CALGARY--(CCNMatthews - Jan. 11) - NAL Oil & Gas Trust (TSX:NAE.UN)
(the "Trust") will pay a distribution of $0.16 per unit on February 15,
2005, to Unitholders of record on January 21. The units will begin
trading ex-distribution on January 19. This marks the sixth consecutive
month at this distribution level, and we anticipate no changes for the
foreseeable future.

Trailing cash distributions for the past 12 months total $1.86 per
unit, representing a 13.3% cash-on-cash yield based on the January 10,
2005 closing price of $13.98.

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
Donald P. Driscoll
President & Chief Executive Officer
(403) 294-3600 or Toll Free: (888) 223-8792
Fax: (403) 294-3699

or

NAL Oil & Gas Trust
Paul E. Belliveau
Vice President Finance & Chief Financial Officer
(403) 294-3600 or Toll Free: (888) 223-8792
Fax: (403) 294-3699

or

NAL Oil & Gas Trust
Anne-Marie Buchmuller
Manager, Investor Relations
(403) 294-3600 or Toll Free: (888) 223-8792
Fax: (403) 294-3699
Email: Investor.Relations@nal.ca
Web Site: www.nal.ca