NAL Oil & Gas Acquires Seneca Energy Canada for $246.6M

On August 31, 2007, NAL Oil & Gas Trust (NAL) acquired Seneca Energy Canada Inc., a private oil and gas company, for an aggregate purchase price of approximately $246.6 million, excluding post-closing adjustments. NAL financed a portion of the purchase price of the acquisition with a $225 million bought deal financing of 10,246,000 subscription receipts at a price of $12.20 each and $100,000,000 aggregate principal amount of 6.75 per cent convertible extendible unsecured subordinated debentures. The public offering was underwritten by a syndicate led by RBC Dominion Securities Inc. and BMO Nesbitt Burns Inc.

NAL was represented by Osler, Hoskin & Harcourt LLP for both the acquisition and the financing with a team that included Robert Desbarats, Q.C., Janice Buckingham, Paula Olexiuk, and Rob Ashcroft (energy) on the acquisition and with Don Boykiw, Rummy Basra, and Matthew Kraemer (corporate) and Nancy Diep (tax) on the financing. Jochen Struck, Q.C. of Felesky Flynn LLP also provided tax advice to NAL on the acquisition.

Seneca was represented by Bennett Jones LLP with a team that included Donald Greenfield, Thomas McInerney, Andrew Lamb and Alan L. Rautenberg.

The underwriters were represented by Fraser Milner Casgrain LLP with a team that included Dale Skinner, Toby Allan and Keith Inman (securities) and Derek Kurrant (tax).