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True Energy Trust Announces Saskatchewan Asset Divestiture


View All News Releases July 8, 2009

    TSX: TUI.UN

    CALGARY, July 8 /CNW/ - True Energy Trust ("True" or the "Trust")
announces that it has entered into an agreement for the divestiture of the
majority of its oil and natural gas assets in Saskatchewan for gross proceeds
of $93 million, subject to closing adjustments, effective May 01, 2009.
Closing is anticipated to occur on or before July 30, 2009 and is subject to
customary conditions, including required regulatory and True's bank syndicate
approvals. The divestiture excludes the Saskatchewan properties of Cypress and
Mantario. True's interest to the base Belly River in three sections in the
Ferrier area of West Central Alberta will also be disposed of in the
transaction. The assets sold include production estimated to average 3,000
boe/d in Q3 and Q4 in 2009, including 5.3 mmcf/d of natural, 128 km(2) of 3D
proprietary seismic with 389.7 km of 2D proprietary seismic, subject to a
royalty free license on the seismic in favor of True, and 63,333 net acres of
undeveloped mineral leases. Tristone Capital acted as True's exclusive advisor
in this sale.
    Proceeds from the divestiture will be utilized to reduce bank
indebtedness. This divestiture will significantly improve True's balance sheet
and will provide the Trust with the ability to move forward with increased
financial flexibility.
    Effective June 1, 2009, in a separate transaction to a private buyer,
True has sold 145 boe/d, including 0.63 mmcf/d of natural gas, in the Penhold
Area of Central Alberta for $4.75 million, prior to closing adjustments. The
proceeds from the transaction which closed on June 30, 2009 were also used to
reduce True's bank indebtedness.
    True's total net debt, excluding an unrealized commodity contract asset
of $12.7 million, future income taxes and asset retirement obligations, upon
completion of these dispositions is anticipated to be approximately $110
million, being approximately $28 million in net debt outstanding on the credit
facility including working capital adjustments and $82 million in convertible
debentures (liability component).
    After completion of the divestitures, True's production is forecast to be
approximately 6,500 boe/d, comprised of 31.7 mmcf/d of natural gas and 1,230
bbls/d of light/medium oil. True is forecasting a 2009 exit production rate of
7,000 boe/d based on normal decline rates and risked production adds from
True's capital program. True's capital expenditure program for the 3rd and 4th
quarters is anticipated to be approximately $10 million. Upon closing, True
will have 274,298 net acres of undeveloped land with 320 drilling locations
identified in the go forward portfolio.
    Upon completion of the divestiture, 65% of True's natural gas production
for Q3 - Q4 2009 is forward sold for an average of $7.26 CAD/mcf and 21.5% of
Q1 - Q2 2010 natural gas production hedged at an average of $7.96 CAD/mcf. In
addition, 500 bbl/d of oil for Q3 - Q4 is hedged by way of a costless collar
of $52.30 CAD x $80.70 CAD.
    GLJ Petroleum Consultants Ltd. ("GLJ") evaluated True's reserves
effective December 31, 2008. True's properties post divestitures, as evaluated
by GLJ, had proved and probable reserves, effective December 31, 2008, of
26,086 mboe and the net present value of the future net revenue, before income
taxes, therefrom was $389.8 million and $355.9 million at 10% and 12% discount
rates, respectively, based on GLJ's pricing at December 31, 2008.
    With the Trust's improved financial flexibility, True plans to seek
opportunities to consolidate assets that complement its focused asset base
either through geographic fit, technical expertise or future development
potential.
    An updated corporate presentation will be posted at
www.trueenergytrust.com. True Energy Trust is an exploration and production
oil and gas trust based in Calgary, Alberta, Canada.

    Forward Looking Statements: Certain information set forth in this news
release, including management's assessments of the future plans and
operations, True's disposition of Saskatchewan and other properties, the
timing thereof, the use of proceeds and the effect of the disposition on
True's continuing operations, expected production levels, capital expenditure
levels and the allocation thereof and wells to be drilled may contain
forward-looking statements, and necessarily involve risks and uncertainties,
certain of which are beyond True's control including, risks associated with
oil and gas exploration, development, exploitation, production, marketing and
transportation, loss of markets and other economic and industry conditions,
volatility of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, inability to
retain drilling services, incorrect assessment of value of acquisitions and
failure to realize the benefits therefrom, delays resulting from or inability
to obtain required regulatory approvals, the lack of availability of qualified
personnel or management, risks related to closing of dispositions, stock
market volatility and ability to access sufficient capital from internal and
external sources, economic or industry condition changes or the inability to
dispose of the Saskatchewan and other properties for the anticipated proceeds
or delay in doing so. Actual results, performance or achievements could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or occur, or if
any of them do so, what benefits that True or its securityholders will derive
therefrom. Additional information on these and other factors that could affect
True are included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com), at
True's website (www.trueenergytrust.com). Furthermore, the forward-looking
statements contained in this news release are made as of the date of this news
release, and True does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be expressly
required by applicable securities law.

    BOE Disclosure: Barrels of oil equivalent ("boe") may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.

    Reserves: The estimates of reserves and future net revenue for individual
properties may not reflect the same confidence level as estimates of reserves
and future net revenue for all properties, due to the effects of aggregation.
The net present value of future net revenue of reserves does not represent the
fair market value thereof.




Bellatrix Exploration Ltd.
1920, 800 5th Avenue SW
Calgary, Alberta T2P 3T6
Main: 403-266-8670
Fax: 403-264-8163
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