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Q2 2008 Baytex EnergyTrust Earnings Conference Call - Final.

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Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Ladies and gentlemen, thank you for standing by. Welcome to the Baytex Energy Trust 2008 second quarter results conference call. (OPERATOR INSTRUCTIONS.) As a reminder, this conference call is being recorded August 12th, 2008.

I would now like to turn the conference call over to Derek Aylesworth, the CFO. Please proceed, sir.

DEREK AYLESWORTH, CFO, BAYTEX ENERGY TRUST: Thank you, Brian.

Ladies and gentlemen, while listening to this conference call, please keep in mind that some of our remarks will contain certain forward-looking statements within the meaning of applicable securities laws.

We caution that the assumptions used in the preparation of such information, although considered reasonable by us at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors, many of which are beyond our control.

We refer you to the advisory regarding forward-looking statements in our press release issued today for additional information about the assumptions used in the preparation of the forward-looking statements, and the material factors that could cause actual results to differ materially from the conclusion, forecast, or projection in the forward-looking statements.

There is no representation by Baytex that actual results achieved during the forecast period will be the same in whole, or in part, as those forecast.

RAY CHAN, CEO, BAYTEX ENERGY TRUST: Ladies and gentlemen, we are very pleased to report our 2008 second quarter results. I'll let Tony and Derek provide a review on the operations and financial results, I will provide my summary comments, and we will then be open for questions. And here's (inaudible) Tony Marino.

TONY MARINO, PRESIDENT AND COO, BAYTEX ENERGY TRUST: Thank you, Ray.

Our operating results continued to be strong in the second quarter. We achieved an average production level of about 38,200 BOE per day in Q2, up slightly from Q1 levels. This basically flat quarter-to-quarter production performance resulted primarily from two offsetting factors. We added the Burmis volumes in early June, but that production increase was offset by production shut-ins for scheduled turnaround activities in four of our light oil and gas fields.

In addition, we recorded modest levels of production losses due to road restrictions during breakup. These hauling restrictions typically result in the second quarter being our lowest production quarter of each year.

Strong production performance continues in each of our key assets. For the Pembina and Lindbergh assets we acquired a year ago, we averaged approximately 5,500 BOE per day in the first half of 2008, which is quite a bit above the properties' 4,500 BOE per day production level prior to Baytex assuming operations.

The Burmis properties are producing at about 3,900 BOE per day, up from approximately 3,650 BOE per day at the time of our announcement of the acquisition.

Our heavy oil production performance was also quite strong, averaging about 22,900 barrels per day in the second quarter, up over 500 barrels per day from Q1, despite the normal curtailment during spring breakup.

Development results at Seal were once again very encouraging. We continued our record of 100% drilling success by drilling 10 successful horizontal producers in the first quarter of this year. With those wells on production, Seal...

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