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NAL Oil &; Gas Trust enters into arrangement agreement to acquire BreakerEnergy Ltd.

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^{Published in Business and Finance on Tuesday, October 13th 2009 at 3:35 GMT by Market Wire}  

 PROFORMA SUMMARY BREAKER(1) NAL PROFORMA --------------------------------- 2009 Avg. Production (boe/d) 6,700 23,500(2) 30,200 Production Weighting (%) Oil / NGL 45 52 50 Natural Gas 55 48 50 Reserves (MMboe) Proved 12 51 63 Probable 11 22 33 --------------------------------- Proved plus Probable 23 73 96 Net Undeveloped Land ('000) 140 410 550 Tax Pools ($MM) 270(3) 936 1,206 Notes: 1) NAL internal estimates; 2) Mid-point of 2009 full year guidance; 3) As at June 30, 2009. KEY ACQUISITION BENEFITS - Broadens NAL's opportunity base by adding two new core areas at oil- focused Irricana in central Alberta and the Fireweed natural gas property in northeast British Columbia which, together, represent 60- 65% of Breaker's current production. Breaker also has production and attractive opportunities at Girouxville, East Prairie and Provost. - Provides a significant inventory of low risk development opportunities which are complementary to NAL's horizontal drilling experience in Saskatchewan and with the multi-stage frac applications in the Cardium play in central Alberta. Breaker's assets are characterized by significant resources in place with low current recovery factors and the opportunity to increase recovery factors over time. - Operated production (over 90%) with high working interest. - Production of 6,700 boe/d, 45% weighted toward oil and liquids. - Adds 23 million boe of proved plus probable reserves - a 32% increase over NAL's current reserve base with future potential to add incremental reserves in all areas. - Contributes approximately 140,000 net undeveloped acres - a 34% increase over NAL's current undeveloped land inventory. - Maintains NAL's balance sheet strength and flexibility to pursue future acquisitions. - The Transaction is accretive to cash flow, production, reserves and net asset value on a per unit basis while increasing the Trust's proved and probable reserve life index ("RLI"). 

 NAL Pro NAL Breaker forma Proved RLI (years) 5.9 4.9 5.7 Proved and Probable RLI (years) 8.5 9.4 8.7 

 Production (6,700 boe/d): - $58,000 per boe/d Reserves: - $32.42 per proved boe - $16.91 per proved plus probable boe