CALGARY--(CCNMatthews - March 17) - NAL Oil & Gas Trust (TSX:NAE.UN) (the "Trust" or "NAL") today announced certain information applicable to U.S. investors preparing their tax returns. For U.S. tax purposes, NAL has not elected to be a partnership and according to its U.S. tax counsel, should be treated as a corporation by its U.S. investors. NAL, based on advice from U.S. tax counsel, believes that the 2004 distributions paid to U.S. residents or citizens should be treated as "qualified dividends" under the Jobs and Growth Tax Relief Reconciliation Act of 2003. Generally, these dividends should be eligible for the maximum rate of 15% applicable to "qualified dividends". Unitholders who are resident in the U.S. are subject to a 15% withholding tax on the distribution received from NAL. U.S. Unitholders should receive a NR4 statement regarding, among other things, the aggregate distributions NAL paid for the year and the amount of Canadian withholding tax applied to such distributions. Canadian withholding taxes should generally qualify for a foreign tax credit for the purposes of computing U.S. income taxes. 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".
NAL Oil & Gas Trust
Anne-Marie Buchmuller
Manager, Investor Relations
(403) 294-3600 or Toll Free: (888) 223-8792
Fax: (403) 294-3699
Email: Investor.Relations@nal.ca
Website: www.nal.ca