True Energy Trust, Calgary, (TSX: TUI) says production from its western Canada properties in December and January have been affected by extreme weather conditions.

Approximately 950 barrels of oil equivalent per day was affected by delayed servicing and freeze-offs. About 350 barrels oil equivalent per day is back online, with another 350 about to return. True says the remaining 250 barrels of oil equivalent per day will remain shut-in awaiting improved pricing or weather changes.

True says its 2009 capital budget, which will come from cash flow, will not be more than C$15 million. To cut costs, the company says it has cut its workforce by 33%.

Fourth-quarter 2008 production averaged 10,750 barrels of oil equivalent per day, with year-end production averaging 11,900 barrels of oil equivalent per day. Production in 2009, based on a decreased capital budget, is expected to average between 10,000- to 10,500 barrels of oil equivalent.

True drilled or participated in 10 wells during the fourth quarter, including 1.6 net natural gas wells and two net light oil wells; 1.5 net wells were dry and abandoned. During the third and fourth quarters, True drilled and completed three 100%-owned Viking light oil horizontal wells in the Kerrobert area. True says it is evaluating the results of the multi-stage fracturing completions and will delay further development until commodity prices improve.

The company says its January distribution to unitholders will be C$0.02 per unit, payable Feb. 17.