EnerVest Diversified Income Trust
TSX : EIT.UN

EnerVest Diversified Income Trust

November 14, 2006 09:30 ET

EnerVest Diversified Income Trust Announces Intention to Use Normal Course Issuer Bid

CALGARY, ALBERTA--(CCNMatthews - Nov. 14, 2006) -

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States of America.

EnerVest Diversified Management Inc. (the "Manager"), the Manager of EnerVest Diversified Income Trust (TSX:EIT.UN) ("EnerVest"), announced today that it intends to re-purchase EnerVest units for cancellation pursuant to its Normal Course Issuer Bid ("NCIB").

Cypress Capital Management Ltd. (the "Investment Manager") and the Manager believe that the market price of the EnerVest units (the "Units") do not reflect their underlying value. The net asset value per Unit and the market price per Unit, as of the close of market on November 13, 2006, were $6.54 and $5.45 respectively. The market price is trading at a discount to net asset value of 16.67%. At no time during the trading history of EnerVest is the Manager aware of the Units trading at such a large discount to net asset value. The Manager and the Investment Manager believe that the current large discount is directly attributable to the surprise announcement by the Canadian Minister of Finance proposing significant tax changes to publicly traded income trusts.

Under the terms of the NCIB EnerVest may purchase up to 23,383,768 of its issued and outstanding units on the open market through the facilities of the Toronto Stock Exchange ("TSX"). The price which EnerVest will pay for any Units re-purchased for cancellation will be the prevailing market price of such Units on the TSX at the time of the purchase. There are specific TSX rules which EnerVest will follow on the re-purchase under its NCIB.

EnerVest is an actively managed, closed-end trust which invests in a diversified portfolio of income, royalty and real estate investment trusts, and limited partnerships, all of which trade on the Toronto Stock Exchange. EnerVest's objectives are to maximize monthly distributions relative to risk, reduce investment risk, and maximize net asset value over its life. EnerVest currently has 271,504,657 Units outstanding, a net asset value of $6.54 and an average trading volume of 555,683 Units per day for the first ten months of 2006.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • EnerVest Diversified Management Inc.
    Kevin W. 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.
    Kristie Allen
    Investor Relations
    (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)
    or
    EnerVest Diversified Management Inc.
    Suite 2800, 700-9th Avenue S.W.
    Calgary, Alberta T2P 3V4
    Email: info@enervest.com
    Website: www.enervest.com