NAL Oil & Gas Trust today announced financial and operational results that reflect continued strong performance during the second quarter ended June 30, 2007. All amounts are in Canadian dollars unless otherwise stated.

President and Chief Executive Officer Andrew Wiswell is encouraged by NAL’s strong performance and continued positive momentum in the second quarter which were achieved despite wet weather and planned turnarounds. “Through focused effort by our operating teams, we were able to exceed our production guidance again in the second quarter”, said Mr. Wiswell, “and we did it while spending less capital than last year. Our operating costs remained below guidance and we maintained our strong balance sheet, which is one of the best among the energy trusts. Based on our results to date, we have decided to increase our production guidance and narrow our operating cost target range for 2007, while reducing planned capital spending.”

SECOND QUARTER HIGHLIGHTS

- Production averaged 18,946 barrels of oil equivalent per day (boe/d) during the second quarter of 2007, exceeding our guidance range. This performance was achieved as a result of a strong contribution from our base production, the tie-in of volumes that were ‘behind pipe’ in the first quarter, and a lower than expected impact of plant turnarounds during the three month period. Our production mix remains relatively consistent over the first 6 months of the year, weighted 59% to Crude and NGL’s and 41% to Natural Gas. We are increasing our guidance on production volumes to 19,100 - 19,300 boe/d for the full year.

complete this article visit at : biz.yahoo.com