Standard & Poor's Initiates Coverage on NAL Oil & Gas Trust
Standard & Poor’s has commenced Factual Stock Report coverage on NAL Oil & Gas Trust.
NAL Oil & Gas Trust 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 assets in Alberta, Saskatchewan, Ontario and British Columbia.
On Aug. 31, 2007, the trust closed the acquisition of Seneca Energy Canada Inc. for Canadian Dollar (C$) 245.1 million plus costs of C$0.9 million. The acquisition added 10.3 million barrels of oil equivalent (boe) of proved plus probable reserves and production averaging 4,400 boe/d from September 2007 to year-end 2007. This production is weighted 85% to natural gas. The transaction also added 157,287 acres of net undeveloped land and growth opportunities to the trust.
The trust's third quarter 2007 production was 20,182 boe/d (18,765 boe/d excluding Seneca). The third quarter of 2007 includes Seneca production for the month of September. The average production for September was 23,222 boe/d, which includes 4,346 boe/d related to Seneca. For the nine months ended Sept. 30, 2007, production was 19,519 boe/d (19,042 boe/d excluding Seneca).