Press Release -

NAL Oil & Gas Trust Announces Trust Unit Offering

NEWS RELEASE TRANSMITTED BY CCNMatthews [1]

FOR:   NAL OIL & GAS TRUST

TSX SYMBOL: NAE.UN

SEPTEMBER 13 2000 - 15:05 EDT

NAL Oil & Gas Trust Announces Trust Unit Offering


NAL Oil & Gas Trust announces that is has entered into an
underwriting agreement with a syndicate of underwriters led by
RBC Dominion Securities Inc. to sell 4,300,000 Trust Units at a
price of $8.90 per Trust Unit to raise gross proceeds of
$38,270,000 on a bought deal basis. NAL has granted the
underwriters an option, exercisable in whole or in part, within
30 days of the date of closing to purchase up to an additional
645,000 Trust Units at the same offering price to cover any
over-allotments. Should the over-allotment option be fully
exercised, the total gross proceeds of the issue would be
$44,010,500. This offering is subject to normal regulatory
approval and is expected to close on or about October 2, 2000.

A portion of the net proceeds from this offering will be used to
repay outstanding debt, including that assumed with the Draig
Energy Ltd. acquisition. The balance will be used to fund the
$7.0 million remaining in the 2000 capital development program
and for general corporate purposes.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any
jurisdiction. The Trust Units offered will not and have not been
registered under the United States Securities Act of 1933 and may
not be offered or sold in the United States absent registration
or applicable exemption from the registration requirement. 

NAL Oil & Gas Trust is an open-end investment trust with
investments in the oil and natural gas industry. The Trust Units
of the Trust trade on the Toronto Stock Exchange under the symbol
"NAE.UN".

For more information please contact:

Donald Driscoll, President & Chief Executive Officer
Ben Bury, Vice President, Marketing & Business Development

Telephone: 403-294-3600  Toll Free: 888-223-8792
Fax: 403-294-3601
E-mail: Investor.Relations@nal.ca [2]
Website: www.nal.ca [3]

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES.




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