PrimeWest Energy Trust announces distribution level for March 2004, and 2003 taxability, and provides operating guidance for 2004 CALGARY, Feb. 11 /PRNewswire-FirstCall/ -- (TSX: PWI.UN; PWX; NYSE: PWI) - PrimeWest Energy Trust (PrimeWest) today announces that the distribution payable March 15th, 2004 will be $0.25 Canadian per trust unit payable to all unitholders of record on February 20th, 2004. The ex-distribution date will be February 18th, 2004. Using a U.S. dollar to Canadian dollar exchange rate of 1.32, this distribution amount would be approximately U.S. $0.19 per unit. The actual U.S. dollar equivalent distribution will be based upon the actual U.S./Canadian exchange rate applied on the payment date net of applicable Canadian withholding taxes. This distribution level is consistent with PrimeWest's practice of targeting a payout ratio of 70 to 90% of available cash flow during the calendar year. The retention of cash flow will allow PrimeWest to maintain balance sheet strength permitting greater financial flexibility, while reducing the cost and potential dilution associated with financing activities. Maintenance of balance sheet strength is in the best long-term interest of PrimeWest unitholders and should provide support to long-term unit price, as the cash flow retained can be invested in maintaining production, and the pursuit of acquisition opportunities. Production volumes for calendar year 2004 are estimated to be approximately 30,000 BOE per day with operating expenses for the year estimated at approximately $6.75 per BOE. This estimated 2004 production volume includes the anticipated April 1st shut-in of gas at Ells due to the gas over bitumen issue, and the restriction of gas and liquids production at Whiskey Creek due to third party processing capacity constraints. PrimeWest plans to invest $65 to $90 million during 2004 pursuing development opportunities in order to add incremental volumes and develop additional reserves. PrimeWest also announces the taxability of distributions paid during 2003. For the 2003 taxation year, unitholders of the Trust were paid $4.40 Canadian per Trust Unit in distributions. Of this distribution amount, 42% or $1.85 per Trust Unit is deemed a tax deferred return of capital, and58% or $2.55 per Trust Unit is taxable to Canadian unitholders as other income (taxed at the same rate as interest income). For PrimeWest unitholders resident in the United States, the entire 2003 distribution should be treated as a tax deferred return of capital. Taxability of distributions for unitholders resident in the U.S. is calculated using U.S. tax rules, which allow for the deduction of crown royalties and accounting based depletion. A 15% withholding tax applies to distributions paid to U.S. unitholders. Further details regarding this withholding tax is available on PrimeWest's website. PrimeWest is a Calgary-based conventional oil and gas royalty trust that actively acquires, develops, produces, and sells natural gas, crude oil, and natural gas liquids for the generation of monthly cash distributions to unitholders. Trust units of PrimeWest are traded on the Toronto Stock Exchange (TSX) under the symbol "PWI.UN" and on the New York Stock Exchange under the symbol "PWI". Exchangeable shares of PrimeWest Energy Inc. are listed on the TSX under the symbol "PWX". Learn more about PrimeWest on our Web site, http://www.primewestenergy.com/. DATASOURCE: PrimeWest Energy Trust CONTACT: Investor Relations inquiries: George Kesteven, Manager, Investor Relations, (403) 699-7367; Cindy Gray, Investor Relations Advisor, (403) 699-7356; Toll-free: 1-877-968-7878, e-mail: ; To request a free copy of this organization's annual report, please go to http://www.newswire.ca/ and click on reports@cnw.

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