ENERGY TRUSTS / NAL Oil & Gas Trust Announces Property Transactions
CALGARY, Dec. 18 /CNW/ - NAL Oil & Gas Trust (''NAL'') announced today
that it has closed two property transactions, estimated to net an additional
$0.03 per unit distribution to NAL unitholders in 1999, based on current
commodity prices. The resulting increase in production from these two
transactions will be approximately 300 barrels of oil per day, with an
effective date of October 1, 1998 for both.
In the first transaction, NAL purchased a substantial interest in
Rosebank, a light oil property located in southeast Saskatchewan, for $10.1
million. NAL Resources Management Limited (the Manager) will assume
operatorship of the Rosebank area effective immediately. This property is in
the immediate area and in the same geological zone as the Alida and Nottingham
units, both of which NAL already has significant ownership, and the Manager is
operator. The addition of the Rosebank area to its portfolio provides NAL
with further interests and development opportunities in one of its core areas.
In the second transaction, NAL sold its interest in both North and South
Liebenthal for a total of $9.9 million. The capital freed by this divestiture
allowed the purchase of Rosebank, a synergistic opportunity for NAL's
unitholders, providing both increased production and distributions.
NAL is an open-end investment trust created to acquire a royalty on high
quality, producing oil and natural gas properties, and is managed by NAL
Resources Management Limited.
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