EXHIBIT 3
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[LOGO -- HARVEST ENERGY TRUST]
HARVEST ENERGY TRUST - NEWS RELEASE
(HTE.UN - TSX; HTE - NYSE)
HARVEST ENERGY TRUST ANNOUNCES CLOSING OF BOUGHT DEAL EQUITY
AND CONVERTIBLE DEBENTURE FINANCING
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CALGARY, AUGUST 2, 2005 (TSX: HTE.UN, NYSE: HTE) - Harvest Energy Trust (the
"Trust" or "Harvest") has closed its previously announced bought deal financing.
Upon closing, a total of 6,505,600 subscription receipts (the "Subscription
Receipts") were issued at a price of $26.90 per Subscription Receipt for gross
proceeds of $175,000,640 and $75,000,000 principal amount of 6.5% convertible
extendible unsecured subordinated debentures (the "Debentures") were issued.
The Subscription Receipts will be available for trading on the TSX under the
symbol "HTE.R" but will automatically be converted into Trust Units on a
one-for-one basis upon closing of the previously announced Hay River property
acquisition (the "Acquisition"), expected later today. Subscription receipt
holders will be entitled to receive the monthly distribution of $0.25 per Trust
Unit expected to be paid on September 15, 2005, provided they retain the Trust
Units received on conversion through to the August record date for
distributions, anticipated to be August 25, 2005.
The Debentures have a face value of $1,000 per Debenture, a coupon of 6.5% and
are listed for trading on the TSX under the symbol "HTE.DB.B". On closing of the
Acquisition expected later today, the maturity date of the Debentures will be
automatically extended to December 31, 2010 or the "Final Maturity Date".
Interest on the Debentures is payable semi-annually on June 30 and December 31
each year beginning December 31, 2005. The Debentures are redeemable by the
Trust at a price of $1,050 per Debenture after December 31, 2008, and on or
before December 31, 2009 and at a price of $1,025 per Debenture after December
31, 2009 and before maturity on December 31, 2010. In each case, accrued and
unpaid interest thereon, if any, will be settled at maturity or redemption. Each
Debenture will be convertible into Trust Units at the option of the holder at
any time prior to the close of business on the Final Maturity Date, as
applicable, and the Business Day immediately preceding the date specified by the
Trust for redemption of the Debentures, at a conversion price of $31.00 per
Trust Unit, subject to adjustment in certain events. Holders converting their
Debentures will receive accrued and unpaid interest thereon.
The proceeds from this financing will be used to repay bank borrowings incurred
to fund the Acquisition.
The financing was underwritten by a syndicate led by National Bank Financial
Inc., and including TD Securities Inc., CIBC World Markets Inc., Scotia Capital
Inc., Canaccord Capital Corporation, GMP Securities Ltd., FirstEnergy Capital
Corp., Tristone Capital Inc., Haywood Securities Inc. and Raymond James Ltd.
These Subscription Receipts and the Trust Units issuable upon conversion thereof
as well as the Debentures 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 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" and on the New York Stock Exchange (NYSE) under the
symbol "HTE". Please visit
PRESS RELEASE AUGUST 2, 2005
HARVEST ENERGY TRUST PAGE 2 OF 2
Harvest's website at www.harvestenergy.ca for additional corporate information
and a recent corporate presentation.
INVESTOR & MEDIA CONTACTS:
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JACOB ROORDA
President CORPORATE HEAD OFFICE:
Harvest Energy Trust
- -------------------------- 2100, 330 - 5th Avenue S.W.
DAVID RAIN Calgary, AB Canada T2P 0L4
Vice President & CFO
PHONE: (403) 265-1178
- -------------------------- TOLL FREE: (866) 666-1178
CINDY GRAY Fax: (403) 265-3490
Investor Relations & EMAIL: information@harvestenergy.ca
Communications Advisor WEBSITE: www.harvestenergy.ca
gray@harvestenergy.ca
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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
development, 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.