Harvest Energy Trust Completes $275M Offering

On August 10, 2004, Harvest Energy Trust completed an offering of 12.17 million subscription receipts at $14.40 per receipt for gross proceeds of approximately $175.2 million and $100 million principal amount of 8 per cent convertible unsecured subordinated debentures. Each subscription receipt entitled the holder to receive one trust unit of Harvest upon the closing of the acquisition by Harvest of certain oil and natural gas properties from a subsidiary of EnCana Corp., which occurred on September 2, 2004. The debentures mature on September 30, 2009 and are convertible into trust units of Harvest at $16.25 per trust unit.

The offering was made on a bought deal basis through a syndicate of underwriters led by National Bank Financial Inc. and including CIBC World Markets Inc., TD Securities Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., FirstEnergy Capital Corp., Canaccord Capital Corp., Haywood Securities Inc. and GMP Securities Ltd.

Harvest was represented by Keith Greenfield, Shannon Gangl and Spencer Coupland (securities), Cal Johnson, Kathy Pybus and David Grout (banking) and John Brussa and Jeff Fortin (tax) of Burnet, Duckworth & Palmer LLP.

The underwriters were represented by Scott Cochlan, Dan McLeod and Cam Proctor (securities) and Wanda Rumball (tax) of Blake, Cassels & Graydon LLP.