CALGARY--(CCNMatthews - Oct. 11) - The Board of Directors of NAL Oil & Gas Trust (TSX:NAE.UN) (the "Trust") is pleased to announce a 19% increase in the monthly distributions to $0.19 per unit from $0.16 per unit. This increase in distribution will be paid commencing with the November 15, 2005 distribution to Unitholders of record effective October 21, 2005. The units will begin trading ex-dividend on October 19, 2005. This $0.03 increase in distributions is expected to be sustainable. This action on distributions is supported by positive performance from the February 2005 Addison acquisition, added production from our core areas and consistently strong commodity prices.

The Addison acquisition was completed in February 2005 for a total purchase price of $385 million. This acquisition was a good fit strategically as it was located in our Central Alberta core area, was gas weighted to balance our portfolio, had undeveloped upside and was accretive on all operating and financial measures. At the time of the acquisition, the Trust did not increase monthly distributions but preferred to evaluate the performance of the Addison assets over time and focus on paying down debt over the course of the year. The Trust's long-term debt, net of working capital which exceeded $250 million after the Addison deal, is projected to be in the $200 million range by year-end 2005, with a debt to cash flow ratio of 0.9 times 2005 cash flow at year end.

The Trust's production was previously forecast to increase over the last half of 2005 as our capital spending was forecast to be $45 million vs. $18 million in the first half of 2005. As a result, our production has increased through the third quarter with high activity and contribution from the Addison properties and all our core areas which has positioned the Trust for a strong fourth quarter and positive momentum heading into 2006. Our current forecast is to average on the high side of our guidance of 18,500 to 19,000 BOE for full year 2005 and achieve a 2005 exit rate in excess of 20,000 BOE per day.

Commodity prices have continued strong through 2005. In addition, NAL's natural gas hedges expire October 31, 2005 and market prices will be fully realized in November and December 2005. Currently, the Trust is unhedged for 2006 and the Board will consider 2006 hedging policy prior to year end 2005.

The Trust is also pleased to announce that it has been advised that it will be included as one of the income trusts in the S&P/TSX Composite Index scheduled to be implemented in late 2005/early 2006.

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".

Andrew B. Wiswell, President & CEO

NAL OIL & GAS TRUST

Forward-Looking Statements

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, many of which are beyond NAL's control, including: the impact of general economic conditions in Canada and in the United States, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approval of regulatory authorities. NAL's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that NAL will derive therefrom.

Contact Information:

NAL Oil & Gas Trust
Andrew Wiswell
President & CEO

NAL Oil & Gas Trust
Jonathan Lexier
COO
(403) 294-3600

NAL Oil & Gas Trust
Kelsey Finley
Investor Relations
(403) 515-3481 or Toll Free: (888) 223-8792
Fax: (403) 294-3699
Email: Investor.Relations@nal.ca
Website: www.nal.ca