ENERGY TRUSTS / NAL Oil & Gas Trust Distribution
NAL OIL & GAS TRUST ANNOUNCES MONTHLY DISTRIBUTION
CALGARY, June 16 /CNW/ - NAL Oil & Gas Trust (''NAL'') announced today
that drilling and production rates to date have been proceeding according to
plan and it is confident that annual production targets will be met. However,
due to continuing low oil prices, NAL has revised its 1998 estimated
distribution to $1.12 per unit based on an average WTI price of $15.00 US per
barrel. NAL has prudently chosen to reduce its monthly distribution to $0.07
per trust unit effective with the July 15, 1998 distribution, to Unitholders
of record on June 30, 1998. Income exceeding this monthly distribution amount
will be paid out through special distributions to Unitholders.
NAL's original forecast was based on an estimated 1998 average WTI price
of $16.00 US per barrel. This was forecast to provide a total 1998 cash
distribution of $1.20 per trust unit. The average WTI price for the period
January 1 to May 31, 1998 was only $15.63 US per barrel and has recently been
under $12.00 US per barrel. Increases in NAL's daily production volumes have
helped offset the impact of these lower prices, and are expected to continue
to do so, due to successful drilling results.
A significant portion of NAL's estimated production increases are
scheduled to take affect during the third quarter when oil prices are forecast
to be higher. A 10 percent increase in annual oil volumes has a $0.10 per
unit impact on 1998 cash distributions, while a $1.00 US deviation in WTI oil
price has an $0.08 per unit impact on cash 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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