2010-10-19-2010-10-19-2010-10-19

Bought 50% WI in 1,300 net acres in heavy oil joint venture project in Kerrobert, SK.

Baytex Energy Trust, Calgary, (NYSE; Toronto: BTE; BTE.UN) has sold its 50% interest in the lands and wells comprising the first phase of a heavy oil joint venture project in Kerrobert, Saskatchewan, to Petrobank Energy and Resources Ltd. for $18 million in cash and a gross overriding royalty in the assets.

The disposed assets include approximately 1,300 net acres and an interest in a two-well pilot project utilizing Petrobank's THAI technology. Baytex will retain its 50% interest in the area of mutual interest surrounding the assets.

Payment of the gross overriding royalty will commence one year following first production from any well on the lands, excluding the two-well pilot project. Baytex expects the disposition will have a negligible impact on production, capital expenditures and funds from operations for 2010. Consequently, the company is not altering its 2010 guidance.

Baytex Energy Trust is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. THAI is a registered trademark of Archon Technologies Ltd., a subsidiary of Petrobank.