An investment in NAL Oil & Gas Trust provides a yield-oriented opportunity to participate in the Canadian upstream conventional oil and gas industry. The Trust generates monthly cash distributions for its Unitholders by pursuing a strategy of acquiring, developing, producing and selling crude oil, natural gas and natural gas liquids from pools in southeastern Saskatchewan, central Alberta, northeastern British Columbia and under Lake Erie, Ontario. NAL manages risk by focusing on development of producing oil and gas pools, carefully managing costs and hedging up to 50 percent of its annual net production to manage cash flows and protect distributions and capital programs.

The Trust's objective is to achieve stable and sustainable distributions and above average rates of return to unitholders by applying professional capabilities in all of its core areas. NAL follows three main courses:

• Through prudent development, NAL seeks to optimize the return from its existing properties and   continue to enhance recovery factors through operational and technical capabilities and the use of new technologies.
• NAL will continue to pursue the selective acquisition of new properties, and core areas that meet its acquisition criteria, enhance its strategic position and/or add value to its unitholders.
• NAL will pursue corporate acquisitions that add value and strengthen its overall strategic position.