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Harvest Energy Trust Announces Closing of $526 Million Producing Property Acquisition

Sep 2, 2004 - 15:45 ET

CALGARY, ALBERTA--(CCNMatthews - Sept. 2, 2004) - (TSX: HTE.UN) - 
Harvest Energy Trust (the "Trust" or "Harvest") closed its 
previously announced acquisition of crude oil and natural gas 
producing properties from a subsidiary of EnCana Corporation for 
$526 million subject to typical closing adjustments. The 
acquisition was financed by Harvest with a new credit facility 
underwritten by National Bank of Canada, and a $275 million 
bought deal financing which closed August 10, 2004. The TSX 
trading symbol of the debentures issued in the financing is 
HTE.DB.A. 

The acquired properties provide a strategic fit with Harvest's 
existing East Central Alberta core area as well as create a new 
core area in Southern Alberta. Current production from the 
acquired properties is approximately 19,500 BOE/d (before 
royalties), comprised of 14,900 bbl/d of oil and natural gas 
liquids and 27.4 mmcf/d of natural gas. For the fourth quarter of 
2004, Harvest is estimating total corporate production of 37,000 
to 38,000 BOE/day, weighted approximately 86% to crude oil and 
natural gas liquids, and 14% to natural gas. 

Pursuant to the financing completed on August 10, 2004, Harvest 
issued 12,166,666 subscription receipts at a price of $14.40 per 
subscription receipt for gross proceeds of $175.2 million and 
$100 million principal amount of 8% convertible unsecured 
subordinated debentures. With the closing of the acquisition, 
trading in the subscription receipts will be halted, and the 
subscription receipts will remain halted until the close of 
business today, September 2, at which time they will be 
de-listed. Holders of subscription receipts will receive one 
trust unit for each subscription receipt held, effective at 5:00 
p.m. (Calgary time) today. A holder of subscription receipts 
today will be entitled to receive $0.20 per subscription receipt, 
an amount equivalent to the September 15 distribution per trust 
unit to be paid to unitholders of record on August 31. Harvest's 
previously-announced cash distribution of $0.20 per trust unit 
for August 2004 will be paid on September 15 to unitholders of 
record on August 31. 

Non-registered holders who hold their subscription receipts 
through brokers or other intermediaries need not take any action 
in order to receive the trust units and payment to which they are 
entitled. 

Harvest also announces an adjustment to the Exchange Ratio of the 
Exchangeable Shares of Harvest Operations Corp. (the 
"Corporation") from 1.02574 to 1.03705. This increase will be 
effective on September 15, 2004. 

Holders of exchangeable shares of the Corporation can exchange 
all or a portion of their holdings for trust units of Harvest at 
any time by giving notice to their investment advisor or Valiant 
Trust Company at its principal transfer office at Suite 510, 550 
- 6th Avenue S.W., Calgary, Alberta, T2P OS2 (telephone: 
403-233-2801). 

Harvest Energy Trust is a Calgary-based energy trust actively 
managed 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 
trust units are traded on the Toronto Stock Exchange (TSX) under 
the symbol "HTE.UN". For further information on Harvest, please 
visit our website at www.harvestenergy.ca. 

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

-30-


FOR FURTHER INFORMATION PLEASE CONTACT:

Harvest Energy Trust
Jacob Roorda
President
(403) 265-1178 or Toll Free: 1-866-666-1178

or

Harvest Energy Trust
David J. Rain
Vice President and CFO
(403) 265-1178 or Toll Free: 1-866-666-1178

or

Harvest Energy Trust
Cindy Gray
Communications Advis
or

(403) 265-1178 or Toll Free: 1-866-666-1178
Email: gray@harvestenergy.ca

or

Harvest Energy Trust
1900, 330 - 5th Avenue S.W.
Calgary, AB T2P 0L4 Canada
(403) 265-1178 or Toll Free: 1-866-666-1178
(403) 265-3490 (FAX)
Email: information@harvestenergy.ca
Website: www.harvestenergy.ca