EnerVest Diversified Income Trust

EnerVest Diversified Income Trust

January 23, 2006 09:30 ET

EnerVest Diversified Income Trust Announces Rights Offering

CALGARY, ALBERTA--(CCNMatthews - Jan. 23, 2006) -


EnerVest Diversified Income Trust (TSX:EIT.UN) ("EnerVest") announces that it will issue Rights, to subscribe for EnerVest Units, to its Unitholders of record at the close of business on January 30, 2006. Each Unitholder will receive one Right for each EnerVest Unit held on the record date. Five Rights will entitle the holder to purchase one EnerVest Unit at a price of $7.35 until 5:00 p.m. (Eastern Standard Time) on February 22, 2006. All unexercised Rights will expire at this time.

Holders of Rights who fully exercise their Rights are entitled to subscribe, on a pro-rata basis, for any Units not otherwise purchased pursuant to the exercise of Rights. This additional subscription privilege allows Unitholders to purchase additional Units at the same subscription price of $7.35 per Unit. Units issued on the exercise of Rights, or purchased under the additional subscription privilege, will participate in the February 28, 2006 distribution, payable March 15, 2006.

The exercise price of $7.35 represents a discount of 12.8% to the net asset value of $8.43 per Unit on January 18, 2006. Upon listing on the Toronto Stock Exchange (the "TSX") the Rights will have an immediate market value. To retain this value you must either exercise the Rights or sell the Rights. The Rights are fully transferable and are expected to commence trading on the TSX on January 26, 2006, under the symbol EIT.RT. The Rights may be sold on the TSX prior to 12:00 noon (Eastern Standard Time) on February 22, 2006.

You may exercise or sell your Rights in the following way:

- If you hold EnerVest Units through a participant of "CDS" (The Canadian Depository for Securities Limited), such as your broker or financial planner, you must instruct your broker or planner who will effect the transaction for you.

- If you hold EnerVest Units in a registered form (ie. a physical certificate), a Rights certificate has been issued in your name and will be sent directly to you. You need to complete Form 1 on your Rights certificate and send it to Computershare Investor Services Inc. The address for Computershare, as well as detailed instructions, is on the back of your Rights certificate. For assistance with submitting your Rights certificate for exercise, please call EnerVest's Investor Relations at 1-800-459-3384 or 403-571-5550.

EnerVest's current monthly distribution of $0.07 per Unit represents, on an annualized basis, a yield of 11.4% on the subscription price of $7.35. During 2005, EnerVest distributed $0.84 per Unit which represents a yield of 10.4% based on the weighted average trading price for 2005. The three year annualized rate of return of EnerVest for the period ended December 31, 2005 is 22.9%. EnerVest's total return, to the end of the fiscal year, on Units issued in prior rights offerings for 2004 and 2005 were 49.2% and 28.7% respectively.

GMP Securities L.P. will act as dealer manager to form a Canadian soliciting dealer group to solicit subscriptions for EnerVest Units.

For additional information, please see a copy of the Final Short Form Prospectus dated January 19, 2006 which is available on the EnerVest website, or contact EnerVest Investor Relations department at 1-800-459-3384.

EnerVest is an actively managed, closed-end income trust which invests in a diversified portfolio of income, royalty and real estate investment trusts, limited partnerships, and similar issuers, all of which trade on the Toronto Stock Exchange. EnerVest's objectives are to maximize monthly distributions, reduce investment risk, and maximize net asset value over its life. EnerVest currently has 194,391,028 units outstanding, a net asset value of approximately $1.6 billion and a daily average trading volume of 479,532 units for the twelve month period ended December 31, 2005.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • EnerVest Diversified Management Inc.
    Kevin W. Wolfe
    President & Chief Executive Officer
    (403) 571-5550 or Toll Free: 1-800-459-3384
    EnerVest Diversified Management Inc.
    J. Ward Mallabone
    Chief Operating Officer
    (403) 571-5550 or Toll Free: 1-800-459-3384
    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
    EnerVest Diversified Management Inc.
    Suite 2800, 700-9th Avenue S.W.
    Calgary, Alberta, T2P 3V4