PrimeWest Energy Announces $35-Million Offering Of Trust Units

PrimeWest Energy Trust ("PrimeWest") today announced that it has
entered into an agreement to sell, to a syndicate of underwriters
led by CIBC World Markets Inc., 4.2 million trust units at $8.35
per trust unit to raise gross proceeds of $35 million on a
bought-deal basis. PrimeWest has granted the underwriters an
option, exercisable in whole or in part prior to closing, to
purchase up to an additional 630,000 trust units at the same
offering price. The issue will be offered in all provinces of
Canada. Closing is expected to occur on September 28, 2000. 

Net proceeds from the issue will be used for general corporate
purposes, including capital expenditures and future acquisitions,
and in the interim, to repay outstanding indebtedness.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any
jurisdiction. The trust units offered will not and have not been
registered under the United States Securities Act of 1933 and may
not be offered or sold in the United States absent registration
or applicable exemption from the registration requirement.

PrimeWest is a Calgary-based oil and gas royalty trust, actively
engaged in the acquisition, development, production and sale of
crude oil, natural gas, and natural gas liquids. Trust units of
PrimeWest are traded on the Toronto Stock Exchange under the
symbol "PWI.UN". The PrimeWest website is
www.primewestenergy.com. 

Contact:  
Kent MacIntyre, Vice-chairman and 
Chief Executive Officer: 403-234-6601
Hugh Gillard, President and Chief Operating Officer: 403-234-6609
Susan Duncan, Vice-president, Finance: 403-234-6619
Scott Ranson, Investor Relations and Communications: 403-234-6644

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.