Brompton Advantaged Oil & Gas Income Fund

Brompton Advantaged Oil & Gas Income Fund

February 18, 2009 14:55 ET

Brompton Advantaged Oil & Gas Income Fund Declares Distribution

TORONTO, ONTARIO--(Marketwire - Feb. 18, 2009) - Brompton Advantaged Oil & Gas Income Fund (TSX:AOG.UN) announces the distribution rate of $0.0325 per unit for record dates in February and March 2009. This rate reflects a reduction from the previous monthly rate of $0.06 per unit due to distribution cuts by a large number of the oil and gas royalty trusts included in the portfolio in response to the steep decline in oil and gas prices. Oil prices have declined to approximately $35 per barrel from their previous high of $140 per barrel in July 2008 and natural gas prices have declined by approximately 70% from their previous high of over $13 per Gj in July 2008.

Record Dates and Payment Dates are as follows:

Record Date Payment Date
----------------- --------------
February 27, 2009 March 13, 2009
March 31, 2009 April 15, 2009

Notwithstanding the current economic slowdown and decline in commodity prices, the portfolio manager, MFC Global Investment Management, believes that the markets may start to improve over the near-term given the massive amounts of fiscal stimulus committed by governments around the world and accommodative monetary policy. In addition, with nearly all energy companies significantly reducing their capital expenditure budgets, future oil and gas supplies will be greatly reduced. Energy prices should rebound due to this projected supply/demand imbalance which should be supportive of higher prices for oil and gas equities and income trusts. In the near-term, the portfolio manager will remain focused on income trusts with a sustainable business model, internally financed capital program and a reasonable amount of leverage in relation to production levels and expected cash-flow.

For further information, please call Brompton's investor relations line at 416-642-9051, (toll-free at 1-866-642-6001) or visit our website at

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available from SEDAR at Investment funds are not guaranteed; their values change frequently and past performance may not be repeated.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

Forward-looking statements in this press release include among other things, the opinion of the portfolio manager. While we consider these assumptions to be reasonable based on information currently available to the portfolio manager, they may prove to be incorrect. There are no assurances that the actual outcomes will match the forward-looking statements as a result of a number of risks and uncertainties that could cause actual results to differ materially from what we currently expect. Other than as required under securities laws, we do not undertake to update this information at any particular time.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice President
    (416) 642-6008