I personally think 2005 will be difficult for the oil and gas trusts. Gas prices are already trending down after reports show little shortage and although the cold winter has not yet arrived, even if it gets very cold, it will not be a *long* cold winter. Moreover, we have a glut of oil, and prices may see the mid-30's. It was only two months ago when people were looking for the unhedged trusts (VKR), and now people want the hedged trusts. BNE is the first sign of distribution cuts. This opens the door to more.
I sold several of my short RLI trusts (HTE) last week and decided I couldn't handle the folks at AVN who, in my opinion, like to sail close to the wind. Even the oil sands, which I think are a great investment, have yet to really show us how much money it will cost to fully develop them.
Yes, peak oil has either arrived or is close, and yes it is a long-term buy. Short-term, we will be in for some volatility as investor realize we've got lots of oil and the oil trusts may be cutting distributions.
If I buy some more I might add DAY.UN or some more BNP.UN on weakness.
Bonterra Energy Income Trust Quick Quote: BNE.UN 20.50 (-0.85)
Bonterra Energy Income Trust Confirms Cash Distribution Payable December 31, 2004
CALGARY, Dec 03, 2004 (Canada NewsWire via COMTEX) --
Bonterra Energy Income Trust (www.bonterraenergy.com) (T.BNE.UN) is pleased to announce its distribution to Unitholders for the month of November 2004. The record date for the distribution is December 15, 2004, and the ex-distribution date is December 13, 2004. T
he distribution will be made on December 31, 2004. The amount of the distribution will be $0.18 per unit. The distribution has been reduced by one cent from the prior month due to reductions in commodity prices and the increased strength of the Canadian dollar.
Bonterra Energy Income Trust is a conventional oil and gas royalty trust with operations in Alberta and Saskatchewan. Its units are listed on The Toronto Stock Exchange under the symbol "BNE.UN".
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: newswire.ca
For further information: please contact: George F. Fink, President, and CEO or Garth E. Schultz, Vice President - Finance, and CFO, Telephone: (403) 262-5307, Fax: (403) 265-7488 News release via Canada NewsWire, Calgary 403-269-7605
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