TMX group

CALGARY, Jan. 16 /CNW/ - Penn West Energy Trust ("the Trust") today
released information necessary for 2005 United States ("U.S.") federal income
tax reporting purposes.
After consultation with its U.S. tax advisors, the Trust believes that
its units more likely than not will be properly classified as equity in a
corporation, rather than debt, for U.S. federal income tax purposes, and that
distributions paid to its individual U.S. unitholders will more likely than
not be qualified dividends. As such, the portion of the distributions made
during 2005 that are considered dividends should qualify for the reduced rate
of tax applicable to certain capital gains.
The portion of the trust distributions that is considered a dividend for
U.S. income tax purposes is determined based upon the greater of the Trust's
current or accumulated earnings and profits as determined in accordance with
U.S. income tax principles. The percentage of cash distributions paid in 2005
to U.S. individual unitholders that should be reported as a non-taxable return
of capital and the percentage that should be reported as qualified dividends
will be reported at a later date.
A more comprehensive income tax press release for investors is planned
for early February 2006. At that time, income tax information will also be
available on the Trust's website at www.pennwest.com. The content of this
press release has no impact on Canadian resident taxpayers.
Penn West Energy Trust is a senior oil and natural gas energy trust based
in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol
PWT.UN.
%SEDAR: 00022266E