Exall Energy Corporation
TSX : EE

Exall Energy Corporation

April 13, 2010 17:01 ET

Exall Announces Winter Drilling Results-New Discovery Well Flows 600 Barrels Per Day on Three Day Test

CALGARY, ALBERTA--(Marketwire - April 13, 2010) - Exall Energy Corporation (TSX:EE) ("Exall" or the "Company") is pleased to announce the results of the wells drilled during the 2010 winter drilling season.

Highlights of recent operations are:

  • Two wells were drilled and tested over the winter drilling season, including one multi-lateral
  • A new oil well drilled in the Marten Mountain "B" Sand project area discovered two zones of productive oil-saturated reservoir sandstone
  • The well flowed 600 barrels of 40 degrees API sweet oil and 110 MCFPD of solution gas (620 BOEPD) over a three day test period (445 BOEPD net)
  • The final 24 hour flow rate averaged 624 barrels of oil and 148 MCF of solution gas (466 BOEPD net)
  • The well is immediately adjacent to the Exall pipeline completed in Q4 of last year and is expected to be tied in and on production through the Exall facility by month-end
  • Exall has earned additional interest through a farmin and owns a 71.89% working interest in the well and additional lands surrounding the discovery

Marten Mountain Project

A "B" sand prospect previously identified by Exall was drilled. The well penetrated two zones of reservoir development. Both zones tested economic rates of oil and gas production. Over a three day test period the well flowed 600 barrels of 40 degrees API sweet oil and 110 MCFPD of solution gas (620 BOEPD, 445 BOEPD net). The final 24 hour flow rate averaged 624 barrels of oil and 148 MCF of solution gas (466 BOEPD net). The well is immediately adjacent to the Exall pipeline completed in Q4 of last year. The Company had previously constructed a tie-in point for the well on the pipeline to facilitate ease of tie-in. Exall expects the well will be on production through the Exall facility by month-end.

Exall has earned additional interest through a farmin with a partner and owns a 71.89% working interest in the well and additional lands surrounding the discovery. Exall also has an option to earn the same interest in prospective lands identified through the drilling of the discovery well.

A Marten Mountain "A" Sand extension test well was also drilled, as a multi-lateral horizontal well from a common cased wellbore. The well penetrated both "A" and "B" sands with encouraging hydrocarbon shows in both zones. Analysis of drilling and completion data indicates that the formation may have been damaged during drilling operations and will require further stimulation prior to production testing. The well is currently shut in for pressure build-up and analysis of stimulation techniques to improve inflow rates.

The wells drilled this winter have established continued sand development on the original Marten Mountain sand trend as well as a new trend with similar characteristics and all-weather access. A number of offset drilling opportunities have been identified by the wells and, as the drilling rig was racked on site, the first well of the summer season will be spud immediately after breakup. Exall plans to drill two to four wells on the "B" Sand trend through the summer as well as two additional wells on the "A" Sand trend after freeze-up next winter.

About Exall

Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas. Exall Energy is currently developing a new oil discovery in north-central Alberta.

Exall Energy has 51,912,745 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE.

Reader Advisory

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.

Please visit Exall Energy's website at: www.exall.com

Contact Information

  • Exall Energy Corporation
    Frank S. Rebeyka
    Vice Chairman & CEO
    403-815-6637
    or
    Exall Energy Corporation
    Roger N. Dueck
    President & COO
    403-237-7820 x 223
    info@exall.com
    www.exall.com