NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  NAL OIL & GAS TRUST

TSX SYMBOL:  NAE.UN

AUGUST 18, 2003 - 15:29 ET

NAL Oil & Gas Trust Announces $98.5 Million Offering Of
Trust Units

CALGARY, ALBERTA--NAL Oil & Gas Trust (TSX: NAE.UN) has entered 
into an underwriting agreement with a syndicate of underwriters 
led by RBC Capital Markets and including BMO Nesbitt Burns Inc., 
CIBC World Markets Inc., Canaccord Capital Corporation, National 
Bank Financial Inc., TD Securities Inc. and Desjardins Securities 
Inc. to sell 10 million Trust Units at a price of $9.85 per Trust 
Unit to raise gross proceeds of $98.5 million on a bought deal 
basis. This offering is subject to normal regulatory approval and 
is expected to close on or about September 4, 2003. 

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 2.5 
million Trust Units. Should this option be fully exercised, the 
total gross proceeds of the issue would be $123,125,000. 

NAL will make a one-time change to its record date for the August 
distribution payable in September from August 29, 2003 to 
September 4, 2003 in order to ensure that subscribers for Trust 
Units pursuant to the offering will be eligible to receive the 
August cash distribution of $0.15 per Trust Unit payable on 
September 15, 2003.  

The net proceeds of the offering will be used to repay a portion 
of the outstanding indebtedness incurred to fund the acquisition 
of oil and gas properties in southeastern Saskatchewan for 
approximately $139 million.  

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 created to 
make investments in high quality oil and natural gas assets. The 
Trust Units trade on The Toronto Stock Exchange under the symbol 
"NAE.UN". 

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR 
DISSEMINATION IN THE UNITED STATES. 

Contact Information:

FOR FURTHER INFORMATION PLEASE CONTACT:
Donald P. Driscoll
President & Chief Executive Officer
(403) 294-3600, Toll Free: 888 223-8792
(403) 294-3699 (FAX)

or

Ronald D. Dooley
Vice President Finance & Chief Financial Officer
(403) 294-3600, Toll Free: 888 223-8792
(403) 294-3699 (FAX)

or

Anne-Marie Buchmuller
Investor Relations
(403) 294-3600, Toll Free: 888 223-8792
(403) 294-3699 (FAX)
Investor.Relations@nal.ca
www.nal.ca