Exall Energy Corporation
TSX : EE

Exall Energy Corporation

January 15, 2008 09:31 ET

Exall Energy Corporation, Operations Update

CALGARY, ALBERTA--(Marketwire - Jan. 15, 2008) - Exall Energy Corporation (TSX:EE) ("Exall" or the "Company") announced today a number of recent developments.

Highlights:

- Exall plans $4 million capital expenditure program for 2008

- Operations update at Mitsue core area

- Exall drills successful well at Susan B. Harris property, Texas

- Exall plans wells at Mitsue and North Sea.

In a press release dated December 17, 2007 Exall Energy Corporation announced that it had closed a non-brokered private placement with aggregate gross proceeds of $2,016,001. This financing as well as internally generated cash flow will enable Exall to complete a proposed $4 million capital expenditure program in the Mitsue core area through 2008.

Previously announced plans (see press release dated November 27, 2007) to drill two wells on the Marten Mountain prospect this winter are proceeding on schedule. Site access has been completed and a rig is scheduled to begin operations on Wednesday, January 17. The procedure will be to re-drill the horizontal leg of the previously announced oil discovery (see Press release dated May 29, 2007) and to complete and production test the well. Planning of permanent access and production facilities is also proceeding on schedule. Exall plans to drill two to three wells in this core area this winter and to complete permanent access and production facilities prior to spring breakup.

In November, 2007, Exall participated in the drilling of a gas well in the Susan B. Harris Gas Unit #2 in East Texas. The well is on production at the rate of 650 mcfpd plus liquids at 450 pounds flowing pressure from the Cotton Valley Formation. This is the eighth successful well drilled in the Unit. Exall has a 7.5% working interest in the well and Unit.

As of the last press release, dated November 27, 2007, Exall had agreed to participate as to its 10% working interest in the drilling of a proposed well on Block 21/22 in the central UK North Sea. The operator was unable to acquire a commitment from the other partners by the deadline and the lands have been relinquished. Exall considers the lands prospective and is considering submitting a work program at future licensing rounds.

Exall Energy Corporation is a Canadian junior energy company formed in November, 2006 and engaged in the exploration and development of oil and natural gas in Alberta, B.C., Texas and the U.K. North Sea.

Contact Information

  • Exall Energy Corporation
    Frank S. Rebeyka
    President and CEO
    (403) 815-6637
    Website: www.exall.com