CALGARY--(CCNMatthews - Nov. 21) - NAL Oil
& Gas Trust (the "Trust" or "NAL") (TSX: NAE.UN) is a member of both
the Canadian Association of Income Funds ("CAIF") and the newly formed
Coalition of Canadian Energy Trusts ("CCET"). We support both of these
organizations in requesting that the Federal Government enter into a
consultation process involving all stakeholder groups prior to enacting
the proposed legislation. "The CCET has requested a meeting with Federal
Minister of Finance Jim Flaherty in Ottawa, at his earliest
convenience, in order to help the Minister and his staff understand the
irreparable harm that their proposed policy has had on the personal
financial health of our unitholders across the country, and the
extremely damaging effect on the confidence of foreign investors in
Canadian capital markets," said President and Chief Executive Officer
Andrew Wiswell. "We continue to await the Minister's reply."
Like many other income trusts and investors, NAL was surprised and
disappointed by the proposed changes to trust taxation announced by the
Finance Minister on October 31, 2006. While the changes proposed by the
Minister are not scheduled to take effect for four years, the market
reacted immediately, reducing NAL's unit price 33 percent in the two
weeks since the announcement. This decline has represented a $468
million reduction in market capitalization of the Trust. NAL is strongly
opposed to the unilateral action taken by the Government of Canada and
the incalculable harm it has caused our unitholders.
NAL Oil & Gas Trust was formed in 1996 and has delivered
consistent performance since inception. NAL Resources, which manages the
Trust, has grown from 31 employees in 1996 to 340 full-time staff
focused on our business, plus countless service sector contractors who
support our operations. Government and industry associations have
recognized NAL's commitment to safety and to preservation of the
environment, and our employees are actively involved in the areas where
we work, contributing to the community. We are proud of our ten-year
track record of employment and value creation.
Since inception, NAL has invested over $1 billion in the acquisition
and development of oil and gas fields in Southeast Saskatchewan and
Central Alberta. At Alida, Saskatchewan for example, NAL applies
leading-edge technology to extend the life of the pool and maximize the
ultimate recovery of hydrocarbons. Last year the pool achieved peak
production more than 50 years after it was discovered. In a little over
ten years as a Trust, NAL has paid out over $663 million to unitholders
across Canada and the United States. The Trust has approximately 35,000
unitholders and is owned 81 percent by individual investors. Many
working Canadians use distributions from income trusts to augment their
employment income, while many retirees rely on distributions to fund
their day-to-day living expenses.
To support the initiatives sponsored by these industry associations,
unitholders are encouraged to contact their Member of Parliament, the
Minister of Finance and the Prime Minister to make them aware of the
direct impact this decision has had on their financial position, and
encourage them to engage in meaningful and constructive consultation
with the CCET. For more information visit the CAIF website at www.caif.ca. A directory of Members of Parliament can be found at www.canada.gc/directories/direct_e.html. Non-resident unitholders are encouraged to contact the Minister of Finance at Flaherty.j@parl.gc.ca or the Prime Minister at pm@pm.gc.ca.
NAL Oil & Gas Trust is an open-end investment trust that
generates distributions through the acquisition, development, production
and marketing of oil, natural gas and natural gas liquids. The Trust
owns high quality assets in Alberta, Saskatchewan and Ontario. Trust
units trade on the Toronto Stock Exchange under the symbol "NAE.UN".
Contact Information:
Gordon Currie
Manager, Investor Relations
(403) 294-3620 or Toll Free: (888) 223-8792,
Fax: (403) 515-3407
Email: investor.relations@nal.ca
Website: www.nal.ca