TKE Energy Trust

TKE Energy Trust

March 22, 2005 10:19 ET

TKE Closes $31.8 Million Bought-Deal Equity Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TKE ENERGY TRUST

TSX SYMBOL: TKE.UN

MARCH 22, 2005 - 10:19 ET

TKE Closes $31.8 Million Bought-Deal Equity Financing

CALGARY, ALBERTA--(CCNMatthews - March 22, 2005) - TKE Energy Trust
(TSX:TKE.UN) (the "Trust") is pleased to announce that it has completed
a "bought-deal" financing originally announced on March 1, 2005. The
Trust issued 2,900,000 Trust Units at $10.95 per unit to raise gross
proceeds of $31,755,000.

The underwriting syndicate, led by CIBC World Markets Inc., also
included Orion Securities Inc., Canaccord Capital Corporation, Raymond
James Ltd. and National Bank Financial Inc. The issue was offered in
British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia
and New Brunswick through a short form prospectus.

The net proceeds received will be used to accelerate the Trust's ongoing
capital expenditure program, repay outstanding borrowings under the
Trust's existing credit facilities, and for general corporate purposes.
As of the closing of the financing, the net debt of the Trust will be
reduced to approximately $13 million. The Trust's line of credit limit
was recently increased to $47.5 million.

Subsequent to the closing of the financing, the Trust will have
approximately 19.5 million trust units and 1.1 million exchangeable
shares outstanding. The current distribution level is $0.12 per unit per
month ($1.44 per unit annualized), which represents, assuming the
conversion of all outstanding exchangeable shares, a payout level of
approximately 65% at current commodity prices. TKE Energy Trust is a
sustainable energy trust which aims to provide stable, consistent
monthly distributions to its unitholders. For additional information
please visit www.tketrust.com.

Forward Looking Statements - Some of the statements contained in this
news release are forward-looking statements. Forward-looking statements
may include, but are not limited to, statements concerning estimates of
recoverable hydrocarbons, expected hydrocarbon prices, expected costs,
statements relating to the continued advancement of the Company's
projects and other statements which are not historical facts. When used
in this document, and in other published information of TKE, the words
such as "could," "estimate," "expect," "intend," "may," "potential,"
"should," and similar expressions are indicative of a forward-looking
statement. Although TKE believes that its expectations reflected in the
forward-looking statements are reasonable, the potential results
suggested by such statements involve risk and uncertainties and no
assurance can be given that actual results will be consistent with these
forward-looking statements. Various factors, which could cause actual
results to differ from these forward-looking statements, include the
potential that TKE's projects will experience technical and mechanical
problems, geological conditions in the reservoir which may negatively
impact levels of oil and gas production and changes in product prices
and other risks not anticipated by TKE or disclosed in TKE's published
material. Since forward-looking statements address future events and
conditions, by their very nature, they involve inherent risks and
uncertainties.

Not for distribution to US newswire services or for distribution in the
United States.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TKE Energy Trust
    Norman W. Holton
    Chairman & Chief Executive Officer
    (403) 264-8875
    or
    TKE Energy Trust
    Gordon K. Case
    Vice President, Finance & Chief Financial Officer
    (403) 264-8875