Enterra Energy Trust

Enterra Energy Trust

March 31, 2005 08:30 ET

Enterra Energy Reports Record Production, Revenue, Cash Flow and Earnings for 2004; 40% Increase in Distributions During 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ENTERRA ENERGY TRUST

NASDAQ SYMBOL: EENC
TSX SYMBOL: ENT

MARCH 31, 2005 - 08:30 ET

Enterra Energy Reports Record Production, Revenue,
Cash Flow and Earnings for 2004; 40% Increase in
Distributions During 2004

CALGARY, Alberta--(CCNMatthews - Mar 31, 2005) -

Enterra Energy Trust (NASDAQ: EENC)(TSX: ENT) today reported its
financial results for the year ended December 31, 2004.

"Enterra's first year as an oil and gas income trust was very
successful," stated Reg Greenslade, President and CEO of Enterra. "We
achieved record production, revenues, cash flow and earnings, with
monthly distributions increasing 40% from (U.S.)$0.10/unit to
(U.S.)$0.14/unit." The Trust's monthly distribution is currently at
(U.S.)$0.15/unit. During the year the Trust paid out (U.S.)$33.8 million
in distributions representing 80% of its cash flow.



Summarized financial and operational data
(in 000's except for volumes and per share amounts
- all dollar amounts are in Canadian dollars-
----------------------------------------------------------------------
Year Year
Ended Ended
Dec. 31, Dec. 31, %
2004 2003 Change
----------------------------------------------------------------------
Production information
----------------------------------------------------------------------
Oil production (boe per day) 5,821 3,862 + 51%
----------------------------------------------------------------------
Gas production (mcf per day) 6,817 6,972 - 2%
----------------------------------------------------------------------
Total production (boe per day) 6,957 5,024 + 38%
----------------------------------------------------------------------

----------------------------------------------------------------------
Financial information
----------------------------------------------------------------------
Revenue $108,293 $72,097 + 50%
----------------------------------------------------------------------
Cash flow from operations $50,242 $36,455 + 38%
----------------------------------------------------------------------
Cash flow per unit $2.15 $1.92 + 12%
----------------------------------------------------------------------
Net earnings $14,764 $5,004 +190%
----------------------------------------------------------------------
Net earnings per unit $0.63 $0.27 +135%
----------------------------------------------------------------------
Distributions paid out during year $40,415 N/A N/A
----------------------------------------------------------------------
Distributions as a percentage of cash
flow 80.4% N/A N/A
----------------------------------------------------------------------
Total bank debt at December 31 $43,930 $33,960 + 29%
----------------------------------------------------------------------
Average US/CDN exchange rate during year 1.3 1.41 - 8%
----------------------------------------------------------------------

----------------------------------------------------------------------
Operating information (on a per boe basis)
----------------------------------------------------------------------
Average price received per bbl of oil $42.61 $39.12 + 9%
----------------------------------------------------------------------
Average price received per mcf of natural
gas $6.70 $6.65 + 1%
Average price received per boe $42.22 $39.29 + 7%
----------------------------------------------------------------------
Operating costs per boe $9.25 $6.96 + 33%
----------------------------------------------------------------------
G & A expenses per boe (cash portion of
G & A) $1.75 $1.85 - 5%
----------------------------------------------------------------------
Operating netbacks per boe 23.74 $22.73 + 4%
----------------------------------------------------------------------



In 2004, Enterra drilled four 100% working interest wells in Sylvan Lake
with a 50% success rate. These four wells were part of a development
program that had commenced prior to Enterra converting to a Trust.
During 2004, Enterra also farmed out a number of development wells as
per its business plan receiving a carried interest in 27 gross wells of
which 26 were successful resulting in 6.5 net wells for a success rate
of 96%.

The average daily production rate in 2004 was 6,957 boe/d or 38% higher
than the average rate in 2003. Enterra exited the year with a production
rate of 7,258 boe/d. Enterra's revenue and cash flow increased by 62%
and 50%, respectively in 2004 as a result of the increased production
rates and to a lesser extent, higher commodity prices.

"We are on track with our plan of enhancing the growth potential of the
trust by farming out undeveloped lands to development partners while
retaining carried interests in the new production resulting from
additional development. Similarly, we are regularly evaluating
development and exploratory lands suitable for joint venture
arrangements that would result in the Trust retaining carried interests
in such plays," added Mr. Greenslade. "As per our business plan, we
anticipate further growth through acquisitions and carried interests in
plays developed in conjunction with Enterra."

Conference Call

Management will host its conference call later this morning at 11:00 am
Eastern Time/9:00 am Mountain Time, to discuss these results, recent
corporate news and the outlook for the Trust. Interested parties may
participate in the call by dialing 706-679-3057. Please call in 10
minutes before the conference is scheduled to begin and ask for the
Enterra Energy conference call. After opening remarks, there will be a
question and answer period; questions may be e-mailed in advance to
llatman@equityny.com.

This conference call will be webcast live over the Internet on the
homepage of the Trust's website at www.enterraenergy.com. To listen to
the live call, please go to Enterra Energy's website at least 15 minutes
early to register, and if necessary, download and install any audio
software. If you are unable to listen live, the conference call will be
archived and can be accessed for approximately 90 days.

Additional information can be obtained at the Company's website at
www.enterraenergy.com

Statements regarding anticipated oil and gas production and other oil
and gas operating activities, including the costs and timing of those
activities, are "forward-looking statements". These statements involve
risks that could significantly impact the Company. These risks include,
but are not limited to, adverse general economic conditions, operating
hazards, drilling risks, inherent uncertainties in interpreting
engineering and geologic data, competition, reduced availability of
drilling and other well services, fluctuations in oil and gas prices and
prices for drilling and other well services and government regulation
and foreign political risks, as well as other risks commonly associated
with the exploration and development of oil and gas properties.

-30-

Contact Information

  • Enterra Energy Trust
    Reg Greenslade
    403-213-2507
    403-444-0100 (FAX)
    Website: www.enterraenergy.com
    or
    Investor Relations Counsel:
    The Equity Group
    Linda Latman
    212-836-9609
    403-444-0100 (FAX)
    or
    Investor Relations Counsel:
    The Equity Group
    Rob Greenberg
    212-836-9611
    403-444-0100 (FAX)
    Website: www.theequitygroup.com