Peyto Energy Trust announces completion of internal reorganization


    CALGARY, Jan. 2 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") is
pleased to announce the completion of its previously announced internal
reorganization. The reorganization was approved by Peyto's unitholders
("Unitholders") at a special meeting held on December 14, 2007 and was
completed on January 1, 2008. Pursuant to the Reorganization the Trust's
business operations were simplified and consolidated, such that all assets and
all exploration and development activities will now be conducted entirely
through the new limited partnership, indirectly held by the Trust.
    Pursuant to the reorganization and certain related post-reorganization
transactions, all Unitholders of record on January 1, 2008, will receive a
special distribution in the form of securities of the Trust and its
affiliates. The composition of this "distribution in kind" will depend on the
residency status of each Unitholder. The securities issued will then be
automatically redeemed and consolidated pursuant to the reorganization such
that Unitholders' interest will be represented by the same number of Units as
the Unitholder had prior to the reorganization. The securities issued pursuant
to the special distribution will not be reflected in any confirmations or
statements received by a Unitholder from such Unitholder's broker. A
withholding tax on the special distribution is required by the Income Tax Act
(Canada) to be remitted to the Receiver General on behalf of non-resident
Unitholders. Canadian Unitholders will receive a special cash distribution
that will be equivalent to the withholding tax being remitted on behalf of
non-resident Unitholders. This special cash distribution will equate to
approximately $0.0035 per trust unit, will be paid concurrently with the
January 15, 2008 distribution and will be classified as a return of capital
for tax purposes. Canadian Unitholders will be required to reduce the adjusted
cost base of the Unitholder's units by the fair market value of the special
cash distribution.
    For Unitholders, the reorganization has not resulted in a change to the
number, type and ownership of the outstanding units of the Trust. In addition,
there has been no impact on the daily operations of the Trust.

    Peyto is a natural gas weighted energy trust. Peyto currently has
105.7 million trust units outstanding and is committed to maintaining its
emphasis on building value through the exploration and development of high
quality gas properties.
    Peyto trust units trade on the TSX under the symbol PEY.UN.

    We encourage you to actively visit Peyto's website located at There you will find an updated presentation along with monthly
reports from the President and Chief Executive Officer regarding ongoing

    Certain information set forth in this document, including management's
assessment of Peyto's future plans and operations, contains forward-looking
statements. By their nature, forward-looking statements are subject to
numerous risks and uncertainties, some of which are beyond these parties'
control, including the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations, imprecision
of reserve estimates, environmental risks, competition from other industry
participants, the lack of availability of qualified personnel or management,
stock market volatility and ability to access sufficient capital from internal
and external sources. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance should not
be placed on forward-looking statements. Peyto's actual results, performance
or achievement could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurance can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits that Peyto will
derive therefrom. Peyto disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. Unitholders or potential Unitholders should
consult their own legal or tax advisors as to their particular tax

    The Toronto Stock Exchange has neither approved nor disapproved the
    information contained herein.

    %SEDAR: 00019597E

For further information:

For further information: Darren Gee, President and Chief Executive
Officer, Phone: (403) 237-8911, Fax: (403) 451-4100

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