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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Lorne Larson who wrote (1629)	10/15/2001 8:18:23 PM
From: russet	Respond to of 11633

Don't know if you have this one assimilated yet (gggggggggggggggggg). NR about Viking energy trust hedges,...about a quarter of production hedged through 2002 Viking Energy Royalty Trust Shares issued 32,469,450 Fri 14 Sept 2001 To protect a portion of cash flow and distributions, the trust will, if deemed prudent, lock in or hedge a portion of its future production at a fixed price. In light of volatile and uncertain commodity markets, the trust has entered into a number of commodity and exchange hedges for the year 2002. Viking has entered into swap contracts for 3,000 barrels of oil per day for calendar 2002, at an average realized Canadian price of $38.35 per barrel. In addition, the trust has locked in four million cubic feet per day of natural gas from Nov. 1, 2001, to Oct. 31, 2002, at an average AECO price of $4.66 per thousand cubic feet. This provides firm pricing for approximately 28 per cent of the trust's forecast production for the year 2002. Viking has a policy of only hedging up to 50 per cent of its forecast production for any calendar year. Accordingly, if opportunities arise, the trust may enter into further hedging or firm pricing arrangements.

To: Lorne Larson who wrote (1629)	10/19/2001 1:30:30 PM
From: russet	Respond to of 11633

VKR.un has hedged a bit more of its production,... Viking Energy lowers distribution for November Viking Energy Royalty Trust VKR Shares issued 32,469,450 Oct 17 close $6.50 Thu 18 Oct 2001 News Release Mr. A. Kirk Purdy reports (All figures in Canadian dollars except where otherwise noted.) Viking Energy Royalty Trust will pay a cash distribution of 11 cents per unit on Nov. 15, 2001, and Dec. 17, 2001, to October and November holders of record as summarized below. Record Ex-dist. Dist. Dist. date date date per unit Oct. 31 Oct. 29 Nov. 15 $0.11 Nov. 30 Nov. 28 Dec. 17 $0.11 These lower distribution levels are a reflection of weakening commodity prices, particularly natural gas. The average AECO natural gas daily spot price has fallen steadily in 2001 from $8.53 per thousand cubic feet in the first quarter, to $5.75 per thousand cubic feet in the second quarter, to $2.27 per thousand cubic feet in the month of September. Prices have recovered modestly in October and are now approximately $3.00 per thousand cubic feet. Until September, 2001, crude oil price declines had been moderate. However, West Texas Intermediate prices have since decreased by over 20 per cent to a current level of approximately $21.50 (U.S.) per barrel. Recent world events have created substantial uncertainty regarding North American and world economic performance. This has only added to the potential negative effect on prices. However, amidst all of the commodity price uncertainty, the trust's production levels, operating costs, general and administrative, and other expenses are on target. The trust's trailing 12-month distributions as of Nov. 15, 2001, total $2.12 per unit. In response to the uncertainty and volatile environment, the manager of the trust remains committed to an active hedging program directed toward stability of distributions. For the remainder of 2001, 35 per cent of the trust's crude oil production is hedged at an average price of $28.30 (U.S.) per barrel. This equates to $42.25 per barrel as a result of corresponding exchange hedges. Effective Nov. 1, 2001, 33 per cent of natural gas production is hedged at an average price of $4.21 per thousand cubic feet. Management has also been proactive with its 2002 hedging program. Approximately 47 per cent of the trust's forecast crude oil production is hedged for 2002 at an average price of $24.80 (U.S.) per barrel, and with corresponding exchange hedges this equates to $38.45 per barrel. In addition, 34 per cent of 2002 forecast natural gas production is hedged at $4.21 per thousand cubic feet.

To: Lorne Larson who wrote (1629)	10/26/2001 4:48:35 PM
From: russet	Read Replies (2) \| Respond to of 11633

More news on Advantage hedging. Interesting that even though on Oct 12 spot prices and futures prices were below these hedge prices, someone was willing to pay them 10-15% more for guaranteed supply on a certain date. Suggests the Nymex is for the traders, and a separate producer-industrial customer market exists with different prices and contracts, much like the PGM market. Advantage Energy declares reduced dividend Advantage Energy Income Fund AVN Shares issued 18,584,282 Oct 22 close $7.90 Mon 22 Oct 2001 News Release Mr. Gary Bourgeois reports Advantage Energy Income Fund, has declared a cash distribution at the rate of 15 cents per unit and payable on Nov. 15, 2001, to unitholders of record at the close of business on Oct. 31, 2001. The ex-distribution date is Oct. 29, 2001. The board of directors has also declared a 15 cent per unit distribution payable on Dec. 17, 2001. The monthly cash distribution has been reduced as the result of a steep decline in both natural gas and crude oil prices in the past several months. The fund's realized natural gas prices will have fallen by 55 per cent from $5.30 (Canadian) (per thousand cubic feet in May of this year to $2.40 (Canadian) per thousand cubic feet in October, while crude oil prices have fallen by 23 per cent from $28.66 (U.S.) per barrel in May to $22 (U.S.) per barrel currently. Increased cash distribution stability On Oct. 12, 2001, Advantage entered into a revenue protection plan which has secured a minimum floor price of $3.51 (Canadian) per thousand cubic feet for natural gas and $23.27 (U.S.) for crude oil on 75 per cent of anticipated net production while simultaneously ensuring that unitholders retain significant exposure to commodity price upside. Specifically, the fund will receive any price above $3.76 (Canadian) per thousand cubic feet for natural gas and $24.27 (U.S.) per barrel for crude oil on 75 per cent of anticipated net production volumes. The forward yield of the fund's units would be approximately 23 per cent based upon the recent closing price of $7.94 and the current annualized distribution of $1.80. Significant reserve and production growth During the five months since its inception, Advantage has increased production by approximately 40 per cent through the acquisition of high-quality, long-life properties and a successful natural gas drilling program on lands in the Vermilion area. As a result of the acquisition, the fund's natural gas and crude oil reserves have grown by over 43 per cent and the reserve life index has increased by 15 per cent. These reserve numbers do not include the effect of the Vermilion drilling program which will be evaluated as part of the year-end reserve study. The acquisition and drilling program have significantly strengthened and diversified the production and underlying net asset value of the fund. Equity issue reduces debt-to-cash-flow ratio As a result of the recently completed equity issue of $43.1-million, the fund's balance sheet is now one of the most conservative of all the conventional oil and gas trusts with a debt-to-cash-flow ratio of approximately 1.4:1 based upon minimum floor commodity prices. In addition, the equity issue has increased the fund's unit liquidity by 45 per cent.