##### 



U.S. SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM
40-F/A
 AMENDMENT NO. 2
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934.þ
    
    ANNUAL REPORT PURSUANT TO SECTION13(a)OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended: December 31, 2005
    
    Commission File Number: 1-31253
 PENGROWTH ENERGY TRUST
  Alberta, Canada
 1311
    
    None(Primary Standard Industrial
    
    (I.R.S. EmployerClassification Code Number)
    
    Identification Number)
 Suite 2900,
240  4th Avenue S.W.
Calgary, Alberta Canada T2P 4H4
(403) 233-0224
 Vinson & Elkins L.L.P.
2300 First City Tower, 1001 Fannin
Houston, Texas 77002-6760
(713) 758-2222
 Securities registered or to be registered pursuant to Section 12(b) of the Act.
 Title
of each class
    

Name
of each exchange on which registeredTrust Units
    
    New York Stock Exchange
 Securities registered or to be registered pursuant to Section 12(g) of the Act.
 None  (Title of Class)
 Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
 None  (Title of Class)
  þ     Annual information form
    
    þ     Audited annual financial statements
   Yes     o
    
    No     þ
  Yes     þ
    
    No     o




---



##### 



EXPLANATORY NOTE
   DOCUMENTS FILED AS PART OF THIS ANNUAL REPORT
  Appendix
    
    DocumentsA*
    
    Pengrowth Energy Trust Annual Information Form for the year ended
December 31, 2005.B
    
Managements
Discussion and Analysis (Revised) (included on pages 54
through 80 of the Pengrowth Energy Trust 2005 Annual Report).C*
    
    Consolidated Financial Statements of Pengrowth Energy Trust,
including note 20 thereof which includes a reconciliation of the
Consolidated Financial Statements to United States generally
accepted accounting principles.D*
    
    Five Year Review  Pengrowth Energy Trust Consolidated Financial
Results (included on pages 115 through 119 of the Pengrowth
Energy Trust 2005 Annual Report).E*
    
    Corporate Governance (included on pages 48 through 53 of the
Pengrowth Energy Trust 2005 Annual Report).F*
    
    Oil and Gas Producing Activities Prepared in Accordance with SFAS
No. 69  Disclosures about Oil and Gas Producing Activities.G*
    

Auditors
Report.
  - 2 -




---



##### 



EXHIBIT
LIST
 1.*
    
    Consent of KPMG LLP2.*
    
    Consent of Gilbert Laustsen Jung Associates Ltd.3.
    
    Certification pursuant to Section 9064.
    
    Certificate of CEO5.
    
    Certificate of CFO
 
 *
    
    Previously filed. - 3 -




---



##### 



SIGNATURES
  Date: September 15, 2006
    PENGROWTH ENERGY TRUST
by its Administrator
PENGROWTH CORPORATIONBy:

/s/  James S. KinnearJames S. KinnearChairman, President and
Chief Executive Officer




---



##### 



MANAGEMENTS
DISCUSSION AND ANALYSIS (REVISED)
(INCLUDED ON PAGES 54 THROUGH 80 OF THE PENGROWTH ENERGY TRUST 2005 ANNUAL REPORT)




---



##### 



Managements
Discussion and Analysis (Revised)
 
  Frequently Recurring Terms
  Advisory Regarding Forward-Looking Statements
 Securities Act Private Securities Litigation Reform Act of 1995
 Historical Annual Compound Returns by Year




---



##### 



2




---



##### 



Critical Accounting Estimates
   Non-GAAP Financial Measures
  Conversion and Currency
  Year 2005 Overview




---



##### 



Highlights
 
    
    Oil and gas sales increased 41 percent to $1.15 billion in 2005 resulting in record net
income of $326 million, an increase of 112 percent over 2004.
 
    
    Production for 2005 averaged 59,357 barrels of oil equivalent (boe) per day, an increase of
more than ten percent versus 2004. Fourth quarter production averaged 61,442 boe per day, an
increase of four percent over the previous quarter and seven percent over the comparable
period in 2004.
 
    
    Distributable cash reached a new high in 2005 at $620 million, an increase of 54 percent over
2004. Fourth quarter distributable cash increased 87 percent versus 2004 to $196 million, the
highest level of distributable cash generated in any quarter in Pengrowths history.
 
    
    Distributions paid or declared to unitholders increased 23 percent to $446 million or $2.82
per trust unit in 2005 from $363 million or $2.63 per trust unit in 2004. Pengrowths monthly
distribution was increased in December 2005 to an annualized rate of $3.00 per trust unit.
 
    
    Pengrowths payout ratio to unitholders for the full year and fourth quarter of 2005 reached
record lows of 72 percent and 61 percent of cash generated from operations, respectively.
 
    
    Pengrowths 2005 development expenditures were essentially fully funded through withholdings
from distributable cash.
 
    
    During the year Pengrowth spent a combined total of $176 million on maintenance and
development projects ending the year with proved plus probable (P50) reserves of 219.4 million
barrels of oil equivalent (mmboe) compared to 218.6 mmboe at year end 2004. Pengrowths P50
reserves were replaced through the addition of 16.7 mmboe related to acquisitions and 8.6
mmboe resulting from drilling activity, improved recoveries and technical revisions. Additions
were offset by production of 21.7 mmboe and divestitures of 2.8 mmboe.
 
    
    Pengrowths average realized commodity price (after hedging) increased 28 percent to $53.02
per boe in 2005, from $41.33 in 2004.
 
    
    Operating netbacks increased 33 percent to $32.54 per boe (after hedging) versus $24.51 per
boe in 2004. Combined hedging losses totaled $3.04 per boe in 2005 versus $3.52 per boe in
2004.
 
    
    On February 28, 2005, Pengrowth acquired an additional 11.89 percent working interest in the
Swan Hills property for $87 million. This acquisition increased Pengrowths total interest in
the property to 22.34 percent.
 
    
    On April 29, 2005, Pengrowth successfully completed the acquisition of all of the issued and
outstanding shares of Crispin adding approximately 1,900 boe per day of production to our
portfolio.
 
    
    On December 1, 2005, Pengrowth completed a £50 million private placement of senior unsecured
ten year notes.
 
    
    As at December 31, 2005, Pengrowth had generated a combined three-year weighted average
compound total return of 36 percent per annum for Class A and Class B unitholders.




---



##### 



Summary of Financial and Operating Results
 Three months ended December 31
    
    
    
    Twelve months ended December 31(thousands, except per unit amounts)
    
    
    2005
    
    
    
    2004
    
    
    % Change
    
    
    
    2005
    
    
    
    2004
    
    
    % ChangeINCOME STATEMENTOil and gas sales
    
    
    $
    353,923
    
    
    
    $
    223,183
    (2)
    
    
    59
    
    
    
    $
    1,151,510
    
    
    
    $
    815,751
    (2)
    
    
    41Net income
    
    
    $
    116,663
    
    
    
    $
    31,138
    
    
    
    275
    
    
    
    $
    326,326
    
    
    
    $
    153,745
    
    
    
    112Net income per trust unit
    
    
    $
    0.73
    
    
    
    $
    0.23
    
    
    
    217
    
    
    
    $
    2.08
    
    
    
    $
    1.15
    
    
    
    81Cash generated from operations
    
    
    $
    196,588
    
    
    
    $
    93,287
    
    
    
    111
    
    
    
    $
    618,070
    
    
    
    $
    404,167
    
    
    
    53Cash generated from operations
per trust unit
    
    
    $
    1.23
    
    
    
    $
    0.68
    
    
    
    81
    
    
    
    $
    3.93
    
    
    
    $
    3.03
    
    
    
    30Distributable cash (1)
    
    
    $
    195,879
    
    
    
    $
    104,958
    (2)
    
    
    87
    
    
    
    $
    619,739
    
    
    
    $
    401,178
    (2)
    
    
    54Distributable cash per trust unit (1)
    
    
    $
    1.23
    
    
    
    $
    0.77
    
    
    
    60
    
    
    
    $
    3.94
    
    
    
    $
    3.01
    
    
    
    31Distributions paid or declared
    
    
    $
    119,858
    
    
    
    $
    96,466
    
    
    
    24
    
    
    
    $
    445,977
    
    
    
    $
    363,061
    
    
    
    23Distributions paid or
declared per trust unit
    
    
    $
    0.75
    
    
    
    $
    0.69
    
    
    
    9
    
    
    
    $
    2.82
    
    
    
    $
    2.63
    
    
    
    7Weighted average number of
trust units outstanding
    
    
    
    159,528
    
    
    
    
    136,916
    
    
    
    17
    
    
    
    
    157,127
    
    
    
    
    133,395
    
    
    
    18BALANCE SHEETWorking capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (112,205
    )
    
    
    $
    (78,546
    )
    
    
    43Property, plant and equipment
and other assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,067,988
    
    
    
    $
    1,989,288
    
    
    
    4Long term debt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    368,089
    
    
    
    $
    345,400
    
    
    
    7Unitholders equity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1,475,996
    
    
    
    $
    1,462,211
    
    
    
    1Unitholders equity per trust unit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    9.23
    
    
    
    $
    9.56
    
    
    
    (3
    )Number of trust units
outstanding at year end
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    159,864
    
    
    
    
    152,973
    
    
    
    5DAILY PRODUCTIONCrude oil (barrels)
    
    
    
    21,179
    
    
    
    
    20,118
    
    
    
    5
    
    
    
    
    20,799
    
    
    
    
    20,817
    
    
    
    0Heavy oil (barrels)
    
    
    
    5,410
    
    
    
    
    5,819
    
    
    
    (7
    )
    
    
    
    5,623
    
    
    
    
    3,558
    
    
    
    58Natural gas (mcf)
    
    
    
    168,862
    
    
    
    
    156,621
    
    
    
    8
    
    
    
    
    161,056
    
    
    
    
    144,277
    
    
    
    12Natural gas liquids (barrels)
    
    
    
    6,710
    
    
    
    
    5,385
    
    
    
    25
    
    
    
    
    6,093
    
    
    
    
    5,281
    
    
    
    15Total production (boe)
    
    
    
    61,442
    
    
    
    
    57,425
    
    
    
    7
    
    
    
    
    59,357
    
    
    
    
    53,702
    
    
    
    10Total production (mboe)
    
    
    
    5,653
    
    
    
    
    5,283
    
    
    
    7
    
    
    
    
    21,665
    
    
    
    
    19,655
    
    
    
    10PRODUCTION PROFILECrude oil
    
    
    
    34
    %
    
    
    
    35
    %
    
    
    
    
    
    
    
    35
    %
    
    
    
    39
    %Heavy oil
    
    
    
    9
    %
    
    
    
    10
    %
    
    
    
    
    
    
    
    10
    %
    
    
    
    6
    %Natural gas
    
    
    
    46
    %
    
    
    
    46
    %
    
    
    
    
    
    
    
    45
    %
    
    
    
    45
    %Natural gas liquids
    
    
    
    11
    %
    
    
    
    9
    %
    
    
    
    
    
    
    
    10
    %
    
    
    
    10
    %AVERAGE REALIZED PRICES(AFTER HEDGING)Crude oil (per barrel)
    
    
    $
    59.40
    
    
    
    $
    44.76
    
    
    
    33
    
    
    
    $
    58.59
    
    
    
    $
    43.21
    
    
    
    36Heavy oil (per barrel)
    
    
    $
    31.77
    
    
    
    $
    26.99
    
    
    
    18
    
    
    
    $
    33.32
    
    
    
    $
    32.45
    
    
    
    3Natural gas (per mcf)
    
    
    $
    11.97
    
    
    
    $
    7.02
    
    
    
    71
    
    
    
    $
    8.76
    
    
    
    $
    6.80
    
    
    
    29Natural gas liquids (per barrel)
    
    
    $
    58.46
    
    
    
    $
    48.04
    
    
    
    22
    
    
    
    $
    54.22
    
    
    
    $
    42.21
    
    
    
    28Average realized price per boe
    
    
    $
    62.55
    
    
    
    $
    42.08
    (2)
    
    
    49
    
    
    
    $
    53.02
    
    
    
    $
    41.33
    (2)
    
    
    28PROVED PLUS PROBABLE RESERVESCrude oil (mbbls)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    98,684
    
    
    
    
    94,066
    
    
    
    5Heavy oil (mbbls)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,790
    
    
    
    
    18,245
    
    
    
    (13
    )Natural gas (bcf)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    516
    
    
    
    
    521
    
    
    
    (1
    )Natural gas liquids (mbbls)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,985
    
    
    
    
    19,395
    
    
    
    (2
    )Total oil equivalent (mboe)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    219,396
    
    
    
    
    218,613
    
    
    
    0
 (1)See the section entitled Non-GAAP Financial Measures(2)Restated to conform to presentation
adopted in the current year




---



##### 



Results of Operations
 Production
  Daily Production
 Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Light crude oil (bbls) (1)
    
    
    
    21,179
    
    
    
    
    20,660
    
    
    
    
    20,118
    
    
    
    
    20,799
    
    
    
    
    20,817Heavy oil (bbls) (1)
    
    
    
    5,410
    
    
    
    
    5,405
    
    
    
    
    5,819
    
    
    
    
    5,623
    
    
    
    
    3,558Natural gas (mcf)
    
    
    
    168,862
    
    
    
    
    164,288
    
    
    
    
    156,621
    
    
    
    
    161,056
    
    
    
    
    144,277Natural gas liquids (bbls) (1)
    
    
    
    6,710
    
    
    
    
    5,448
    
    
    
    
    5,385
    
    
    
    
    6,093
    
    
    
    
    5,281Total boe per day
    
    
    
    61,442
    
    
    
    
    58,894
    
    
    
    
    57,425
    
    
    
    
    59,357
    
    
    
    
    53,702
 (1)bbls refers to barrels




---



##### 



Pricing and Commodity Price Hedging
  Average Realized Prices
 (Cdn$)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Light crude oil (per bbl)
    
    
    
    67.00
    
    
    
    
    74.37
    
    
    
    
    55.24
    
    
    
    
    65.47
    
    
    
    
    50.72after hedging
    
    
    
    59.40
    
    
    
    
    63.95
    
    
    
    
    44.76
    
    
    
    
    58.59
    
    
    
    
    43.21Heavy oil (per bbl)
    
    
    
    31.77
    
    
    
    
    47.74
    
    
    
    
    26.99
    
    
    
    
    33.32
    
    
    
    
    32.45Natural gas (per mcf)
    
    
    
    12.80
    
    
    
    
    8.69
    
    
    
    
    7.25
    
    
    
    
    8.99
    
    
    
    
    7.03after hedging
    
    
    
    11.97
    
    
    
    
    8.57
    
    
    
    
    7.02
    
    
    
    
    8.76
    
    
    
    
    6.80Natural gas liquids (per bbl)
    
    
    
    58.46
    
    
    
    
    57.75
    
    
    
    
    48.04
    
    
    
    
    54.22
    
    
    
    
    42.21Total per boe
    
    
    
    67.43
    
    
    
    
    60.06
    
    
    
    
    46.38
    (3)
    
    
    
    56.06
    
    
    
    
    44.85
    (3)after hedging
    
    
    
    62.55
    
    
    
    
    56.07
    
    
    
    
    42.08
    (3)
    
    
    
    53.02
    
    
    
    
    41.33
    (3)Benchmark PricesWTI oil (U.S. $  per bbl)
    
    
    
    60.05
    
    
    
    
    63.31
    
    
    
    
    48.27
    
    
    
    
    56.70
    
    
    
    
    41.47AECO spot gas (Cdn
$  per gj) (1)
    
    
    
    11.08
    
    
    
    
    7.75
    
    
    
    
    6.72
    
    
    
    
    8.04
    
    
    
    
    6.44NYMEX gas (U.S. $  per mmbtu)(2)
    
    
    
    12.97
    
    
    
    
    8.49
    
    
    
    
    7.11
    
    
    
    
    8.62
    
    
    
    
    6.16Currency
(U.S. $/Cdn $)
    
    
    
    0.85
    
    
    
    
    0.83
    
    
    
    
    0.82
    
    
    
    
    0.83
    
    
    
    
    0.77
 (1) gj refers to gigajoules(2) mmbtu refers to millions of British thermal units(3) Prior years restated to conform to presentation adopted in current year
  Hedging Losses
 Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    


    

Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Light crude oil ($ million)
    
    
    
    14.8
    
    
    
    
    19.8
    
    
    
    
    19.4
    
    
    
    
    52.2
    
    
    
    
    57.2Light crude oil ($  per bbl)
    
    
    
    7.60
    
    
    
    
    10.42
    
    
    
    
    10.48
    
    
    
    
    6.88
    
    
    
    
    7.51Natural gas ($ million)
    
    
    
    12.9
    
    
    
    
    1.8
    
    
    
    
    3.3
    
    
    
    
    13.6
    
    
    
    
    11.9Natural gas ($  per mcf)
    
    
    
    0.83
    
    
    
    
    0.12
    
    
    
    
    0.23
    
    
    
    
    0.23
    
    
    
    
    0.23Combined ($ million)
    
    
    
    27.7
    
    
    
    
    21.6
    
    
    
    
    22.7
    
    
    
    
    65.8
    
    
    
    
    69.1Combined ($  per boe)
    
    
    
    4.88
    
    
    
    
    3.99
    
    
    
    
    4.30
    
    
    
    
    3.04
    
    
    
    
    3.52




---



##### 



Oil
and Gas Sales  Contribution Analysis
 ($ millions)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31,
    
    
    % of
    
    
    
    Sep. 30,
    
    
    % of
    
    
    
    Dec. 31,
    
    
    % of
    
    
    
    Dec. 31,
    
    
    % of
    
    
    
    Dec. 31,
    
    
    % ofSales Revenue
    
    
    2005
    
    
    total
    
    
    
    2005
    
    
    total
    
    
    
    2004
    
    
    total
    
    
    
    2005
    
    
    total
    
    
    
    2004
    
    
    totalNatural gas
    
    
    
    186.0
    
    
    
    53
    
    
    
    
    129.5
    
    
    
    43
    
    
    
    
    101.2
    
    
    
    45
    
    
    
    
    514.9
    
    
    
    45
    
    
    
    
    359.3
    
    
    
    44Light crude oil
    
    
    
    115.7
    
    
    
    33
    
    
    
    
    121.6
    
    
    
    40
    
    
    
    
    82.8
    
    
    
    37
    
    
    
    
    444.8
    
    
    
    39
    
    
    
    
    329.2
    
    
    
    40Natural gas liquids
    
    
    
    36.1
    
    
    
    10
    
    
    
    
    28.9
    
    
    
    9
    
    
    
    
    23.8
    
    
    
    11
    
    
    
    
    120.6
    
    
    
    10
    
    
    
    
    81.6
    
    
    
    10Heavy oil
    
    
    
    15.8
    
    
    
    4
    
    
    
    
    23.7
    
    
    
    8
    
    
    
    
    14.5
    
    
    
    7
    
    
    
    
    68.4
    
    
    
    6
    
    
    
    
    42.3
    
    
    
    5Brokered sales/sulphur
    
    
    
    0.3
    
    
    
    
    
    
    
    
    0.8
    
    
    
    
    
    
    
    
    0.9
    
    
    
    
    
    
    
    
    2.8
    
    
    
    
    
    
    
    
    3.4
    
    
    
    1Total oil and gas sales
    
    
    
    353.9
    
    
    
    
    
    
    
    
    304.5
    
    
    
    
    
    
    
    
    223.2
    
    
    
    
    
    
    
    
    1,151.5
    
    
    
    
    
    
    
    
    815.8
    
    
    
    
 Oil and Gas Sales  Price and Volumes Analysis
  ($ millions)
    
    Natural gas
    
    
    Light oil
    
    
    NGLs
    
    
    Heavy oil
    
    
    Other
    
    
    TotalYear ended December 31, 2004
    
    
    359.3
    
    
    
    329.2
    
    
    
    81.6
    
    
    
    42.3
    
    
    
    3.4
    
    
    
    815.8Effect of change in product prices
    
    
    115.3
    
    
    
    112.0
    
    
    
    26.7
    
    
    
    1.8
    
    
    
    
    
    
    
    255.8Effect of change in sales volumes
    
    
    42.0
    
    
    
    (1.4
    )
    
    
    12.3
    
    
    
    24.3
    
    
    
    
    
    
    
    77.2Effect of hedging losses
    
    
    (1.7
    )
    
    
    5.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.3Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.6
    )
    
    
    (0.6
    )Year ended
December 31, 2005
    
    
    514.9
    
    
    
    444.8
    
    
    
    120.6
    
    
    
    68.4
    
    
    
    2.8
    
    
    
    1,151.5




---



##### 



Transportation Costs
 ($ millions)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Light oil transportation
    
    
    
    0.5
    
    
    
    
    0.6
    
    
    
    
    0.4
    
    
    
    
    2.2
    
    
    
    
    1.8$  per bbl
    
    
    
    0.27
    
    
    
    
    0.29
    
    
    
    
    0.23
    
    
    
    
    0.29
    
    
    
    
    0.23Natural gas
transportation
    
    
    
    1.8
    
    
    
    
    1.4
    
    
    
    
    2.0
    
    
    
    
    5.7
    
    
    
    
    6.3$  per mcf
    
    
    
    0.12
    
    
    
    
    0.09
    
    
    
    
    0.14
    
    
    
    
    0.10
    
    
    
    
    0.12
  Royalties
 ($ millions)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Royalty expense
    
    
    
    68.0
    
    
    
    
    57.4
    
    
    
    
    49.1
    
    
    
    
    213.9
    
    
    
    
    160.4$  per boe
    
    
    
    12.03
    
    
    
    
    10.60
    
    
    
    
    9.29
    
    
    
    
    9.87
    
    
    
    
    8.16Royalties as
a percent of sales
    
    
    
    19.2
    %
    
    
    
    18.9
    %
    
    
    
    22.0
    %
    
    
    
    18.6
    %
    
    
    
    19.7
    %
  Processing, Interest and Other Income
 ($ millions)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Processing,
interest & other
income
    
    
    
    4.0
    
    
    
    
    2.1
    
    
    
    
    4.5
    
    
    
    
    17.7
    
    
    
    
    14.2$  per boe
    
    
    
    0.71
    
    
    
    
    0.39
    
    
    
    
    0.83
    
    
    
    
    0.82
    
    
    
    
    0.72




---



##### 



Operating Expenses
 ($ millions)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Operating expenses
    
    
    
    61.2
    
    
    
    
    57.4
    
    
    
    
    42.6
    
    
    
    
    218.1
    
    
    
    
    159.7$  per boe
    
    
    
    10.83
    
    
    
    
    10.59
    
    
    
    
    8.06
    
    
    
    
    10.07
    
    
    
    
    8.13
  Amortization of Injectants for Miscible Floods
 ($ millions)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Purchased and capitalized
    
    
    
    14.5
    
    
    
    
    6.9
    
    
    
    
    8.2
    
    
    
    
    34.7
    
    
    
    
    20.4Amortization
    
    
    
    7.1
    
    
    
    
    6.0
    
    
    
    
    4.9
    
    
    
    
    24.4
    
    
    
    
    19.7
   Interest




---



##### 



Foreign Currency Gains and Losses
  General and Administrative
 ($ millions)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Cash G&A expense
    
    
    
    7.7
    
    
    
    
    7.0
    
    
    
    
    6.5
    
    
    
    
    27.4
    
    
    
    
    22.1$  per boe
    
    
    
    1.36
    
    
    
    
    1.29
    
    
    
    
    1.23
    
    
    
    
    1.27
    
    
    
    
    1.12Non-cash G&A expense
    
    
    
    0.8
    
    
    
    
    0.6
    
    
    
    
    0.4
    
    
    
    
    2.9
    
    
    
    
    2.3$  per boe
    
    
    
    0.14
    
    
    
    
    0.11
    
    
    
    
    0.08
    
    
    
    
    0.13
    
    
    
    
    0.12Total G&A ($ million)
    
    
    
    8.5
    
    
    
    
    7.6
    
    
    
    
    6.9
    
    
    
    
    30.3
    
    
    
    
    24.4Total G&A ($  per boe)
    
    
    
    1.50
    
    
    
    
    1.40
    
    
    
    
    1.31
    
    
    
    
    1.40
    
    
    
    
    1.24




---



##### 



Management Fees
 ($ million)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Management Fee
    
    
    
    2.2
    
    
    
    
    1.6
    
    
    
    
    1.4
    
    
    
    
    9.1
    
    
    
    
    6.8Performance Fee
    
    
    
    2.2
    
    
    
    
    1.9
    
    
    
    
    1.2
    
    
    
    
    6.9
    
    
    
    
    6.1Total ($ million)
    
    
    
    4.4
    
    
    
    
    3.5
    
    
    
    
    2.6
    
    
    
    
    16.0
    
    
    
    
    12.9Total ($  per boe)
    
    
    
    0.77
    
    
    
    
    0.65
    
    
    
    
    0.48
    
    
    
    
    0.74
    
    
    
    
    0.66
   Related Party Transactions
   Taxes




---



##### 



Depletion, Depreciation and Accretion
 ($ millions)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Depletion and
Depreciation
    
    
    
    71.4
    
    
    
    
    73.5
    
    
    
    
    69.4
    
    
    
    
    285.0
    
    
    
    
    247.3$  per boe
    
    
    
    12.63
    
    
    
    
    13.57
    
    
    
    
    13.14
    
    
    
    
    13.15
    
    
    
    
    12.58Accretion
    
    
    
    3.6
    
    
    
    
    3.6
    
    
    
    
    3.2
    
    
    
    
    14.2
    
    
    
    
    10.6$  per boe
    
    
    
    0.64
    
    
    
    
    0.66
    
    
    
    
    0.60
    
    
    
    
    0.65
    
    
    
    
    0.54
   Ceiling Test
  Asset Retirement Obligations




---



##### 



Remediation Trust Funds & Remediation and Abandonment Expenses
   Goodwill
  Netbacks
  Combined Netbacks
 ($ per boe)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Sales price
    
    
    
    62.55
    
    
    
    
    56.07
    
    
    
    
    42.08
    
    
    
    
    53.02
    
    
    
    
    41.33Other production income
    
    
    
    0.06
    
    
    
    
    0.13
    
    
    
    
    0.17
    
    
    
    
    0.13
    
    
    
    
    0.1762.61
    
    
    
    
    56.20
    
    
    
    
    42.25
    
    
    
    
    53.15
    
    
    
    
    41.50Processing, interest and other income
    
    
    
    0.71
    
    
    
    
    0.39
    
    
    
    
    0.83
    
    
    
    
    0.82
    
    
    
    
    0.72Royalties
    
    
    
    (12.02
    )
    
    
    
    (10.60
    )
    
    
    
    (9.29
    )
    
    
    
    (9.87
    )
    
    
    
    (8.16
    )Operating expenses
    
    
    
    (10.83
    )
    
    
    
    (10.59
    )
    
    
    
    (8.07
    )
    
    
    
    (10.07
    )
    
    
    
    (8.13
    )Transportation costs
    
    
    
    (0.41
    )
    
    
    
    (0.36
    )
    
    
    
    (0.47
    )
    
    
    
    (0.36
    )
    
    
    
    (0.42
    )Amortization of injectants
    
    
    
    (1.25
    )
    
    
    
    (1.10
    )
    
    
    
    (0.94
    )
    
    
    
    (1.13
    )
    
    
    
    (1.00
    )Operating netback
    
    
    
    38.81
    
    
    
    
    33.94
    
    
    
    
    24.31
    
    
    
    
    32.54
    
    
    
    
    24.51




---



##### 



Light Crude Netbacks
 ($ per bbl)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Sales price
    
    
    
    59.40
    
    
    
    
    63.95
    
    
    
    
    44.76
    
    
    
    
    58.59
    
    
    
    
    43.21Other production income
    
    
    
    0.17
    
    
    
    
    0.37
    
    
    
    
    0.48
    
    
    
    
    0.37
    
    
    
    
    0.4559.57
    
    
    
    
    64.32
    
    
    
    
    45.24
    
    
    
    
    58.96
    
    
    
    
    43.66Processing, interest and other income
    
    
    
    0.34
    
    
    
    
    0.64
    
    
    
    
    0.51
    
    
    
    
    0.47
    
    
    
    
    0.46Royalties
    
    
    
    (6.47
    )
    
    
    
    (11.03
    )
    
    
    
    (9.65
    )
    
    
    
    (8.64
    )
    
    
    
    (7.62
    )Operating expenses
    
    
    
    (14.32
    )
    
    
    
    (12.85
    )
    
    
    
    (9.17
    )
    
    
    
    (12.28
    )
    
    
    
    (9.31
    )Transportation costs
    
    
    
    (0.27
    )
    
    
    
    (0.29
    )
    
    
    
    (0.23
    )
    
    
    
    (0.29
    )
    
    
    
    (0.23
    )Amortization of injectants
    
    
    
    (3.63
    )
    
    
    
    (3.14
    )
    
    
    
    (2.67
    )
    
    
    
    (3.21
    )
    
    
    
    (2.58
    )Operating netback
    
    
    
    35.22
    
    
    
    
    37.65
    
    
    
    
    24.03
    
    
    
    
    35.01
    
    
    
    
    24.38
 Heavy Oil Netbacks
 ($ per bbl)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Sales price
    
    
    
    31.77
    
    
    
    
    47.74
    
    
    
    
    26.99
    
    
    
    
    33.32
    
    
    
    
    32.45Processing, interest and other income
    
    
    
    0.74
    
    
    
    
    (0.83
    )
    
    
    
    
    
    
    
    
    0.36
    
    
    
    
    Royalties
    
    
    
    (2.98
    )
    
    
    
    (8.00
    )
    
    
    
    (4.19
    )
    
    
    
    (4.53
    )
    
    
    
    (4.87
    )Operating expenses
    
    
    
    (11.60
    )
    
    
    
    (16.30
    )
    
    
    
    (9.44
    )
    
    
    
    (15.65
    )
    
    
    
    (9.85
    )Operating netback
    
    
    
    17.93
    
    
    
    
    22.61
    
    
    
    
    13.36
    
    
    
    
    13.50
    
    
    
    
    17.73
 Natural Gas Netbacks
 ($ per mcf)
    
    
    Three months ended
    
    
    
    Twelve months endedDec. 31, 2005
    
    
    
    Sep. 30, 2005
    
    
    
    Dec. 31, 2004
    
    
    
    Dec. 31, 2005
    
    
    
    Dec. 31, 2004Sales price
    
    
    
    11.97
    
    
    
    
    8.57
    
    
    
    
    7.02
    
    
    
    
    8.76
    
    
    
    
    6.80Processing, interest and other income
    
    
    
    0.19
    
    
    
    
    0.09
    
    
    
    
    0.24
    
    
    
    
    0.23
    
    
    
    
    0.20Royalties
    
    
    
    (2.62
    )
    
    
    
    (1.47
    )
    
    
    
    (1.34
    )
    
    
    
    (1.70
    )
    
    
    
    (1.26
    )Operating expenses
    
    
    
    (1.38
    )
    
    
    
    (1.31
    )
    
    
    
    (1.16
    )
    
    
    
    (1.24
    )
    
    
    
    (1.15
    )Transportation costs
    
    
    
    (0.12
    )
    
    
    
    (0.09
    )
    
    
    
    (0.14
    )
    
    
    
    (0.10
    )
    
    
    
    (0.12
    )Operating netback
    
    
    
    8.04
    
    
    
    
    5.79
    
    
    
    
    4.62
    
    
    
    
    5.95
    
    
    
    
    4.47




---



##### 



NGLs Netbacks
 ($ per bbl)
    
    
    Three months ended
    
    
    Twelve months endedDec. 31, 2005
    
    
    Sep. 30, 2005
    
    
    Dec. 31, 2004
    
    
    Dec. 31, 2005
    
    
    Dec. 31, 2004Sales price
    
    
    
    58.46
    
    
    
    
    57.75
    
    
    
    
    48.04
    
    
    
    
    54.22
    
    
    
    
    42.21Royalties
    
    
    
    (21.29
    )
    
    
    
    (20.57
    )
    
    
    
    (19.37
    )
    
    
    
    (17.66
    )
    
    
    
    (15.43
    )Operating expenses
    
    
    
    (10.05
    )
    
    
    
    (10.13
    )
    
    
    
    (7.87
    )
    
    
    
    (9.04
    )
    
    
    
    (7.94
    )Transportation costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.10
    )
    
    
    
    
    
    
    
    
    (0.10
    )Operating netback
    
    
    
    27.12
    
    
    
    
    27.05
    
    
    
    
    20.70
    
    
    
    
    27.52
    
    
    
    
    18.74
 Distributable Cash, Distributions and Taxability of Distributions
      69
2005 ANNUAL REPORT




---



##### 



($ thousands, except per trust unit amounts)
    
    

Three
months ended
    
    

Twelve
months endedDec. 31, 2005
    
    
    Sep. 30, 2005
    
    
    Dec. 31, 2004
    
    
    Dec. 31, 2005
    
    
    Dec. 31, 2004Cash generated from operations
    
    
    
    196,588
    
    
    
    
    158,976
    
    
    
    
    93,287
    
    
    
    
    618,070
    
    
    
    
    404,167Change in non-cash
operating working capital
    
    
    
    (7,993
    )
    
    
    
    (789
    )
    
    
    
    8,576
    
    
    
    
    (9,833
    )
    
    
    
    (1,173
    )Change in deferred injectants
    
    
    
    7,411
    
    
    
    
    892
    
    
    
    
    3,228
    
    
    
    
    10,265
    
    
    
    
    746Change in remediation trust funds
    
    
    
    784
    
    
    
    
    (272
    )
    
    
    
    32
    
    
    
    
    (20
    )
    
    
    
    (917
    )Change in deferred charges
    
    
    
    (793
    )
    
    
    
    2,818
    
    
    
    
    (473
    )
    
    
    
    1,235
    
    
    
    
    (1,893
    )Other
    
    
    
    (118
    )
    
    
    
    384
    
    
    
    
    308
    
    
    
    
    22
    
    
    
    
    248Distributable cash
    
    
    
    195,879
    
    
    
    
    162,009
    
    
    
    
    104,958
    
    
    
    
    619,739
    
    
    
    
    401,178Allocation of Distributable CashCash withheld
    
    
    
    76,021
    
    
    
    
    52,156
    
    
    
    
    8,492
    
    
    
    
    173,762
    
    
    
    
    38,117Distributions paid or declared
    
    
    
    119,858
    
    
    
    
    109,853
    
    
    
    
    96,466
    
    
    
    
    445,977
    
    
    
    
    363,061Distributable cash
    
    
    
    195,879
    
    
    
    
    162,009
    
    
    
    
    104,958
    
    
    
    
    619,739
    
    
    
    
    401,178Distributable cash per trust unit
    
    
    
    1.23
    
    
    
    
    1.02
    
    
    
    
    0.77
    
    
    
    
    3.94
    
    
    
    
    3.01Distributions paid or
declared per trust unit
    
    
    
    0.75
    
    
    
    
    0.69
    
    
    
    
    0.69
    
    
    
    
    2.82
    
    
    
    
    2.63Payout ratio(1)
    
    
    
    61
    %
    
    
    
    69
    %
    
    
    
    103
    %
    
    
    
    72
    %
    
    
    
    90
    %
 
 (1)
    
    Payout ratio is calculated as distributions paid or declared divided by cash
generated from operations.  Acquisitions and Dispositions
    70
PENGROWTH ENERGY TRUST




---



##### 



Capital Expenditures
  ($
millions)
    
    

Three
months ended
    
    

Twelve
months endedDec. 31, 2005
    
    
    Sep. 30, 2005
    
    
    Dec. 31, 2004
    
    
    Dec. 31, 2005
    
    
    Dec. 31, 2004Geological and geophysical
    
    
    
    
    
    
    
    
    0.2
    
    
    
    
    0.2
    
    
    
    
    1.4
    
    
    
    
    0.6Drilling and completions
    
    
    
    41.1
    
    
    
    
    29.8
    
    
    
    
    36.2
    
    
    
    
    130.3
    
    
    
    
    111.5Plant and facilities
    
    
    
    10.2
    
    
    
    
    10.0
    
    
    
    
    17.7
    
    
    
    
    34.1
    
    
    
    
    49.0Land purchases
    
    
    
    8.8
    
    
    
    
    0.8
    
    
    
    
    
    
    
    
    
    9.9
    
    
    
    
    Development capital
    
    
    
    60.1
    
    
    
    
    40.8
    
    
    
    
    54.1
    
    
    
    
    175.7
    
    
    
    
    161.1Acquisitions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    175.1
    
    
    
    
    573.0Total capital expenditures
and acquisitions
    
    
    
    60.1
    
    
    
    
    40.8
    
    
    
    
    54.1
    
    
    
    
    350.8
    
    
    
    
    734.1
  Reserves
  71
2005 ANNUAL REPORT




---



##### 



Working Capital
   Financial
Resources and Liquidity
      72
PENGROWTH ENERGY TRUST




---



##### 



Financial Leverage and Coverage
 Twelve
months ended December 312005
    
    
    2004Cash generated from operations to interest expense (times)
    
    
    
    29
    
    
    
    
    13Long term debt to cash generated from operations (times)
    
    
    
    0.6
    
    
    
    
    0.9Long term debt to debt plus book equity (%)
    
    
    
    20
    
    
    
    
    19
 Class A
and Class B Trust Unit Structure
 Income Tax Act Income Tax Act
    73
2005 ANNUAL REPORT




---



##### 



Commitments and Contractual Obligations
 ($ thousands)
    
    2006
    
    2007
    
    2008
    
    2009
    
    2010
    
    Thereafter
    
    TotalLong term debt (1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    174,450
    
    
    
    193,639
    
    
    
    368,089Interest payments on
long term debt (2)
    
    
    17,298
    
    
    
    17,298
    
    
    
    17,298
    
    
    
    17,298
    
    
    
    11,564
    
    
    
    34,546
    
    
    
    115,302Note payable
    
    
    20,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,000Operating leasesOffice rent
    
    
    2,030
    
    
    
    2,070
    
    
    
    3,096
    
    
    
    3,055
    
    
    
    3,036
    
    
    
    21,529
    
    
    
    34,816Vehicle leases
    
    
    852
    
    
    
    776
    
    
    
    604
    
    
    
    306
    
    
    
    91
    
    
    
    
    
    
    
    2,6292,882
    
    
    
    2,846
    
    
    
    3,700
    
    
    
    3,361
    
    
    
    3,127
    
    
    
    21,529
    
    
    
    37,445Purchase obligationsPipeline transportation
    
    
    43,839
    
    
    
    38,197
    
    
    
    34,981
    
    
    
    29,813
    
    
    
    11,748
    
    
    
    53,525
    
    
    
    212,103Capital expenditures
    
    
    33,323
    
    
    
    7,098
    
    
    
    294
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40,715CO2 purchases
    
    
    5,119
    
    
    
    4,357
    
    
    
    4,198
    
    
    
    4,232
    
    
    
    4,267
    
    
    
    18,728
    
    
    
    40,90182,281
    
    
    
    49,652
    
    
    
    39,473
    
    
    
    34,045
    
    
    
    16,015
    
    
    
    72,253
    
    
    
    293,719Remediation
trust fund payments
    
    
    250
    
    
    
    250
    
    
    
    250
    
    
    
    250
    
    
    
    250
    
    
    
    11,250
    
    
    
    12,500122,711
    
    
    
    70,046
    
    
    
    60,721
    
    
    
    54,954
    
    
    
    205,406
    
    
    
    333,217
    
    
    
    847,055
 
 (1)
    
    Foreign dollar denominated debt due as follows: $150 million U.S. in April 2010,
$50 million U.S. in April 2013 and £50 million in December 2015, translated at the Dec 31, 2005
exchange rate.(2)
    
    Interest payments on foreign denominated debt, calculated based on Dec 31, 2005
foreign exchange rate. 74
PENGROWTH ENERGY TRUST




---



##### 



Trust
Unit Information
 Trust Unit Trading  after re-class (1)
 High
    
    Low
    
    Close
    
    Volume (000s)
    
    Value ($ millions)TSX  PGF.A ($ Cdn)20051st quarter
    
    
    28.29
    
    
    
    22.15
    
    
    
    24.03
    
    
    
    2,049
    
    
    
    53.32nd quarter
    
    
    27.90
    
    
    
    23.95
    
    
    
    27.20
    
    
    
    1,798
    
    
    
    46.43rd quarter
    
    
    30.10
    
    
    
    26.30
    
    
    
    29.50
    
    
    
    2,047
    
    
    
    58.04th quarter
    
    
    29.80
    
    
    
    23.64
    
    
    
    27.41
    
    
    
    1,324
    
    
    
    35.2Year
    
    
    30.10
    
    
    
    22.15
    
    
    
    27.41
    
    
    
    7,218
    
    
    
    192.920041st quarter2nd quarter3rd quarter
    
    
    24.19
    
    
    
    19.10
    
    
    
    22.67
    
    
    
    1,672
    
    
    
    35.54th quarter
    
    
    26.33
    
    
    
    20.03
    
    
    
    24.93
    
    
    
    2,607
    
    
    
    58.9Year
    
    
    26.33
    
    
    
    19.10
    
    
    
    24.93
    
    
    
    4,279
    
    
    
    94.4TSX  PGF.B ($ Cdn)20051st quarter
    
    
    19.90
    
    
    
    16.10
    
    
    
    17.05
    
    
    
    29,219
    
    
    
    543.72nd quarter
    
    
    19.01
    
    
    
    16.37
    
    
    
    18.40
    
    
    
    19,370
    
    
    
    342.53rd quarter
    
    
    21.26
    
    
    
    18.25
    
    
    
    20.58
    
    
    
    22,738
    
    
    
    441.04th quarter
    
    
    23.38
    
    
    
    17.27
    
    
    
    22.65
    
    
    
    19,747
    
    
    
    411.0Year
    
    
    23.38
    
    
    
    16.10
    
    
    
    22.65
    
    
    
    91,074
    
    
    
    1,738.220041st quarter2nd quarter3rd quarter
    
    
    20.00
    
    
    
    18.03
    
    
    
    18.87
    
    
    
    5,588
    
    
    
    105.64th quarter
    
    
    20.04
    
    
    
    17.51
    
    
    
    18.50
    
    
    
    16,007
    
    
    
    301.8Year
    
    
    20.04
    
    
    
    17.51
    
    
    
    18.50
    
    
    
    21,595
    
    
    
    407.4NYSE  PGH ($ U.S.)20051st quarter
    
    
    22.94
    
    
    
    18.11
    
    
    
    20.00
    
    
    
    24,621
    
    
    
    515.12nd quarter
    
    
    22.74
    
    
    
    19.05
    
    
    
    22.25
    
    
    
    16,153
    
    
    
    335.03rd quarter
    
    
    25.75
    
    
    
    21.55
    
    
    
    25.42
    
    
    
    14,502
    
    
    
    340.34th quarter
    
    
    25.56
    
    
    
    20.00
    
    
    
    23.53
    
    
    
    17,808
    
    
    
    399.7Year
    
    
    25.75
    
    
    
    18.11
    
    
    
    23.53
    
    
    
    73,084
    
    
    
    1,590.120041st quarter2nd quarter3rd quarter
    
    
    18.94
    
    
    
    14.40
    
    
    
    17.93
    
    
    
    21,200
    
    
    
    350.44th quarter
    
    
    21.24
    
    
    
    15.85
    
    
    
    20.82
    
    
    
    31,174
    
    
    
    574.7Year
    
    
    21.24
    
    
    
    14.40
    
    
    
    20.82
    
    
    
    52,374
    
    
    
    925.1
 
 (1)
    
    July 27, 2004, trust units were re-classified as Class A or Class B trust units.
Class A trust units trade on the New York Stock Exchange (NYSE) under PGH and on the Toronto Stock
Exchange (TSX) under PGF.A. Class B trust units trade only on the TSX under PGF.B. 75


2005
ANNUAL REPORT




---



##### 



Trust
Unit Trading  before re-class (1)
 High
    
    Low
    
    Close
    Volume (000s) Value ($ millions)TSX  PGF.UN ($ Cdn)20041st quarter
    
    
    21.25
    
    
    
    15.55
    
    
    
    17.98
    
    
    
    30,620
    
    
    
    567.82nd quarter
    
    
    19.15
    
    
    
    16.15
    
    
    
    18.67
    
    
    
    18,145
    
    
    
    328.53rd quarter
    
    
    19.75
    
    
    
    18.52
    
    
    
    19.42
    
    
    
    3,554
    
    
    
    68.54th quarterYear
    
    
    21.25
    
    
    
    15.55
    
    
    
    19.42
    
    
    
    52,319
    
    
    
    964.8NYSE  PGH ($ U.S.)
    
    
    16.60
    
    
    
    12.10
    
    
    
    13.70
    
    
    
    36,899
    
    
    
    525.620041st quarter2nd quarter
    
    
    14.24
    
    
    
    11.62
    
    
    
    13.98
    
    
    
    22,194
    
    
    
    295.93rd quarter
    
    
    14.95
    
    
    
    13.84
    
    
    
    14.64
    
    
    
    5,797
    
    
    
    84.54th quarterYear
    
    
    14.95
    
    
    
    11.62
    
    
    
    14.64
    
    
    
    64,890
    
    
    
    906.0
 
 (1)
    
    July 27, 2004, trust units were re-classified as Class A or Class B trust units.
Class A trust units trade on the New York Stock Exchange (NYSE) under PGH and on the Toronto Stock
Exchange (TSX) under PGF.A. Class B trust units trade only on the TSX under PGF.B.   
 76
PENGROWTH ENERGY TRUST




---



##### 



Summary of Quarterly Results
   Q1
    
    Q2
    
    Q3
    
    Q42005Oil and gas sales ($000s)
    
    
    239,913
    
    
    
    253,189
    
    
    
    304,484
    
    
    
    353,923Net income ($000s)
    
    
    56,314
    
    
    
    53,106
    
    
    
    100,243
    
    
    
    116,663Net income per trust unit ($)
    
    
    0.37
    
    
    
    0.34
    
    
    
    0.63
    
    
    
    0.73Net income per trust unit  diluted ($)
    
    
    0.37
    
    
    
    0.34
    
    
    
    0.63
    
    
    
    0.73Distributable cash ($000s)
    
    
    127,804
    
    
    
    134,047
    
    
    
    162,009
    
    
    
    195,879Actual distributions paid or declared per trust unit ($)
    
    
    0.69
    
    
    
    0.69
    
    
    
    0.69
    
    
    
    0.75Daily production (boe)
    
    
    59,082
    
    
    
    57,988
    
    
    
    58,894
    
    
    
    61,442Total production (mboe)
    
    
    5,317
    
    
    
    5,277
    
    
    
    5,418
    
    
    
    5,653Average realized price ($  per boe)
    
    
    44.97
    
    
    
    47.79
    
    
    
    56.07
    
    
    
    62.55Operating netback ($  per boe)
    
    
    27.70
    
    
    
    29.26
    
    
    
    33.94
    
    
    
    38.812004Oil and gas sales ($000s) (1)
    
    
    168,771
    
    
    
    197,284
    
    
    
    226,514
    
    
    
    223,183Net income ($000s)
    
    
    38,652
    
    
    
    32,684
    
    
    
    51,271
    
    
    
    31,138Net income per trust unit ($)
    
    
    0.31
    
    
    
    0.24
    
    
    
    0.38
    
    
    
    0.23Net income per trust unit  diluted ($)
    
    
    0.31
    
    
    
    0.24
    
    
    
    0.38
    
    
    
    0.23Distributable cash ($000s) (1)
    
    
    92,895
    
    
    
    99,021
    
    
    
    104,304
    
    
    
    104,958Actual distributions paid or declared per trust unit ($)
    
    
    0.63
    
    
    
    0.64
    
    
    
    0.67
    
    
    
    0.69Daily production (boe)
    
    
    45,668
    
    
    
    51,451
    
    
    
    60,151
    
    
    
    57,425Total production (mboe)
    
    
    4,156
    
    
    
    4,682
    
    
    
    5,534
    
    
    
    5,283Average realized price ($  per boe) (1)
    
    
    40.37
    
    
    
    41.83
    
    
    
    40.90
    
    
    
    42.08Operating netback ($  per boe)
    
    
    25.71
    
    
    
    25.71
    
    
    
    22.77
    
    
    
    24.31
 Selected Annual Information Financial Results
 Twelve months ended December 31($ thousands)
    
    2005
    
    2004
    
    2003Oil and gas sales (1)
    
    
    1,151,510
    
    
    
    815,751
    
    
    
    702,732Net income
    
    
    326,326
    
    
    
    153,745
    
    
    
    189,297Net income per trust unit
    
    
    2.08
    
    
    
    1.15
    
    
    
    1.63Distributable cash (1)
    
    
    619,739
    
    
    
    401,178
    
    
    
    345,911Actual distributions paid or declared per trust unit
    
    
    2.82
    
    
    
    2.63
    
    
    
    2.68Total assets
    
    
    2,391,432
    
    
    
    2,276,534
    
    
    
    1,673,718Long term financial liabilities (2)
    
    
    381,026
    
    
    
    383,616
    
    
    
    294,300Unitholders equity
    
    
    1,475,996
    
    
    
    1,462,211
    
    
    
    1,159,433Number of units outstanding at year end (thousands)
    
    
    159,864
    
    
    
    152,973
    
    
    
    123,874
 
 (1)
    
    Prior years restated to conform to
presentation adopted in the current year(2)
    
    Long term debt plus long term portion of note
payable and contract liabilities 77
2005 ANNUAL REPORT




---



##### 



Business Risks
  
    
    The prices of Pengrowths products (crude oil, natural gas, and NGLs) fluctuate due to many
factors including local and global market supply and demand, weather patterns, pipeline
transportation, and political stability.
    
    The marketability of our production depends in part upon the availability, proximity and
capacity of gathering systems, pipelines and processing facilities. Operational or economic
factors may result in the inability to deliver our products to market.
    
    Geological and operational risks affect the quantity and quality of reserves and the costs of
recovering those reserves. Our actual results will vary from our reserve estimates, and those
variations could be material.
    
    Government royalties, income taxes, commodity taxes, and other taxes, levies and fees have a
significant economic impact on Pengrowths financial results. Changes to federal and
provincial legislation governing such royalties, taxes and fees could have a material impact
on Pengrowths financial results and the value of Pengrowth trust units.
    
    Environmental laws and regulatory initiatives impact Pengrowth financially and operationally.
We may incur substantial capital and operating expenses to comply with increasingly complex
laws and regulations covering the protection of the environment and human health and safety.
In particular, we may be required to incur significant costs to comply with the 1997 Kyoto
Protocol to the United Nations Framework Convention on Climate Change.
    
    Pengrowths oil and gas reserves will be depleted over time and our level of distributable
cash and the value of our trust units could be reduced if reserves and production are not
replaced. The ability to replace production depends on Pengrowths success in developing
existing reserves, acquiring new reserves and financing this development and acquisition
activity within the context of the capital markets.
    
    Increased competition for properties will drive the cost of acquisition up and expected
returns from the properties down.
    
    A significant portion of our properties are operated by third parties. If these operators
fail to perform their duties properly, or become insolvent, we may experience interruptions in
production and revenues from these properties or incur additional liabilities and expenses as
a result of the default of these third party operators.
    
    Increased activity within the oil and gas sector can increase the cost of goods and services
and make it more difficult to hire and retain professional staff.
    
    Changing interest rates influence borrowing costs and the availability of capital.
    
    Investors interest in the oil and gas sector may change over time which would affect the
availability of capital and the value of Pengrowth trust units.
 78
PENGROWTH ENERGY TRUST




---



##### 




    
    The value of Class A trust units and Class B trust units, relative to one another, may be
influenced by the different markets in which the trust units trade, the restrictions in
entitlement of the Class B trust units to Canadian residents and the limitation in the number
of Class A trust units beneath an ownership threshold of 49.75 percent of all trust units
outstanding.
    
    Inflation may result in escalating costs which could impact unitholder distributions and the
value of Pengrowth trust units.
    
    Canadian / U.S. exchange rates influence revenues and, to a lesser extent, operating and
capital costs.
    
    The value of Pengrowth trust units is impacted directly by the related tax treatment of the
trust units and the trust unit distributions, and indirectly by the tax treatment of
alternative equity investments. Changes in Canadian or U.S. tax legislation could adversely
affect the value of our trust units.
  
    
    Fixing the price on a portion of its future crude oil and natural gas production.
    
    Fixing the Canadian / U.S. exchange rate through financial hedging contracts or by fixing
commodity prices in Canadian dollars.
    
    Offering competitive incentive-based compensation packages to attract and retain highly
qualified and motivated professional staff.
    
    Adhering to strict investment criteria for acquisitions.
    
    Acquiring mature production with long life reserves and proven production.
    
    Performing extensive geological, geophysical, engineering and environmental analysis before
committing to capital development projects.
    
    Geographically diversifying its portfolio.
    
    Controlling costs to maximize profitability.
    
    Developing and adhering to policies and practices that protect the environment and meet or
exceed the regulations imposed by the government.
    
    Developing and adhering to safety policies and practices that meet or exceed regulatory standards.
    
    Ensuring strong third party operators for non-operated properties.
    
    Carrying insurance to cover physical losses and business interruption.
  Subsequent Event
  79
2005 ANNUAL REPORT




---



##### 



Outlook
  
    
    Operating our properties in a safe and prudent manner in order to protect our employees, the
public, the environment and our investment;
    
    Maintaining a balanced portfolio of oil and gas properties in our key focus areas;
    
    Growing production and reserves through accretive acquisitions and low risk development drilling;
    
    Increasing our undeveloped land position;
    
    Continuing to optimize costs and maximize netbacks;
    
    The selective disposition of oil and gas properties that do not meet our return objectives;
    
    Continuing to maintain a stable distribution policy while withholding a portion of
distributable cash to fund future capital programs.
   2
 
 Disclosure Controls and Procedures
 
 
  
 
  
 80
PENGROWTH ENERGY TRUST