CALGARY, ALBERTA--(Marketwire - May 10, 2012) - NAL Energy Corporation ("NAL" or the "Corporation") (TSX:NAE) announces that its Board of Directors has declared a monthly dividend of $0.05 per common share payable on June 15, 2012, to shareholders of record on May 23, 2012. The shares will begin trading on an ex-dividend basis on May 18, 2012.
These dividends are designated as "eligible dividends" for Canadian income tax purposes.
NAL's Board of Directors sets the dividend level taking into consideration commodity prices, forecast cash flow of the Corporation, financial market conditions, availability of financing, internal capital investment opportunities and taxability.
The proposed plan of arrangement (the "Arrangement") involving NAL, the shareholders of NAL and Pengrowth Energy Corporation ("Pengrowth") is expected to become effective on or about May 31, 2012. Upon completion of the Arrangement, NAL's dividend reinvestment and optional common share purchase plan (the "NAL DRIP") will be amended such that all declared but unpaid dividends which would otherwise be applied to the purchase of NAL common shares will instead be applied to the purchase of common shares of Pengrowth (the "Amended NAL DRIP"). Under the Arrangement, all existing participants in the NAL DRIP will be deemed to be participants in the Amended NAL DRIP without any further action on the part of the participant.
NAL Energy Corporation generates returns for its shareholders by pursuing a strategy of acquiring, producing and selling crude oil, natural gas and natural gas liquids from assets based in southeastern Saskatchewan, central Alberta, and northeastern British Columbia.
CAUTION REGARDING FORWARD LOOKING INFORMATION
This press release contains statements that constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as "anticipate", "expect", "may", "will", "could", "plan", "believe" and "target" and similar words suggesting future events or future performance. This press release contains forward-looking information pertaining to, among other things, the completion of the Arrangement, its effect on the NAL DRIP and the adoption of the Amended NAL DRIP.
Various assumptions were used in making the statements contained in the forward-looking information contained in this press release. Such information is based on current expectations that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated by NAL and described in the forward-looking information contained in this press release. These risks and uncertainties include, without limitation, the failure of NAL or Pengrowth to obtain necessary securityholder, regulatory, court and other third party approvals, or otherwise satisfy the conditions to the completion of the Arrangement in a timely manner or at all. Undue reliance should not be placed on forward-looking information.
Forward-looking information is based on the expectations and opinions of NAL's management at the time the information is released. Except as may be required by law, NAL assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.