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Merged, combined value C$14 billion.

Calgary-based Canadian royalty trust Penn West Energy Trust (NYSE: PWE; Toronto: PWT) has completed its merger with Canetic Resources Trust, Calgary, (NYSE, Toronto: CNE) resulting in a combined value of more than C$14 billion. Penn West paid 0.515 unit per Canetic unit, valuing each at C$15.84 based on the closing price of Penn West units on Oct. 30, 2007, a 7.1% premium. Penn West unit-holders own approximately 67% of the combined trust. The trust retained the Penn West name and Toronto and the New York stock-exchange listings. Penn West production is now approximately 200,000 barrels of oil equivalent per day, comprised of 45% light oil and gas liquids, 32% gas and 13% heavy oil. Proved reserves are 600 million barrels of oil equivalent, and 800 million proved plus probable with a reserve life of 11 years. Undeveloped land includes 4.3 million net acres. The trust operates approximately 80% of its production. Estimated cash flow for 2008 is up to C$2.2 billion with a capital program between C$900 million and C$1 billion. The combined trust has a portfolio spanning British Columbia, Alberta, Saskatchewan and Manitoba. Penn West president and chief executive William E. Andrew says, "We are bringing together two great organizations with world-class assets and people to create an aggressive Canadian player in the global markets. The combined trust will be well positioned to compete in North America and internationally." Canetic president and chief executive J. Paul Charron says, "Sitting still in today's dynamic market is not an option. This strategic combination brings together two organizations with complementary strategies, asset bases and management teams resulting in a strong shared future. I believe the combined trust is more than the sum of its parts." Scotia Waterous Inc. was financial advisor to Penn West. CIBC World Markets Inc. and RBC Capital Markets were strategic advisors. BMO Capital Markets and TD Securities Inc. were financial advisors to Canetic.