Daylight Resources Trust Announces Closing of Athlone Energy Ltd. Heavy Oil Acquisition, Provides Update on Operations and Confirms Cash Distributions for the Fourth Quarter of 2008

CALGARY, ALBERTA--(Marketwire - Sept. 17, 2008) - Daylight Resources Trust ("Daylight" or the "Trust") (TSX:DAY.UN) is pleased to announce the successful closing of the previously announced acquisition of Athlone Energy Ltd. ("Athlone") (TSX VENTURE:ATH). This highly synergistic transaction follows Daylight's strategy of pursuing transactions that are consistent with our internal technical expertise and provide additional inventory of repeatable, low-geological risk drilling opportunities. In addition, Daylight is pleased to provide an operational update and confirm our Cdn $0.13 per unit monthly cash distributions for the fourth quarter of 2008.


- The 650 barrels of oil equivalent per day ("boed") of production
associated with this acquisition consists of over 95% heavy oil with a
small amount of natural gas production.
- This transaction maintains Daylight's proportion of oil and natural gas
liquids production at 41% of total corporate production, which is
consistent with our strategy of maintaining balance between the oil and
natural gas in our portfolio.
- Based on the total transaction cost of $32.8 million, the production
acquisition cost is $50,500/boed and the Proven plus Probable reserve
acquisition cost is $17.90/boe for approximately 1.9 million barrels of
oil equivalent.
- Daylight's drilling inventory increases, with 17 heavy oil development
locations identified on the Athlone lands.
- The transaction is accretive to Daylight on all conventional measures.
- The Athlone assets are located adjacent to our Wildmere property, making
Wildmere Daylight's largest producing property.


The acquisition of Athlone and Daylight's continued operational success have more than offset the 950 boed (675 boed light oil and NGLs plus 275 boed natural gas) of production associated with the previously announced sale of Daylight's Sturgeon Lake asset which is anticipated to close at the end of September 2008.

Daylight's drilling and optimization program continues to meet expectations, with current Trust production of over 22,000 boed. Based on this strong performance, the Trust is projecting production of approximately 21,500 boed for the third quarter of 2008 and maintaining our 2008 full year production guidance of 20,750 to 21,250 boed. Daylight's strong 2008 operational results fully support and fund our capital program and our cash distributions.

The Trust has been quite active during the third quarter of 2008. In our Peace River Arch area, drilling and completion operations are continuing at our very successful Elmworth Cadomin and uphole Cretaceous play. Additional compression is being installed at Elmworth to support the incremental volumes being produced, with start-up anticipated to occur by mid-October, 2008. Operations have continued at the Trust's Cecil property, in conjunction with implementing our waterflood to optimize ultimate oil recovery from the Kiskatinaw light oil play and complete the current phase of our Cecil drilling project.

At Wildmere, in our East Area, Daylight has drilled our first horizontal well into the Lloydminster formation, with promising early production results of over 100 bopd. These initial results are very encouraging and could add significant future drilling inventory and production potential in the Wildmere area, including the newly acquired lands associated with the Athlone transaction.


Based on the strength of our current and expected future operational and financial results, Daylight is pleased to announce the continuation of our Cdn $0.13 per unit monthly cash distribution for the fourth quarter of 2008.

Ex-Distribution Distribution Distribution Per
Record Date Date Payment Date Unit
October 31, 2008 October 29, 2008 November 17, 2008 $0.13
November 28, 2008 November 26, 2008 December 15, 2008 $0.13
December 31, 2008 December 29, 2008 January 15, 2008 $0.13


Forward Looking Statements: This press release contains forward-looking statements as to the internal projections, expectations, estimates or beliefs relating to future events or future performance of Daylight Resources Trust ("Daylight"), including Daylight's production guidance for the third quarter and for the full year of 2008, expectations regarding Daylight's ability to fund its capital program and cash distributions, the anticipated closing date for the sale of the Sturgeon Lake Assets, the anticipated start-up for production at Daylight's Elmworth property, early production results and anticipated drilling inventory and production potential with respect to Daylight's Wildmere property and per unit cash distributions for the fourth quarter of 2008.. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "believes", "expects", "intends", "projects", "plans", "anticipates", "estimates" or "contains" or similar words or the negative thereof. These statements represent management's expectations or beliefs concerning, among other things, future capital expenditures and future operating results and various components thereof or the economic performance of Daylight and include, without limitation, statements with respect to the future financial position, business strategy, budgets, projected costs and plans, objectives of or involving Daylight or any of its respective affiliates; amounts to be retained by Daylight for growth; the amount and timing of the payment of distributions of Daylight; payout ratios; access to credit facilities; capital taxes; income taxes; commodity prices; administration costs; commodity price risk management activities; expectation of future production rates and components of cash flow and earnings. Actual events or results may differ materially. The projections, estimates and beliefs contained in such forward-looking statements are based on management's estimates, opinions and assumptions at the time the statements were made including assumptions relating to the production performance of Daylight's oil and gas assets, the cost and competition for services throughout the oil and gas industry in 2008 and beyond, the contemplated closing of transactions and the continuation of the current regulatory and tax regime in Canada, and necessarily involve known and unknown risks and uncertainties which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. Daylight does not undertake to update any forward-looking information contained in this press release whether as to new information, future events or otherwise except as required by securities rules and regulations.

Barrels of Oil Equivalency: Barrels of oil equivalent (BOE's) may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 Mcf:1bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


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