NAL OIL & GAS TRUST

NAL OIL & GAS TRUST

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Company Overview
NAL Oil & Gas Trust (the Trust), headquartered in Calgary, Canada, 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 and held assets in geographic areas, including Alberta, Saskatchewan and Ontario. It was incorporated in May of 1996.
During 2006, the Trust participated in the drilling of 49 gross (28.36 net) wells, and operated 45 (27.65 net) of the wells drilled. A total of 12 (5.5) wells were drilled in Southeast Saskatchewan. As of December 2006, the Trust’s proved reserves totaled 40.8 million boe and proved plus probable reserves amounted to 58.2 million boe. The Trust is managed by NAL Resources Management Limited, which manages oil and natural gas transactions in Canada.
Business Summary
The Company is a Calgary-based conventional oil and gas royalty trust, created in May 1996.
Description and history
The Trust is a Calgary-based conventional oil and gas royalty trust, created in May 1996. The Trust generates monthly cash distributions, paid to its Unitholders, by acquiring, developing, producing and selling crude oil, natural gas and natural gas liquids in Alberta, Saskatchewan and Ontario.
The Trust is actively managed by NAL Resources Management Limited, a wholly-owned subsidiary of Manulife Financial. In addition to manage its oil and gas properties, the Trust runs the oil and gas operations on behalf of Manulife Financial. In 2002, total production managed by the Trust averaged 24,000 barrels of oil equivalent per day (boe/d), with the Trust’s share amounting to 8,712 boe per day. At year-end, the Trust held 29.6 million barrels of oil equivalent (boe) in reserves, with plans for a $30 million development program to be applied to a number of drilling opportunities in 2003.
The Trust provides Unitholders the opportunity to invest in the oil and gas industry with less of the risk typically associated with a pure equity investment in the energy sector. Unitholders receive monthly distributions based on the revenue generated by the Trust. An investment in the Trust also carries certain tax advantages as the Trust’s units qualify for Registered Retirement Savings Plans, Deferred Profit Sharing Plans, Registered Education Savings Plans and Registered Retirement Income Funds.
Headquartered in Calgary, Alberta, formated on March 8, 1996 and the Company’s shares were listed on Toronto Stock Exchange on May 9, 1996 under the symbol “NAE.UN”.

Business Line
Open-end investment trust that generates distributions through the acquisition, development, production and marketing of oil, natural gas and natural gas liquids
Subsidiary
ALBERTA CLIPPER ENERGY INC.
Advisor
KPMG LLP
IPO date
5/9/1996
US SIC Code
6733
Company Address
Suite 1000
550, 6th Avenue SW
City province or state postal code
T2P 0S2, CALGARY, AB
Phone: +1 403 294 3600
Fax: +1 403 294 3601
Country address: CANADA
Website url: www.nal.ca