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Harvest Energy Trust Confirms January 15, 2003 Cash Distribution Amount And Announces Issuance Of 562,500 Trust Units Upon Exercise Of Over-Allotment Option

Dec 17, 2002 - 11:32 ET

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN 
THE UNITED STATED.  ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY 
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

(HTE.UN - TSX)

CALGARY - Harvest Energy Trust ("Harvest") (TSX: HTE.UN)
announces that a cash distribution of $0.20 per trust unit will be paid on
January 15, 2003 to Unitholders of record on December 31, 2002. The trust
units of Harvest are expected to commence trading on an ex-distribution basis
on December 27, 2002. This distribution amount represents Distributable Cash
earned in the month of December 2002.
The current rate of distribution represents an annualized distribution
yield of 26.7% on the December 16, 2002 closing price of $9.00. This
distribution is the first payable to Unitholders following Harvest's recent
Initial Public Offering of 3,750,000 trust units.
Harvest also announced today that the syndicate of underwriters led by
FirstEnergy Capital Corp. and including Haywood Securities Inc. has purchased
an additional 562,500 trust units of Harvest at a price of $8.00 per trust
unit for gross proceeds of $4.5 million. The trust units were issued upon the
exercise of an over-allotment option granted to the underwriters in connection
with the recent Initial Public Offering of 3,750,000 trust units. After the
exercise of the option, Harvest will have issued approximately 4.31 million
trust units pursuant to the equity offering for gross proceeds of
$34.5 million. The net proceeds of the offering will be used to reduce the
debt outstanding under the existing credit facility and to finance Harvest's
ongoing development and acquisition programs. Following this closing, Harvest
will have 9,462,500 units outstanding and net debt will be approximately
$42 million or 1.0 times annualized cash flow.
Harvest Energy Trust is a Calgary based oil and natural gas trust that
strives to deliver stable monthly cash distributions to its Unitholders
through its strategy of acquiring, enhancing and producing crude oil, natural
gas and natural gas liquids. Harvest has successfully acquired high quality
medium and heavy gravity crude oil properties in East Central Alberta and will
endeavor to deliver superior economic returns to Unitholders. Harvest's
strategy is to retain up to 50% of its Cash Available for Distribution for
capital reinvestment in the form of existing property enhancement and new
property acquisitions while maintaining a high rate of cash distributions.
Harvest currently operates approximately 99% of its production, enabling it to
pursue additional asset growth through property optimization and enhancement.

ADVISORY: The Toronto Stock Exchange has neither approved nor disapproved
of the information contained herein. Certain information regarding Harvest
Energy Trust and Harvest Operations Corp. including management's assessment of
future plans and operations, may constitute forward-looking statements under
applicable securities law and necessarily involve risks associated with oil
and gas exploration, production, marketing and transportation such as loss of
market, volatility of prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers and 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.
%SEDAR: 00018577E

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FOR FURTHER INFORMATION PLEASE CONTACT:

Jacob Roorda,
President,
Harvest Energy Trust,
Telephone: (403) 265-1178,
Facsimile: (403) 265-3490,
Email address: roorda@harvestenergy.ca