CALGARY, ALBERTA--(Marketwire - Feb. 11, 2008) - NAL Oil & Gas Trust ("NAL" or the "Trust") (TSX:NAE.UN) today announced that it has entered into an arrangement agreement (the "Arrangement Agreement") with two private oil and gas companies, Tiberius Exploration Inc. and Spear Exploration Inc. (collectively, the "Private Companies") pursuant to which NAL will acquire all of the issued and outstanding common shares of the Private Companies (the "Proposed Transaction") by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement") for total consideration of approximately $115 million, subject to adjustment, consisting of approximately 2.35 million Trust Units of the Trust and approximately $86.25 million in cash.

The Trust has entered into a further agreement with its strategic partner, The Manufacturers Life Insurance Company ("MLI"), to contribute the assets of the Private Companies to a limited partnership owned as to a 50% interest by each of NAL and MLI immediately following the closing of the Arrangement. MLI will acquire its 50% interest in the limited partnership by payment of one-half of the purchase price for the Private Companies under the Proposed Transaction. Consequently, the total acquisition cost to NAL of its 50% interest in the acquired properties will be approximately $57.5 million, subject to adjustment, comprised of approximately $28.75 million in cash and approximately 2.35 million Trust Units.

In a separate transaction, NAL recently purchased certain assets in the Steelman/Elswick area from a third private company for $6.75 million in cash. NAL currently operates these properties.

Acquisition Highlights (NAL's 50% Share)

The Private Companies own and operate 51/4 sections of land in Southeast Saskatchewan immediately adjacent to NAL's Alida properties. The Proposed Transaction will add 2.1 million barrels of proved plus probable oil equivalent ("boe") reserves in NAL's largest core area. The aggregate January production from the properties to be acquired from the Private Companies was 925 boe per day. The new properties will contribute primarily light oil production from the Tilston formation, along with associated natural gas and natural gas liquids. Royalties are expected to be less than 16 percent and operating costs are in the $7.50 per boe range, resulting in netbacks of over $60.00 per boe at current oil prices. The Steelman/Elswick assets will contribute approximately 75 boe per day of light oil production.

Based on NAL's commodity price and exchange rate assumptions, these acquisitions are anticipated to be accretive to funds flow from operations on a per unit basis in both 2008 and 2009, while the impact on NAL's debt to cash flow ratio is neutral. Going forward, NAL has identified opportunities for reserves additions through incremental drilling and increased recovery factors, as well as savings due to operating cost synergies and consolidation of production infrastructure.

Management and Board Recommendations

The Boards of Directors of each of the Private Companies and NAL Energy Inc. ("NAL Energy") have unanimously approved the Proposed Transaction. The Boards of Directors of each of the Private Companies has concluded that the Proposed Transaction is fair to the shareholders of the Private Companies, is in the best interests of their respective shareholders, and have resolved to recommend that holders of the Private Companies' common shares vote their shares in favour of the Proposed Transaction. The directors and officers of the Private Companies have entered into support agreements to vote their securities in favour of the Arrangement. The Arrangement Agreement provides for non-completion fees to be payable by each of the Private Companies to NAL in certain circumstances if the Arrangement is not completed.

Closing of the Proposed Transaction is expected to occur on or before the end of February 2008 but no later than March 31, 2008, subject to the satisfaction of certain conditions including approval of the Private Companies' shareholders and the Court of Queen's Bench of Alberta.

GMP Securities L.P. ("GMP") is acting as the exclusive financial advisor to each of the Private Companies in respect of the Arrangement. GMP has advised the Boards of Directors of each of the Private Companies that it is of the opinion, as of the date hereof, that the consideration to be received by the Private Companies' shareholders pursuant to the Arrangement is fair, from a financial point of view, to the Private Companies' shareholders.

Related Party Considerations

The contribution of the assets of the Private Companies to the limited partnership owned equally by NAL and MFC may be considered a "related party" transaction for purposes of Multilateral Instrument 61-101 ("MI 61-101") as NAL Resources Management Limited ("NAL Management"), the manager of the Trust, is also a wholly-owned subsidiary of MLI. The contribution of the assets of the Private Companies to the limited partnership was considered, evaluated and approved by the Board of Directors of NAL Energy. The Board of Directors of NAL Energy oversees the acquisition and disposition of oil and gas properties by the Trust. The majority of the directors of NAL Energy are independent of NAL Management and MLI and all of such directors are elected directly by NAL's unitholders. The contribution of the properties to the limited partnership owned by NAL and MLI is exempt from the valuation and securityholder approval requirements of MI 61-101 in that, in the view of the directors of NAL Energy, neither the fair market value of the properties of the Private Companies being contributed to the limited partnership nor the fair market value of the consideration being received for such properties exceeds 25% of the market capitalization of the Trust.

Forward Looking Statements

This press release contains statements that constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities legislation. This forward-looking information includes, among others, statements regarding: business plans for drilling, exploration and development; estimates of production and operations performance; estimated amounts and timing of capital expenditures; estimates of operating costs and unit operating costs; business strategy and plans or budgets; estimated timing and results of new development; and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance.

Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by NAL and described in the forward-looking information contained in this press release. The material risk factors include, but are not limited to: delays in completion or non-completion of the Proposed Transaction, the risks of the oil and gas industry, such as operational risks in exploring for, developing and producing oil and natural gas, market demand and unpredictable facilities outages; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of estimates and projections relating to production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates; the outcome and effects of any future acquisitions and dispositions; safety and environmental risks; uncertainties as to the availability and cost of financing and changes in capital markets; competitive actions of other industry participants; changes in general economic and business conditions; the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; results of NAL's risk mitigation strategies, including insurance; and NAL's ability to implement its business strategy. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Additional information on these and other factors which could affect NAL's operations or financial results are included in NAL's most recent Annual Information Form and Annual Financial Report. In addition, information is available in NAL's other reports on file with Canadian securities regulatory authorities.

Forward-looking information is based on the estimates and opinions of NAL's management at the time the information is released.

Boe Conversion

Throughout this press release, the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (mcf) of natural gas for one barrel of oil and is based on an energy equivalence conversion method. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead.

About NAL Oil & Gas Trust

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

Contact Information:

NAL Oil & Gas Trust
Gordon 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