Provident Energy Trust

Provident Energy Trust

February 25, 2005 17:49 ET

Provident Energy Announces 2004 Canadian Tax Information


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PROVIDENT ENERGY TRUST

TSX SYMBOL: PVE.UN
AMEX SYMBOL: PVX

FEBRUARY 25, 2005 - 17:49 ET

Provident Energy Announces 2004 Canadian Tax
Information

CALGARY, ALBERTA--(CCNMatthews - Feb. 25, 2005) - Provident Energy Trust
(Provident) (TSX:PVE.UN) (AMEX:PVX) today announced the tax on
distributions received by Canadian unitholders in 2004 was determined to
be 71 percent taxable and 29 percent tax deferred return of capital
(ROC).

Canadian unitholders holding their Provident investment in a Registered
Retirement Savings Plan, Registered Retirement Income Fund or Deferred
Profit Savings Plan should not report any income related to
distributions on their 2004 income tax return. Unitholders holding their
units outside such plans will receive a T3 Supplementary Information
slip (T3), postmarked on or before March 31, 2005. Provident's Canadian
registered unitholders should receive a T3 from Provident's transfer
agent, Computershare Trust Company of Canada. Unitholders that hold
their units through a broker or other intermediary should receive a T3
directly from their broker or intermediary and not from Provident or
Provident's transfer agent. Unitholders are to report the taxable
portion of distributions received as "other income" on their 2004 income
tax return.

The following table summarizes tax information for Canadian residents:



---------------------------------------------------------------------
Taxable
Amount Tax
Total (Box 26 - Deferred
Distribution Other Amount
Record Date Payment Date (Cdn$) Income) (ROC)
---------------------------------------------------------------------
December
18, 2003 January 15, 2004 $0.12 $0.0852 $0.0348
---------------------------------------------------------------------
January
22, 2004 February 13, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
February
19, 2004 March 15, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
March
19, 2004 April 15, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
April
20, 2004 May 14, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
May 19,
2004 June 15, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
June
18, 2004 July 15, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
July
20, 2004 August 13, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
August
20, 2004 September 15, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
September
20, 2004 October 15, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
October
20, 2004 November 15, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
November
19, 2004 December 15, 2004 0.12 0.0852 0.0348
---------------------------------------------------------------------
Total Paid $1.44 $1.0224 $0.4176
---------------------------------------------------------------------


The December 2004 distribution was paid on January 15, 2005 and is
therefore not included in the 2004 T3 amounts.

Canadian unitholders are required to reduce the adjusted cost base (ACB)
of their trust units by an amount equal to the tax deferred portion of
the distributions. The ACB is used to calculate capital gains or losses
on the disposition of trust units. An ACB calculator can be found on
Provident Energy's website at www.providentenergy.com that can assist
Canadian unitholders in this calculation.

Provident Energy Trust is a Calgary-based, open-ended energy trust that
owns and manages oil and gas production businesses and a midstream
services business. Provident's energy portfolio is located in some of
the more stable and predictable producing regions in western Canada,
California and Wyoming. Provident provides monthly cash distributions to
its unitholders and trades on the Toronto Stock Exchange and the
American Stock Exchange under the symbols PVE.UN and PVX, respectively.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Provident Energy Trust
    Jennifer Pierce
    Senior Manager Investor Relations and Communications
    (403) 231-6736
    Email: info@providentenergy.com
    Website: www.providentenergy.com
    or
    Corporate Head Office:
    700, 112 - 4th Avenue S.W.
    Calgary, Alberta T2P 0H3
    (403) 296-2233 or Toll Free: 1-800-587-6299
    (403) 261-6696 (FAX)