Petrofund Energy Trust Completes Acquisition of Kaiser Energy Ltd.

CALGARY, Alberta -- Petrofund Energy Trust (TSX:PTF.UN) (AMEX:PTF) ("Petrofund" or the "Trust") is pleased to announce the closing of the previously announced acquisition of Kaiser Energy Ltd. ("Kaiser"), a private Canadian company. Petrofund acquired all of the outstanding shares of Kaiser for a total consideration of CDN$485 million, including debt and working capital. The acquisition was financed with a combination of debt drawn from Petrofund's credit facilities and proceeds from a bought deal subscription receipt financing in the gross amount of CDN$250 million which closed on December 6th, 2005. At the close of the Kaiser acquisition, Petrofund's long term debt to cash flow ratio was still at a conservative level of just under 1.0 times.

The transaction increases Petrofund's current production by 14% to approximately 42,500 boepd. The almost 100% gas weighting of the acquired production strengthens Petrofund by realigning its commodity balance to a 50% oil and 50% natural gas production ratio.

Based on the July 1, 2005 GLJ Petroleum Consultants ("GLJ") engineering report and Petrofund's estimates of production between July 1, 2005 and December 1, 2005, the transaction increases Petrofund's reserves by 14% to approximately 160 million boe. With the acquisition, Petrofund's proved plus probable reserve life index remains high at approximately 11 years and the acquisition also brings a reduction in per boe operating costs and general and administrative costs.

Kaiser's assets also include 55,000 net acres of highly prospective undeveloped land on which Petrofund has already identified 166 (net) low to medium risk development drilling opportunities. These projects are expected to contribute positively to Petrofund's production in 2006 and thereafter.

The successful completion of this transaction positions Petrofund for future successes. The Kaiser assets are an ideal fit with the Trust's existing asset base as they contain a combination of a high gas weighting, a long reserve life index and significant upside potential.

The subscription receipts traded on the Toronto Stock Exchange (TSX) under the symbol "PTF.R." With the closing of the acquisition, trading in the subscription receipts will be halted at the open of the market tomorrow and will remain halted until the close of business and then be delisted. Subscription receipts will be automatically converted into trust units of Petrofund on a one-for-one basis at 5:00 p.m. (Calgary time) on December 15, 2005. Also, holders of subscription receipts will be entitled to receive C$0.17 per subscription receipt on December 30, 2005, which amount is equivalent to the distribution of C$0.17 per trust unit payable on December 30, 2005 to holders of trust units of record on December 14, 2005.

Petrofund Energy Trust is a Calgary based royalty trust that acquires and manages producing oil and gas properties in Western Canada. The Trust pays its Unitholders monthly cash distributions which are derived from the Trust's cash flow from these properties. Petrofund Energy Trust was founded in 1988 and was one of the first oil and gas royalty trusts in Canada.

This news release may contain forward-looking statements relating to future events or future performance. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of the Trust. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed in the Trust's 2004 annual report, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. The Trust undertakes no obligation to update or revise any forward looking financial statements, except as required by applicable securities laws.

In regards to barrels of oil equivalent (boe), boe's may be misleading, particularly if used in isolation. A BOE conversion of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

PETROFUND ENERGY TRUST

Jeffery E. Errico
President and Chief Executive Officer

Petrofund Energy Trust (TSX:PTF.UN) (AMEX:PTF)