PrimeWest Energy Trust: Bought Deal Financing

CALGARY, ALBERTA--PrimeWest Energy Trust (PrimeWest) announced 
today that it has entered into an agreement to sell, to a 
syndicate of underwriters led by Scotia Capital and CIBC World 
Markets Inc., and including BMO Nesbitt Burns Inc., RBC Capital 
Markets, TD Securities Inc., National Bank Financial, Canaccord 
Capital Corporation, Dundee Securities Corporation and Yorkton 
Securities Inc., 5.0 million Trust Units at $25.75 per Trust Unit 
to raise gross proceeds of $128.75 million on a bought deal 
basis. PrimeWest has granted the underwriters an option, 
exercisable in whole or in part prior to closing, to acquire up 
to an additional 1.0 million Trust Units at the same offering 
price. Should this option be fully exercised, the total gross 
proceeds of the issue would be $154.5 million. 

The issue will be a bought underwritten public issue in all 
provinces of Canada by way of a short form prospectus and in the 
U.S. via Rule 501 (a)(1), (2), (3), or (7) and internationally as 
permitted. Closing is expected to occur on or about February 13, 
2003, and as such purchasers of this offering will not be 
eligible to receive the $0.40 distribution payable on February 
14, 2003 to unitholders of record on January 31, 2003. 

The net proceeds of the issue are expected to be used to repay 
outstanding indebtedness incurred through the acquisition of the 
Caroline and Peach River Arch properties, capital expenditures, 
and for general corporate purposes. 

This news release shall not constitute an offer to sell or the 
solicitation of an offer to buy the securities in the United 
States. The securities may not be offered or sold in the United 
States absent registration under the U.S. securities laws or an 
exemption from the registration requirements of such laws, and 
any public offering of the securities to be made in the United 
States will be made by means of a prospectus that may be obtained 
from PrimeWest and will contain detailed information about the 
company and management, as well as financial statements. 

PrimeWest is a Calgary-based conventional oil and gas royalty 
trust that actively acquires, develops, produces, and sells 
natural gas, crude oil, and natural gas liquids for the 
generation of monthly cash distributions to unitholders. Trust 
units of PrimeWest are traded on the Toronto Stock Exchange (TSX) 
under the symbol "PWI.UN" and on the New York stock Exchange 
under the symbol "PWI". Exchangeable shares of PrimeWest Energy 
Inc. are listed on the TS under the symbol "PWX". 

Learn more about PrimeWest on our Web site, 
www.primewestenergy.com 

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