CALGARY--(CCNMatthews - Jan. 16) - NAL Oil & Gas Trust ("NAL" or the "Trust") is meeting with investment analysts today in Calgary to provide an update to NAL's 2006 guidance and to outline further detail on 2007 plans provided in its December 14, 2006 press release. The presentation will be available for viewing on NAL's website by January 17th.

As to full year 2006 performance, NAL forecasts that it will deliver operating performance consistent with its original guidance outlined in January 2006.

                           2006 Full Year Guidance
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                                           January 2006           Current
                                             Guidance            Estimates
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    Average total production (boe/d)     19,200 - 19,800      19,400 - 19,500
    Capital expenditures ($MM)                        95            120 - 125
    Operating costs ($/boe)                  8.30 - 8.70          8.30 - 8.50
    G&A ($/boe)(1)                           1.70 - 1.85          1.55 - 1.70
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    (1) Excluding unit-based compensation expense.

"We are proud of our consistent track record as a management team in meeting our operating guidance targets and in communicating our plans clearly to the marketplace. The strong teamwork between our operating and financial teams allows us to respond to changes and supports our commitment to meet our targets, and creates a solid foundation for our plans in 2007," said Andrew Wiswell, President and CEO.

Moving into 2007, NAL is planning an active year with $106 million in capital spending in its core areas. Our guidance for full year 2007 is consistent with our December 14, 2006 press release with the exception of operating costs. NAL's forecast for operating costs is lowered to $8.90 - $9.40 per boe from $9.50 - $10.00 per boe based upon better-than-expected fourth quarter 2006 cost performance.

                           2007 Full Year Guidance
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           Average total production (boe/d)        18,500 - 19,000
           Capital expenditures ($MM)                          106
           Operating costs ($/boe)                     8.90 - 9.40
           G&A ($/boe)(1)                              1.75 - 1.95
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           (1) Excluding unit-based compensation expense.

As outlined in the presentation, 45% of 2007 capital spending will be concentrated in the first six months of the year, with the remaining 55% in the third and fourth quarters, providing NAL with significant flexibility to adjust spending later in the year. Consistent with the capital program and taking into account weather and plant turnarounds in the second quarter of 2007, production volumes will be lower in the second quarter, but are expected to recover in the third and fourth quarters.

Other highlights in the presentation include our key messages and 2007 strategies and priorities. The key messages outline NAL's strengths and competitive advantages moving into 2007.

                                 Key Messages


    -   Quality asset base and operating teams
    -   Conservative, flexible 2007 plan
    -   Above average netbacks
    -   Competitive balance sheet: 1.0 - 1.1 times debt-to-cash flow
    -   Attractive valuation: current yield at 15.7 percent
    -   Manulife: our strategic financial partner

As to our 2007 strategies and priorities, we continue to focus on execution in our operations, assessments of incremental acquisition opportunities and evaluation of alternative structures for NAL in light of the proposed changes to trust legislation.

                       2007 Strategies and Priorities


    -   Execute an active capital program - three-year inventory
    -   Deliver targeted operational performance
    -   Add incremental opportunities in core areas
    -   Actively evaluate acquisition opportunities
    -   Retain experienced people
    -   Leverage Manulife relationship
    -   Assess alternative structures

NAL continues to forecast distributions of $0.16 per month based upon commodity prices of US$64.00/bbl West Texas Intermediate and CDN$7.50/GJ for natural gas. The Trust will continue to monitor commodity prices and look for opportunities to hedge at or near its budgeted levels. For 2007, NAL currently has 27 percent of its estimated crude oil production and 45 percent of its estimated natural gas production hedged at or above market prices.

"First and foremost, we are an oil and gas development and production entity," said Mr. Wiswell. "While changes to the taxation of income trusts that have been proposed by the Federal Government had a negative impact on the value of our units, the opportunities in our asset base remain attractive."

NAL Oil & Gas Trust is an open-end investment trust 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:

Gord Currie
Manager, Investor Relations
(403) 294-3620 or Toll Free: 1-888-223-8792
(403) 515-3407 (FAX)
Email: investor.relations@nal.ca
Website: www.nal.ca