EXHIBIT 3
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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.
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[LOGO - HARVEST ENERGY TRUST]
HARVEST ENERGY TRUST - NEWS RELEASE
(HTE.UN - TSX; HTE - NYSE)
HARVEST ENERGY TRUST ANNOUNCES ADOPTION OF NEW
PREMIUM DISTRIBUTION(TM), DISTRIBUTION REINVESTMENT AND
OPTIONAL TRUST UNIT PURCHASE PLAN
CALGARY, AUGUST 17, 2005 (TSX: HTE.UN; NYSE: HTE) - Harvest Energy Trust
("Harvest") is pleased to announce that, subject to receiving regulatory
approval, it intends to replace its previously announced distribution
reinvestment plan and optional trust unit purchase plan with a Premium
Distribution(TM), Distribution ReinvestmeNT and Optional Trust Unit Purchase
Plan (the "Plan"). Harvest expects to receive the required regulatory approval
within the next few days which will allow eligible unitholders to participate in
the Plan in respect of the distributions payable on September 15, 2005 to
unitholders of record on August 25, 2005. Harvest will make a further
announcement upon receiving such regulatory approval. REGISTERED AND BENEFICIAL
UNITHOLDERS WHO ARE NOT RESIDENT IN CANADA ARE NOT ELIGIBLE TO PARTICIPATE IN
THE PLAN.
The Plan allows eligible unitholders to direct that their monthly cash
distributions be reinvested in additional trust units at 95% of the average
market price (as defined in the Plan) on the applicable distribution date, as is
the case under the existing distribution reinvestment plan. The Plan now
includes a unique feature which allows eligible unitholders to elect, under the
Premium Distribution(TM) component of the Plan, to have theSE additional trust
units delivered to a designated broker in exchange for a premium cash
distribution equal to 102% of the cash distribution that such unitholders would
have otherwise been entitled to receive on the applicable distribution date
(subject to a proration in certain events under the Plan). Canaccord Capital
Corporation has been designated as the plan broker under the Premium
Distribution(TM) component of the Plan.
In addition, the Plan allows those unitholders who participate in either the
distribution reinvestment component or the Premium Distribution(TM) component of
the Plan to participate in the optional trust unit purchase componeNT of the
Plan. This allows unitholders to purchase additional trust units from treasury
for cash at a purchase price equal to the average market price (with no
discount) in minimum amounts of $5,000 per remittance and up to $100,000
aggregate amount of remittances by a unitholder in any calendar month, all
subject to an overall annual limit of 2% of the outstanding trust units.
Generally, no brokerage fees or commissions will be payable by participants for
the purchase of trust units under the Plan, but unitholders should make
inquiries with their broker, investment dealer or financial institution through
which their trust units are held as to any policies of such party that would
result in any fees or commissions being payable.
Harvest reserves the right to limit the amount of new equity available under the
Plan on any particular distribution date. Accordingly, participation may be
prorated in certain circumstances.
To participate in the Plan, registered unitholders must fax or otherwise deliver
their properly completed and signed enrolment forms to Valiant Trust Company at
the fax number or address specified in the enrolment forms no later than 3:00
p.m. (Calgary time) on the business day immediately preceding a distribution
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(TM) denotes trademark of Canaccord Capital Corporation
PRESS RELEASE AUGUST 17, 2005
HARVEST ENERGY TRUST Page 2 of 2
record date in order for the distribution to which such record date relates to
be reinvested under the Plan. Unitholders who wish to participate in the Plan in
conjunction with the recently announced distribution payable on September 15,
2005, must deliver their properly completed and signed enrolment forms no later
than 3:00 p.m. (Calgary time) on August 24, 2005. Harvest reserves the right to
accept enrolment forms that are delivered after this time. Participants in
Harvest's existing distribution reinvestment plan will automatically be enrolled
in the distribution reinvestment component of the new Plan. Participants in
Harvest's existing distribution reinvestment plan who wish to participate in the
Premium Distribution(TM) component of the new Plan may do so by delivering
properLY completed and signed enrolment forms by the aforementioned deadline.
Beneficial unitholders (I.E., owners of trust units that are held through a
nominee such as a broker or custodian) who wish to participate in the Plan
should contact their broker, investment dealer, financial institution, or
nominee through which their Harvest trust units are held to inquire about the
applicable enrolment deadline and to request enrolment in the Plan.
Copies of the Plan, questions and answers, and enrolment forms are available on
Harvest's website at www.harvestenergy.ca under the heading "Financial
Information", or directly from Harvest's Investor Relations at (403) 265-1178 or
toll free at (866) 666-1178.
PARTICIPATION IN THE PLAN DOES NOT RELIEVE UNITHOLDERS OF ANY LIABILITY FOR
TAXES THAT MAY BE PAYABLE ON DISTRIBUTIONS. UNITHOLDERS SHOULD CONSULT THEIR OWN
TAX ADVISORS CONCERNING THE TAX IMPLICATIONS OF THEIR PARTICIPATION IN THE PLAN
HAVING REGARD TO THEIR PARTICULAR CIRCUMSTANCES.
UNITHOLDERS SHOULD CAREFULLY READ THE COMPLETE TEXT OF THE PLAN BEFORE MAKING
ANY DECISIONS REGARDING THEIR PARTICIPATION IN THE PLAN.
This press release shall not constitute an offer to sell or the solicitation of
an offer to buy securities in any jurisdiction. The securities offered have not
been and will not be registered under the United States SECURITIES ACT OF 1933,
as amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirement.
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 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
Fax: (403) 265-3490
CINDY GRAY EMAIL: information@harvestenergy.ca
Investor Relations & WEBSITE: www.harvestenergy.ca
Communications Advisor
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.