Penn West announces update on South Swan Hills CO2 pilot project



    CALGARY, Dec. 11 /CNW/ - (PWT.UN - TSX; PWE - NYSE) Penn West Energy
Trust ("Penn West") is pleased to announce a partnership with the Government
of Alberta in a carbon dioxide ("CO2") enhanced oil recovery pilot at the
South Swan Hills Unit (the "Project"). The Government of Alberta, through the
existing Innovative Energy Technologies Program ("IETP"), has approved
approximately $6.5 million in royalty adjustments over the life of the
Project.
    Penn West, as operator, along with the other working interest owners in
South Swan Hills Unit, will invest approximately $20 million to bring the
Project on-stream during the first quarter of 2008.
    Penn West has a significant presence in large, legacy light oil pools in
Western Canada including those in and around the Swan Hills area and is
committed to increasing the recovery of additional reserves from these light
oil pools. The Project is a key step in evaluating and confirming the economic
viability of recovering additional oil from the Swan Hills area using enhanced
oil recovery techniques. Carbon dioxide will be injected into a portion of the
reservoir that has not been effectively swept by prior floods using
hydrocarbons as a miscible agent.
    Penn West is committed to bringing large commercial scale CO2 flooding to
fruition. The key benefits of such projects include: potentially significant
additional light oil recovery, incremental royalties and economic benefit to
Alberta and permanent sequestration of significant volumes of CO2, a
greenhouse gas that would otherwise be emitted to the atmosphere. As well,
once key infrastructure is in place, there would likely be industry wide
progression towards more commercial scale CO2 enhanced oil recovery schemes
within the basin.
    The IETP represents a $200 million commitment over five years by Alberta
Energy to provide royalty adjustments to a number of specific pilot and
demonstration projects that use innovative technologies to increase recoveries
from existing reserves and encourage responsible development of oil, natural
gas and in-situ oil sands reserves. For more information on the IETP program
please visit www.energy.gov.ab.ca.

    Penn West Energy Trust is a senior oil and natural gas energy trust based
in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol
PWT.UN and on the New York Stock Exchange under the symbol PWE.

    Forward-looking Statements

    Certain statements contained in this document constitute forward-looking
statements or information (collectively "forward-looking statements") within
the meaning of the "safe harbour" provisions of applicable securities
legislation. Forward-looking statements are typically identified by words such
as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will",
"project", "could", "plan", "intend", "should", "believe", "outlook",
"potential", "target" and similar words suggesting future events or future
performance. In addition, statements relating to "reserves" or "resources" are
deemed to be forward-looking statements as they involve the implied
assessment, based on certain estimates and assumptions, that the reserves and
resources described exist in the quantities predicted or estimated and can be
profitably produced in the future. In particular, this document contains,
without limitation, forward-looking statements pertaining to the following:
various matters relating to the Project, including the capital expenditures
required to bring the Project on stream, the timing thereof and the benefits
to be derived therefrom; Penn West's ability to increase the recovery of
additional reserves from large, legacy light oil pools in Western Canada using
carbon dioxide flooding; and Penn West's ability to bring large commercial
scale carbon dioxide flooding projects to fruition on an economic basis.
    With respect to forward-looking statements contained in this document, we
have made assumptions regarding, among other things: the availability of
carbon dioxide to support large commercial scale carbon dioxide flooding
projects; the continued support of the government of Alberta of carbon dioxide
enhanced oil recovery projects; the amount of capital expenditures required to
bring the Project on stream, the timing thereof and the benefits to be derived
therefrom; the economic viability of recovering additional oil from large,
legacy light oil pools in Western Canada using carbon dioxide flooding; future
oil and natural gas prices remaining at levels that make enhanced oil recovery
techniques including the use of carbon dioxide economic.
    Although Penn West believes that the expectations reflected in the
forward-looking statements contained in this document, and the assumptions on
which such forward-looking statements are made, are reasonable, there can be
no assurance that such expectations will prove to be correct. Readers are
cautioned not to place undue reliance on forward-looking statements included
in this document as there can be no assurance that the plans, intentions or
expectations upon which the forward-looking statements are based will occur.
By their nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties that contribute to the possibility
that the predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause Penn West's actual performance and
financial results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things: that the Government of Alberta will discontinue its financial support
of enhanced oil recovery techniques including the use of carbon dioxide; that
Penn West's estimates of the cost and timing of bringing the Project on stream
are inaccurate; that carbon dioxide flooding fails to increase the recovery of
additional reserves from large, legacy light oil pools in Western Canada; that
the assumed benefits of enhanced oil recovery techniques including the use of
carbon dioxide are not brought to fruition in whole or in part and make such
projects uneconomic or otherwise undesirable to pursue; and the other factors
described in Penn West's public filings (including its Annual Information
Form) available in Canada at www.sedar.com and in the United States at
www.sec.gov. Readers are cautioned that this list of risk factors should not
be construed as exhaustive. The forward-looking statements contained in this
document speak only as of the date of this document. Except as expressly
required by applicable securities laws, Penn West does not undertake any
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. The
forward-looking statements contained in this document are expressly qualified
by this cautionary statement.

    %SEDAR: 00022266E          %CIK: 0001334388




For further information:

For further information: PENN WEST ENERGY TRUST: Suite 2200, 425 - First
Street S.W., Calgary, Alberta, T2P 3L8, Website: www.pennwest.com, Toll-free:
1-866-693-2707, Phone: (403) 777-2500, Fax: (403) 777-2699; Investor
Relations: William Andrew, President and CEO, Phone (403) 777-2502, Toll-free:
1-888-770-2633, E-mail: investor_relations@pennwest.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890