EnerVest Diversified Income Trust
TSX : EIT.UN

EnerVest Diversified Income Trust

March 23, 2010 16:32 ET

EnerVest Diversified Income Trust Provides Update on Warrants

CALGARY, ALBERTA--(Marketwire - March 23, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.

EnerVest Diversified Income Trust ("EnerVest" or the "Fund") (TSX:EIT.UN) is pleased to provide an update on the EnerVest warrants (TSX-EIT.WT) issued to unitholders in December 2009. Over the past several days the EnerVest units have been trading above the warrant subscription price of $13.31. While there is no certainty that the EnerVest units will continue to trade above $13.31, EnerVest wishes to remind warrantholders that by exercising their warrants and receiving EnerVest units prior to the March 31, 2010 distribution record date, they will be entitled to receive the next distribution of $0.10 per unit, paid April 15, 2010. EnerVest units offer a yield of approximately 9% based on current market prices and are trading at a discount to net asset value of approximately 14%. 

Warrantholders who wish to exercise their warrants must instruct their investment advisor and provide payment equal to the subscription price for each warrant exercised. Once payment is received the warrants will be cancelled and the investor will receive EnerVest units. Investors are encouraged to consult directly with their investment advisor to confirm the time required to complete this process. Registered unitholders, those who hold a physical unit certificate, wishing to exercise warrants need to contact Computershare Trust Company of Canada directly at 1-800-564-6253. The Fund will pay an exercise fee of $0.20 per warrant at the time the warrant is exercised. This fee is payable to the investment advisor of the CDS participant whose client is exercising the warrant. 

Unitholders are also reminded that EnerVest offers an annual capped cash redemption that provides unitholders with the ability to redeem their units at a price equal to 95% of the average net asset value based on three trading days preceding the redemption date, less direct costs. EnerVest has committed to holding this process once a calendar year and will issue a news release announcing the date of the 2010 redemption once determined. 

The warrants will expire at 5:00 p.m. (Calgary time) on September 23, 2010 (the "Expiry Date"), subject to a call right provision which becomes effective after June 23, 2010. If after June 23, 2010 the units trade above the exercise price for a period of 10 business days, EnerVest has the right to "call the warrants" within two business days. If the warrants are called, investors will have 20 business days to exercise them, after which they will expire. 

Exercise of the warrants will provide the Fund with additional investment flexibility, allow the Fund to take advantage of market opportunities and should reduce the ongoing management expense ratio, for the benefit of all unitholders. For further details please consult the prospectus and your investment advisor. A copy of the final prospectus has been filed on SEDAR at www.sedar.com. Full details about this warrant offering is available on our website at www.enervest.com or contact us at 1-877-434-2796.

About EnerVest

The Fund is Canada's largest, most liquid, diversified closed-end investment fund. The Fund is listed on the TSX under the symbol EIT.UN and is an actively managed, diversified portfolio of income-generating and capital growth oriented securities, listed primarily on the TSX, designed to maximize distributions and Net Asset Value for the benefit of its unitholders.

Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect EnerVest Diversified Management Inc.'s and its affiliates (the "Administrator") current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Administrator believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Administrator undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Contact Information