CALGARY--(CCNMatthews - Dec. 10) - NAL Oil & Gas Trust (TSX:NAE.UN) 
(the "Trust") will pay a distribution of $0.16 per unit on January 17, 
2005, to Unitholders of record on December 22, 2004. The units will 
begin trading ex-distribution on December 20. This marks the fifth 
consecutive month at this distribution level, and we anticipate no 
changes for the foreseeable future.

Trailing cash distributions for the past 12 months total $1.85 per 
unit, representing a 14% cash-on-cash yield based on the December 9, 
2004 closing price of $13.30.

NAL Oil & Gas Trust is an open-end investment trust founded in May 1996 
that generates distributions through the acquisition, development, 
production and marketing of oil, natural gas and natural gas liquids. 
The Trust owns high quality assets in Alberta, Saskatchewan and 
Ontario. Trust units trade on the Toronto Stock Exchange under the 
symbol "NAE.UN".

Contact Information:

NAL Oil & Gas Trust
Anne-Marie Buchmuller
Manager, Investor Relations
(403) 294-3620 or Toll Free: (888) 223-8792
Fax: (403) 294-3699
Email: Investor.Relations@nal.ca
Website: www.nal.ca