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Thursday, January 17, 2008

Bought 2,000 Units of NAL Oil & Gas Trust Today

This year has been terrible for stock market and I have been staying on the sidelines (like everyone else) and waiting for the market to bottom.

However, I could not resist and I bought 2,000 units of NAE.UN at $11.84 each.

The results of three high impact wells from the Seneca acquisition are nearing release. Depending on the outcome of the three Seneca wells, NAL could have further development potential opportunities with its partners.

Presently, NAE has has a $0.16 per month ($1.92 per year) distribution resulting in a yield of 16.2%. The payout ratio 69% and the payout ratio including capital expenditures is 114%. This Trust has some exploration upside potential. With a +15% yield you get paid to wait. Hopefully we not only get our distibutions but some capital gains potential too.

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