Terravest Income Fund announces 2012 second quarter financial results

Terravest Income Fund announces 2012 second quarter financial results 
VEGREVILLE, AB, July 30, 2012 /CNW/ - TerraVest Income Fund (TSX: TI.UN) 
announced today its second quarter results for 2012. 
For the three and six months ended June 30, 2012, the Fund reported: 
(thousands of Canadian dollars      Three months ended Six months ended
except per Unit amounts)                 June 30           June 30 
                                 2012       2011    2012     2011 
                                   $          $       $         $ 
Sales from continuing operations    15,872      14,366 36,529    33,428 
Gross profit from continuing         3,890       2,970  9,443     7,540
Income from continuing operations    1,573         475  4,328     1,410 
Income (loss) from discontinued          -       (842)      -   (1,724)
Net Income (loss) and comprehensive  1,573       (367)  4,328     (314)
income (loss) for the period 
Income per Unit, continuing           0.08        0.02   0.22      0.07
operations, basic and diluted 
Income (loss) per Unit,                  -      (0.04)      -    (0.09)
discontinued operations, basic and
Income (loss) per Unit, basic and     0.08      (0.02)   0.22    (0.02)
Total assets                                           87,578    94,929 
On a segmented basis sales from continuing operations for the three
and six months ended June 30, 2012 were: 
(thousands of     Three months ended June 30 Six months ended June 30
Canadian dollars) 
RJV               $  9,658 $           9,629 $ 22,048 $        22,204 
Diamond              6,214             4,737   14,481          11,224 

                  $ 15,872 $          14,366 $ 36,529 $        33,428

Additional segmented information can be found in the Fund's consolidated 
financial statements and MD&A which are available on SEDAR at www.sedar.com 
and through the Fund's website at www.terravestincomefund.com.

As disclosed previously, the trustees and management of the Fund have been 
actively reviewing options for the maximization of value to the unitholders of 
their investment in the Fund. The trustees and management have also reviewed 
the future strategic direction of the Fund, and, as a result of this review, 
the board of trustees has determined that it is in the best interests of the 
Fund and its unitholders at this time to discontinue the previously announced 
process to review strategic alternatives available to the Fund, and in 
particular possible liquidity events. The board of trustees believe that, 
given current market conditions, continuing to operate the remaining two 
businesses of the Fund will create the most value for unitholders at this 
time. The Fund's trustees are also pursuing options for converting the Fund 
from its current trust structure to a corporation which is expected to be 
completed prior to December 31, 2012 in order to rely on rules enacted by the 
federal government that permit conversion on a tax-deferred rollover basis.

On July 11, 2012 the Fund announced it was proceeding with a substantial 
issuer bid (the "Bid") to acquire from Fund unitholders up to 5,000,000 Units 
of the Fund at a price of $2.75 per Unit. The Bid is open until August 20, 
2012 unless withdrawn or extended by the Fund. Details of the Bid can be found 
in the Issuer Bid Circular filed on SEDAR at www.sedar.com and through the 
Fund's website at www.terravestincomefund.com.

About TerraVest Income Fund
The Fund has investments in two portfolio businesses:
    --  RJV Gas Field Services ("RJV"), one of Canada's largest
        providers of wellhead processing equipment for the natural gas
        industry in western Canada; and
    --  Diamond Energy Services ("Diamond"), a market leader in
        providing well servicing to the oil and natural gas sector in
        south-western Saskatchewan.

Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements. All statements other 
than statements of historical fact contained in this news release are 
forward-looking statements, including, without limitation, statements 
regarding our strategic direction and evaluation of the portfolio businesses 
and the Fund as a whole, the sale or potential sale of portfolio businesses or 
assets thereof, and other plans and objectives of or involving the Fund. 
Readers can identify many of these statements by looking for words such as 
"expects" and "will" and similar words or the negative thereof. Although 
management believes that the expectations represented in such forward-looking 
statements are reasonable, there can be no assurance that such expectations 
will prove to be correct.

By their nature, forward-looking statements require us to make assumptions 
and, accordingly, forward looking statements are subject to inherent risks and 
uncertainties. There is significant risk that the forward-looking statements 
will not prove to be accurate. We caution readers of this news release not to 
place undue reliance on our forward-looking statements because a number of 
factors may cause actual future circumstances, results, conditions, actions or 
events to differ materially from the plans, expectations, estimates or 
intentions expressed in the forward-looking statements and the assumptions 
underlying the forward-looking statements.

Assumptions and analysis about the performance of the Fund as a whole and the 
Fund's portfolio businesses, the markets in which the portfolio businesses 
compete and the prospects and values of the portfolio businesses are 
considered in setting the business plan for the Fund, in evaluating and 
forecasting tax horizon, capital investments, outlook for operations, 
financial position, results and cash flow, other plans and objectives and in 
making related forward-looking statements. Such assumptions include, without 
limitation, the current tax regime in Canada remaining unchanged and the 
performance of the continuing portfolio businesses of the fund not differing 
materially from historic performance. Should any of these factors or 
assumptions vary, actual results may differ materially from the 
forward-looking statements.

The information set forth under "Risk Factors" in the annual information form 
of the Fund dated March 5, 2012 and under "Financial Instruments" in the MD&A 
of the Fund for the period ended June 30, 2012, identifies risk factors that 
could affect the operating results and performance of the Fund and its 
portfolio businesses and the values of the portfolio businesses and the Fund 
as a whole. We caution that the lists of factors discussed in such information 
is not exhaustive and that, when relying on forward-looking statements to make 
decisions with respect to the Fund, investors and others should carefully 
consider the factors discussed, as well as other uncertainties and potential 
events, and the inherent risks and uncertainties of forward-looking 
statements. The forward-looking statements herein are made based on the 
assumption that the Fund will not be affected by such risks, but that, if the 
Fund is affected by such risks, the forward-looking statements may become 

The forward-looking statements contained herein are expressly qualified in 
their entirety by this cautionary statement. The forward-looking statements 
included in this news release are made as of the date of this news release. 
Except as required by applicable securities laws, the Fund does not undertake 
to update such forward-looking statements.

Dale Laniuk TerraVest Income Fund Chief Executive Officer (780) 632 -7774 


Paul A. Casey, CA TerraVest Income Fund Chief Financial Officer (780) 632-2040 
pcasey@terravestindustries.com www.terravestincomefund.com 

SOURCE: TerraVest Income Fund

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CO: TerraVest Income Fund
ST: Alberta

-0- Jul/30/2012 20:30 GMT

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