True Energy reports 2008 operating highlights, year-end reserves, net asset value and land holdings



    TSX: TUI.UN

    CALGARY, Feb. 9 /CNW/ - True Energy Trust ("True" or the "Trust")
announces the results of its 2008 year-end reserves as evaluated by GLJ
Petroleum Consultants Ltd. ("GLJ"), the independent reserves evaluator, for
100% of True's oil and gas properties prepared in accordance with National
Instrument 51-101 ("NI 51-101").
    As True plans to announce its audited 2008 financial results on or about
March 12, 2009, certain financial estimates have been made by True in this
release to facilitate the discussion with respect to the performance of our
capital program. Readers are advised that these financial estimates are
subject to audit and may be amended as necessary.
    True's corporate thrust in 2008 was to improve the Trust's balance sheet
by reducing total outstanding debt and streamlining its operating cost
structure. This strategy resulted in a reduced 2008 capital program of $43
million, from $88.9 million in 2007, and strategic divestitures which were
expected to negatively impact reserves and production.
    The consequence of this planned activity was total net debt levels
decreasing by $36.2 million from $251.2 million at December 31, 2007 to $215
million at December 31, 2008 excluding unrealized commodity contract assets
and liabilities, future income taxes and asset retirement obligations. The
accompanying reduction posted in reserves and production was within the
planned parameters.
    True continues to tighten its cost structure in the current economically
challenging climate with forecasted cuts of 30% to total operating expenses
which includes general and administrative costs ("G&A") and lease operating
costs in 2009. As stated in the press release dated January 20, 2009 True has
further reduced its capital budget in 2009 to $15 million and is forecasting
2009 production volumes to average approximately 10,000 boe/d.
    As an added layer of protection of its cash flow forecast, True has
hedged approximately 50% of its estimated 2009 natural gas production for the
balance of the year at an average fixed price of $6.60 CAD per GJ ($7.25/mcf)
and approximately 18% of True's estimated natural gas production is hedged for
the first half of 2010 at an average price of $7.25 CAD per GJ ($7.96/mcf).
    True's operating forecast for 2009 which assumes a CAD$/US$ exchange rate
of $0.82, WTI oil price ranging from US$50.00/bbl to US$55.00/bbl, AECO
natural gas price ranging from CAD$5.46/GJ ($6.00/mcf) to CAD$5.92/GJ
($6.50/mcf) and average annual production of approximately 10,000 boe/d
generates cash flow from operations ranging from $30 million to $40 million,
after deducting royalties, all operating costs, G&A and debt servicing costs.
Based on the foregoing assumptions and assuming 2009 distributions of $3.1
million coupled with the planned capital budget of $15 million the Trust would
utilize between 45% - 60% of the Trust's forecasted cash flow from operations.

    OPERATING HIGHLIGHTS

    True reports the following highlights as at December 31, 2008, including:

    
    -   True's net asset value, based on the GLJ evaluation at a 10%
        discount rate, equates to $4.98 per unit and $4.96 per fully diluted
        unit.

    -   The Trust's reserves life index has extended to 6.4 years for proved
        reserves and 10.1 years for proved plus probable reserves.

    -   Approximately 50% of True's estimated 2009 natural gas production is
        hedged for the balance of the year at an average fixed price of
        6.60 CAD per GJ ($7.25/mcf) and approximately 18% of True's
        estimated natural gas production is hedged for the first half of
        2010 at an average fixed price of $7.25 CAD per GJ ($7.96/mcf).

    -   Total net proceeds from the sale of properties in 2008 were
        $44.3 million; the net proceeds from the dispositions were used to
        pay down debt.

    -   True's total net debt including the liability component of its
        convertible debentures, excluding unrealized commodity contract
        assets and liabilities, future income taxes and asset retirement
        obligations, as at December 31, 2008 was $215.0 million, down from
        $251.2 million as at December 31, 2007 and $275.8 million as at
        December 31, 2006.

    -   As at December 31, 2008, True has approximately $132 million drawn on
        its extendible, revolving bank credit facility leaving $20 million
        available to assist in managing our operations and capital program.

    -   Based on the reserves information and other data as at December 31,
        2008, the Trust has performed ceiling test calculations in accordance
        with the requirements of CICA AcG 16 "Oil and Gas Accounting - Full
        Cost". No ceiling test impairment of oil and gas properties is
        anticipated for accounting purposes as at December 31, 2008.

    -   The Trust and operating subsidiaries of the Trust have approximately
        $495 million in tax pools available for deduction against future
        income.

    -   True has over 377,763 net undeveloped acres in Alberta, British
        Columbia and Saskatchewan.

    -   On a proved basis only, True established finding and development
        costs (including acquisitions) of $18.20/boe excluding future
        development costs and $20.90/boe including future capital.

    -   Finding and developing costs for proved plus probable reserves
        (including acquisitions) were $31.50/boe excluding future development
        costs and $36.10/boe including future development costs; the three
        year cost averages were $23.50/boe and $25.40/boe respectively.

    -   The Trust established a recycle ratio, after hedging and excluding
        future development costs, of 1.34x on a proved basis and 0.77x on a
        proved plus probable basis.

    -   On October 1, 2008, True closed the purchase of further working
        interests in the Mantario, Saskatchewan area for $4.3 million in cash
        after adjustments. Effective October 1, 2008, this tuck-in
        acquisition adds approximately 225 bbls/d of heavy oil production for
        metrics of $19,100 per boe/d and $8.60/boe.
    

    RESERVES

    The Trust believes, as its assets continue to mature, as steam assisted
gravity drainage ("SAGD") at Kerrobert is further implemented and as the tight
gas in west central Alberta continues to demonstrate harmonic decline
behavior, that positive revisions to the reserve base could occur.
    True's average production for 2008 is estimated to be 11,900 boe/d,
weighted 63% toward natural gas, 24% toward heavy oil with the 13% balance
being light oil and natural gas liquids. After giving recognition to property
dispositions in 2008, proved and probable working interest reserve additions
in 2008 replaced approximately 32% of production.
    At December 31, 2008 the Trust's proved and probable working interest
reserves, using forecast prices and costs, were 39,278 mboe, a decrease of 13%
compared to 45,405 mboe at December 31, 2007; property dispositions accounted
for 3,180 mboe or 52% of the decrease. By commodity type, natural gas makes up
55%, heavy oil 34%, and light oil and natural gas liquids 11%. At December 31,
2008, True's total proved working interest reserves were 23,306 mboe, a
decrease of 15% compared to 27,587 mboe at December 31, 2007, property
dispositions of 2,325 mboe accounted for 54% of the decline.
    2008 capital expenditures excluding acquisitions and dispositions are
estimated to have been $36.7 million.

    PRODUCTION

    For the 2008 year, sales volumes averaged 11,900 boe/d compared to 16,139
boe/d for the same period in 2007, representing a 26% decrease. The reduction
in average sales volumes from the 2007 year to 2008 is a result of natural
production decline, the impact of dispositions totaling approximately 1,000
boe/d that were closed during the first half of 2008 and minimal 2008 capital
spending. Effective October 1, 2008, True closed the purchase of further
working interests in the Mantario, Saskatchewan area which added approximately
225 bbls/d of heavy oil production.
    Assuming minimal capital spending of $15 million, and normal declines,
2009 production volumes are anticipated to average approximately 10,000 boe/d.

    TOTAL DEBT

    True's net debt, excluding unrealized commodity contract assets and
liabilities, future income taxes and asset retirement obligations, as at
December 31, 2008 was $215.0 million, representing $132.4 million outstanding
on the credit facility, $81.1 million in convertible debentures (liability
component) and the net balance of a working capital deficiency.

    
    CAPITAL EXPENDITURES
    -------------------------------------------------------------------------
                                                     Years ended December 31,
    (unaudited/$000s)                                      2008         2007
    -------------------------------------------------------------------------
    Lease acquisitions and retention                      1,244        2,084
    Geological and geophysical                              318        4,275
    Drilling and completion costs                        19,008       64,638
    Facilities and equipment                             16,129       15,294
    Other Capital(2)                                          -        1,056
    -------------------------------------------------------------------------
      Exploration and development(1)                     36,699       87,347
    Corporate and property acquisitions                   6,303        1,505
    -------------------------------------------------------------------------
      Total capital expenditures - cash                  43,002       88,852
    Property dispositions - cash                        (44,340)     (31,808)
    -------------------------------------------------------------------------
      Total net capital expenditures - cash              (1,338)      57,044
    -------------------------------------------------------------------------
    Other - non-cash(3)                                   3,710         (530)
    -------------------------------------------------------------------------
      Total net capital expenditures(1)                   2,372       56,514
    -------------------------------------------------------------------------
    (1) Excludes capitalized costs related to asset retirement obligation
        expenditures incurred during the year.
    (2) Other capital for 2007 includes natural gas input costs incurred
        during the initial "warm-up" phase at the Kerrobert SAGD expansion
        project.
    (3) Other includes non-cash adjustments for current period's asset
        retirement obligations and unit based compensation capitalized. For
        2007, it also includes a $(0.8 million) initial fair value adjustment
        for marketable securities acquired.
    


    PROPERTY ACQUISITIONS AND DISPOSITIONS

    On October 1, 2008, True closed the purchase of further working interests
in the Mantario, Saskatchewan area for $4.3 million in cash after adjustments.
Effective October 1, 2008, this tuck-in acquisition adds approximately 225
bbls/d of heavy oil production for metrics of $19,100 per boe/d and $8.60/boe.
    During the first quarter of 2008, True was successful in completing the
divestiture of a non-core property in Northeast Alberta for net proceeds of
$5.8 million. During the second quarter of 2008, True disposed of its
Dodsland-Stranraer property located in Saskatchewan for net proceeds of $38.5
million and other minor non-core properties in Alberta for net proceeds of
$0.3 million. Total net proceeds from the sale of properties in the 2008 were
$44.3 million; the net proceeds from the dispositions were used to pay down
debt.

    TAX POOLS

    At December 31, 2008, the Trust and operating subsidiaries of the Trust
had approximately $495 million in tax pools available for deduction against
future income as follows:

    
    -------------------------------------------------------------------------
                                                         Operating
    ($000s)                                  Trust    subsidiaries     Total
    -------------------------------------------------------------------------
    Intangible resource pools                   15          306          321
    Undepreciated capital cost                   -          128          128
    Loss carryforwards (expire through
     2027)                                       -           40           40
    Unit issue costs                             4            2            6
    -------------------------------------------------------------------------
                                                19          476          495
    -------------------------------------------------------------------------


    Reserves, at December 31, 2008, as evaluated by GLJ, are summarized in the
following tables:

    Summary of Oil and Gas Company Interest(1) Reserves(2) (Gross + Royalties
    Receivable)
    Forecast Prices and Costs
    -------------------------------------------------------------------------
                                                                       As at
                                  As At December 31, 2008            Dec. 31,
                                                                        2007
                        Natural    Heavy    Light  Natural    Total    Total
                          Gas(3)     Oil      and      Gas
                                           Medium  Liquids
                                              Oil
                                                              (mboe,   (mboe,
                          (mmcf)   (mbbl)   (mbbl)   (mbbl)     6:1)     6:1)
    -------------------------------------------------------------------------
    Proved
      Developed
       producing         63,377    4,550    1,240    1,122   17,475   23,079
      Developed non-
       producing          8,801        0       45       53    1,565    1,656
      Undeveloped         9,084    2,505      211      183    4,413    3,027
                       ------------------------------------------------------
    Total proved         81,261    7,055    1,497    1,358   23,453   27,762
    Probable             48,644    6,170      792      965   16,035   17,873
                       ------------------------------------------------------
    Proved plus
     probable,
     producing           83,846    6,002    1,653    1,506   23,135   30,706
                       ------------------------------------------------------
    Total proved plus
     probable           129,906   13,226    2,289    2,322   39,488   45,635
    -------------------------------------------------------------------------
    (1) "Company Interest" means True's working interest (operated or non
        operated) share before deduction of royalties but after including any
        royalty interests of True.
    (2) May not add due to rounding.
    (3) Includes 1,656 MMcf of total proved and 2,090 Gross MMcf total proved
        plus probable assigned to coal bed methane reserves.



    Summary of Oil and Gas Working Interest(1) Reserves(2) (Gross)
    Forecast Prices and Costs
    -------------------------------------------------------------------------
                                                                       As at
                                  As At December 31, 2008            Dec. 31,
                                                                        2007
                        Natural    Heavy    Light  Natural    Total    Total
                          Gas(3)     Oil      and      Gas
                                           Medium  Liquids
                                              Oil
                                                              (mboe,   (mboe,
                          (mmcf)   (mbbl)   (mbbl)   (mbbl)     6:1)     6:1)
    -------------------------------------------------------------------------
    Proved
      Developed
       producing         62,776    4,529    1,235    1,110   17,336   22,905
      Developed non-
       producing          8,795        0       43       53    1,562    1,656
      Undeveloped         9,053    2,505      211      182    4,407    3,026
                       ------------------------------------------------------
    Total proved         80,624    7,035    1,490    1,344   23,306   27,587
    Probable             48,358    6,165      791      957   15,972   17,819
                       ------------------------------------------------------
    Proved plus
     probable,
     producing           83,098    5,976    1,646    1,492   22,963   30,488
                       ------------------------------------------------------
    Total proved plus
     probable           128,982   13,200    2,280    2,301   39,278   45,405
    -------------------------------------------------------------------------
    (1) "Working Interest" means True's working interest (operated or non
        operated) share before deduction of royalties and without including
        any royalty interests of True. Also referred to as "Gross" reserves
        under NI 51-101.
    (2) May not add due to rounding.
    (3) Includes 1,656 MMcf of total proved and 2,090 Gross MMcf total proved
        plus probable assigned to coal bed methane.



    Summary of Oil and Gas Net Reserves(1)(2) (Net)
    Forecast Prices and Costs
    -------------------------------------------------------------------------
                                                                       As at
                                  As At December 31, 2008            Dec. 31,
                                                                        2007
                        Natural    Heavy    Light  Natural    Total    Total
                          Gas(3)     Oil      and      Gas
                                           Medium  Liquids
                                              Oil
                                                              (mboe,   (mboe,
                          (mmcf)   (mbbl)   (mbbl)   (mbbl)     6:1)     6:1)
    -------------------------------------------------------------------------
    Proved
      Developed
       producing         52,001    3,825    1,095      690   14,277   18,742
      Developed non-
       producing          6,994        0       32       33    1,231    1,332
      Undeveloped         6,953    2,112      178      110    3,559    2,517
                       ------------------------------------------------------
    Total proved         65,948    5,937    1,305      834   19,067   22,591
    Probable             38,540    5,244      649      599   12,915   14,631
                       ------------------------------------------------------
    Proved plus
     probable,
     producing           68,571    5,044    1,441      922   18,835   24,949
                       ------------------------------------------------------
    Total proved plus
     probable           104,488   11,181    1,954    1,432   31,982   37,222
    -------------------------------------------------------------------------
    (1) "Net" means True's working interest (operated or non operated) share
        after deduction of royalty obligations, plus True's royalty interests
        in reserves.
    (2) May not add due to rounding.
    (3) Includes 1,415 MMcf of total proved and 1,783 Gross MMcf total proved
        plus probable assigned to coal bed methane reserves.



    RESERVES RECONCILIATION
    COMPANY INTEREST(1)(2) (Gross + Royalties Receivable)

    -------------------------------------------------------------------------
                               Light and
                                  Medium       Heavy       Total
                               Crude Oil   Crude Oil   Crude Oil        NGLs
                                   (mbbl)      (mbbl)      (mbbl)      (mbbl)
    -------------------------------------------------------------------------
    PROVED PRODUCING
    Opening Balance(3)             1,487       6,212       7,699       1,247
      Discoveries                      2           0           2           0
      Extensions                      79         216         295          61
      Infill Drilling                 13          38          50           0
      Improved Recovery                0           4           4          15
      Technical Revisions             (4)     (1,039)     (1,043)        159
      Acquisitions                     0         141         141           0
      Dispositions                  (118)          0        (118)        (92)
      Economic Factors                31          39          70           9
      Production                    (249)     (1,060)     (1,309)       (277)
    Closing Balance(4)             1,240       4,550       5,790       1,122
    -------------------------------------------------------------------------
    TOTAL PROVED
    Opening Balance(3)             1,765       7,623       9,388       1,467
      Discoveries                      2           0           2           0
      Extensions                      38         245         282          46
      Infill Drilling                 13           0          13          30
      Improved Recovery                0           4           4           4
      Technical Revisions             15         (84)        (69)        176
      Acquisitions                     0         257         257           0
      Dispositions                  (118)          0        (118)        (97)
      Economic Factors                31          71         102           9
      Production                    (249)     (1,060)     (1,309)       (277)
    Closing Balance(4)             1,497       7,055       8,552       1,358
    -------------------------------------------------------------------------
    PROBABLE
    Opening Balance(3)               893       6,195       7,088       1,012
      Discoveries                      1           0           1           0
      Extensions                      17          (7)         11          25
      Infill Drilling                  4           0           4           9
      Improved Recovery                0           2           2           7
      Technical Revisions           (110)       (172)       (282)        (65)
      Acquisitions                     0         120         120           0
      Dispositions                   (25)          0         (25)        (30)
      Economic Factors                12          33          45           7
      Production                       0           0           0           0
    Closing Balance(4)               792       6,170       6,983         965
    -------------------------------------------------------------------------
    PROVED PLUS PROBABLE
    Opening Balance(3)             2,659      13,817      16,476       2,479
      Discoveries                      3           0           3           0
      Extensions                      55         238         293          71
      Infill Drilling                 17           0          17          40
      Improved Recovery                0           6           6          11
      Technical Revisions            (95)       (256)       (351)        111
      Acquisitions                     0         377         377           0
      Dispositions                  (143)          0        (143)       (127)
      Economic Factors                43         104         147          16
      Production                    (249)     (1,060)     (1,309)       (277)
    Closing Balance(4)             2,289      13,226      15,515       2,322
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                            Conventional                   Total
                                 Natural    Coal Bed     Natural         Oil
                                     Gas     Methane         Gas  Equivalent
                                   (mmcf)      (mmcf)      (mmcf)      (mboe)
    -------------------------------------------------------------------------
    PROVED PRODUCING
    Opening Balance(3)            82,986       1,812      84,798      23,079
      Discoveries                    103           0         103          20
      Extensions                   2,394           0       2,394         755
      Infill Drilling                 49           0          49          58
      Improved Recovery              340           0         340          75
      Technical Revisions          3,442          64       3,505        (301)
      Acquisitions                    23           0          23         145
      Dispositions               (12,155)          0     (12,155)     (2,236)
      Economic Factors               865           0         865         223
      Production                 (16,272)       (272)    (16,544)     (4,343)
    Closing Balance(4)            61,773       1,604      63,377      17,475
    -------------------------------------------------------------------------
    TOTAL PROVED
    Opening Balance(3)            99,631       1,812     101,443      27,762
      Discoveries                      0          52          52          11
      Extensions                   2,432           0       2,432         734
      Infill Drilling              1,720           0       1,720         330
      Improved Recovery               81           0          81          21
      Technical Revisions          4,291          64       4,354         832
      Acquisitions                    23           0          23         261
      Dispositions               (12,983)          0     (12,983)     (2,379)
      Economic Factors               684           0         684         224
      Production                 (16,272)       (272)    (16,544)     (4,343)
    Closing Balance(4)            79,606       1,656      81,261      23,453
    -------------------------------------------------------------------------
    PROBABLE
    Opening Balance(3)            58,054         586      58,640      17,873
      Discoveries                      0          32          32           6
      Extensions                     691           0         691         151
      Infill Drilling                866           0         866         157
      Improved Recovery              106           0         106          26
      Technical Revisions         (7,147)       (183)     (7,330)     (1,568)
      Acquisitions                    13           0          13         122
      Dispositions                (4,867)          0      (4,867)       (866)
      Economic Factors               494           0         494         134
      Production                       0           0           0           0
    Closing Balance(4)            48,210         435      48,645      16,035
    -------------------------------------------------------------------------
    PROVED PLUS PROBABLE
    Opening Balance(3)           157,685       2,398     160,083      45,635
      Discoveries                      0          84          84          17
      Extensions                   3,123           0       3,123         885
      Infill Drilling              2,585           0       2,585         487
      Improved Recovery              187           0         187          47
      Technical Revisions         (2,856)       (120)     (2,976)       (736)
      Acquisitions                    36           0          36         383
      Dispositions               (17,850)          0     (17,850)     (3,245)
      Economic Factors             1,178           0       1,178         358
      Production                 (16,272)       (272)    (16,544)     (4,343)
    Closing Balance(4)           127,815       2,090     129,906      39,488
    -------------------------------------------------------------------------
    (1) "Company Interest" means True's working interest (operated or non
        operated) share before deduction of royalties but after including any
        royalty interests of True.
    (2) Based on forecast prices and costs.
    (3) As at December 31, 2007.
    (4) As at December 31, 2008.



    RESERVES RECONCILIATION
    WORKING INTEREST(1) (Gross)
    -------------------------------------------------------------------------
                               Light and
                                  Medium       Heavy       Total
                               Crude Oil   Crude Oil   Crude Oil        NGLs
                                   (mbbl)      (mbbl)      (mbbl)      (mbbl)
    -------------------------------------------------------------------------
    PROVED PRODUCING
    Opening Balance(2)             1,443       6,190       7,633       1,237
      Discoveries                      2           0           2           0
      Extensions                      79         216         295          59
      Infill Drilling                 13          38          50           0
      Improved Recovery                0           4           4          14
      Technical Revisions            (10)     (1,036)     (1,046)        155
      Acquisitions                     0         141         141           0
      Dispositions                   (79)          0         (79)        (91)
      Economic Factors                35          35          70           9
      Production                    (248)     (1,058)     (1,306)       (274)
    Closing Balance(3)             1,235       4,529       5,764       1,110
    -------------------------------------------------------------------------
    TOTAL PROVED
    Opening Balance(2)             1,721       7,601       9,322       1,456
      Discoveries                      2           0           2           0
      Extensions                      36         245         281          44
      Infill Drilling                 13           0          13          30
      Improved Recovery                0           4           4           4
      Technical Revisions              9         (81)        (72)        172
      Acquisitions                     0         257         257           0
      Dispositions                   (79)          0         (79)        (96)
      Economic Factors                35          67         102           9
      Production                    (248)     (1,058)     (1,306)       (274)
    Closing Balance(3)             1,490       7,035       8,524       1,344
    -------------------------------------------------------------------------
    PROBABLE
    Opening Balance(2)               885       6,191       7,075       1,007
      Discoveries                      1           0           1           0
      Extensions                      17          (7)         11          24
      Infill Drilling                  4           0           4           9
      Improved Recovery                0           2           2           7
      Technical Revisions           (112)       (171)       (283)        (68)
      Acquisitions                     0         120         120           0
      Dispositions                   (18)          0         (18)        (30)
      Economic Factors                14          31          45           8
      Production                       0           0           0           0
    Closing Balance(3)               791       6,165       6,956         957
    -------------------------------------------------------------------------
    PROVED PLUS PROBABLE
    Opening Balance(2)             2,606      13,792      16,398       2,464
      Discoveries                      3           0           3           0
      Extensions                      53         238         291          68
      Infill Drilling                 17           0          17          39
      Improved Recovery                0           6           6          11
      Technical Revisions           (102)       (252)       (355)        104
      Acquisitions                     0         377         377           0
      Dispositions                   (97)          0         (97)       (126)
      Economic Factors                49          98         146          16
      Production                    (248)     (1,058)     (1,306)       (274)
    Closing Balance(3)             2,280      13,200      15,480       2,301
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                            Conventional                   Total
                                 Natural    Coal Bed     Natural         Oil
                                     Gas     Methane         Gas  Equivalent
                                   (mmcf)      (mmcf)      (mmcf)      (mboe)
    -------------------------------------------------------------------------
    PROVED PRODUCING
    Opening Balance(2)            82,396       1,812      84,208      22,905
      Discoveries                    103           0         103          20
      Extensions                   2,330           0       2,330         742
      Infill Drilling                 44           0          44          58
      Improved Recovery              332           0         332          74
      Technical Revisions          3,554          41       3,595        (294)
      Acquisitions                    23           0          23         145
      Dispositions               (12,074)          0     (12,074)     (2,182)
      Economic Factors               619           0         619         182
      Production                 (16,157)       (249)    (16,406)     (4,314)
    Closing Balance(3)            61,172       1,604      62,776      17,336
    -------------------------------------------------------------------------
    TOTAL PROVED
    Opening Balance(2)            99,036       1,812     100,848      27,587
      Discoveries                      0          52          52          11
      Extensions                   2,369           0       2,369         720
      Infill Drilling              1,685           0       1,685         323
      Improved Recovery               81           0          81          21
      Technical Revisions          4,200          41       4,241         806
      Acquisitions                    23           0          23         261
      Dispositions               (12,901)          0     (12,901)     (2,325)
      Economic Factors               633           0         633         216
      Production                 (16,157)       (249)    (16,406)     (4,314)
    Closing Balance(3)            78,969       1,656      80,624      23,306
    -------------------------------------------------------------------------
    PROBABLE
    Opening Balance(2)            57,830         586      58,416      17,818
      Discoveries                      0          32          32           6
      Extensions                     675           0         675         147
      Infill Drilling                849           0         849         155
      Improved Recovery              106           0         106          26
      Technical Revisions         (7,156)       (183)     (7,340)     (1,574)
      Acquisitions                    13           0          13         122
      Dispositions                (4,846)          0      (4,846)       (855)
      Economic Factors               453           0         453         127
      Production                       0           0           0           0
    Closing Balance(3)            47,923         435      48,358      15,972
    -------------------------------------------------------------------------
    PROVED PLUS PROBABLE
    Opening Balance(2)           156,866       2,398     159,264      45,405
      Discoveries                      0          84          84          17
      Extensions                   3,044           0       3,044         867
      Infill Drilling              2,534           0       2,534         478
      Improved Recovery              187           0         187          47
      Technical Revisions         (2,956)       (142)     (3,098)       (768)
      Acquisitions                    36           0          36         383
      Dispositions               (17,747)          0     (17,747)     (3,180)
      Economic Factors             1,086           0       1,086         343
      Production                 (16,157)       (249)    (16,406)     (4,314)
    Closing Balance(3)           126,892       2,090     128,982      39,278
    -------------------------------------------------------------------------
    (1) "Working Interest" means True's working interest (operated or non
        operated) share before deduction of royalties and without including
        any royalty interest of True. Also referred to as "Gross" reserves
        under NI 51-101.
    (2) As at December 31, 2007.
    (3) As at December 31, 2008.
    


    NET PRESENT VALUE OF FUTURE NET REVENUE

    The forecast prices used in GLJ's reserve report effective December 31,
2008 (the "GLJ Report") were an average of the forecast prices published by
GLJ, Sproule Associates Limited and McDaniel & Associates Consultants Ltd. as
at January 1, 2009 (the "Consultants' Average Forecast Prices"). In the GLJ
Report the forecast prices used were the average of the same firms' published
forecast prices and cost inflation factors as at January 1, 2009 prior to
provision for interest, debt service charges and general and administrative
expenses. It should not be assumed that the net present values of future net
production revenues estimated by GLJ represent the fair market value of the
reserves.
    The estimated future net revenues are stated before deducting future
estimated site restoration costs but reduced for estimated future abandonment
costs, the Saskatchewan Capital Tax and estimated capital for future
development associated with the reserves. In the GLJ Report, the net total
future capital over the life of the reserves associated with the proved
reserves is $62.76 million ($52.86 million discounted at 10%) and $131.58
million ($106.33 million discounted at 10%) for the total proved plus probable
reserves.

    
    Summary of Net Present Values of Future Net Revenue(1)(2)
    Forecast Prices and Costs ($000s)
    Before Income Taxes, Discounted at (%/year)
    -------------------------------------------------------------------------
    As at December 31, 2008           0%       5%      10%      15%      20%
    -------------------------------------------------------------------------
    Proved
      Developed producing        443,070  362,767  307,748  267,973  237,980
      Developed non-producing     47,071   30,619   21,894   16,756   13,441
      Undeveloped                 68,758   48,569   34,807   25,092   18,030
                                ---------------------------------------------
    Total proved                 558,899  441,956  364,450  309,822  269,451
    Probable                     432,446  282,549  199,936  149,147  115,436
                                ---------------------------------------------
    Proved Plus Probable
     Producing                   617,275  473,121  384,799  325,601  283,267
                                ---------------------------------------------
    Total proved plus probable   991,345  724,505  564,385  458,969  384,887
    -------------------------------------------------------------------------
    (1) May not add due to rounding
    (2) The Alberta government has announced, but not yet enacted, provisions
        that allow for Transitional Royalties to the Alberta New Royalty
        Framework enacted in 2008 for certain wells. These Transitional
        Royalties are not reflected in GLJ's reserves report, however GLJ's
        sensitivity calculation for forecast drilling results is an increase
        value (NPV 10%) of less than 0.5% in both the proved and proved plus
        probable cases.
    

    The following table provides an estimate of the net present value of
future net revenue on an after tax basis assuming that True would be subject
to the equivalent of corporate income tax on its income beginning in 2011 and
assumes that True continues to distribute all of its trust level income to its
unitholders and continues to operate in its current structure. It should be
noted that this estimate does not take into account any corporate tax
deductions such as interest and general and administrative expenses or for any
tax pools generated by capital expenditures beyond what exists in the GLJ
forecast.

    
    Summary of Net Present Values of Future Net Revenue(1)
    Forecast Prices and Costs ($000s)
    After Income Taxes, Discounted at (%/year)
    -------------------------------------------------------------------------
    As at December 31, 2008           0%       5%      10%      15%      20%
    -------------------------------------------------------------------------
    Proved
      Developed producing        443,070  362,767  307,748  267,973  237,980
      Developed non-producing     47,071   30,619   21,894   16,756   13,441
      Undeveloped                 68,758   48,569   34,807   25,092   18,030
                                ---------------------------------------------
    Total proved                 558,899  441,956  364,450  309,822  269,451
    Probable                     347,509  232,423  167,609  126,966   99,520
                                ---------------------------------------------
    Proved Plus Probable
     Producing                   617,275  473,121  384,799  325,601  283,267
                                ---------------------------------------------
    Total proved plus probable   906,408  674,379  532,058  436,788  368,971
    -------------------------------------------------------------------------
    (1) May not add due to rounding


    The following is a summary of the Consultants' Average Forecast Prices as
at December 31, 2008:

    -------------------------------------------------------------------------
                           OIL
              -----------------------------          NATURAL
                        Edmonton                       GAS
                          Par     Hardisty  NATURAL  LIQUIDS
                        Price 40  Heavy 12    GAS      at
                 WTI    degrees   degrees    AECO   Edmonton  INFLA- EXCHANGE
               Cushing    API       API      Price     (3)    TION    RATE(2)
    Year      Oklahoma   ($Cdn/    ($Cdn/   ($Cdn/   ($Cdn/  RATES(1)  ($US/
    Forecast  ($US/Bbl)   Bbl)      Bbl)     MMBtu)   Bbl)    %/Year   $Cdn)
    -------------------------------------------------------------------------
    2009        57.08     67.85     45.72      7.27     69.50     2.0   0.825
    2010        67.60     78.24     53.48      7.83     80.02     2.0   0.850
    2011        75.58     84.96     58.70      8.21     86.86     2.0   0.875
    2012        84.93     90.46     63.59      8.63     92.47     2.0   0.925
    2013        93.81     95.73     67.41      9.07     97.86     2.0   0.967
    2014        95.70     97.68     68.80      9.27     99.84     2.0   0.967
    2015        97.62     99.66     70.34      9.47    101.88     2.0   0.967
    2016        99.56    101.66     71.77      9.66    103.92     2.0   0.967
    2017       101.53    103.66     73.23      9.87    105.94     2.0   0.967
    2018       103.59    105.78     74.70     10.07    108.13     2.0   0.967
    2019       105.65    107.90     76.21     10.28    110.27     2.0   0.967
    2020       107.76    110.06     77.74     10.49    112.51     2.0   0.967
    2021       109.90    112.23     79.28     10.69    114.70     2.0   0.967
    2022       112.11    114.49     80.85     10.90    117.03     2.0   0.967
    2023       114.37    116.81     82.51     11.13    119.38     2.0   0.967
    2024       116.66    119.15     84.16     11.35    121.77     2.0   0.967
    There-
     after   +2%/year  +2%/year  +2%/year  +2%/year  +2%/year     2.0   0.967
    -------------------------------------------------------------------------
    (1) Inflation rates for forecasting prices and costs
    (2) Exchange rates used to generate the benchmark reference prices in
        this table
    (3) Natural Gas Liquids is represented by the pentanes plus price
    

    Weighted average historical prices realized by True (before hedging) for
the year ended December 31, 2008, were $8.50/Mcf for natural gas, $104.70/bbl
for light and medium gravity crude oil, $70.96/bbl for heavy oil and
$52.64/bbl for natural gas liquids.

    NET ASSET VALUE

    The following table of net asset value is based on the GLJ evaluation of
future net revenue, which does not represent fair market value and does not
take into account possible reserve additions from reinvestment of cash flow in
existing properties.

    
    Net Asset Value
    Proved plus Probable
    -------------------------------------------------------------------------
    ($000's except acre,
     unit and per unit
     amounts)                  PW 0%     PW 5%    PW 10%    PW 15%    PW 20%
    -------------------------------------------------------------------------
    Reserves(1)              991,345   724,505   564,385   458,969   384,887
    Undeveloped Lands(2)      41,413    41,413    41,413    41,413    41,413
    Net Debt(3)             (215,000) (215,000) (215,000) (215,000) (215,000)
                           --------------------------------------------------
    Net asset value          817,758   550,918   390,798   285,382   211,300
                           --------------------------------------------------

    No. units 78.497 million
    $/unit                     10.42      7.02      4.98      3.64      2.69
    Fully diluted with
     exchangeables(4)          10.38      6.99      4.96      3.62      2.69
    -------------------------------------------------------------------------
    (1) As evaluated by GLJ as at December 31, 2008 based on forecast prices
        and costs before income tax.
    (2) As estimated by True as at December 31, 2008 on 377,763 net acres of
        undeveloped land at an average price of $109.64/acre based on an
        internal land evaluation.
    (3) Long term debt net of working capital excluding unrealized commodity
        contract losses as at December 31, 2008, including the liability
        component of convertible debentures.
    (4) Based on 78.797 million units outstanding, after giving effect to
        exchange of all exchangeable shares for units based on the exchange
        ratio in effect on December 31, 2008 of 1.0279 units for each
        exchangeable share. The number of units issuable on conversion of
        exchangeable shares is adjusted for accumulated distributions on
        units.


    FINDING, DEVELOPMENT AND ACQUISITION COSTS(1)
    PROVED PLUS PROBABLE
    -------------------------------------------------------------------------
                                                                      2006 -
                                    2008        2007        2006   2008 Avg.
    -------------------------------------------------------------------------
    Excluding Changes in Future
     Development Costs
    FD&A Costs Proved plus
     Probable ($/boe)
      Exploration and
       development(2)              37.30       17.40       17.30       19.00
      Acquisitions (excluding
       dispositions)               16.50        6.70       26.20       25.80
                                 --------------------------------------------
      Total (including
       acquisitions)               31.50       17.00       24.40       23.50
                                 --------------------------------------------
    Including Changes in
     Future Development Costs(2)
    FD&A costs - Proved plus
     Probable ($/boe)
      Exploration and development  43.70       17.10       26.80       24.10
      Acquisitions (excluding
       dispositions)(3)            16.50        6.70       26.20       25.80
                                 --------------------------------------------
      Total (including
       acquisitions)               36.10       16.70       26.60       25.40
    -------------------------------------------------------------------------
    (1) NI 51-101 specifies how finding and development costs should be
        calculated if they are reported. Essentially NI 51-101 requires that
        the exploration and development costs incurred in the year along with
        the change in estimated future development costs be aggregated and
        then divided by the applicable reserve additions. The calculation
        specifically excludes the effects of acquisitions and dispositions on
        both reserves and costs. By excluding the effects of acquisitions and
        dispositions True believes that the provisions of the NI 51-101 do
        not fully reflect True's ongoing reserve replacement costs. Since
        acquisitions can have a significant impact on True's annual reserve
        replacement costs, excluding these amounts could result in an
        inaccurate portrayal of True's cost structure. Accordingly, True also
        provides finding, development and acquisition costs that incorporate
        all acquisitions during the year. The foregoing calculation is based
        on working interest reserves.
    (2) The aggregate of the exploration and development costs incurred in
        the most recent financial year and the change during that year in
        estimated future development costs generally will not reflect total
        finding and development costs related to reserve additions for that
        year.
    (3) Acquisitions (excluding dispositions) do not include any future
        development costs. In calculating FD&A costs including changes in
        future developments costs all future development costs are associated
        with exploration and development.


    FINDING, DEVELOPMENT AND ACQUISITION COSTS(1)
    PROVED
    -------------------------------------------------------------------------
                                                                      2006 -
                                    2008        2007        2006   2008 Avg.
    -------------------------------------------------------------------------
    Excluding Changes in Future
     Development Costs
    FD&A Costs Proved ($/boe)
      Exploration and
       development(2)              17.50       21.40       20.70       20.30
      Acquisitions (excluding
       dispositions)               24.10       15.80       36.90       36.50
                                 --------------------------------------------
      Total (including
       acquisitions)               18.20       37.30       34.20       36.70
                                 --------------------------------------------
    Including Changes in Future
     Development Costs(2)
    FD&A costs - Proved ($/boe)
      Exploration and development  20.40       19.80       25.90       22.60
      Acquisitions (excluding
       dispositions)(3)            24.10       15.80       36.90       36.50
                                 --------------------------------------------
      Total (including
       acquisitions)               20.90       19.70       34.00       30.40
    -------------------------------------------------------------------------
    (1) NI 51-101 specifies how finding and development costs should be
        calculated if they are reported. Essentially NI 51-101 requires that
        the exploration and development costs incurred in the year along with
        the change in estimated future development costs be aggregated and
        then divided by the applicable reserve additions. The calculation
        specifically excludes the effects of acquisitions and dispositions on
        both reserves and costs. By excluding the effects of acquisitions and
        dispositions True believes that the provisions of the NI 51-101 do
        not fully reflect True's ongoing reserve replacement costs. Since
        acquisitions can have a significant impact on True's annual reserve
        replacement costs, excluding these amounts could result in an
        inaccurate portrayal of True's cost structure. Accordingly, True also
        provides finding, development and acquisition costs that incorporate
        all acquisitions dispositions during the year. The foregoing
        calculation is based on working interest reserves.
    (2) The aggregate of the exploration and development costs incurred in
        the most recent financial year and the change during that year in
        estimated future development costs generally will not reflect total
        finding and development costs related to reserve additions for that
        year.
    (3) Acquisitions (excluding dispositions) do not include any future
        development costs. In calculating FD&A costs including changes in
        future developments costs all future development costs are associated
        with exploration and development.


    RECYCLE RATIO (OPERATING NETBACK(1)/FD&A COST)

    -------------------------------------------------------------------------
                                                                  Proved
    As at December 31, 2008                           Proved   plus Probable
    -------------------------------------------------------------------------
    Operating netback before hedging ($/boe)           30.91           30.91
    Recycle ratio (excluding future
     development costs)                                 1.70            0.98
    -------------------------------------------------------------------------
    Operating netback after hedging ($/boe)            24.41           24.41
    Recycle ratio (excluding future
     development costs)                                 1.34            0.77
    -------------------------------------------------------------------------
    (1) Operating netback is calculated by deducting transportation,
        royalties and operating costs from revenue.
    


    RESERVE LIFE INDEX

    The Trust's reserve life index has been determined for proved plus
probable working interest reserves using forecast prices and costs.  The
reserve life index is calculated by dividing reserves as at the effective date
of the GLJ Report, December 31, 2008, by the first year of production as set
forth in the GLJ Report, representing a measure of the amount of time
production could be sustained at the production rates based on the reserves at
the applicable point in time.

    
    Reserve Life Index
    -------------------------------------------------------------------------
                                    2008     2007     2006     2005     2004
    -------------------------------------------------------------------------
    Proved                           6.4      5.6      4.7      4.4      3.6
    Proved plus probable            10.1      7.9      6.4      6.2      4.5
    -------------------------------------------------------------------------
    

    METHOD OF PREPARATION

    In this press release both "Working Interest" reserves (being working
interest reserves, excluding royalty interest reserves, before deduction of
royalty burdens payable) and "Net Interest" reserves (being working interest
reserves and royalty interests less royalty burdens payable) are disclosed.
Working Interest reserves are also referred to as "Gross" reserves under NI
51-101. In addition "Company Interest" reserves are disclosed (being working
interest reserves and royalty interests, before deduction of royalty burdens
payable). The GLJ Report was prepared utilizing definitions as set out under
NI 51-101.

    LAND

    As at December 31, 2008, True had over 377,763 net undeveloped acres in
Alberta, British Columbia and Saskatchewan.

    
    Land Statistics
    -------------------------------------------------------------------------
                                                        2008            2007
    -------------------------------------------------------------------------
    Average working interest
      Developed                                          59%             62%
      Undeveloped                                        64%             67%
                                                  ---------------------------
    Total                                                62%             65%
    -------------------------------------------------------------------------


    Land Holdings(1)
    -------------------------------------------------------------------------
                                          2008                    2007
                                   Gross         Net       Gross         Net
    -------------------------------------------------------------------------
    Developed
      British Columbia            21,265       8,199      36,973      11,310
      Alberta                    407,882     230,501     485,119     283,417
      Saskatchewan                75,145      60,753     123,714     103,770
                               ----------------------------------------------
      Total                      504,292     299,453     645,806     398,497
                               ----------------------------------------------
    Undeveloped
      British Columbia           152,190      63,335     161,432      71,236
      Alberta                    333,664     228,537     450,687     296,860
      Saskatchewan               100,234      85,891     188,879     169,783
                               ----------------------------------------------
      Total                      586,087     377,763     800,998     537,879
                               ----------------------------------------------
    Developed and Undeveloped
      British Columbia           173,445      71,534     198,405      82,546
      Alberta                    741,545     459,039     935,806     580,277
      Saskatchewan               175,379     146,644     312,593     273,553
                               ----------------------------------------------
    Total                      1,090,379     677,216   1,446,805     936,376
    -------------------------------------------------------------------------
    (1) May not add due to rounding
    

    True Energy Trust is an exploration and production oil and gas trust
based in Calgary, Alberta, Canada.

    READER ADVISORY: BOEs 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.

    Statements in this document may contain forward-looking information
including management's assessment of future plans and operations, reserve
estimates, capital expenditures, expected increases to reserves and the timing
thereof and the total future capital associated with development of reserves,
forecast reductions in operating expenses, 2009 average production estimate,
2009 cash flow from operations, 2009 aggregate distributions and percentage of
cash flow from operations utilized by assumed distributions and budgeting
capital expenditures. The reader is cautioned that assumptions used in the
preparation of such information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Trust. These risks
include, but are not limited to: the risks associated with the oil and gas
industry; commodity prices, and; exchange rate changes. Industry related risks
could include, but are not limited to: operational risks in exploration;
development and production; delays or changes in plans; risks associated to
the uncertainty of reserve estimates; health and safety risks, and; the
uncertainty of estimates and projections of production, costs and expenses.
The recovery and reserve estimates of True's reserves provided herein are
estimates only and there is not guarantee that the estimated reserves will be
recovered. In addition, forward-looking statements or information are based on
a number of factors and assumptions which have been used to develop such
statements and information but which may prove to be incorrect. Although the
Trust believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not be placed
on forward-looking statements because the Trust can give no assurance that
such expectations will prove to be correct. In addition to other factors and
assumptions which may be identified herein, assumptions have been made
regarding, among other things: the impact of increasing competition; the
general stability of the economic and political environment in which the Trust
operates; the timely receipt of any required regulatory approvals; the ability
of the Trust to obtain qualified staff, equipment and services in a timely and
cost efficient manner; drilling results; the ability of the operator of the
projects which the Trust has an interest in to operate the field in a safe,
efficient and effective manner; the ability of the Trust to obtain financing
on acceptable terms; field production rates and decline rates; the ability to
replace and expand oil and natural gas reserves through acquisition,
development of exploration; the timing and costs of pipeline, storage and
facility construction and expansion and the ability of the Trust to secure
adequate product transportation; future commodity prices; currency, exchange
and interest rates; the regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which the Trust operates; and
the ability of the Trust to successfully market its oil and natural gas
products. Readers are cautioned that the foregoing lists of factors and
assumptions are not exhaustive. Additional information on these and other
factors that could effect the Trust's operations and financial results are
included in reports on file with Canadian securities regulatory authorities
and may be accessed through the SEDAR website (www.sedar.com), at the Trust's
website (www.trueenergytrust.com). Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release
and the Trust 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 required by
applicable securities laws.
    The reader is further cautioned that the preparation of financial
statements in accordance with Generally Accepted Accounting Principles
("GAAP") requires management to make certain judgements and estimates that
affect the reported amounts of assets, liabilities, revenues and expenses.
Estimating reserves is also critical to several accounting estimates and
requires judgments and decisions based upon available geological, geophysical,
engineering and economic data. These estimates may change, having either a
negative or positive effect on net earnings as further information becomes
available, and as the economic environment changes.
    This document contains the term "cash flow from operations", which should
not be considered an alternative to, or more meaningful than "cash flow from
operating activities" as determined in accordance with Canadian generally
accepted accounting principles ("GAAP") as an indicator of the Trust's
performance. Therefore reference to cash flow from operations may not be
comparable with the calculation of similar measures for other entities.
Management uses cash flow from operations to analyze operating performance and
leverage and considers cash flow from operations to be a key measure as it
demonstrates the Trust's ability to generate the cash necessary to fund future
capital investments and to repay debt. The reconciliation between cash flow
from operations and cash flow from operating activities can be found in the
Management's Discussion and Analysis for the nine months ended September 30,
2008 filed by the Trust on SEDAR at www.sedar.com or on the Trust's website at
www.trueenergytrust.com.
    This document also contains other terms such as net debt and operating
netbacks, which are not recognized measures under GAAP. Management believes
these measures are useful supplemental measures of firstly, the total amount
of current and long-term debt and secondly, the amount of revenues received
after transportation, royalties and operating costs. Readers are cautioned,
however, that these measures should not be construed as an alternative to
other terms such as current and long-term debt or net income determined in
accordance with GAAP as measures of performance. True's method of calculating
these measures may differ from other entities, and accordingly, may not be
comparable to measures used by other trusts or companies.

    %SEDAR: 00021401E




For further information:

For further information: Raymond G. Smith, President & CEO, (403)
750-2420; Edward Brown, Vice President, Finance & CFO, (403) 750-2655; Sacha
Ravelli, Manager, Investor Relations, (403) 750-7085


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