Peyto Energy Trust announces closing of trust unit financing

TSX symbol: PEY.UN

CALGARY, Sept. 8 /CNW/ - Peyto Energy Trust ("Peyto") announced today the
closing of its previously announced offering of 5,000,000 trust units ("Trust
Units") of Peyto. The offering was made on a bought deal basis through a
syndicate of underwriters led by BMO Nesbitt Burns Inc., and including
FirstEnergy Capital Corp., RBC Dominion Securities Inc., CIBC World Markets
Inc., Haywood Securities Inc., Raymond James Ltd. and Peters & Co. Limited. At
closing, a total of 5,000,000 Trust Units were issued at a price of $30.55 per
Trust Unit for gross proceeds of $152,750,000.
Purchasers of Trust Units issued pursuant to the offering will be
eligible for the distribution payable on or about October 15, 2005 to
unitholders of record as of September 30, 2005.
The net proceeds of the offering will be used to reduce bank
indebtedness, which may be redrawn and applied to fund general purposes and to
fund Peyto's capital expenditure program.

Peyto is a natural gas weighted energy trust. Peyto is committed to
maintaining its emphasis on building value through the exploration and
development of high quality gas properties. Peyto has the longest reserve life
in the conventional oil and gas trust sector, calculated for both proven and
established reserves at 12.2 years and 17.2 years, respectively.

Certain information set forth in this document, including management's
assessment of Peyto's and the Trust's future plans and operations, contains
forward-looking statements. By their nature, forward-looking statements are
subject to numerous risks and uncertainties, some of which are beyond these
parties' control, including the impact of general economic conditions,
industry conditions, volatility of commodity prices, currency fluctuations,
imprecision of reserve estimates, environmental risks, competition from other
industry participants, the lack of availability of qualified personnel or
management, stock market volatility and ability to access sufficient capital
from internal and external sources. Readers are cautioned that the assumptions
used in the preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements. Peyto's and the
Trust's actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, or if any of them do
so, what benefits that Peyto and the Trust will derive therefrom. Peyto
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
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