Thunder Energy Trust
TSX : THY.UN

Thunder Energy Trust

November 18, 2005 16:30 ET

Thunder Energy Trust Announces Premium Distribution™, Distribution Reinvestment and Optional Trust Unit Purchase Plan

CALGARY, ALBERTA--(CCNMatthews - Nov. 18, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Thunder Energy Trust (TSX:THY.UN) ("Thunder") today announced that it has adopted a Premium Distribution™, Distribution Reinvestment and Optional Trust Unit Purchase Plan (the "Plan"). Eligible unitholders may elect to participate in the Plan commencing with the monthly cash distribution payable on December 15, 2005 to unitholders of record on November 30, 2005.

The Plan enables eligible unitholders to direct that their cash distributions be reinvested in additional units at 95% of the Average Market Price (as defined in the Plan) on the applicable distribution date. The Plan allows eligible unitholders to elect, under the Premium Distribution™ component of the Plan, to have these additional units delivered to the designated Plan broker in exchange for a premium cash distribution equal to 102% of the cash distribution that such unitholders would have otherwise been entitled to receive on the distribution payment date (subject to pro-ration in certain events under the Plan). Canaccord Capital Corporation will act as Plan broker for the Premium Distribution™ component of the Plan.

In addition, commencing in January 2006, the Plan will allow those unitholders who participate in either the distribution reinvestment component or the Premium Distribution™ component of the Plan to purchase additional units from treasury at a purchase price equal to the Average Market Price (with no discount) in minimum amounts of $1,000 per remittance up to a maximum aggregate amount of $100,000 per month by any one unitholder, all subject to an overall annual limit of 2% of the total number of outstanding units.

Thunder reserves the right to limit the amount of new equity available under the Plan on any particular distribution date. Accordingly, participation may be pro-rated in certain circumstances.

To participate in the Plan, eligible registered unitholders must fax or otherwise deliver a properly completed and signed authorization form to Olympia Trust Company, at the fax number or address specified in the form, no later than 4:30 pm (Calgary time) on the business day immediately preceding a distribution record date in order for the cash distribution to which such record date relates to be reinvested under the Plan. Unitholders who wish to participate in the Plan in connection with the recently announced distribution payable on December 15, 2005 must deliver an authorization form no later than 4:30 pm (Calgary time) on November 29, 2005.

Beneficial unitholders(i.e., owners of units that are held through a nominee such as a broker or custodian) who wish to participate in the Plan should contact their broker, investment dealer, financial institution or other nominee who holds their units to enquire about the applicable enrolment deadline and to request enrolment in the Plan.

Generally, no commissions, service charges or brokerage fees will be payable by Plan participants in connection with their purchase of units under the Plan, but beneficial unitholders should make enquiries with their broker, investment dealer or financial institution through which their units are held as to any policies of such party that might result in any charges, fees or commissions being payable.

Please note that registered and beneficial owners of units who are not resident in Canada are not eligible to participate in the Plan.

Participation in the Plan does not relieve unitholders of any liability for taxes that may be payable on distributions. Unitholders should consult their tax advisors concerning the tax implications of their participation in the Plan having regard to their particular circumstances.

Copies of the Plan, a series of Questions and Answers, and enrolment forms are available on Thunder's website at www.thunderenergy.com under the heading "Premium Distribution™, Distribution Reinvestment and Optional Trust Unit Purchase Plan", or directly from Thunder by calling (403) 294-1635.

Unitholders should carefully read the complete text of the Plan before making any decisions regarding their participation in the Plan.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

Thunder is an open-ended investment trust, administered by Thunder Energy Inc., that generates income from its interests in crude oil and natural gas properties and assets. Thunder currently has approximately 43 million units outstanding, which trade on the Toronto Stock Exchange under the symbol THY.UN.

Forward-looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect Thunder's operations or financial results are included in Thunder's reports on file with Canadian securities regulatory authorities.

Contact Information

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