CALGARY--(CCNMatthews - Feb. 25) - NAL Oil & Gas Trust (TSX: NAE.UN) (the
"Trust" or "NAL") today announced that of the $1.85 per Trust unit in cash
distributions declared to Unitholders in 2004 and included in the 2004 "T3
Supplementary" slips ("T3"), 37.4% or $0.69 is considered return of capital
(tax-deferred) and 62.6% or $1.16 is deemed "other income" (taxable) in
accordance with the table set out below.
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Tax Information
------------------------------------------------------------
Record Date Distribution Other Return of
($/Unit) Income Capital
($/Unit) ($/Unit)
------------------------------------------------------------
------------------------------------------------------------
January 22, 2004 0.1500 $0.09386 $0.05614
February 23, 2004 0.1500 $0.09386 $0.05614
March 22, 2004 0.1500 $0.09386 $0.05614
April 22, 2004 0.1500 $0.09386 $0.05614
May 25, 2004 0.1500 $0.09386 $0.05614
June 22, 2004 0.1500 $0.09386 $0.05614
July 22, 2004 0.1500 $0.09386 $0.05614
August 23, 2004 0.1600 $0.10012 $0.05988
September 22, 2004 0.1600 $0.10012 $0.05988
October 22, 2004 0.1600 $0.10012 $0.05988
November 22, 2004 0.1600 $0.10012 $0.05988
December 22, 2004 0.1600 $0.10012 $0.05988
------------------------------------------------------------
2004 $1.8500 $1.15764 $0.69236
------------------------------------------------------------
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The following information is provided to assist individual Canadian Unitholders
of NAL Oil & Gas Trust in the preparation of their 2004 Income Tax Return and is
not to be considered tax advice to any particular individual but rather, general
information.
Trust Units held within an RRSP, RRIF or DPSP
Unitholders who hold their Trust Units in an RRSP, RRIF or DPSP do not need to
report any amounts for tax purposes.
Trust Units held outside of an RRSP, RRIF or DPSP
Canadian beneficial Unitholders who received distributions in 2004 outside of an
RRSP, RRIF or DPSP will receive a T3 from their broker. Canadian registered
Unitholders who hold their units outside of a registered plan will receive a T3
from Computershare Trust Company of Canada. These Unitholders must report the
taxable portion of 2004 distributions received as "other income" in Box 26 of
their T3.
Adjusted Cost Base (ACB)
The portion of distributions deemed a return of capital reduces the ACB, which
is used in calculating capital gains or losses on the disposition of Trust Units
held by a Unitholder. Accordingly, this amount is not reported on a T3. If a
taxpayer's ACB drops below zero, the negative amount is deemed to be a capital
gain of the individual and, subsequent to this adjustment, the ACB is reset to
zero.
The deadline for mailing all T3 Supplementary Information slips to Unitholders
as required by Canada Customs and Revenue is March 31, 2005.
Non-Resident Unitholders
Investors not residing in Canada are encouraged to seek advice from a qualified
tax advisor in their country of residence to obtain guidance on the appropriate
tax treatment of their distributions.
For additional details on monthly distributions paid in years prior to 2004,
please visit our Website at www.nal.ca.
NAL Oil & Gas Trust is an open-end investment trust created to acquire a royalty
on high-quality producing oil and natural gas properties - principally from NAL
Energy Inc. The Trust Units trade on The Toronto Stock Exchange under the symbol
"NAE.UN".
Contact Information:
Anne-Marie Buchmuller
Manager Investor Relations
(403) 294-3600 or Toll Free: 888-223-8792
(403) 294-3699 (FAX)
Email: Investor.Relations@nal.ca
Website: www.nal.ca