EnerVest Diversified Income Trust
TSX : EIT.UN

EnerVest Diversified Income Trust

October 14, 2005 16:15 ET

Enervest Diversified Income Trust Announces Exchange Offer

CALGARY, ALBERTA--(CCNMatthews - Oct. 14, 2005) -

Not For Distribution to the United States or for Dissemination in the United States.

EnerVest Diversified Income Trust, (TSX:EIT.UN) ("EnerVest") has filed a preliminary short form prospectus for a treasury offering of its units. EnerVest is offering to issue EnerVest units in exchange for units of selected income, royalty and real estate investment trusts, limited partnerships and similar issuers (the "Issuers") all of which are listed on the Toronto Stock Exchange (the "TSX"). A listing of the Issuers is set out below. There is no cash subscription price for the EnerVest units.

This Exchange Offer is open to all holders (the "Holders") of the Issuers until 1:30 p.m. EST on November 14, 2005 (the "Deposit Date"). The Exchange Offer may be accepted only by means of a book entry deposit through the Canadian Depositary for Securities. Unitholders of an Issuer who wish to accept the Exchange Offer must request their investment advisor or nominee to effect the transaction for them.

The Exchange Ratio for the units of each Issuer will be determined by dividing the weighted average trading price of such units on the TSX during the period of 20 consecutive trading days commencing on October 18, 2005 and ending on November 14, 2005 by the weighted average trading price of the EnerVest units during the same period. The Exchange Ratios will be announced in a news release issued by EnerVest on November 15, 2005 and disclosed in a final prospectus to be filed shortly thereafter. The net asset value of EnerVest as at the close of market on October 13, 2005 was $7.89 unit and the closing price on that date was $7.95.

The maximum number of units of any particular Issuer which EnerVest will own subsequent to the Exchange Offer will amount to less than 10% of the outstanding units of such Issuer. Further, it is a condition of the Exchange Offer that a minimum of $25,000,000 of value shall have been validly deposited. This Exchange Offer is not a takeover bid with respect to any of the Issuers.

The potential benefits to unitholders who participate in the Exchange Offer include the following:

LOWER RISK: Diverse and balanced portfolio of income, royalty and real estate investment trusts, limited partnerships and similar issuers (all of which are listed on the TSX) across a variety of industries and geographic regions to reduce capital risk and distribution volatility.

HIGH YIELD: The current yield on EnerVest's units is approximately 10.6%. EnerVest's portfolio is actively managed to maximize monthly cash distributions and maximize the underlying net asset value over the life of EnerVest.

EXPERIENCED MANAGEMENT: The Investment Manager is Cypress Capital Management Ltd. ("Cypress"), an experienced manager providing active, proven and experienced portfolio management.

NO DIRECT COST OR COMMISSION: The Exchange Offer enables current holders of units of the identified Issuers to acquire EnerVest units at no direct cost or brokerage commission.

ENHANCED LIQUIDITY: EnerVest units are publicly traded on the TSX and have significant liquidity. The average daily trading volume of EnerVest units was 365,181 for the three month period ended September 30, 2005 and 458,938 for the nine month period ended September 30, 2005.

INCOME TAX ADVANTAGES: Current holders of units of the identified Issuers can optimize their specific tax needs by realizing either taxable capital gains or capital losses through the Exchange Offer. In addition, since its inception, EnerVest's monthly distributions have been 61.3% tax deferred and is estimated to be 55% tax deferred to date in 2005.

PERFORMANCE:

EnerVest provided a total return (capital appreciation plus distributions) of:

- 34.2% for the 1 year period ended August 31, 2005 and;

- 19.4%, 3 year annualized total return as at August 31, 2005.

The return (capital appreciation plus distributions) on units issued pursuant to the rights offering, completed on February 15, 2005, for the 6 1/2 month period ended August 31, 2005 was 27.6%, an annualized rate of 51.2%.

GMP Securities Ltd. is acting as dealer manager in connection with this Exchange Offer.



List of Issuers

A&W Revenue Royalties Income Fund Inter Pipeline Fund
Acclaim Energy Trust IPC US REIT
ACS Media Income Fund K-Bro Linen Income Fund
Advantage Energy Income Fund KCP Income Fund
Alexis Nihon Real Estate Keg Royalties Income Fund (The)
Investment Trust Ketch Resources Trust
Allied Properties Real Estate Keyera Facilities Income Fund
Investment Trust Labrador Iron Ore Royalty Income Fund
AltaGas Income Trust Lakeport Brewing Income Fund
Ag Growth Income Fund Legacy Hotels Real Estate Investment
ARC Energy Trust Trust
Arctic Glacier Income Fund Liquor Stores Income Fund
Arriscraft International Income Livingston International Income Fund
Fund Macquarie Power Income Fund
Atlantic Power Corporation IPS Menu Foods Income Fund
Badger Income Fund NAL Oil & Gas Trust
Baytex Energy Trust Newalta Income Fund
Bell Nordiq Income Fund Noranda Income Fund
BFI Canada Income Fund North West Company Fund
Big Rock Brewery Income Trust Northern Property Real Estate
Boardwalk Real Estate Investment Investment Trust
Trust Paramount Energy Trust
Bonavista Energy Trust Parkland Income Fund
Boralex Power Income Fund PBB Global Logistics Income Fund
Boston Pizza Royalties Income Pembina Pipeline Income Fund
Fund Pengrowth Energy Trust Cl. 'B'
Brick Group Income Fund (The) Penn West Energy Trust
Builders Energy Services Trust Petrofund Energy Trust
Calloway Real Estate Investment Peyto Energy Trust
Trust Phoenix Technology Income Fund
Calpine Power Income Fund Primaris Retail Real Estate
Canadian Hotel Income Properties Investment Trust
REIT Primary Energy Recycling Corporation
Canadian Oil Sands Trust EIS
Canadian Real Estate Investment PrimeWest Energy Trust
Trust Progress Energy Trust
Canexus Income Fund Provident Energy Trust
CanWel Building Materials Income Retirement Residences Real Estate
Fund Investment Trust
Cathedral Energy Services Income Retrocom Mid-Market Real Estate
Trust Investment Trust
CCS Income Trust RioCan Real Estate Investment Trust
Chartwell Seniors Housing REIT Rogers Sugar Income Fund
Chemtrade Logistics Income Fund Royal Host Real Estate Investment
Cineplex Galaxy Income Fund Trust
CML Healthcare Income Fund Sequoia Oil & Gas Trust
Cominar Real Estate Investment SFK Pulp Fund
Trust Shiningbank Energy Income Fund
Connors Bros. Income Fund Somerset Entertainment Income Fund
Consumers' Waterheater Income Spinrite Income Fund
Fund (The) StarPoint Energy Trust
Contrans Income Fund Sterling Shoes Income Fund
Crescent Point Energy Trust Stoneham Drilling Trust
Davis + Henderson Income Fund Summit Real Estate Investment Trust
Daylight Energy Trust Sunrise Senior Living Real Estate
DirectCash Income Fund Investment Trust
Dundee Real Estate Investment Superior Plus Income Fund
Trust Taylor NGL Limited Partnership
E.D. Smith Income Fund TerraVest Income Fund
Enbridge Income Fund TGS North American Real Estate
Energy Savings Income Fund Investment Trust
Enerplus Resources Fund Thunder Energy Trust
EPCOR Power L.P. TimberWest Forest Corp.
Esprit Energy Trust Total Energy Services Trust
Fairborne Energy Trust TransAlta Power, L.P.
Firm Capital Mortgage Investment TransForce Income Fund
Trust Trinidad Energy Services Income Trust
Focus Energy Trust Trilogy Energy Trust
Fording Canadian Coal Trust UE Waterheater Income Fund
Freehold Royalty Trust Vault Energy Trust
Gateway Casinos Income Fund Vermilion Energy Trust
Gaz Metro Limited Partnership Vicwest Income Fund
Gienow Windows & Doors Income Viking Energy Royalty Trust
Fund Wajax Income Fund
Golf Town Income Fund Westshore Terminals Income Fund
Great Lakes Carbon Income Fund XS Cargo Income Fund
Great Lakes Hydro Income Fund Yellow Pages Income Fund
H&R Real Estate Investment Trust Zargon Energy Trust
Hardwoods Distribution Income
Fund
Harvest Energy Trust
High Arctic Energy Services Trust
Home Equity Income Trust
Hot House Growers Income Fund
Innergex Power Income Fund
InnVest Real Estate Investment
Trust



The Toronto Stock Exchange has neither approved or disapproved the information contained herein.

Contact Information

  • EnerVest Diversified Management Inc.
    Kevin Wolfe
    President & Chief Executive Officer
    (403) 571-5550 or Toll Free: 1-800-459-3384
    or
    EnerVest Diversified Management Inc.
    J. Ward Mallabone
    Chief Operating Officer
    (403) 571-5550 or Toll Free: 1-800-459-3384
    or
    EnerVest Diversified Management Inc.
    Linda Koroluk
    Investor Relations
    (403) 571-5550 or Toll Free: 1-800-459-3384
    (403) 571-5554 (FAX)
    Email: info@enervest.com
    Website: www.enervest.com
    or
    EnerVest Diversified Management Inc.
    Suite 2800, 700-9th Avenue S.W.
    Calgary, Alberta, T2P 3V4
    or
    GMP Securities Ltd.
    Matt Sobolewski
    Investment Banking
    (403) 543-3030
    or
    GMP Securities Ltd.
    Jo-Anne Stansfield
    Syndication
    1-888-301-3244