TSX: NAE       Nal Energy Corporation
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Business Background

NAL Energy Corporation (NAL) is engaged in the exploration for, and the development and production of natural gas, natural gas liquids and crude oil in Western Canada. During the year ended December 31, 2011, the Company drilled 137 (68.3 net) wells. Of the total wells drilled in 2011, 120 (88%) targeted oil and natural gas liquids. In Saskatchewan, 65 (30.1 net) horizontal oil wells were drilled during 2011. Activity was focused on the Greater Hoffer area (38), with 27 additional wells drilled in other operating areas, including Alida (four), Nottingham (five), Bryant (three) and Steelman (two). In Alberta, NAL participated in drilling 66 (34.6 net) wells during 2011. Activity was focused on the Cardium for which 42 wells were drilled, including the six well program in Lochend. In British Columbia, three (three net) wells were drilled in the 100% working interest Fireweed property. During 2011, three (0.6 net) wells were drilled in the Corporation's non-operated property in Lake Erie.

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