EnerVest Primary Income Fund

EnerVest Diversified Income Trust

EnerVest Diversified Income Trust

March 30, 2010 17:27 ET

EnerVest Primary Income Fund Announces Initial Public Offering

CALGARY, ALBERTA--(Marketwire - March 30, 2010) -


EnerVest Diversified Management Inc. is pleased to announce that it has filed a preliminary prospectus for the initial public offering of the EnerVest Primary Income Fund (the "Fund").

The offering is for Combined Units of the Fund at a price of $12.00 per Combined Unit. These Combined Units will separate into Units and Warrants upon the earlier of the closing of the over-allotment option and the 30th day following the closing of the offering. Each Warrant entitles the holder to purchase one Unit at the subscription price of $12.00 per Unit on or before 5:00 p.m. (Toronto time) on June 15, 2011. Units may be redeemed at net asset value per Unit, less the costs incurred by the Fund to fund the redemption, on an annual basis commencing in October 2011.

The Fund's investment objectives are to provide holders of Units with monthly cash distributions, initially targeted to be 6.5% per Unit per annum on the offering price, or $0.78 per Unit per annum, and to maximize Unitholders' risk-adjusted total returns.

Cypress Capital Management Ltd. has been appointed as the Portfolio Manager of the Fund.

The Fund will invest in an actively managed, diversified portfolio, which will consist primarily of (i) equity securities, including common shares, income-generating equities, preferred shares, income trusts and real estate investment trusts, and (ii) fixed-income securities, including investment grade and non-investment grade debt securities such as high yield corporate debt instruments, convertible debentures and other corporate debt securities, of Canadian and global resource, asset and service-based businesses that Cypress believes are positioned to take advantage of the increasing demand for resources, assets and services in emerging and developing markets. These businesses will include, without limitation, organizations in the energy, metals, mining, materials, pipeline, refining and agricultural products sectors. The Fund will also invest in businesses that indirectly benefit from these industry sectors, including financial services, real estate, infrastructure and construction enterprises.

The offering is being conducted by a syndicate of Agents that is co-led by CIBC World Markets Inc., Scotia Capital Inc. and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Financial Ltd., Dundee Securities Corporation, GMP Securities L.P., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Wellington West Capital Markets Inc., Desjardins Securities Inc. and Manulife Securities Incorporated.

About EnerVest – The EnerVest group of companies was founded in 1995 and is primarily involved in investment management services. It currently manages EnerVest Diversified Income Trust, which is one of the largest closed-end investment funds in Canada, EnerVest Energy and Oil Sands Total Return Trust, another closed-end investment fund, EnerVest Natural Resource Fund Ltd., an open-ended mutual fund and a number of oil and gas flow-through limited partnerships. As at March 15, 2010, the EnerVest group had approximately $1.5 billion of assets under management.

About Cypress – Cypress, a wholly-owned subsidiary of AGF Management Limited, currently manages approximately $3.5 billion in assets and specializes in high-yield securities.

A preliminary prospectus containing important information relating to the Combined Units, the Units and the Warrants has been filed with securities commissions or similar authorities in all of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from your broker or from one of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued. Capitalized terms used in this press release and not otherwise defined have the meanings given thereto in the preliminary prospectus.

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.

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