Penn West Energy Trust ("Penn West") confirms that its February 2008 cash distribution will be CDN$0.34 per trust unit payable on March 14, 2008 to unitholders of record on February 29, 2008. The ex-distribution date is February 27, 2008.
The CDN$0.34 per unit is equivalent to approximately US$0.34 per unit (before deduction of any applicable Canadian withholding tax), using a current currency exchange of one Canadian dollar equals one U.S. dollar. Registered unitholders with U.S. addresses will receive their distributions directly from our transfer agent, and will be paid in U.S. currency using the exchange rate in effect on the record date. Non-registered U.S. unitholders will receive their distributions through their brokers.
Penn West has also entered into AECO natural gas collars on 150,000 gigajoules ("GJ") per day (equivalent to approximately 142 mmcf per day) for the 5-month period from November 2008 to March 2009. These collars were transacted with an average floor price of CDN$7.33 per GJ (approximately CDN$7.73 per mcf) and an average ceiling price of CDN$9.39 per GJ (approximately CDN$9.90 per mcf). The volume hedged by these contracts represents approximately 28 percent of Penn West's expected natural gas production for the contracted period.
Total production hedged for the 2008 calendar year is now approximately 38 percent. The transaction of these collars is consistent with policies established by the Board of Directors of the Trust. A complete summary of Penn West's hedging activity can be found on its website at www.pennwest.com/operations/hedging.html.