True Energy Trust Announces Increased Capital Budget for 2009 and Provides
Operational and Hedging Update

TSX: TUI.UN

CALGARY, Oct. 28 /CNW/ - True Energy Trust ("True" or the "Trust") provides the following capital, operational and hedging update:

2009 Capital Spending and Cost Control Initiatives

True's Capital Program for 2009, based on preserving our liquidity position and financial flexibility, was set at $15 million based on the Company's early 2009 commodity price outlook. True did not intend to drill any operated wells in the first half of 2009. Furthermore, capital spending was limited to $3.9 million during the first six months of 2009. This compared to the $12.7 million of capital expenditures during the first six months of 2008.

After reflecting upon our current view of 2009 commodity pricing forecasted cash flow, available business opportunities, and industry costs trends, True's Board of Directors has approved an increase in True's total 2009 capital program to $19 million funded out of existing cash flow.

During the second half of 2009, True has drilled or participated in 8 wells (7.5 net) at Willesden Green, Pembina, Irvine and Mantario; True operated 7 of 8 wells drilled. True had 100% success rate in eight wells drilled, all of the wells have been completed, tested and are currently on production or being tied in.

On September 30, 2009, the Trust announced that it had drilled, completed and placed on production its first 100% working interest well in September 2009 at Willesden Green in West Central Alberta. The well was producing 390 boe/d from the Cardium Interval at restricted rates consisting of 1.8 mmcf/d of natural gas and 90 bbls/d of oil and condensate.

True is pleased to announce the flow test results from our 01-14-48-11W5M Pembina Cardium horizontal well, in which True has a 50 percent working interest. The well was drilled to a horizontal length of 600 meters and was terminated short of the original design length of 1,000 meters due to unexpected drilling and reservoir conditions. The well was subsequently completed with a five stage frac treatment and flow tested at 270 bbl/d of oil at the end of an 48 hour test period. The well is scheduled to be placed on production by early November 2009.

In southeast Alberta, at Irvine, True drilled and completed four 100% working interest Medicine Hat wells, each well was drilled to a 600 meter depth. Production expectations for the four wells is in aggregate 500 mcf/d or 83 boe/d. The production from these gas wells negates the need to retool the existing compressor infrastructure.

At our Mantario, Saskatchewan property, True drilled two 100% Rex oilwells and conducted three reactivations in 2009. These operations which are in various stages of completion are expected to add approximately an aggregate of 300 boe/d of new oil production.

True expects to drill four additional gross wells (3.35 net) prior to year end; three horizontal wells (two Notikewin and one Cardium) at Ferrier and Pembina and one vertical test at West Pembina. True is currently drilling the first of four wells, a 3,178 meter Notikewin horizontal test at Ferrier with an 85% WI.

As at September 30, 2009, True has approximately 268,000 net acres of undeveloped land with in excess of 300 exploitation drilling opportunities identified representing over 5 years of drilling inventory.

True continues to tighten its cost structure in the current economically challenging climate with forecasted cuts from 2008 levels of 30% to total operating expenses which includes G&A and lease operating costs in 2009. The results year to date are on track.

Hedging Update

As an added layer of protection of its cash flow forecast, upon completion of divestitures, True's hedging represents approximately 65% of its estimated natural gas production for the third and fourth quarter of 2009 that is forward sold for an average of $7.26 CAD/mcf and approximately 29% of its natural gas is now hedged for 2010 year at an average of $7.01 CAD/mcf. These conversions to "mcf" are based on True's corporate average heat content factor of 39 Mj/m3. In addition, 500 bbl/d of oil for Q4 is hedged by way of a costless collar of $52.30 CAD x $80.70 CAD.

Subsequent to September 30, 2009, the Trust entered into commodity price risk management arrangements that are included in the aforementioned annual averages as follows:

    
    -------------------------------------------------------------------------
    Type               Period       Volume      Price      Price       Index
                                                Floor      Ceiling
    -------------------------------------------------------------------------
    Natural Gas    April 1, 2010     5,000  $  5.53 CDN  $ 5.53 CDN     AECO
     fixed      to June 30, 2010    GJ/day
    -------------------------------------------------------------------------
    Natural Gas     July 1, 2010    10,000  $  5.66 CDN  $ 5.66 CDN     AECO
     fixed     to Sept. 30, 2010    GJ/day
    -------------------------------------------------------------------------
    Natural Gas     Oct. 1, 2010    10,000  $ 6.245 CDN  $ 6.245 CDN    AECO
     fixed      to Dec. 31, 2010    GJ/day
    -------------------------------------------------------------------------
    

True Energy Trust is an exploration and production oil and gas trust based in Calgary, Alberta, Canada. On October 28, 2009, at a Special Meeting, Securityholders will consider a proposed arrangement which will result in the reorganization of the Trust into a growth-oriented, public exploration and production company that will operate under the name Bellatrix Exploration Ltd. ("Bellatrix"), which will own all of the existing assets and assume all of the existing liabilities of the Trust.

Forward Looking Statements: Certain information set forth in this news release, including management's assessments of the future plans and operations, drilling plans, timing of bringing on production from new wells, capital expenditures and expected production rates and reductions in operating expenses may contain forward-looking statements, and necessarily involve risks and uncertainties, certain of which are beyond True's control, including risks associated with the timing of receipt of required regulatory approvals and whether all necessary regulatory, shareholder and other approvals are obtained in connection with the Reorganization, 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, stock market volatility and ability to access sufficient capital from internal and external sources and economic or industry condition changes. 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.

SOURCE Bellatrix Exploration Ltd.

For further information: For further information: Raymond G. Smith, President & CEO, Consultant, (403) 750-2420; Edward Brown, Vice President, Finance & CFO, (403) 750-2655; Troy Winsor, Investor Relations, (800) 663-8072


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