NAL Energy Corporation Press Releases

Joint News Release: Pengrowth Energy Corporation and NAL Energy Corporation Announce Closing of Strategic Business Combination

Thu, 31 May 2012 09:25:00 -0400

CALGARY, ALBERTA--(Marketwire - May 31, 2012) - Pengrowth Energy Corporation ("Pengrowth") (TSX:PGF) (NYSE:PGH) and NAL Energy Corporation ("NAL") (TSX:NAE) (TSX:NAE.DB) (TSX:NAE.DB.A) (TSX:NAE.DB.B) are pleased to announce that Pengrowth and NAL have completed the business combination of Pengrowth and NAL pursuant to a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement").

Derek Evans , Pengrowth's President & CEO, said "We are pleased with the successful closing of this strategic transaction and welcome Kel Johnston and Barry Stewart to our board of directors. This transaction makes Pengrowth the second largest intermediate producer in Canada, with a larger inventory of high netback opportunities in light oil."

Pengrowth is expected to have an improved ability to internally fund the significant portfolio of oil-weighted development opportunities of the combined operations, including the Lindbergh SAGD project, as well as its exposure to western Canadian light oil plays at Swan Hills, central Alberta and southeast Saskatchewan.

Pursuant to the Arrangement, Pengrowth has acquired all of the issued and outstanding common shares of NAL in a transaction valued at approximately $1.6 billion. NAL shareholders received 0.86 of a Pengrowth share for each NAL share held. Pengrowth has assumed all of the covenants and obligations of NAL relating to the 6.25% Series A Debentures of NAL due December 31, 2014, the 6.25% Series B Debentures of NAL due March 31, 2017, and the 6.75% Debentures of NAL due August 31, 2012 (together, the "NAL Debentures"). Within 30 days, Pengrowth will make repurchase offers for the NAL 6.75% Debentures and NAL 6.25% Series A Debentures, at a price equal to 101% of their respective principal amounts plus accrued and unpaid interest and, for the NAL 6.25% Series B Debentures, at a price equal to 100% of the principal amount plus accrued and unpaid interest. Should a holder of NAL Debentures elect not to accept the repurchase offer, the NAL Debentures will remain outstanding as obligations of Pengrowth and will mature as originally set out in their respective indentures. The NAL Debentures will continue to be listed on the Toronto Stock Exchange (the "TSX") and are expected to trade under the new symbols PGF.DB, PGF.DB.A and PGF.DB.B commencing on or about June 6, 2012. Pursuant to the Arrangement, NAL became a wholly-owned subsidiary of Pengrowth and Pengrowth will continue the operations of NAL and Pengrowth on a combined basis.

The NAL common shares are expected to be delisted from the TSX on or about June 6, 2012.

ABOUT PENGROWTH

Pengrowth Energy Corporation is a dividend-paying, intermediate Canadian producer of oil and natural gas, headquartered in Calgary, Alberta. Pengrowth's assets include Swan Hills light oil, Cardium light oil and liquids-rich gas and the Lindbergh Steam Assisted Gravity Drainage ("SAGD") project. Pengrowth's shares trade on both the Toronto Stock Exchange under the symbol "PGF" and on the New York Stock Exchange under the symbol "PGH".

CAUTION REGARDING FORWARD-LOOKING INFORMATION

The forward-looking statements and information contained in this press release are also affected by the risk factors, forward-looking statements and assumptions and uncertainties described in Pengrowth's and NAL's most recent annual information forms, management's discussion and analysis, consolidated financial statements, management information circulars, quarterly reports, material change reports and news releases. Copies of Pengrowth and NAL's Canadian public filings are available on SEDAR at www.sedar.com. Pengrowth's U.S. public filings, including its most recent annual report form 40-F as supplemented by its filings on form 6-K, are available at www.sec.gov.edgar.shtml.

Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Pengrowth, NAL and the Arrangement, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release and Pengrowth and NAL do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

The forward-looking statements contained in this joint press release are expressly qualified by this cautionary statement.

Contact: Derek Evans
Company Name: Pengrowth Energy Corporation or NAL Energy Corporation
Contact Title: President & Chief Executive Officer
Phone: (403) 233-0224

Joint News Release: Pengrowth Energy Corporation and NAL Energy Corporation Announce Shareholder Approval of Strategic Business Combination

Wed, 23 May 2012 19:12:00 -0400

CALGARY, ALBERTA--(Marketwire - May 23, 2012) - Pengrowth Energy Corporation ("Pengrowth") (TSX:PGF) (NYSE:PGH) and NAL Energy Corporation ("NAL") (TSX:NAE) (TSX:NAE.DB) (TSX:NAE.DB.A) (TSX:NAE.DB.B) are pleased to announce that the holders of common shares of NAL have approved the proposed business combination of Pengrowth and NAL pursuant to a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). Under the terms of the Arrangement, NAL shareholders will receive 0.86 of a Pengrowth share for each NAL share held. The Arrangement was approved by approximately 96 percent of the votes cast by NAL shareholders at the annual and special meeting of NAL shareholders held today. The Arrangement is more fully described in the joint management information circular and proxy statement of Pengrowth and NAL, dated April 20, 2012, which may be viewed at www.sedar.com.

At the meeting of its shareholders also held today, Pengrowth received shareholder approval for the issuance of up to 163,964,889 Pengrowth common shares pursuant to the Arrangement. The resolution was approved by approximately 98 percent of the votes cast by Pengrowth shareholders at the Pengrowth meeting.

NAL expects to receive approval of the Arrangement by the Court of Queen's Bench on May 24, 2012.

The completion of the Arrangement is subject to certain other closing conditions customary in transactions of this nature. The Arrangement is scheduled to close on May 31, 2012.

Derek Evans , Pengrowth's President & CEO, said "I am pleased that the shareholders of both Pengrowth and NAL have approved the proposed combination, which will enable Pengrowth to improve capital efficiency, better fund projects internally and continue to shift our production mix toward oil."

ABOUT PENGROWTH

Pengrowth Energy Corporation is a dividend-paying, intermediate Canadian producer of oil and natural gas, headquartered in Calgary, Alberta. Pengrowth's focus is on the development of conventional and unconventional resource-style plays in the Western Canadian Sedimentary Basin. Pengrowth's projects include the Swan Hills (light oil) play in north-central Alberta, the Olds (light oil/gas) play in south-central Alberta, the Lindbergh Steam Assisted Gravity Drainage ("SAGD") project in east-central Alberta and the Bodo (EOR polymer) play in east-central Alberta. Pengrowth's shares trade on both the Toronto Stock Exchange under the symbol "PGF" and on the New York Stock Exchange under the symbol "PGH".

ABOUT NAL

NAL Energy Corporation generates returns for its shareholders by pursuing a strategy of acquiring, producing and selling crude oil, natural gas and natural gas liquids from assets based in southeastern Saskatchewan, central Alberta, and northeastern British Columbia. NAL's shares trade on the Toronto Stock Exchange under the symbol "NAE".

CAUTION REGARDING FORWARD-LOOKING INFORMATION

The forward-looking statements and information contained in this press release are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Pengrowth and NAL and described in this press release. In respect of the forward-looking statements and information concerning the anticipated completion of the proposed Arrangement and the anticipated timing thereof, Pengrowth and NAL have provided such in reliance on certain assumptions that they believe are reasonable at this time, including assumptions as to the ability of the parties to receive, in a timely manner, the necessary regulatory, court, stock exchange, securityholder and other third party approvals; and the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the Arrangement. Risks and uncertainties inherent in the nature of the Arrangement include the failure of NAL or Pengrowth to obtain regulatory, court, stock exchange and other third party approvals, or to otherwise satisfy the conditions to the Arrangement, in a timely manner, or at all. Failure to so obtain such approvals, or the failure of NAL or Pengrowth to otherwise satisfy the conditions to the Arrangement, may result in the Arrangement not being completed on the proposed terms, or at all. In addition, the failure of NAL or Pengrowth to comply with the terms of the Arrangement Agreement may result in NAL or Pengrowth being required to pay a non-completion fee to the other, the result of which could have a material adverse effect on the financial position and results of operations of the party required to make such payment and its ability to fund growth prospects and current operations.

The forward-looking statements contained in this joint press release are expressly qualified by this cautionary statement.

Contact: Derek Evans
Company Name: Pengrowth Energy Corporation
Contact Title: President & Chief Executive Officer
Phone: (403) 233-0224

Contact: Keith A. Steeves
Company Name: NAL Energy Corporation
Contact Title: Vice President, Finance & Chief Financial Officer
Phone: (403) 294-3600

NAL Energy Corporation Announces May Dividend

Thu, 10 May 2012 15:45:00 -0400

CALGARY, ALBERTA--(Marketwire - May 10, 2012) - NAL Energy Corporation ("NAL" or the "Corporation") (TSX:NAE) announces that its Board of Directors has declared a monthly dividend of $0.05 per common share payable on June 15, 2012, to shareholders of record on May 23, 2012. The shares will begin trading on an ex-dividend basis on May 18, 2012.

These dividends are designated as "eligible dividends" for Canadian income tax purposes.

NAL's Board of Directors sets the dividend level taking into consideration commodity prices, forecast cash flow of the Corporation, financial market conditions, availability of financing, internal capital investment opportunities and taxability.

The proposed plan of arrangement (the "Arrangement") involving NAL, the shareholders of NAL and Pengrowth Energy Corporation ("Pengrowth") is expected to become effective on or about May 31, 2012. Upon completion of the Arrangement, NAL's dividend reinvestment and optional common share purchase plan (the "NAL DRIP") will be amended such that all declared but unpaid dividends which would otherwise be applied to the purchase of NAL common shares will instead be applied to the purchase of common shares of Pengrowth (the "Amended NAL DRIP"). Under the Arrangement, all existing participants in the NAL DRIP will be deemed to be participants in the Amended NAL DRIP without any further action on the part of the participant.

ABOUT NAL

CAUTION REGARDING FORWARD LOOKING INFORMATION

This press release contains statements that constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as "anticipate", "expect", "may", "will", "could", "plan", "believe" and "target" and similar words suggesting future events or future performance. This press release contains forward-looking information pertaining to, among other things, the completion of the Arrangement, its effect on the NAL DRIP and the adoption of the Amended NAL DRIP.

Various assumptions were used in making the statements contained in the forward-looking information contained in this press release. Such information is based on current expectations that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated by NAL and described in the forward-looking information contained in this press release. These risks and uncertainties include, without limitation, the failure of NAL or Pengrowth to obtain necessary securityholder, regulatory, court and other third party approvals, or otherwise satisfy the conditions to the completion of the Arrangement in a timely manner or at all. Undue reliance should not be placed on forward-looking information.

Forward-looking information is based on the expectations and opinions of NAL's management at the time the information is released. Except as may be required by law, NAL assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.

Contact: Clayton Paradis
Company Name: NAL Energy Corporation
Contact Title: Director, Investor Relations
Phone: 403.294.3620 or Toll Free: 888.223.8792
Fax: 403.515.3407 (FAX)
Other1: ir@nal.ca

NAL Energy Corporation Reports First Quarter 2012 Results

Tue, 08 May 2012 16:59:00 -0400

CALGARY, ALBERTA--(Marketwire - May 8, 2012) - NAL Energy Corporation ("NAL" or the "Corporation") (TSX:NAE) today announced its financial and operational results for the first quarter of 2012. All amounts are in Canadian dollars unless otherwise stated.

FIRST QUARTER ACTIVITY SUMMARY

The Corporation drilled 45 (23.7 net) wells of which 25 were in SE Saskatchewan, 19 were in Alberta and one was a Montney well at Fireweed in NE British Columbia. Total capital expenditures were $89 million, of which $79 million was directed to drilling, completion and tie-in activity;
Production of 28,043 boe per day in the quarter was up marginally on a year over year basis;
The oil and liquids weighting increased to 50 percent of total volumes versus 47 percent in the same period a year ago due, in part, to a 904 bbl per day increase in oil volumes in the first quarter of 2012;
NAL generated Funds From Operations of $60 million, which is up six percent year over year; and
The Corporation issued $150 million principal amount of 6.25 percent convertible unsecured subordinated debentures, at a price of $1,000 per debenture, with a conversion price of $9.90 per common share and maturity of March 31, 2017.

STRATEGIC BUSINESS COMBINATION

On March 22, 2012 NAL and Pengrowth Energy Corporation ("Pengrowth") entered into an arrangement agreement that provides for the strategic combination of NAL and Pengrowth by plan of arrangement under the Business Corporations Act (Alberta) ("ABCA");
Pursuant to the plan of arrangement, NAL shareholders will receive 0.86 of a Pengrowth share in exchange for each NAL share held;
Both NAL and Pengrowth expect the combined entity, after completion of the arrangement, to offer the following benefits for shareholders:

Scale and Scope - a substantially larger and more diversified portfolio of oil and natural gas assets at various stages of development;
Expanded Asset Base - an expanded asset base of high quality conventional and unconventional opportunities, with over 100,000 boe per day of current production and 434 million boe of proved plus probable reserves using year-end 2011 reserves;
Enhanced Exposure to Light Oil Plays - exposure to leading western Canadian light oil plays, with an inventory of over 730 locations across the Swan Hills Trend, the central Alberta Cardium and southeast Saskatchewan; and
Increased Access to Capital - a strong liquidity position and access to capital, including approximately $1.0 billion of committed covenant-based credit facilities, of which less than $200 million is estimated to be drawn at the closing of the arrangement;

The board of directors of NAL unanimously recommends that NAL Shareholders vote in favour of the arrangement at the annual and special meeting of the Corporation to be held on May 23, 2012.

FINANCIAL AND OPERATING HIGHLIGHTS

Three months ended

(thousands of dollars, except per share, payout ratio and boe data)

(unaudited)

		March 31, 2012		March 31, 2011		December 31, 2011
FINANCIAL
Revenue⁽¹⁾		$121,154		$121,752		$144,767
Cash flow from operating activities		86,066		60,983		67,818
Cash flow per share - basic		0.57		0.41		0.45
Cash flow per share - diluted		0.48		0.38		0.42
Funds from operations		60,153		56,626		68,393
Funds from operations per share - basic		0.40		0.38		0.45
Funds from operations per share - diluted		0.36		0.37		0.44
Net income (loss)		1,207		(1,510	)	(53,886	)
Dividends declared		22,765		31,001		31,629
Dividends per share		0.15		0.21		0.21
Basic payout ratio:
	based on cash flow from operating activities	26	%	51	%	47	%
	based on funds from operations	38	%	55	%	46	%
Basic payout ratio including capital expenditures:
	based on cash flow from operating activities	130	%	186	%	106	%
	based on funds from operations	186	%	201	%	105	%
Basic payout ratio including capital expenditures and proceeds from disposition:
	based on cash flow from operating activities	122	%	142	%	102	%
	based on funds from operations	174	%	153	%	101	%
Shares outstanding (000's)
	Period end	152,290		147,781		151,107
	Weighted average	151,641		147,534		150,393
Capital expenditures⁽²⁾		89,244		82,587		40,287
Property acquisitions (dispositions), net⁽³⁾		(5,896	)	(26,107	)	181
Net debt, excluding convertible debentures⁽⁴⁾		256,301		334,003		363,380
Convertible debentures (at face value)		344,744		194,744		194,744

OPERATING
Daily production⁽⁵⁾
	Crude oil (bbl/d)	11,315		10,411		11,755
	Natural gas (Mcf/d)	84,285		89,581		91,340
	Natural gas liquids (bbl/d)	2,680		2,683		2,817
	Oil equivalent (boe/d)	28,043		28,024		29,795

OPERATING NETBACK ($/ boe )
	Revenue before hedging gains (losses)	47.48		48.27		52.81
	Royalties	(8.39	)	(7.85	)	(8.74	)
	Operating costs	(12.69	)	(10.81	)	(13.76	)
	Other income	0.05		0.11		0.10
	Operating netback before hedging	26.45		29.72		30.41
	Hedging gains (losses)	3.85		(0.34	)	(0.29	)
	Operating netback	30.30		29.38		30.12

(1)	Oil, natural gas and natural gas liquid sales less transportation costs and prior to royalties and hedging.
(2)	Excludes property and corporate acquisitions, and is net of drilling incentive credits of $nil for the quarter ended March 31, 2012 (March 31, 2011 - $2.7 million)
(3)	Represents costs to acquire properties less proceeds from dispositions.
(4)	Bank debt plus working capital and other liabilities, excluding derivative contracts, and deferred income tax balances.
(5)	Includes royalty interest volumes.

ARRANGEMENT AGREEMENT WITH PENGROWTH ENERGY CORPORATION

On March 22, 2012, the Corporation and Pengrowth entered into an arrangement agreement (the "Arrangement Agreement") providing for the acquisition of all of the issued and outstanding common shares of NAL by Pengrowth pursuant to a plan of arrangement to be implemented under the Business Corporations Act (Alberta) ("ABCA"). Under the terms of the Arrangement Agreement, NAL shareholders will receive 0.86 of a Pengrowth common share for each NAL common share held. Based on the March 22, 2012 closing prices on the Toronto Stock Exchange (TSX) of Pengrowth and NAL, the exchange ratio reflects a premium of 9.7 percent for NAL shareholders. Based on the 20-day volume-weighted average prices on the TSX of Pengrowth and NAL, the exchange ratio represents a premium of 10.8 percent for NAL shareholders. Based upon Pengrowth's closing price of $9.95 per share on March 22, 2012, the enterprise value of NAL is approximately $1.9 billion. Upon completion of the Arrangement, former NAL shareholders will own approximately 26 percent of Pengrowth.

The Annual and Special Meeting of the Corporation will be held Wednesday, May 23, 2012 in the Devonian Room at the Calgary Petroleum Club, 319 - 5th Avenue S.W., Calgary, Alberta at 3:00 p.m. MDT. Closing of the transaction is anticipated to occur on May 31, 2012. For further details regarding the Agreement, please see the Information Circular, which may be found on SEDAR at www.sedar.com or on NAL's website at www.nalenergy.com.

NAL's complete unaudited consolidated financial statements for the quarter ended March 31, 2012 and related Management's Discussion and Analysis may be found by following the link below:

Download NAL's Q1 MD&A and Financials from NAL's website.

NON-IFRS FINANCIAL MEASURES

Throughout this press release, Management uses the terms "funds from operations", "funds from operations per share", "payout ratio", "cash flow from operations per share", "net debt to trailing 12 month cash flow", "operating netback" and "cash flow netback". These are considered useful supplemental measures as they provide an indication of the results generated by the Corporation's principal business activities. Management uses the terms to facilitate the understanding of the results of its operations. However, these terms do not have any standardized meaning as prescribed by IFRS. Investors should be cautioned that these measures should not be construed as an alternative to net income determined in accordance with IFRS as an indication of NAL's performance. NAL's method of calculating these measures may differ from other issuers and, accordingly, they may not be comparable to measures used by other issuers.

Funds from operations is calculated as cash flow from operating activities before changes in non-cash working capital. Funds from operations does not represent operating cash flows or operating profits for the period and should not be viewed as an alternative to cash flow from operating activities calculated in accordance with IFRS. Funds from operations is considered by Management to be a more meaningful key performance indicator of NAL's ability to generate cash to finance operations and to pay monthly dividends. Funds from operations per share and cash flow from operations per share are calculated using the weighted average shares outstanding for the period.

Payout ratio is calculated as dividends declared for a period as a percentage of either cash flow from operating activities or funds from operations; both measures are stated.

Net debt to trailing 12 months cash flow is calculated as net debt as a proportion of funds from operations for the previous 12 months. Net debt is defined as bank debt, plus convertible debentures at face value, plus working capital and other liabilities, excluding derivative contracts.

ADVISORY REGARDING PRODUCTION INFORMATION

When converting natural gas to barrels of oil equivalent (boe) within this press release, NAL uses the widely recognized standard of six thousand cubic feet (Mcf) to one barrel of oil. However, boes may be misleading, particularly if used in isolation. A conversion ratio of 6 Mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

FORWARD-LOOKING INFORMATION

This press release contains forward-looking information as to the Corporation's internal projections, expectations and beliefs relating to future events or future performance. Forward looking information is typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "could", "plan", "intend", "should", "believe", "outlook", "project", "potential", "target", and similar words suggesting future events or future performance. In addition, statements relating to "reserves" are forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities estimated and can be profitably produced in the future.

In particular, this press release contains forward-looking information pertaining to the following, without limitation: the amount and timing of cash flows and dividends to shareholders; reserves and reserves values; 2012 production; the future tax treatment of the Corporation; the Corporation's tax pools; future oil and gas prices; operating, drilling and completion costs; the amount of future asset retirement obligations; future liquidity and future financial capacity; future results from operations; payout ratios; cost estimates and royalty rates; drilling plans; tie-in of wells; future acquisition, development and exploration expenditures; rates of return; and the combination of the Corporation and Pengrowth Energy Corporation ("Pengrowth") described below and the anticipated benefits of such combination to NAL and its securityholders.

With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things: future oil and natural gas prices; future capital expenditure levels; future oil and natural gas production levels; future exchange rates; the amount of future cash dividends that NAL intends to pay; the cost of expanding the Corporation's property holdings; the Corporation's ability to obtain equipment in a timely manner to carry out exploration and development activities; the Corporation's ability to market its oil and natural gas successfully to current and new customers; the impact of increasing competition; NAL's ability to obtain financing on acceptable terms; NAL's ability to add production and reserves through its development and exploitation activities; and the ability of NAL and Pengrowth to receive, in a timely manner, the necessary regulatory, court securityholder and other third party approvals, or to otherwise satisfy the conditions of the arrangement.

Although NAL believes that the expectations reflected in the forward-looking information contained in the press release, and the assumptions on which such forward-looking information are made, are reasonable, readers are cautioned not to place undue reliance on such forward looking statements as there can be no assurance that the plans, intentions or expectations upon which the forward-looking information are based will occur. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated and which may cause NAL's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance. These risks and uncertainties include, without limitation: changes in commodity prices; unanticipated operating results or production declines; the impact of weather conditions on seasonal demand and NAL's ability to execute its capital program; risks inherent in oil and gas operations; the imprecision of reserve estimates; limited, unfavorable or no access to capital or credit markets; the impact of competitors; the lack of availability of qualified operating or management personnel; the inability to obtain industry partner and other third party consents and approvals, when required; failure to realize the anticipated benefits of acquisitions; general economic conditions in Canada, the United States and globally; fluctuations in foreign exchange or interest rates; changes in government regulation of the oil and gas industry, including environmental regulation; changes in royalty rates; changes in tax laws; stock market volatility and market valuations; OPEC's ability to control production and balance global supply and demand for crude oil at desired price levels; political uncertainty, including the risk of hostilities in the petroleum producing regions of the world; the failure of NAL or Pengrowth to obtain necessary securityholder, regulatory, court and other third party approvals, or to otherwise satisfy the conditions to the arrangement, in a timely manner or at all, and other risk factors discussed in other public filings of the Corporation including the Corporation's current Annual Information Form.

NAL cautions that the foregoing list of factors that may affect future results is not exhaustive. The forward-looking information contained in this press release is made as of the date of this press release. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

ABOUT NAL

Contact: Clayton Paradis
Company Name: NAL Energy Corporation
Contact Title: Director, Investor Relations
Phone: 403.294.3620 or Toll Free: 888.223.8792
Fax: 403.515.3407 (FAX)
Other1: ir@nal.ca
Other2: www.nal.ca

NAL Energy Corporation Provides First Quarter Results Release Date and Annual and Special Meeting Details

Mon, 23 Apr 2012 13:13:00 -0400

CALGARY, ALBERTA--(Marketwire - April 23, 2012) - NAL Energy Corporation ("NAL" or the "Corporation") (TSX:NAE) will release its first quarter financial and operating results on Tuesday, May 8, 2012 at 2:30 p.m. MDT (4:30 p.m. EDT).

NAL also announces that the Annual and Special Meeting of the Corporation will be held Wednesday, May 23, 2012 in the Devonian Room at the Calgary Petroleum Club, 319 - 5th Avenue S.W., Calgary, Alberta at 3:00 p.m. MDT. Shareholders are encouraged to attend and participate in the business of the meeting.

ABOUT NAL

FOR FURTHER INFORMATION PLEASE CONTACT:
        NAL Energy Corporation
        Clayton Paradis
        Director, Investor Relations
        403.294.3620 or Toll Free: 888.223.8792
        Fax: 403.515.3407(FAX)
        ir@nal.ca
        www.nal.ca

Source: NAL Energy Corporation

NAL Energy Corporation Announces April Dividend

Thu, 12 Apr 2012 10:36:00 -0400

CALGARY, ALBERTA--(Marketwire - April 12, 2012) - NAL Energy Corporation ("NAL" or the "Corporation") (TSX:NAE) announces that its Board of Directors has declared a monthly dividend of $0.05 per common share payable on May 15, 2012, to shareholders of record on April 23, 2012. The shares will begin trading on an ex-dividend basis on April 19, 2012.

These dividends are designated as "eligible dividends" for Canadian income tax purposes.

ABOUT NAL

FOR FURTHER INFORMATION PLEASE CONTACT:
        NAL Energy Corporation
        Clayton Paradis
        Director, Investor Relations
        403.294.3620 or Toll Free: 888.223.8792
        Fax: 403.515.3407(FAX)
        ir@nal.ca
        www.nal.ca

Source: NAL Energy Corporation

NAL Energy Corporation Files Year-End Disclosure Documents

Fri, 30 Mar 2012 18:01:00 -0400

CALGARY, ALBERTA--(Marketwire - March 30, 2012) - NAL Energy Corporation ("NAL" or the "Corporation") (TSX:NAE) today filed with Canadian securities authorities its Annual Information Form ("AIF") for the year ended December 31, 2011 on the System for Electronic Document Analysis and Retrieval ("SEDAR"). The AIF contains the annual disclosure and reports relating to reserves data and other oil and gas information required pursuant to National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (Forms 51-101F1, F2 and F3).

NAL also filed its audited consolidated annual financial statements for the year ended December 31, 2011 and related Management's Discussion and Analysis. Copies of these filed documents may be obtained at www.sedar.com, the Corporation's website at www.nalenergy.com, or by sending an email request to ir@nal.ca.

ABOUT NAL

FOR FURTHER INFORMATION PLEASE CONTACT:
        NAL Energy Corporation
        Clayton Paradis
        Director, Investor Relations
        403.294.3620 or Toll Free: 888.223.8792
        Fax: 403.515.3407(FAX)
        ir@nal.ca
        www.nalenergy.com

Source: NAL Energy Corporation

Joint News Release Pengrowth Energy Corporation and NAL Energy Corporation Announce Strategic Business Combination

Fri, 23 Mar 2012 07:36:00 -0400

CALGARY, ALBERTA--(Marketwire - March 23, 2012) - Pengrowth Energy Corporation ("Pengrowth") (TSX:PGF) (NYSE:PGH) and NAL Energy Corporation ("NAL") (TSX:NAE) (TSX:NAE.DB) (TSX:NAE.DB.A) (TSX:NAE.DB.B) are pleased to announce that they have entered into an arrangement agreement (the "Arrangement") that provides for the strategic combination of Pengrowth and NAL.

Under the terms of the Arrangement, NAL shareholders will receive 0.86 of a Pengrowth share for each NAL share held (the "Exchange Ratio"). Based on the March 22, 2012 closing prices on the Toronto Stock Exchange (the "TSX") of Pengrowth and NAL, the Exchange Ratio reflects a premium of 9.7% for NAL shareholders. Based on the 20-day volume-weighted average prices on the TSX of Pengrowth and NAL, the Exchange Ratio represents a premium of 11.0% for NAL shareholders. Upon completion of the Arrangement, the former NAL shareholders will own approximately 26% of Pengrowth.

Derek Evans, Pengrowth's President & CEO, said "The combination of Pengrowth and NAL represents the continued execution of our value creation strategy. The addition of the NAL assets will enhance our cash flow base and further augment our robust light oil drilling inventory. The larger inventory of high netback light oil opportunities of the combined asset base enables us to high grade our investment opportunities which should lead to improved capital efficiencies going forward. The transaction substantially improves our ability to internally fund the significant portfolio of oil-weighted development opportunities of the combined operations, including our Lindbergh SAGD project. Over the last two years, we have assembled a top-tier technical team, significantly augmenting it with the addition of Marlon McDougall, the former VP Operations and Chief Operating Officer of NAL, who joined Pengrowth as Chief Operating Officer in mid-2011. Mr. McDougall's extensive knowledge and understanding of the NAL assets will be invaluable as we integrate them with our existing asset base."

"Bringing Pengrowth and NAL together provides the combined company with greater size, liquidity and access to capital. Part of the attraction to us is Pengrowth's commitment to its dividend paying business model. This transaction provides NAL shareholders with exposure to a larger entity with an excellent portfolio of unbooked light oil development opportunities at Swan Hills and in the central Alberta Cardium play, in addition to a substantial long-term growth asset like the Lindbergh SAGD project" commented Andrew Wiswell, NAL's President & CEO.

BENEFITS OF THE TRANSACTION

The proposed business combination is expected to be accretive upon closing to Pengrowth shareholders on a funds from operation and production per share basis, and also provides NAL shareholders with a 20.4% increase in monthly dividends per share, an increase in reserves per share and exposure to a company with a longer reserve life index.

The key attributes of the business combination include:


--  An expanded asset base of high quality conventional and unconventional
    opportunities with over 100,000 boe per day of current production and
    434 million boe of proved plus probable reserves using Pengrowth and
    NAL's year-end 2011 reserves, representing an approximate 12 year
    reserve life index.

--  Exposure to leading western Canadian light oil plays with an inventory
    of over 730 locations across the Swan Hills Trend, the central Alberta
    Cardium and southeast Saskatchewan. The operating scale achieved in
    these areas will allow Pengrowth greater flexibility to further
    consolidate these areas as opportunities present themselves.

--  Increased access to capital to fund Pengrowth's Lindbergh SAGD oil sands
    project. Lindbergh is estimated to contain 783 million bbls of bitumen
    Initially-In-Place and the 1,000 bbl/d pilot project is currently in the
    process of injecting steam. Best estimate contingent resources of 296
    million bbls at December 31, 2011 represents an increase of 103 million
    bbls from the prior year. Based on a successful pilot, it is anticipated
    that a significant portion of these contingent resources will be
    transferred to proved plus probable reserves at year-end 2012, or prior
    thereto.

--  A larger, more diverse asset portfolio is expected to drive improved
    capital and operating efficiencies through reallocation of capital to
    the highest return opportunities of the combined asset base.

--  Pengrowth's executive team will manage the combined assets with no
    anticipated additions to the senior leadership as a result of this
    transaction.

--  Pengrowth intends to rationalize approximately 10% of existing non-core
    assets from the combined portfolio with the proceeds being used to fund
    the development of existing oil projects including the Lindbergh SAGD
    project in 2013-2014.

--  Strong liquidity position and access to capital including approximately
    $1.0 billion of committed covenant-based credit facilities, of which
   less than $200 million should be drawn at closing. Pengrowth will have a
    weighted average term to maturity of approximately 4.5 years on its
    outstanding debt at closing.

--  Substantial reduction in G&A costs as a result of the synergies in the
    combined organization following the termination of the Management
    Agreement with NAL Resources Management Limited.

--  Pengrowth is expected to have over $4.3 billion of tax pools at closing
    and does not anticipate being taxable prior to 2015.

TRANSACTION METRICS

Based upon Pengrowth's closing price of $9.95 per share on March 22, 2012, the effective consideration paid to NAL's shareholders is $8.56 per share (including assumed debt, the enterprise value of NAL is approximately $1.9 billion). This aggregate purchase price translates into the following transaction metrics:


--  Approximately $67,000 per flowing boe/d of production using NAL's
    current production of 28,200 boe/d.
--  Approximately $18.20 per boe of proved plus probable reserves using
    NAL's year end 2011 reserves.

TERMINATION OF MANAGEMENT AGREEMENT

Upon closing of the Arrangement, NAL intends to terminate the Management Agreement between itself and NAL Resources Management Limited. Under the provisions of the Management Agreement, NAL has the right to terminate the agreement on 90 days' notice.

PRO FORMA COMBINED BUSINESS PLAN

The pro forma combined 2012 capital expenditure program will be adjusted to reflect the current commodity price environment to maintain prudent debt levels and to ensure the sustainability of Pengrowth's business model. Pengrowth intends to focus the pro forma capital program on Swan Hills, central Alberta Cardium, southeast Saskatchewan and the Lindbergh SAGD project, which represent the highest quality growth opportunities of the combined asset base.

The following table depicts the pro forma combined guidance for 2012 which assumes a May 31, 2012 closing for the Arrangement.


                                           Pengrowth      Pro Forma Combined
                                       ----------------   ------------------
Production                                                     86,000 to
                           (boe/d)     74,500 to 76,500        89,000(2)
Exit Production            (boe/d)          78,000         96,000 to 100,000
Capital Expenditures     ($ million)          625               625(3)
Operating Costs(1)         ($/boe)           13.89              $13.75
G&A (Cash) (1)             ($/boe)           2.19               2.20(4)

(1) All guidance estimates assume the mid-point of the guidance ranges.

(2) Assumes 7 months of NAL production.

(3) Includes the portion of capital spent by NAL prior to the Arrangement.

(4) Includes estimated one time Arrangement costs.

BOARD RECOMMENDATIONS

The Boards of Directors of Pengrowth and NAL have each unanimously approved the Arrangement and have concluded that the proposed transaction is in the best interests of the shareholders of Pengrowth and NAL, respectively. The Boards of Directors of each of Pengrowth and NAL will unanimously recommend that their respective shareholders vote their shares in favour of the Arrangement (or, in the case of Pengrowth, the issuance of Pengrowth shares in connection with the Arrangement) in the joint information circular to be prepared and mailed by Pengrowth and NAL in connection with the proposed transaction. In addition, each of the directors and executive officers of Pengrowth and NAL have agreed to vote their shares in favor of the proposed transaction.

NAL DEBENTURES

Under the Arrangement, Pengrowth will also assume all of the rights and obligations of NAL relating to: (i) the 6.75% convertible unsecured subordinated debentures of NAL maturing August 31, 2012, (the "2012 Debentures"); (ii) the 6.25% convertible unsecured subordinated debentures of NAL maturing December 31, 2014 (the "2014 Debentures"); and (iii) the 6.25% convertible unsecured subordinated debentures of NAL maturing March 31, 2017 (the "2017 Debentures") and, together with the 2012 Debentures and the 2014 Debentures the "NAL Debentures"). The conversion price of each class of NAL Debentures will be adjusted pursuant to the terms of the note indentures governing the NAL Debentures based on the Exchange Ratio. Following closing of the Arrangement, Pengrowth intends to make the requisite offers for the 2012 Debentures and 2014 Debentures at 101 percent of their principal amounts plus accrued and unpaid interest and for the 2017 Debentures at 100 percent of their principal amounts plus accrued and unpaid interest. The repurchase offers will be made within 30 days of closing of the Arrangement. Should a holder of the NAL Debentures elect not to accept the repurchase offer, the debentures will mature as originally set out in their respective indentures. Holders who convert their NAL Debentures following completion of the Arrangement will receive common shares of Pengrowth.

NON-SOLICITATION AND NON-COMPLETION FEE

The terms of the Arrangement restrict NAL from soliciting, initiating or encouraging any discussions concerning an alternative business combination, provide Pengrowth the right to match any competing proposal in the event such proposal is made, and under certain conditions, provides for the payment of a reciprocal non-completion fee of $45 million.

APPROVALS

The proposed transaction will be carried out by way of a court approved plan of arrangement and will require the approval of the holders of at least 66 2/3% of the NAL shares present in person or represented by proxy at the annual and special meeting of NAL shareholders (the "NAL Meeting") to be called to consider the Arrangement. The proposed transaction is also subject to obtaining the approval of a majority of the votes cast by the holders of Pengrowth shares at a special meeting of Pengrowth shareholders (the "Pengrowth Meeting") to be called to consider the issuance of Pengrowth shares in connection with the proposed transaction. In addition to shareholder and court approvals, the proposed transaction is subject to applicable regulatory approvals and the satisfaction of certain other closing conditions customary in transactions of this nature, including compliance with the Competition Act (Canada) and the acceptance of the TSX and the NYSE.

Further information regarding the proposed transaction will be contained in a joint information circular that Pengrowth and NAL will prepare, file and mail in due course to their respective shareholders in connection with the Pengrowth Meeting and NAL Meeting. It is expected that the NAL Meeting and the Pengrowth Meeting will take place in late-May 2012, with closing expected to occur on May 31, 2012. Further details regarding the respective shareholders' meetings will be provided in the joint information circular. All shareholders are urged to read the information circular once it becomes available as it will contain additional important information concerning the proposed transaction.

BOARD OF DIRECTORS

Upon closing of the Arrangement, up to two nominees from NAL's existing Board of Directors will be appointed to Pengrowth's Board of Directors.

ADVISORS

Scotiabank is acting as financial advisor to Pengrowth with respect to the Arrangement. The Board of Directors of Pengrowth has received a verbal opinion from Scotiabank that, as of the date hereof, the consideration to be paid to the NAL shareholders pursuant to the Arrangement is fair, from a financial point of view, to the Pengrowth shareholders.

BMO Capital Markets is acting as financial advisor to NAL with respect to the Arrangement. The Board of Directors of NAL has received a verbal opinion from BMO Capital Markets that, as of the date hereof, the consideration to be paid to the NAL shareholders is fair, from a financial point of view, to the NAL shareholders.

CONFERENCE CALL

A conference call will be held for investors, financial analysts, media and other interested persons on March 23, 2012 at 9:00 AM EDT to discuss the Arrangement. To call in, please use the following numbers:

Participant dial-in number: (416) 695-6622 Toll Free: 1 (800) 769-8320

Confirmation number: 4129115

A replay of the conference call will be available until 11:59 PM EDT on March 30, 2012 and may be accessed by the following numbers:

Replay dial-in number: (905) 694-9451 Toll Free: (800) 408-3053

Pass code: 7368623

A presentation containing transaction highlights is available on Pengrowth's website at www.pengrowth.com, and on NAL's website at www.nalenergy.com.

For further information about Pengrowth, please visit Pengrowth's website at www.pengrowth.com or contact:

Investor Relations, E-mail: investorrelations@pengrowth.com

Telephone: (403) 233-0224 Toll Free: 1 (888) 744-1111 Facsimile: (403) 693-8889

For media inquiries contact: Telephone: (403) 213-3764 Facsimile: (403) 781-9738

For further information about NAL, please visit NAL's website at www.nalenergy.com or contact:

Investor Relations, E-mail: ir@nal.ca

Telephone: (403) 294-3620 Toll Free: 1 (888) 223-8792 Facsimile: (403) 515-3407

For media inquiries contact: Telephone: (403) 294-3620 Facsimile: (403) 515-3407

ABOUT PENGROWTH

ABOUT NAL

CAUTION REGARDING FORWARD LOOKING INFORMATION

This press release contains forward-looking statements within the meaning of securities laws, including the "safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. This forward-looking information includes, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Specific forward-looking statements in this press release include, but are not limited to, statements with respect to: the anticipated benefits of the Arrangement to Pengrowth and NAL and their respective securityholders; statements regarding transaction values, accretion, ownership levels and cash flows resulting from the completion of the Arrangement; expected combined operating and financial results and business plans; the timing and anticipated receipt of required regulatory, court, stock exchange and securityholder approvals for the Arrangement; the ability of Pengrowth and NAL to satisfy the other conditions to, and to complete, the Arrangement; the anticipated timing of the mailing of the securityholder meeting materials in connection with the Arrangement; the assumption by Pengrowth of the rights and obligations of NAL under the outstanding convertible debentures of NAL and the intention to make offers for the 2012 Debentures, the 2014 Debentures and the 2017 Debentures; the completion of the Arrangement; the appointment of up to two individuals to the board of directors of Pengrowth; the termination of the administrative services agreement between NAL and NAL Resources Management Limited; pro forma 2012 average and exit production and product mix expectations; reserves; expected capital spending and the allocation of capital expenditures; drilling inventory; reserve life indices; operating costs and other expenses; development plans and programs; dividend policy; tax pools and tax horizon; and our Lindbergh SAGD development plans, funding, timing and the results therefrom, including production and reserve additions.

The forward-looking statements and information in this press release are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Pengrowth and NAL and described in this press release. In respect of the forward-looking statements and information concerning the anticipated completion of the proposed Arrangement and the anticipated timing thereof, Pengrowth and NAL have provided such in reliance on certain assumptions that they believe are reasonable at this time, including assumptions as to the time required to prepare and mail the NAL and Pengrowth securityholder meeting materials; the ability of the parties to receive, in a timely manner, the necessary regulatory, court, stock exchange, securityholder and other third party approvals; and the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the Arrangement. Risks and uncertainties inherent in the nature of the Arrangement include the failure of NAL or Pengrowth to obtain necessary securityholder, regulatory, court, stock exchange and other third party approvals, or to otherwise satisfy the conditions to the Arrangement, in a timely manner, or at all. Failure to so obtain such approvals, or the failure of NAL or Pengrowth to otherwise satisfy the conditions to the Arrangement, may result in the Arrangement not being completed on the proposed terms, or at all. In addition, the failure of NAL or Pengrowth to comply with the terms of the Arrangement Agreement may result in NAL or Pengrowth being required to pay a non-completion to the other party to the Arrangement Agreement, the result of which could have a material adverse effect on the financial position and results of operations on the party required to make such payment and its ability to fund growth prospects and current operations.

The forward-looking statements contained in this joint press release are expressly qualified by this cautionary statement.

NOTE REGARDING BITUMEN INITIALLY-IN-PLACE AND CONTINGENT RESOURCE ASSESSMENTS

Bitumen Initially-In-Place ("BIIP") refers to that quantity of bitumen that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of BIIP includes production, reserves and Contingent Resources, the remainder is unrecoverable.

Contingent resources are those quantities of petroleum estimated to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or lack of markets. Contingent resources are further classified in accordance with the level of certainty associated with the estimates. Contingent resources do not constitute, and should not be confused with, reserves. There is no certainty that it will be commercially viable to produce any portion of the contingent resources at Lindbergh.

The accuracy of the resource estimates is, in part, a function of the quality and quantity of available data and of engineering and geological interpretation and judgment. These resource volumes are classified as a resource rather than a reserve because they are contingent upon further reservoir studies, delineation drilling and facility design, preparation of firm development plans, regulatory application approval and company approvals. The size of the resource estimate could be positively impacted, potentially in a material amount, if additional delineation wells determine that the aerial extent, reservoir quality and/or the thickness of the reservoir is larger than what is currently estimated based on the interpretation of seismic and well control. The size of the resource estimate could be negatively impacted, potentially in a material amount, if additional delineation wells determine that the aerial extent, reservoir quality and/or the thickness of the reservoir are less than what is currently estimated based on the interpretation of the seismic and well control.

A best estimate is the estimate of the quantity of resource that will be recovered from the accumulation, which under probabilistic methodology reflects a fifty percent confidence level. A low estimate is the estimate of the quantity of resource that will be recovered from the accumulation, which under probabilistic methodology reflects a ninety percent confidence level. A high estimate is the estimate of the quantity of resource that will be recovered from the accumulation, which under probabilistic methodology reflects a ten percent confidence level.

For further information in respect of our Lindbergh oil sands reserves, in particular the contingencies and risks associated therewith, please refer to our Annual Information Form for the year ended December 31, 2011 dated February 28, 2012.

BOE ADVISORY

Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversation ratio of six (6) Mcf of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

NOTE TO US READERS

Current SEC reporting requirements permit oil and gas companies, in their filings with the SEC, to disclose probable and possible reserves, in addition to the required disclosure of proved reserves. Under current SEC requirements, net quantities of reserves are required to be disclosed, which requires disclosure on an after royalties basis and does not include reserves relating to the interests of others. Because we are permitted to prepare our reserves information in accordance with Canadian disclosure requirements, we have included contingent resources, disclosed reserves before the deduction of royalties and interests of others and determined and disclosed our reserves and the estimated future net cash therefrom using forecast prices and costs. See "Presentation of our Reserve Information" in our most recent Annual Information Form or Form 40-F for more information.

We report our production and reserve quantities in accordance with Canadian practices and specifically in accordance with NI 51-101. These practices are different from the practices used to report production and to estimate reserves in reports and other materials filed with the SEC by companies in the United States.

We incorporate additional information with respect to production and reserves which is either not generally included or prohibited under rules of the SEC and practices in the United States. We follow the Canadian practice of reporting gross production and reserve volumes; however, we also follow the United States practice of separately reporting these volumes on a net basis (after the deduction of royalties and similar payments). We also follow the Canadian practice of using forecast prices and costs when we estimate our reserves. The SEC permits, but does not require, the disclosure of reserves based on forecast prices and costs.

We include herein estimates of proved and proved and probable reserves, as well as contingent resources. The SEC permits, but does not require the inclusion of estimates of probable and possible reserves in filings made with it by United States oil and gas companies. The SEC does not permit the inclusion of estimates of contingent resources in reports filed with it by United States companies.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Pengrowth Energy Corporation
        Derek Evans
        President & Chief Executive Officer
        (403) 233-0224
        www.pengrowth.com

        NAL Energy Corporation
        Andrew B. Wiswell
        President & Chief Executive Officer
        (403) 294-3600
        www.nalenergy.com

Source: NAL Energy Corporation

NAL Energy Corporation Announces March Dividend

Mon, 12 Mar 2012 16:00:00 -0400

CALGARY, ALBERTA--(Marketwire - March 12, 2012) - NAL Energy Corporation ("NAL" or the "Corporation") (TSX:NAE) announces that its Board of Directors has declared a monthly dividend of $0.05 per common share payable on April 16, 2012, to shareholders of record on March 22, 2012. The shares will begin trading on an ex-dividend basis on March 20, 2012.

These dividends are designated as "eligible dividends" for Canadian income tax purposes.

ABOUT NAL

FOR FURTHER INFORMATION PLEASE CONTACT:
        NAL Energy Corporation
        Clayton Paradis
        Director, Investor Relations
        403.294.3620 or  Toll Free: 888.223.8792
        Fax: 403.515.3407(FAX)

Source: NAL Energy Corporation

NAL Energy Corporation Reports Fourth Quarter and Year-End 2011 Results

Wed, 07 Mar 2012 16:30:00 -0500

CALGARY, ALBERTA--(Marketwire - March 7, 2012) - NAL Energy Corporation (TSX:NAE) ("NAL" or the "Corporation") today announced its financial and operational results for the fourth quarter and year ended December 31, 2011 as well as 2011 year-end reserves. All amounts are in Canadian dollars unless otherwise stated.

SUMMARY

NAL's fourth quarter performance exceeded internal expectations from a production volumes and cash flow perspective. In addition, the Corporation continued to grow the oil and liquids side of the business which has contributed to the increased cash flow.

FOURTH QUARTER ACTIVITY



--  Average production of 29,795 boe per day was above plan with a higher
    liquids weighting (49 percent vs. 47 percent in the third quarter)
    driven by a recovery in Saskatchewan oil volumes and the tie-in of new

production from NAL's successful Lochend Cardium oil program; -- Funds from operations in the quarter of $68.4 million were up 12 percent

    over the same period in 2010; and
--  Operating netback before hedging of $30.41 per boe was up 11 percent
    year-over-year.



2011 FULL YEAR ACTIVITY



--  NAL had an active second half of 2011 with a drilling and completions
    program that saw average production volumes increase from a low of

26,758 boe per day in the second quarter (impacted by severe wet weather

    conditions in Alberta and Saskatchewan) to 29,795 boe per day in the
    fourth quarter - an increase of 11 percent;
--  Full year average production of 28,338 boe per day was consistent with
    forecasts;

-- Operating netback before hedging of $30.26 per boe was 11 percent higher

    year-over-year;
--  NAL added over 25,000 (12,500 net) acres of land in the greater Hoffer
    area in southeast Saskatchewan which is prospective for Mississippian
    light oil through two farm-in arrangements; and
--  NAL currently has more than five years of drilling locations in
    inventory which is predominantly oil and liquids focused.

2011 RESERVES AND FINDING & DEVELOPMENT ("F&D") HIGHLIGHTS

-- Year-end 2011 proved plus probable ("P+P") reserves of 103.8 million boe

after asset sales were essentially unchanged from the 103.9 million boe

    reported at the end of 2010;
--  The liquids weighting of NAL's reserves has increased in 2011, with

approximately 51 percent of the P+P reserves being comprised of oil and

natural gas liquids versus 50 percent at year-end 2010; -- NAL replaced approximately 127 percent of its 2011 production through

P+P reserves additions before asset dispositions and replaced

approximately 100 percent of production after asset sales; -- The Corporation's P+P reserve life index ("RLI") now stands at 10.0

years, an increase from 9.4 years at the end of 2010 and 9.2 years at

    the end of 2009;
--  NAL's total proved reserves represent approximately 64 percent of total

proved plus probable reserves. Proved producing reserves represent

approximately 88 percent of the total proved category; and -- Three-year average P+P F&D and FD&A metrics of $21.99 per boe and $23.59

per boe are competitive given NAL's strong focus on higher cost/higher

return oil development. NAL believes that three year average figures are

a more meaningful measure of performance than one year metrics, as full-

cycle development programs often span multiple years.



2012 YEAR-TO-DATE ACTIVITY

-- In January, NAL finalized a new four-year arrangement that grants the

Corporation access to 280 (182 net) sections of Cardium acreage directly

    offsetting existing Garrington/Westward Ho lands. NAL's net commitment
    is $6 million per year under the new agreement and adds up to 50 new
    drillable Cardium locations plus future upside potential;
--  In February, the Corporation completed a $150 million convertible
    unsecured subordinated debenture financing. A portion of the proceeds
    will be used to retire $80 million of convertible debentures maturing in
    August 2012 with the remaining proceeds being applied against the
    Corporation's existing credit lines. Accounting for the recent
    financing, the Corporation currently has over $365 million in available
    capacity on existing bank lines of $550 million; and
--  NAL exercised its option for a three year extension to the existing
    joint venture agreement with a senior industry partner in the
    Corporation's Lochend Cardium light oil region. In connection with the
    extension, NAL has a commitment to spend an additional $30 - 35 million
    by August 31, 2015.



2012 GUIDANCE & OUTLOOK



                                                               2012

Guidance

----------------------------------------------------------------------------

Production (boe/d)                                           28,000 -

29,000

Operating Costs ($/boe)                                        11.50 -

12.00

Net Capital Expenditures ($ MM)

200

----------------------------------------------------------------------------

- NAL's 2012 capital program has been targeted to grow oil and liquids volumes in 2012;

- NAL announced its guidance for 2012 on January 11, 2012 - details may be found on the Corporation's website (www.nalenergy.com ) or by clicking HERE;

- Commodity prices in the 2012 guidance have moved higher for oil from the $95 US WTI assumption and lower for gas compared to NAL's $3.00 outlook;

- The Corporation is currently executing an active first quarter capital program with up to 10 operating drilling rigs;

- As in every year, NAL will reassess its capital plans at the end of Q1 based upon performance, commodity prices and market conditions. The Corporation operates almost all its capital program and maintains flexibility to defer or accelerate programs for the second half of 2012, which will be all oil focused opportunities; and

- Non-core asset dispositions of properties are expected to generate net proceeds of approximately $10 - 15 million during 2012.

NAL's complete unaudited consolidated financial statements for the year-ended 2011 and related Management Discussion and Analysis may be found by following the links below, and have been filed on SEDAR at www.sedar.com.

Download NAL's Year-end 2011 MD&A and Financials from NAL's website.

RESERVES AND CAPITAL EFFICIENCY SUMMARY(1)




                                                                2011   2010
----------------------------------------------------------------------------
Reserves (MMboe)
Proved                                                          66.2   71.0
Proved + Probable ("P+P")                                      103.8  103.9

P+P Reserves per unit (boe per share)                           0.69   0.71

Reserve Life Index (years)
P+P                                                             10.0    9.4

Reserves Replacement Ratio
P+P (excluding acquisitions and dispositions ("A&D"))            127%

90%

P+P (including A&D)                                               99%

109%

----------------------------------------------------------------------------

                                                                  Three Year
                                                                    Weighted
                                                                     Average
Including Changes in Future                                           2009 -
 Development Capital                      2011     2010       2009      2011

----------------------------------------------------------------------------


Finding & Development Costs ($/boe)
Proved                                   27.09    21.41      18.52     21.99
P+P                                      24.86    22.60      17.86     21.99

F&D Recycle Ratio(2)
Proved                                     1.1      1.4        1.7       1.4
P+P                                        1.2      1.3        1.8       1.4

Finding, Development & Acquisition

 Costs ($/boe)
Proved                                   33.16    22.37      27.87     27.23
P+P                                      29.23    22.85      22.33     23.59

----------------------------------------------------------------------------

                                                                  Three Year
                                                                    Weighted
                                                                     Average
Excluding Changes in Future                                           2009 -
 Development Capital                      2011     2010       2009      2011

----------------------------------------------------------------------------


Finding & Development Costs ($/boe)
Proved                                   30.67    23.73      13.06     21.73
P+P                                      18.07    20.92      12.34     17.09

F&D Recycle Ratio(2)
Proved                                     1.0      1.3        2.4       1.4
P+P                                        1.7      1.4        2.6       1.8

Finding, Development & Acquisition

 Costs ($/boe)
Proved                                   38.26    24.28      22.24     24.73
P+P                                      20.47    21.46      15.95     17.77

----------------------------------------------------------------------------

Operating Netback Including Hedging

 ($/boe)                                 29.90  29.74(3)     31.91

30.43

----------------------------------------------------------------------------

(1) All reserves volumes exclude royalty interest volumes.

(2) Recycle ratio is defined as operating netback divided by F&D costs, including changes in future development capital ("FDC"). Calculations excluding changes in FDC are provided for comparison purposes.

(3) Operating netback for 2010 has been restated to be consistent with the adoption of IFRS.

FINANCIAL AND OPERATING HIGHLIGHTS

(thousands of dollars, except per share and boe data)

(unaudited)

----------------------------------------

                                     Three months ended  Years ended Dec 31
                                                 Dec 31
----------------------------------------------------------------------------
                                         2011      2010      2011      2010

----------------------------------------------------------------------------

FINANCIAL

Revenue(1)                            144,767   116,888   526,266   491,037

Cash flow from operating activities 67,818 69,401 258,801 274,606 Cash flow per share - basic

              0.45      0.47      1.74      1.91
Cash flow per share - diluted            0.42      0.43      1.60      1.75
Funds from operations                  68,393    61,311   250,153   256,356

Funds from operations per share -

 basic                                   0.45      0.42      1.68      1.78

Funds from operations per share -

 diluted                                 0.44      0.40      1.63      1.72
Net income (loss)                     (53,886)  (22,017)  (11,034)   59,025
Dividends declared                     31,629    39,702   125,018   155,777
Dividends per share                      0.21      0.27      0.84      1.08
Basic payout ratio:

based on cash flow from operating

   activities                              47%       57%       48%

57%

  based on funds from operations           46%       65%       50%

61%

Basic payout ratio including capital

expenditures:

based on cash flow from operating

   activities                             106%       94%      143%

130%

based on funds from operations 105% 106% 148% 139% Basic payout ratio including capital

expenditures and proceeds from

disposition:

based on cash flow from operating

   activities                             102%       83%      131%

122%

  based on funds from operations          101%       94%      135%      131%
Shares outstanding (000's)
  Period end                          151,107   147,248   151,107   147,248
  Weighted average                    150,393   146,948   148,709   143,913
Capital expenditures(2)                40,287    25,460   245,903   201,524
Property acquisitions
 (dispositions), net(3)                   181    15,963   (28,983)   46,429

Net debt, excluding convertible

 debentures(4)                        363,380   310,302   363,380   310,302

Convertible debentures (at face

 value)                               194,744   194,744   194,744   194,744

OPERATING
Daily production(5)
  Crude oil (bbl/d)                    11,755    10,575    10,587    11,349
  Natural gas (Mcf/d)                  91,340    92,841    90,302    92,403
  Natural gas liquids (bbl/d)           2,817     2,548     2,701     2,696
  Oil equivalent (boe/d)               29,795    28,596    28,338    29,446

OPERATING NETBACK ($/boe)
Revenue before hedging gains            52.81     44.43     50.88     45.69
Royalties                               (8.74)    (7.53)    (8.69)    (8.05)
Operating costs                        (13.76)    (9.72)   (12.01)   (10.41)
Other income                             0.10      0.20      0.08      0.13

----------------------------------------------------------------------------

Operating netback before hedging 30.41 27.38 30.26 27.36 Hedging gains (losses)

                  (0.29)     2.49     (0.36)     2.38
----------------------------------------------------------------------------
Operating netback                       30.12     29.87     29.90     29.74
============================================================================

(1) Oil, natural gas and natural gas liquid sales less transportation costs and prior to royalties and hedging.

(2) Excludes property and corporate acquisitions, and is net of drilling incentive credits of $2.5 million for the year ended December 31, 2011 (2010 - $ 9.9 million).

(3) Represents costs to acquire properties less proceeds from dispositions.

(4) Bank debt plus working capital and other liabilities, excluding derivative contracts and deferred income tax balances.

(5) Includes royalty interest volumes.

NON-IFRS FINANCIAL MEASURES

Throughout this press release, Management uses the terms "funds from operations", "funds from operations per share", "payout ratio", "cash flow from operations per share", "net debt to trailing 12 month cash flow", operating netback and cash flow netback. These are considered useful supplemental measures as they provide an indication of the results generated by the Corporation's principal business activities. Management uses the terms to facilitate the understanding of the results of its operations. However, these terms do not have any standardized meaning as prescribed by IFRS. Investors should be cautioned that these measures should not be construed as an alternative to net income determined in accordance with IFRS as an indication of NAL's performance. NAL's method of calculating these measures may differ from other issuers and, accordingly, they may not be comparable to measures used by other issuers.

Payout ratio is calculated as dividends declared for a period as a percentage of either cash flow from operating activities or funds from operations; both measures are stated.

ADVISORY REGARDING PRODUCTION INFORMATION

FORWARD-LOOKING INFORMATION

In particular, this press releaese contains forward-looking information pertaining to the following, without limitation: the amount and timing of cash flows and dividends to shareholders; reserves and reserves values; 2011 production; future tax treatment of the Corporation; the Corporation's tax pools; future oil and gas prices; operating, drilling and completion costs; the amount of future asset retirement obligations; future liquidity and future financial capacity; future results from operations; payout ratios; cost estimates and royalty rates; drilling plans; tie-in of wells; future acquisition, development and exploration expenditures; and rates of return.

With respect to forward-looking statements contained in this press release and the press release through which it was disseminated, assumptions have been made regarding, among other things: future oil and natural gas prices; future capital expenditure levels; future oil and natural gas production levels; future exchange rates; the amount of future cash dividends that NAL intends to pay; the cost of expanding the Corporation's property holdings; the Corporation's ability to obtain equipment in a timely manner to carry out exploration and development activities; the Corporation's ability to market its oil and natural gas successfully to current and new customers; the impact of increasing competition; NAL's ability to obtain financing on acceptable terms; and NAL's ability to add production and reserves through its development and exploitation activities.

Although NAL believes that the expectations reflected in the forward-looking information contained in the press release and the press release through which it was disseminated, and the assumptions on which such forward-looking information are made, are reasonable, readers are cautioned not to place undue reliance on such forward looking statements as there can be no assurance that the plans, intentions or expectations upon which the forward-looking information is based will occur. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated and which may cause NAL's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance. These risks and uncertainties include, without limitation: changes in commodity prices; unanticipated operating results or production declines; the impact of weather conditions on seasonal demand and NAL's ability to execute its capital program; risks inherent in oil and gas operations; the imprecision of reserve estimates; limited, unfavorable or no access to capital or credit markets; the impact of competitors; the lack of availability of qualified operating or management personnel; the inability to obtain industry partner and other third party consents and approvals, when required; failure to realize the anticipated benefits of acquisitions; general economic conditions in Canada, the United States and globally; fluctuations in foreign exchange or interest rates; changes in government regulation of the oil and gas industry, including environmental regulation; changes in royalty rates; changes in tax laws; stock market volatility and market valuations; OPEC's ability to control production and balance global supply and demand for crude oil at desired price levels; political uncertainty, including the risk of hostilities in the petroleum producing regions of the world; and other risk factors discussed in other public filings of the Corporation including the Corporation's current Annual Information Form.

ABOUT NAL

FOR FURTHER INFORMATION PLEASE CONTACT:
        NAL Energy Corporation
        Clayton Paradis
        Director, Investor Relations
        403.294.3620 or Toll Free: 888.223.8792
        Fax: 403.515.3407(FAX)
        ir@nal.ca
        www.nalenergy.com

Source: NAL Energy Corporation