NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:   NAL OIL & GAS TRUST

TSX SYMBOL: NAE.UN

OCTOBER 22 2001 - 15:25 EDT

NAL Oil & Gas Trust Announces Trust Unit Offering


NAL Oil & Gas Trust announces that is has entered into an
underwriting agreement with a syndicate of underwriters led by RBC
Dominion Securities Inc. and including BMO Nesbitt Burns Inc., CIBC
World Markets Inc., Merrill Lynch Canada Inc., National Bank
Financial Inc., Raymond James Ltd. and Scotia Capital Inc., to sell
3,350,000 Trust Units at a price of $9.00 per Trust Unit to raise
gross proceeds of $30,150,000 on a bought deal basis. This offering
is subject to normal regulatory approval and is expected to close
on or about November 8, 2001.

NAL has also granted the underwriters an option, exercisable in
whole or in part at any time until forty-eight hours prior to
closing of the offering, to purchase up to an additional 650,000
Trust Units, as well as an over-allotment option, exercisable in
whole or in part for a period of up to 30 days following the
closing of the offering. to purchase up to an additional 600,000
Trust Units. Should these options be fully exercised, the total
gross proceeds of the issue would be $41,400,00.

The first distribution in which purchasers of the new Trust Units
will be entitled to participate will be for the month of November,
payable on December 17, 2001.

A portion of the net proceeds from the offering will be used to
partially fund the balance of the Trust's 2001 capital development
program. The balance will be used to repay outstanding indebtedness
of NAL Energy Inc and NAL Oil & Gas Ltd. in order to strengthen the
Trust's ability to make future acquisitions.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction.
The Trust Units offered will not and have not been registered under
the United States Securities Act of 1933 and may not be offered or
sold in the United States absent registration or applicable
exemption from the registration requirement. 

NAL Oil & Gas Trust is an open-end investment trust with
investments in the oil and natural gas industry. The Trust Units of
the Trust trade on The Toronto Stock Exchange under the symbol
"NAE.UN".

For more information please contact:

Donald Driscoll, President and Chief Executive Officer
Curtis Hicks, Vice President, Finance and Chief Financial Officer

Telephone: 403-294-3600  Toll Free: 888-223-8792
Fax: 403-294-3601
E-mail: Investor.Relations@nal.ca
Website: www.nal.ca