Pengrowth Energy Trust

Pengrowth Energy Trust
Pengrowth Corporation

Pengrowth Corporation

January 21, 2005 11:14 ET

Pengrowth Energy Trust Announces Cash Distribution for February 15, 2005 and Acquisition Of Interest in Swan Hills Unit

CALGARY, ALBERTA--(CCNMatthews - Jan. 21, 2005) - Pengrowth Corporation
("Pengrowth"), administrator of Pengrowth Energy Trust ("Trust"), announced
today that the cash distribution for February 15, 2005 will be Cdn $0.23 per
trust unit. The distribution is net of amounts withheld to finance capital
expenditures. The ex-distribution date is January 28, 2005. The distribution
will be payable to all unitholders who hold Class A or Class B trust units on
the record date of February 1, 2005.

The distribution of Cdn $0.23 per trust unit is equivalent to approximately U.S.
$0.19 per trust unit using a U.S./Canadian dollar exchange ratio of 1.2212. The
actual U.S. dollar equivalent distribution will be based upon the actual
U.S./Canadian exchange rate applied on the payment date, net of applicable
Canadian withholding taxes. This distribution relates to the production month of
December, 2004. Cash distributions paid over the past 12 months now total Cdn
$2.63 per trust unit or approximately U.S. $2.05 per trust unit.

Pengrowth also announced today that it has entered into an agreement to purchase
an additional 12.2% working interest in Swan Hills Unit No.1 for a purchase
price of $90 million, prior to adjustments. The transaction, which is subject to
Rights of First Refusal, is effective October 1, 2004 and is anticipated to
close prior to the end of February 2005. If completed in its entirety the
transaction will increase Pengrowth's working interest in the long life Swan
Hills Unit to 22.7% and will add approximately 1,430 barrels of oil equivalent
production per day. The reserve additions associated with the transaction were
estimated by Gilbert Laustsen Jung Associates Ltd. in an independent evaluation
dated October 1, 2004 as 9.9 mmboe on a total proved reserves basis and 12.2
mmboe on a proved plus probable reserves basis.

Effective December 31, 2004 Pengrowth increased its revolving unsecured credit
facilities by $100 million to $375 million. All other aspects of this facility
syndicated among eight financial institutions remain unchanged.

Prior to year end 2004 Pengrowth completed an equity issue of 15,985,000 Class B
trust units. As a result Pengrowth currently has outstanding 76.3 million Class
B trust units and 76.9 million Class A trust units (together with a small number
of trust units that still remain to be exchanged).

The Class B trust units currently comprise approximately 49.8% of the total
outstanding trust units. At the point in time that the proportion of Class B
trust units exceeds 50.25% of the total units outstanding, the Class B trust
units would become exchangeable into Class A trust units, but only to the extent
that the Class B trust units exceed 50.25% of the total outstanding trust units.

At the present time achieving the 50.25% threshold would require the issuance of
approximately 1.3 million additional Class B trust units which may be achieved
through a combination of the distribution reinvestment program, the operation of
Pengrowth's trust unit, options and rights incentive programs and any potential
future equity issues in accordance with the present form of Pengrowth's trust

Pengrowth will issue a press release to unitholders detailing the procedures for
trust unit exchange when the 50.25% threshold has been achieved.



Pengrowth maintains a price risk management program. As of the date of this
press release Pengrowth has a total of 8,000 barrels of oil per day hedged for
2005 at an average price of Cdn$51.66 per barrel, approximately 42% of total oil

Pengrowth's current 2005 natural gas production hedges are summarized in the
following table:

Approx. % of
2005 Volume Average Price Natural Gas
(MMBTU/Day) (Cdn$)(*) Production
Natural Gas
Eastern - Q1 16,000 $9.91
Eastern - Q2-Q4 13,500 $9.40
Mid-Continent 2,500 $9.41
Western 3,886 $2.18
Total Gas - Q1 2005 22,386 $8.51 14.5%
(*) before transportation

Pengrowth assumed fixed price natural gas hedges in conjunction with the Murphy
asset acquisition obligating us to sell 3,886 mmbtu per day until April 30, 2009
at an average price of Cdn$2.18 per mmbtu, before transportation charges.



Canadian beneficial unitholders who received distributions in 2004 outside an
RRSP, RRIF or DPSP should receive a T3 Supplementary slip from their broker.
Canadian registered unitholders will receive a T3 Supplementary slip from
Computershare Trust Company of Canada. The deadline for issuance of T3
Supplementary slips is March 31, 2005.

Pengrowth advises that a Substitute Schedule K-1 form will be mailed to U.S.
beneficial unitholders who owned Pengrowth units during 2004 on or about March
1, 2005.


James S. Kinnear, President

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