Argent Energy Trust comments on recent market activity, confirms October 2013 distribution and reaffirms distribution levels

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

CALGARY, Oct. 16, 2013 /CNW/ - Argent Energy Trust ("Argent" or the "Trust") (TSX: AET.UN) notes that there has been unusually high trading volume and price volatility in Argent units over the past few days. Argent unitholders can be assured that there are no material operational or financial events impacting the Trust's business beyond what was disclosed last week. Argent remains on track to achieve its 2013 average annual production guidance of 5,700 boe/d and 2013 exit production guidance of approximately 7,000 boe/d. Upon completion of the previously announced acquisition, increased credit facility and convertible debenture offering, Argent will have spare capacity of approximately US$90 million on its US$160 million credit facility. Furthermore, Argent's current distribution level remains intact and the Trust has no current plans to reduce the level of distribution throughout 2014.

Argent today announced that the cash distribution to be paid on November 25, 2013, in respect of the period from and including October 1 to October 31, 2013, for unitholders of record on October 31, 2013 will be $0.0875 per trust unit. The ex-distribution date is October 29, 2013. The annualized distribution of $1.05 per trust unit represents a cash-on-cash yield of approximately 12.22% based on the closing price of the trust units on the Toronto Stock Exchange on October 16, 2013 of $8.59.

Argent is a mutual fund trust under the Income Tax Act (Canada). Argent's objective is to create stable, consistent returns for investors through the acquisition and development of oil and natural gas reserves and production with low risk exploration potential, located primarily in the United States. Material information pertaining to Argent Energy Trust may be found on www.sedar.com or www.argentenergytrust.com.

Forward Looking Statements

This press release includes forward-looking information within the meaning of applicable Canadian and United States securities legislation.  All statements, other than statements of historical facts, that address activities, circumstances, events, outcomes and other matters that Argent budgets, forecasts, plans, projects, estimates, expects, believes, assumes or anticipates (and other similar expressions) will, should or may occur in the future, are considered forward-looking information.  In particular, forward-looking information contained in this press release includes, but is not limited to, information and statements concerning the previously announced acquisition, including the source of funding for the acquisition; the expansion of the credit facility and the amount expected to be drawn thereunder upon completion of the acquisition; the convertible debenture offering, including the use of proceeds therefrom; the Trust's anticipated average annual production and exit production for 2013; and the Trust's plans with respect to future distributions on its units.  Unlike fixed-income securities, there is no obligation to distribute any fixed amount on Argent's units and, although the Trust has no current plans to reduce distributions, reductions in or suspensions of cash distributions may occur that would reduce yield based on the trading price of Argent's units.

The forward-looking information provided in this press release is based on management's current beliefs, expectations and assumptions, based on currently available information as to the outcome and timing of future events.  Statements regarding future distribution levels are based on, in particular, assumptions regarding production, commodity prices and credit facility availability which management believe to be reasonable.  Argent cautions that its future oil, natural gas and natural gas liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing and amount of future capital expenditures, and other forward-looking information is subject to all of the risks and uncertainties normally incident to the exploration for and development and production and sale of oil and gas.

These risks include, but are not limited to, failure to realize the anticipated benefits of the Acquisition, incorrect assessments of the value of the Acquired Assets, unforeseen difficulties in integrating the Acquired Assets into the operations of the Trust's subsidiaries, oil and natural gas price volatility, Argent's access to cash flows and other sources of liquidity to fund its capital expenditures and distributions, its level of indebtedness, its ability to replace production, the impact of the current financial climate on Argent's anticipated business and financial condition, a lack of availability of or increases in costs of goods and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating future oil and gas production or reserves, economic conditions and other risks as described in documents and reports that Argent files with the securities commissions or similar authorities in applicable Canadian jurisdictions on the System for Electronic Document Analysis and Retrieval (SEDAR).  Any of these factors could cause Argent's actual results and plans to differ materially from those contained in the forward-looking information.

Forward-looking information is subject to a number of risks and uncertainties, including those mentioned above, that could cause actual results to differ materially from the expectations set forth in the forward-looking information.  Forward-looking information is not a guarantee of future performance or an assurance that our current assumptions and projections are valid.  All forward-looking information speaks only as of the date of this press release, and Argent assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking information, except as required by law.  You should not place undue reliance on forward-looking information.  You are encouraged to closely consider the additional disclosures and risk factors contained in Argent's periodic filings on SEDAR that discuss in further detail the factors that could cause future results to be different than contemplated in this press release.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation.  A boe conversion ratio of six Mcf to one bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and do not represent a value equivalency at the wellhead.  Given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of six to one, utilizing a boe conversion ratio of six Mcf to one bbl may be misleading as an indication of value.

SOURCE: Argent Energy Trust

For further information concerning this press release, please contact: 

Brian Prokop  
Co-Chief Executive Officer and President 
Argent Energy Trust
[phone]

Sean Bovingdon
Chief Financial Officer
Argent Energy Trust
[phone]