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