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Harvest Energy Trust Announces $40 Million Bought Deal Financing

Jan 12, 2004 - 15:16 ET

CALGARY, ALBERTA--Harvest Energy Trust ("Harvest") is pleased to 
announce it has entered into an agreement, on a bought deal 
basis, with a syndicate of underwriters led by National Bank 
Financial Inc. for an offering of $40,000,000 aggregate principal 
amount of convertible unsecured subordinated debentures (the 
"Debentures"). The underwriters have also been granted an option 
to purchase up to an additional $10,000,000 of the Debentures, 
which is exercisable at the discretion of the underwriters at any 
time up to 48 hours prior to closing. The offering is subject to 
normal regulatory approval and expected to close on or about 
January 29, 2004. 

The Debentures, with a face value of $1,000 per Debenture, will 
have a coupon of 9%, mature on May 31, 2009 and will be 
convertible into trust units of Harvest at a price of $14.00 per 
trust unit. Purchasers converting their Debentures will receive 
accrued and unpaid interest thereon. Purchasers of the Debentures 
will receive interest semi-annually with the first interest 
payment occurring on May 31, 2004.  

The net proceeds of the offering will be used to repay the $25 
million of Equity Bridge Notes outstanding, to reduce bank 
indebtedness and for general corporate purposes. 

The securities of Harvest have not been registered under the U.S. 
Securities Act of 1933, as amended, and may not be offered or 
sold in the United States absent registration or applicable 
exemption from the registration requirements. This news release 
shall not constitute an offer to sell or the solicitation of an 
offer to buy securities in any jurisdiction. 

Harvest's trust units trade on the Toronto Stock Exchange under 
the symbol HTE.UN. 

This press release is not for release or distribution in the 
United States.  


/T/

Harvest Energy Trust
1900, 330 - 5th Avenue S.W.
Calgary, AB T2P 0L4
Canada

/T/

ADVISORY: 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.  

-30-
CALGARY, ALBERTA--Harvest Energy Trust ("Harvest") is pleased to 
announce it has entered into an agreement, on a bought deal 
basis, with a syndicate of underwriters led by National Bank 
Financial Inc. for an offering of $40,000,000 aggregate principal 
amount of convertible unsecured subordinated debentures (the 
"Debentures"). The underwriters have also been granted an option 
to purchase up to an additional $10,000,000 of the Debentures, 
which is exercisable at the discretion of the underwriters at any 
time up to 48 hours prior to closing. The offering is subject to 
normal regulatory approval and expected to close on or about 
January 29, 2004. 

The Debentures, with a face value of $1,000 per Debenture, will 
have a coupon of 9%, mature on May 31, 2009 and will be 
convertible into trust units of Harvest at a price of $14.00 per 
trust unit. Purchasers converting their Debentures will receive 
accrued and unpaid interest thereon. Purchasers of the Debentures 
will receive interest semi-annually with the first interest 
payment occurring on May 31, 2004.  

The net proceeds of the offering will be used to repay the $25 
million of Equity Bridge Notes outstanding, to reduce bank 
indebtedness and for general corporate purposes. 

The securities of Harvest have not been registered under the U.S. 
Securities Act of 1933, as amended, and may not be offered or 
sold in the United States absent registration or applicable 
exemption from the registration requirements. This news release 
shall not constitute an offer to sell or the solicitation of an 
offer to buy securities in any jurisdiction. 

Harvest's trust units trade on the Toronto Stock Exchange under 
the symbol HTE.UN. 

This press release is not for release or distribution in the 
United States.  


/T/

Harvest Energy Trust
1900, 330 - 5th Avenue S.W.
Calgary, AB T2P 0L4
Canada

/T/

ADVISORY: 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.  

-30-


FOR FURTHER INFORMATION PLEASE CONTACT:

 Harvest Energy Trust
Jacob Roorda
President
(403) 265-1178

or

Harvest Energy Trust
David M. Fisher
Vice President, Finance
(403) 265-1178
(403) 265-3490 (FAX)
Email address: information@harvestenergy.ca
Website: www.harvestenergy.ca