Press Release - MAY 31, 2006 - 23:59 ET

NAL Oil & Gas Trust Announces Closing of Management Agreement Restructuring

CALGARY--(CCNMatthews - May 31) - NAL Oil & Gas Trust (TSX:NAE.UN) (the "Trust") is pleased to announce that it has completed the previously announced restructuring of the existing management agreement (the "Agreement") with NAL Resources Management Limited (the "Manager") effective January 1, 2006. At the Trust's annual and special meeting of unitholders held today, unitholders voted 99.1% in favour of restructuring the Agreement. The Manager is a wholly- owned subsidiary of Manulife Financial Corporation ("Manulife"). The Agreement has been in place since the Trust's inception in 1996.

In connection with the restructuring of the Agreement, the Trust paid a one time $30 million restructuring fee (the "Restructuring Fee") to the Manager. Immediately following the payment of the Restructuring Fee, an affiliate of Manulife subscribed for 1,592,357 trust units of the Trust at a price of $18.84 per trust unit, being the weighted average trading price of the trust units over the five trading days ending on the third trading day preceding March 1, 2006, the date of the agreement in principle providing for the restructuring of the Agreement. The trust units are subject to a contractual lock-up agreement, which will restrict their disposition over a three-year period.

The benefits of this restructuring to the Trust include eliminating future management fees, securing a long-term arrangement for the management of the Trust with flexibility to terminate with no further payments and enhancing the oversight and governance by the Trust.

NAL Oil & Gas Trust is an open-end investment trust generating 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
Gordon Currie
Manager of Investor Relations
(403) 294-3620 or Toll Free: 888-223-8792
Fax: (403) 515-3407
Email: Investor.Relations@nal.ca [1]
Website: www.nal.ca [2]