2009-10-27-2009-10-13-2009-12-11

Acquired company with assets in in AB, BC, gaining 7,000 BOE/d, 12 MMBOE proved.

NAL Oil & Gas Trust, Calgary, (Toronto: NAE-UN) has closed its previously announced acquisition of Breaker Energy Ltd., Calgary, (Toronto: WAV) for approximately C$406.5 million.

The deal valued production at C$58,000 per barrel equivalent, proved reserves at C$32.42 barrels equivalent and proved and probable reserves at C$16.91 each, according to NAL.

NAL issued approximately 25 million trust units for C$313.5 million at a deemed price of C$12.54 per trust unit and approximately C$93 million in Breaker net debt.

The deal valued Breaker shares at approximately C$5.96 per share and a 12% premium using the preceding 20-day volume weighted average trading prices for Breaker common shares and NAL units.

The assets include approximately 140,000 net undeveloped acres (80% average working interest), including the Irricana and Millard properties in central Alberta and the Fireweed area in northeastern British Columbia.

Production from the acquisition is approximately 7,000 barrels of oil equivalent per day (45% oil and liquids). Proved reserves are 12 million barrels equivalent (69% gas) and proved and probable reserves are 23 million barrels equivalent. NAL's production now totals 30,200 barrels equivalent per day, and the company has proved reserves of 63 million barrels equivalent and proved and probable reserves of 96 million barrels equivalent.

NAL president and chief executive Andrew Wiswell says, "The addition of the Breaker assets is on strategy in terms of adding assets with upside potential and adds significant future drilling inventory as the trust prepares for conversion to a corporation in early 2011."

BMOCapital Markets was financial advisor to NAL. Breaker's financial advisor was FirstEnergy Capital Corp., while its strategic advisors were National Bank Financial Inc. and GMPSecurities LP.