Thunder Energy Trust
TSX : THY.UN

Thunder Energy Trust

October 10, 2006 17:17 ET

Thunder Updates Hedging Program

CALGARY, ALBERTA--(CCNMatthews - Oct. 10, 2006) - Thunder Energy Trust (TSX:THY.UN) is pleased to announce it has completed additional natural gas and oil hedging. The Trust has entered into costless collar arrangements for natural gas with AECO pricing for 10,000 gj/d in Q2/07 with a floor of Cdn$6.50 per gj and a ceiling of Cdn$8.10 per gj. Additionally we have entered into costless collar arrangements for oil with WTI Nymex pricing for 800 bbls/d in Q2/07 with a floor of $US60.00 per bbl and a ceiling of $US70.50 per bbl, and for 800 bbls/d in Q3/07 with a floor of $US60.00 per bbl and a ceiling of $US72.50 per bbl.



The following table contains all of the current hedges in place:
------------------------------------------------------------------------
Gas Volume Pricing Strike
Contract gj/d Point Price per gj Cost Term
------------------------------------------------------------------------
Costless 15,000 AECO Cdn$6.00 to Cdn$6.50 n/a Apr 1/06 to
Collar Oct 31/06

Costless 10,000 AECO Cdn$8.00 to Cdn$9.40 n/a Nov 1/06 to
Collar Mar 31/07

Costless 10,000 AECO Cdn$8.00 to Cdn$10.00 n/a Nov 1/06 to
Collar Mar 31/07

Costless 10,000 AECO Cdn$6.50 to Cdn$8.10 n/a Apr 1/07 to
Collar Oct 31/07

------------------------------------------------------------------------
------------------------------------------------------------------------
Oil Volume Pricing Strike
Contract bbl/d Point Price per bbl Cost Term
------------------------------------------------------------------------
Costless 800 WTI US$61.00 to US$72.70 n/a Oct 1/06 to
Collar Nymex Dec 31/06

Costless 800 WTI US$65.00 to US$80.70 n/a Oct 1/06 to
Collar Nymex Dec 31/06

Costless 800 WTI US$61.00 to US$73.05 n/a Jan 1/07 to
Collar Nymex Mar 31/07

Costless 800 WTI US$65.00 to US$80.00 n/a Jan 1/07 to
Collar Nymex Mar 31/07

Costless 800 WTI US$60.00 to US$70.50 n/a Apr 1/07 to
Collar Nymex Jun 30/07

Costless 800 WTI US$60.00 to US$72.50 n/a Jul 1/07 to
Collar Nymex Sep 30/07
------------------------------------------------------------------------


Thunder uses a hedging strategy to mitigate the effects of changes in commodity prices. This strategy is not used to speculate on future prices, but to help stabilize cash flow, thereby protecting the near term capital expenditure budget and cash distributions to unitholders. The strategy calls for the trust to hedge up to 50% of its total production and allows for the use of various hedging techniques including costless collars and net puts with no ceiling.

Thunder Energy Trust is an oil and gas income trust having been created in July 2005 as a component of a plan of arrangement, which combined three entities Thunder Energy Inc., Mustang Resources Inc. and Forte Resources.

Contact Information

  • Thunder Energy Trust and Thunder Energy Inc.
    Stuart Keck
    President & C.E.O
    (403) 294-1635
    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