Mr. John Elzner reports

ARGENT ENERGY TRUST ANNOUNCES REVISION TO 2015 CAPITAL BUDGET AND DISTRIBUTION

In response to the current commodity price environment, Argent Energy Trust is reducing both its 2015 capital budget by approximately $19.5-million (U.S.) and its monthly distribution to one cent per unit, commencing with the distribution for January, 2015, due for payment on Feb. 23, 2015.

As previously announced, the board of directors approved a preliminary capital budget for 2015 of $39.5-million (U.S.) with a targeted annual production for 2015 of approximately 6,500 barrels of oil equivalent per day. Given that current and future oil prices have fallen significantly since that time, the board has cut the 2015 capital budget in half to a level of approximately $20-million (U.S.). Planned capital expenditures along the Gulf Coast will be postponed in favour of the capital opportunities in the Parkman and Turner formations in the Powder River basin of Wyoming, which opportunities still provide a good rate of return even at the current price of oil.

The revised 2015 annual production target will be approximately 6,000 barrels of oil equivalent per day (approximately 71 per cent oil and natural gas liquids). The 2015 capital budget is based on a 2015 oil price forecast for WTI of $67 (U.S.) per barrel. As it is too early to estimate the impact that lower commodity prices will have on both operating and capital costs, the guidance and 2015 capital budget do not include any benefits from potential cost reductions.

Currently, Argent is paying a monthly distribution of two cents per unit (24 cents per unit annualized), which would represent a total of approximately $14-million cash outlay in 2015 based on 63.5 million units outstanding with an approximately 8-per-cent distribution reinvestment plan participation. The cash distribution to be paid on Jan. 23, 2015, in respect of the period from and including Dec. 1 to Dec. 31, 2014, for unitholders of record on Dec. 31, 2014, will be two cents per trust unit. The ex distribution date is Dec. 29, 2014. The annualized distribution of 24 cents per trust unit represents a cash-on-cash yield of approximately 47.06 per cent based on the closing price of the trust units on the Toronto Stock Exchange on Dec. 16, 2014, of 51 cents. While the trust expects to have sufficient funds flow from operations in 2015 to support this distribution, given the capital budget reduction, given the commodity price forecast for 2015, the trust believes it is prudent to lower the amount of its monthly distribution to one cent per unit (12 cents per unit annualized), for a total of approximately $7-million cash outlay in 2015, beginning with the January, 2015, distribution payable in February, 2015.

The two measures will allow for the trust to manage through the challenging market conditions and maintain financial flexibility using its $140-million (U.S.) credit facility, while it continues with its alternatives process. Furthermore, for 2015, Argent has approximately 2,000 net barrels per day of oil hedged at WTI oil prices of $90 (U.S.) per barrel equivalent or higher and approximately six billion net British thermal units per day of natural gas hedged at an average price of $4.12 (U.S.) per million British thermal units, which will assist in supporting the funds flow from operations.

We seek Safe Harbor.