Thunder Energy Trust

Thunder Energy Trust

November 28, 2006 09:01 ET

Thunder Announces Support for the Canadian Coalition of Energy Trusts

CALGARY, ALBERTA--(CCNMatthews - Nov. 28, 2006) - Thunder Energy Trust (TSX:THY.UN) today announced its ongoing support for the Coalition of Canadian Energy Trusts (CCET), which was created by Canada's oil and gas trusts following the federal government's announcement in late October of proposed tax changes for income trusts. Along with CCET, Thunder is calling for the federal government to immediately open up a process of meaningful and constructive consultation with the oil and gas income trust sector in order that it continue to play a unique and progressive role in Canada's economy. In addition, Thunder Energy Trust is a member of and supports the efforts of the Canadian Association of Income Trusts (CAIF).

Thunder Energy Trust believes that the proposed tax changes are ill-conceived, as was evidenced by a 20% decline in the market capitalization of oil and gas trusts, which translated to a $35 billion blow to the net worth of investors in just two days after the government's announcement. Foreign investors were also impacted, as was the Canada Pension Plan and private pension plans. That immediate erosion in confidence in Canada's equity markets was seen with a similar drop in the shares of the oil service sector and junior oil and gas stocks.

Thunder Energy Trust believes that longer term, there will be significant damage to the Canadian economy, the reputation of the nation's capital markets, and the livelihood of investors, particularly those who rely on income trusts as a source of regular income.

The energy trust sector is a significant contributor to the Canadian economy. Oil and gas trusts account for 20% of Canada's daily production (1 million barrels of oil equivalent per day) and are integral to harvesting mature assets, which are no longer economically attractive to larger, exploration-focused companies. Over the past five years, energy trusts have invested more than $10 billion in development of oil and gas assets in Canada. The trust sector plays a role in development of technologies and engineering processes to efficiently exploit those assets, including investment in intellectual capital. Energy trusts provide a large base of employment across Western Canada, as well as contracting with numerous independent businesses. The sector pays substantial royalties to provincial governments and helps support the tax base of many local jurisdictions.

Thunder Energy Trust was created in July 2005 through the reorganization of three junior oil and gas companies. Since that time, Thunder Energy Trust has paid 15 monthly distributions totaling approximately $95 million to unitholders. Thunder Energy Trust employs 139 people based in its Calgary head office and in field offices located in northeast B.C. across Alberta to southeastern Saskatchewan. In the initial 15 months of operation, Thunder invested approximately $106 million in capital expenditures in projects across the three provinces.

Thunder Energy Trust believes that the Canadian government should engage in a meaningful and constructive process of consultation with all stakeholders, particularly energy trusts with the responsibility and duty to represent the interests of unitholders. A consultation process that is open and transparent is a critical link in ensuring oil and gas trust play a major role in ensuring a progressive and robust Canadian economy, without punitive impacts on investors in the energy trust sector.

Thunder Energy Trust is encouraging its unitholders and other concerned citizens to contact their Member of Parliament directly regarding this matter. Information about the proposed tax changes can be found at:

Canadian Department of Finance Backgrounder -

Coalition of Canadian Energy Trusts -

A directory of Members of Parliament can be found at:

Contact Information

  • Thunder Energy Trust and Thunder Energy Inc.
    Stuart Keck
    President & C.E.O.
    (403) 294-1635
    (403) 232-1317 (FAX)
    Thunder Energy Trust and Thunder Energy Inc.
    Brent Kirkby
    Vice President, Finance & C.F.O.
    (403) 294-1635
    (403) 232-1317 (FAX)