CALGARY, ALBERTA--(Marketwire - Aug. 28,
2007) - NAL Oil & Gas Trust (TSX:NAE.UN) has closed its previously
announced bought deal equity financing with a syndicate of underwriters
to sell 10,246,000 Subscription Receipts at a price of $12.20 per
Subscription Receipt and $100,000,000 aggregate principal amount of
6.75% convertible extendible unsecured subordinated debentures at a
price of $1,000 per debenture for aggregate gross proceeds of
$225,001,200 (the "Offering"). RBC Capital Markets and BMO Capital
Markets led the syndicate that also included CIBC World Markets Inc.,
Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation,
National Bank Financial Inc., Raymond James Ltd. and Peters & Co.
Limited (collectively, the "Underwriters"). In addition, the
Underwriters have been granted an over-allotment option to purchase up
to 1,536,900 Subscription Receipts, exercisable up to 30 days after
closing of the Offering.
Net proceeds from the Offering will be used to partially fund the
Trust's previously announced acquisition of all the issued and
outstanding shares of Seneca Energy Canada Inc., a privately owned oil
and gas company, assets of which include oil and natural gas assets in
Western Canada (the "Acquisition") for $246 million subject to closing
adjustments. The proceeds from the Offering will be held in escrow
pending the closing of the Acquisition. Each Subscription Receipt will
entitle the holder to receive one trust unit of NAL for no additional
consideration on closing of the Acquisition. All regulatory approvals,
including Competition Act approval have been received by NAL. The
Acquisition is expected to close on August 31, 2007.
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:
NAL Oil & Gas Trust
Gordon Currie
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