Exhibit 99.1

News release via Canada NewsWire, Calgary 403-269-7605

    Attention Business Editors:
    Penn West Energy Trust provides conversion and tax information to former
    Petrofund unitholders

    PENN WEST ENERGY TRUST (TSX - PWT.UN; NYSE - PWE) is pleased to welcome
former Petrofund unitholders and to remind them of certain information
regarding the conversion of Petrofund units to Penn West units

    CALGARY, Oct. 5 /CNW/ - On June 30, 2006, Penn West Energy Trust ("Penn
West") merged with Petrofund Energy Trust ("Petrofund") creating the largest
conventional energy trust in North America with an estimated enterprise value
of $11 billion and production of approximately 133,000 boe per day. Combined
proved plus probable reserves (as of December 31, 2005) were 515 mmboe with a
reserve life index of approximately 10.5 years. Current monthly distributions
are CDN$0.34 per unit.
    On behalf of Penn West's Board of Directors, management team and
employees, the Trust would like to welcome all former Petrofund unitholders to
Penn West. We believe the new combined trust allows Petrofund and Penn West
unitholders to participate in a larger, stronger and more efficient trust that
is better positioned to pursue the existing business models of Penn West and
Petrofund, both of which emphasized long-term stability.
    Penn West possesses high quality, long-life assets, an extensive
portfolio of internal growth opportunities and a strong financial position and
management team. Penn West has a diversified portfolio of conventional oil and
natural gas assets approximately balanced between oil and natural gas, a
significant inventory of undeveloped land that spans the four western
provinces of Canada, coal bed methane opportunities as well as significant
resource-play potential in the Peace River Oil Sands of Northern Alberta and
CO2 enhanced oil recovery in the Pembina, Swan Hills, Midale and Weyburn light
oil pool areas.
    Penn West is committed to a business plan and strategy focused on active
management and long-term vision with respect to our oil and natural gas
assets, and on the health and safety of our employees and the public, with an
emphasis on minimizing the environmental impact of our operations. Our
near-term plan is focused on improving capital and operating efficiency
through the development and optimization of our extensive inventory of
producing assets. For the medium-term, we are focused on future cash-flow
opportunities from the farm out of our large, diversified land base. In the
long-term, we are reviewing our coal bed methane amenable lands and are
working towards realizing significant production and reserve additions first
from conventional methods and then through enhanced recovery in the Peace
River Oil Sands area, and enhanced oil recovery using CO2 in some of Canada's
largest light oil pools including Pembina, Swan Hills, Weyburn and Midale.
    For further information about Penn West, please visit our website at
www.pennwest.com. If you have any questions, you may contact our investor
relations team by phone at 1-888-770-2633, or by e-mail at
investor_relations(at)pennwest.com.
    The following contains information regarding the conversion of Petrofund
units to Penn West units, as well as some taxation information regarding the
merger. Please take a moment to review the information to ensure you have
completed any applicable steps that may pertain to the exchange of your
Petrofund units.

    Converting your Petrofund units to Penn West units (Canada, U.S. and
    other non-residents)
    --------------------------------------------------------------------

    As a former Petrofund unitholder, your Petrofund units were exchanged at
 
the rate of 0.6 units of Penn West for each Petrofund unit held prior to the
merger. Additionally, you were entitled to a special one-time distribution of
CDN$1.10 per Petrofund unit held prior to the merger. Of this amount, CDN$0.10
was to align the distribution record dates of the trusts.
    If you were a beneficial holder (i.e. your units were held through a
broker or some other financial institution), your units should have been
converted for you automatically. If you are a registered unitholder (i.e. you
hold the unit certificates in your own name), you should have received a
Letter of Transmittal in the mail. If you haven't already done so, you will
need to complete the Letter of Transmittal, and send it along with your
certificates to our transfer agent, CIBC Mellon Trust Company ("CIBC Mellon").
You will not be able to receive any Penn West distribution payments until you
have exchanged your Petrofund units for Penn West units.
    If you have not received a Letter of Transmittal, please contact CIBC
Mellon at 1-800-387-0825, or visit their website at www.cibcmellon.ca. The
Letter of Transmittal is also available for download on Penn West's website at
www.pennwest.com/investor/reports.html. Mailing instructions are on the Letter
of Transmittal.

    Canadian Federal Income Tax Considerations on the Exchange of Units
    -------------------------------------------------------------------

    One step in the Plan of Arrangement to effect the merger was the exchange
of Petrofund units to MFCorp Special Shares (which in turn are exchanged for
Penn West units). Canadian resident Petrofund unitholders have the option,
under the provisions of Section 85 of the Income Tax Act (Canada), to defer
all or a portion of the capital gain that would otherwise be recognized on the
exchange. This tax election is only beneficial to Canadian resident Petrofund
unitholders who are otherwise not exempt from tax under the Income Tax Act
(Canada) (e.g. not RRSP's, RRIF's, RESP's, pension funds, etc.).
    In order to make the tax election, Canadian resident Petrofund
unitholders must prepare a completed tax election form. The tax election forms
will require a signature from MFCorp in order to be complete. Tax forms
pre-signed by MFCorp, as well as instructions for completing the forms, are
available for download on Penn West's website at
www.pennwest.com/investor/tax_forms.html, or by contacting our investor
relations department by phone at 1-888-770-2633, or by e-mail at
investor_relations(at)pennwest.com.
    If you do not wish to use the forms on Penn West's website, or you have
other forms pertaining to your own personal tax situation that require a
signature from MFCorp, you must submit your completed tax form to MFCorp for
signature no later than October 31, 2006 in order for MFCorp to sign your form
and return it to you for submission to the Canada Revenue Agency.
    The completed tax form must be submitted to the Canada Revenue Agency by
December 31, 2006.
    Former Petrofund unitholders are urged to consult their own tax advisors
for advice on any additional filing requirements.

    U.S. Income Tax Considerations on the Exchange of Units
    -------------------------------------------------------

    Penn West has been advised that the exchange of Petrofund units for Penn
West units qualifies as a tax-deferred "Reorganization" for U.S. federal tax
purposes under section 368(a)(1) of the Internal Revenue Code of 1986, and no
gain or loss should be recognized by a U.S. resident unitholder on the
exchange of the units under the Plan of Arrangement.
    Management strongly encourages U.S. unitholders to review the "United
States Federal Income Tax Considerations" section on pages 79 through 90 of
the Plan of Arrangement/Information Circular dated May 23, 2006 and consult
their U.S. tax advisors as appropriate to their own circumstances.
 

    Forward-looking Statements
    --------------------------

    Statements in this news release regarding Penn West's production
capacity, reserve quantities, business plan and strategy, and the tax
treatment of the exchange of Petrofund trust units for Penn West trust units,
may constitute forward-looking statements under applicable securities laws and
necessarily involve risks and uncertainties, including, but not limited to,
risks associated with oil and natural gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
currency fluctuations, imprecision of reserves estimates, environmental risks,
competition, changes in tax laws and other regulations, uncertainty in the
application of tax laws, incorrect assessments of the value of acquisitions,
capital expenditure estimates, oil and natural gas price volatility, general
economic, industry and stock market conditions, risks associated with the
completion and integration of Penn West's proposed merger with Petrofund
Energy Trust, the failure of Penn West to successfully execute its business
strategy, and the lack of ability to access sufficient capital from internal
and external sources. As a consequence, actual results may differ materially
from those anticipated in the forward-looking statements. Readers are
cautioned that the foregoing list of factors is not exhaustive. Additional
information on these and other factors that could affect Penn West's
operations or financial results are included in reports on file with Canadian
securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com) or at Penn West's website (www.pennwest.com).
Furthermore, the forward-looking statements contained in this news release are
made as of the date of this news release, and Penn West undertakes no
obligation to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or
otherwise, except as may be expressly required by applicable securities law.

    Penn West Energy Trust is a senior oil and natural gas energy trust based
in Calgary, Alberta that trades on the Toronto Stock Exchange under the symbol
PWT.UN and on the New York Stock Exchange under the symbol PWE.

    %SEDAR: 00022266E          %CIK: 0001334388

    /For further information: PENN WEST ENERGY TRUST, Suite 2200, 425 - First
Street S.W., Calgary, Alberta, T2P 3L8, Phone: (403) 777-2500, Toll-free:
1-866-693-2707, Fax: (403) 777-2699, Website: www.pennwest.com; Investor
Relations: Phone: 1-888-770-2633, E-mail: investor_relations(at)pennwest.com,
William Andrew, President and CEO, Phone: (403) 777-2502/
    (PWT.UN. PWE)

CO:  Penn West Energy Trust

CNW 17:41e 05-OCT-06