NAL Oil & Gas Trust
TSX : NAE.UN

NAL Oil & Gas Trust

June 01, 2009 12:58 ET

NAL Oil & Gas Trust and Alberta Clipper Complete Plan of Arrangement

CALGARY, ALBERTA--(Marketwire - June 1, 2009) - NAL Oil & Gas Trust (the "Trust" or "NAL") (TSX:NAE.UN) and Alberta Clipper Energy Inc. ("Alberta Clipper") (TSX:ACN) have completed the previously announced Plan of Arrangement (the "Arrangement"). Under the Arrangement, approximately 5.7 million NAL Trust Units were issued in exchange for all issued and outstanding shares of Alberta Clipper.

Following the completion of the Arrangement, the Trust divested a 50% working interest in substantially all of the oil and gas assets of Alberta Clipper to The Manufacturers Life Insurance Company ("Manulife") for a cash purchase price of approximately $52.5 million. The cash proceeds received from Manulife will be used to pay down the net debt assumed by the Trust from Alberta Clipper.

On the transaction, Mr. Andrew Wiswell, President and CEO of NAL commented: "since the announcement of the transaction we have received positive feedback from Alberta Clipper shareholders and we welcome them today as NAL Unitholders. Through this transaction, the Trust was not only able to strengthen its asset base, but also the depth and breadth of its technical staff with several key personnel from Alberta Clipper choosing to join the team at NAL. In particular, we are pleased to have Mr. David Allen from the Alberta Clipper management team joining NAL in the role of Director, Exploration and Development."

Alberta Clipper shareholders will be eligible to receive the NAL June distribution which will be payable on or about July 15, 2009.

The transaction adds approximately 1,500 boe/d net production to the Trust on an annualized basis (weighted 65% toward natural gas). The acquired assets consolidate NAL's holdings in the Sylvan Lake region and add a new natural gas core area in northeast B.C. at Trutch/Beg.

To view Figure 1. Complementary Assets At Sylvan Lake, please click the link below:

http://media3.marketwire.com/docs/ComplementaryAssetsAtSylvanLake.pdf

At Sylvan Lake, the acquired acreage consolidates NAL's holding in an existing core area and offers significant operational and infrastructure synergies.

To view Figure 2. A New Core Area At Trutch/Beg, please click the link below:

http://media3.marketwire.com/docs/ANewCoreAreaAtTrutchBeg.pdf

FORWARD LOOKING STATEMENTS

This press release contains statements that constitute "forward-looking information" within the meaning of applicable securities legislation. This forward-looking information includes, among others, statements regarding the outcome of the Arrangement and the follow-on sale of assets to Manulife, estimates of production from Alberta Clipper and the anticipated payment of distributions to former Alberta Clipper shareholders. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by NAL and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information. The material risk factors include, but are not limited to, failure to realize anticipated synergies from the acquisition of Alberta Clipper, uncertainty of estimates and projections relating to production and reserves and NAL's ability to implement its business strategy. Readers are cautioned that the foregoing list of risk factors is not exhaustive.

BOE CONVERSION

In this press release, the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (mcf) of natural gas for one barrel of oil and is based on an energy equivalence conversion method. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead.

ABOUT NAL

NAL Oil & Gas Trust provides investors with a yield-oriented opportunity to participate in the Canadian Upstream Conventional Oil and Gas Industry. The Trust generates monthly cash distributions for its Unitholders by pursuing a strategy of acquiring, developing, producing and selling crude oil, natural gas and natural gas liquids from pools in southeastern Saskatchewan, central Alberta, northeastern British Columbia and Lake Erie, Ontario. Trust units trade on the Toronto Stock Exchange under the symbol "NAE.UN".

Contact Information

  • NAL Oil & Gas Trust
    Clayton Paradis
    Manager, Investor Relations
    (403) 294-3620 or Toll Free: 1-888-223-8792
    (403) 515-3407 (FAX)
    Email: investor.relations@nal.ca
    Website: www.nal.ca