APF Energy Trust Announces Second Quarter Results.

CALGARY, Alberta--(BUSINESS WIRE)--Sept. 3, 1997--APF Energy Trust (TSE:AY.UN) announces the results of operations for the three months ended June 30, 1997.

Average production volumes for the period were 2,747 Boe/day, compared to 1,782 for the previous quarter. The increase of 54 percent is attributable to the acquisition by APF Energy Inc. of Bayridge Resources Limited. Natural gas production increased to 17.2 Mmcf/day compared to 12.2 Mmcf/day in the first quarter. Crude oil production was up to 725 Bbls/day compared to 439 Bbls/day and NGL production increased to 300 Bbls/day from 127 Bbls/day.

Revenue for the period was $5,026,379, while operating income amounted to $2,500,485. Distributable income was $1,700,669 or $0.49 per unit.

Development Activities

In other news, APF announced ongoing development activities at two of its properties. At Sibbald, APF and its partners began an infill drilling program in May, resulting in 3 oil wells and 1 water injector. The wells are currently producing approximately 75 Bbls/day, net to APF's 16.3 percent working interest. Talisman Energy Inc., the operator, is completing a reservoir study which may lead to 14 additional wells. Meanwhile, at Rosebank, where APF is the operator and has a 50 percent interest, a comprehensive 3-D seismic program was completed during the month of June and APF is now in the process of licensing 2 horizontal wells, the first of which will be drilled as soon as a rig is available.

Payment of Second Instalment

On August 1, 1997 the Trust received $14 million as payment on the second instalment. These proceeds were used to reduce the APF credit facility established to fund the Bayridge acquisition and to provide working capital.

Implementation of Distribution Reinvestment Plan 

Commencing with the cash payment for the three-month period ended September 30, 1997 (payable October 31, 1997), unitholders will have the option to reinvest their distributions. Additional units will be acquired on behalf of participating unitholders through the purchase of units in the market, by issuing units from treasury or by a combination of both.

Monthly Distributions to Commence in 1998

At the Trust's annual and special meeting held on June 3, 1997, unitholders approved a switch to monthly cash distributions. The first such payment will be made March 15, 1998, for the one month ended January 31, 1998. Subsequent distributions will be made on the 15th day of each month thereafter.

APF Energy Trust is an oil and gas royalty trust whose units trade on The Toronto Stock Exchange under the symbol "AY.UN". Since completing its initial public offering on December 17, 1996, the Trust has made 3 cash distributions totaling $1.085 per unit: $0.21 for the period ended December 31, 1996, $0.455 for the three months ended March 31, 1997 and $0.42 for the three months ended June 30, 1997.

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this press release.

CONTACT: APF Energy Group

Martin Hislop, 403/ 294-1000

403/ 294-1074 (FAX)

[e-mail]

http://www.apfenergy.com

or

APF Energy Group

Steven Cloutier, 403/ 294-1000

403/ 294-1074 (FAX)

[phone] (Toll Free)