Enterra Announces Agreement for Longer Term Credit Arrangements

Enterra Energy Trust has reached an agreement with its lenders, subject to formal documentation, which provides much needed financial stability. As a result of the agreement, Enterra's current first lien debt of $148 million ($129.5 million revolving facility and $18.5 million operating facility) and the current second lien debt of $40 million will all mature on November 20, 2008.

"We are pleased to report that our go-forward business plan has been accepted by our lenders," commented Don Klapko, Senior Executive Management Consultant. "Our management team is committed to executing the plan and we will strive to rebuild investor confidence in our ability to succeed."

Benefits of the agreement include a stable credit facility in place until November 20, 2008 and a target total debt reduction of $50 million.

Enterra has established a conservative 2008 capital budget at $30 million, which will be divided equally between Canadian and U.S. opportunities. This program pursues the highest quality opportunities in the Trust's extensive prospect portfolio.

Under the agreement, Enterra will reduce the indebtedness under the syndicated revolving and operating credit facilities from $148 million to $110 million, and the indebtedness under the second lien credit facility from $40 million to $28 million, both by March 31, 2008. Enterra has also committed to extend the distribution suspension period for the duration of the facilities in order to advance its debt repayment strategy.

While the December payment of convertible debenture interest will be paid from the Trust's cash flow, under the agreed terms, debenture interest payments in 2008 will not be paid out of internally generated cash flow or with the proceeds of asset sales, but will be paid through alternative financings or via the trust unit interest payment election mechanism contained in the terms governing the debentures.

The Trust reports reduced production in its Oklahoma operations due to power disruptions during the recent severe ice storms that plagued the State starting December 8th. The Trust estimates that the average production will be 650 boe/day lower than normal for the month of December. Unplanned expenditures are expected to be approximately US$400,000 to replace power poles and electrical lines. At present, production capacity is rapidly returning to normal and is anticipated to be fully restored by year end, subject to repair by local power cooperatives and the main transmission grid.