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True Energy Trust announces joint venture agreement updates, senior management appointment & provides hedging update

View All News Releases November 24, 2008


    CALGARY, Nov. 24 /CNW/ - True Energy Trust ("True" or the "Trust")
announces a joint venture agreement with Petrobank Energy and Resources Ltd.
("Petrobank") (TSX:PBG) in the Kerrobert area, disposition of Trust's 10%
working interest in Block 126 Peru, the appointment of Mr. Russell G. Oicle,
P. Geol. as Vice President, Exploration and two additional natural gas price
risk management contracts.

    Joint Venture Agreement

    True announces that it has entered into a royalty and technology license
and joint venture agreement (the "Agreement") with Petrobank to apply
Petrobank's patented THAITM heavy oil recovery technology on a portion of
True's Kerrobert heavy oil property in Saskatchewan.
    Under the Agreement, Petrobank will initially earn a 50% working interest
in three sections of land in the Kerrobert Mannville heavy oil pool. Subject
to regulatory approval, Petrobank and True will develop a two well project to
demonstrate the THAITM technology in the 10+ metre thick Mannville
conventional heavy oil channel reservoir. Petrobank will earn an additional
ten percent gross overriding technology royalty on True's share of all THAITM
production following a threshold reserve recovery.
    Petrobank is also entitled to earn a 50% working interest in ten
additional sections of True lands upon the expansion of the initial THAITM
project or development of another project on these lands, which Petrobank and
True would develop jointly. In addition, Petrobank and True have established
an area of mutual interest over thirty additional sections of land to jointly
develop additional THAITM projects.

    Disposition of Working Interest in Block 126 Peru

    True and Petrominerales Ltd. (TSX:PMG), a 76.4% owned subsidiary of
Petrobank, have entered into an agreement whereby Petrominerales will acquire
True's 10% working interest and will be designated the operator of Block 126
located in the Ucayali Basin of east central Peru. A wholly-owned subsidiary
of True held the 10% working interest and is the operator in a partnership
with Veraz Petroleum Ltd. ("Veraz").The transaction is subject to the consent
of Perupetro S.A, the Private Law State Company responsible for promoting the
investment of hydrocarbon exploration and exploitation activities in Peru.
True continues to have a minor investment in Veraz.

    Senior Management Appointment

    The Board of Directors of True announces that Mr. Russell G. Oicle, P
Geol. joined True on November 24, 2008 in the capacity of Vice President,
Exploration. Mr. Oicle is a seasoned Geologist with over 30 years experience
in Western Canada and has worked with a variety of small, mid and large cap
E&P organizations, most recently with a large Canadian energy trust. Mr. Oicle
is knowledgeable in both acquisition evaluation and property optimization and
has a deep understanding of the Western Canadian Basin.

    Hedging Update

    True further announces that it has entered into two additional natural
gas price risk management contracts. True entered into a natural gas fixed
price swap of 5,000 GJ per day for the period of July 1, 2009 to September 30,
2009 at a fixed price of $7.49CAD per GJ and an additional natural gas fixed
price swap of 5,000 GJ per day for the period of October 1, 2009 to December
31, 2009 at a fixed price of $8.09CAD per GJ resulting in an average fixed
price for the second half of 2009 of $8.57CAD per mcf.
    True maintains an active commodity price risk management program. With
these additional contracts, combined with previously announced price risk
management contracts, approximately 50% of current natural gas production is
hedged through the fourth quarter of 2008 at an average fixed price of
$7.57CAD per mcf and approximately 23% of estimated natural gas production is
hedged through 2009 at an average fixed price of $8.28CAD per mcf. The Trust
will continue its hedging strategies focusing on maintaining sufficient cash
flow to fund True's unitholder distributions and capital program.
    A full presentation of True's 2009 forward plan and guidance will be
posted at True Energy Trust is an exploration and
production oil and gas trust based in Calgary, Alberta, Canada.

    %SEDAR: 00021401E

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