Exall Energy Corporation

Exall Energy Corporation

February 17, 2010 09:06 ET

Exall Oil Production Tops 1,100 Barrels Per Day

CALGARY, ALBERTA--(Marketwire - Feb. 17, 2010) - Exall Energy Corporation (TSX:EE) ("Exall" or the "Company") is pleased to announce that current oil production has now exceeded 1,100 boe / day as the Marten Mountain 2–12 well was brought onstream, having been granted Good Production Practice ("GPP") status.

Highlights' of recent operations are:

  • Current oil production hits targetted 1,100 boe / d
  • Pipeline and battery facilities completed and Marten Mountain wells tied in
  • Drilling of 10-12-075-06 W5M well, first well of 2010 drilling program at Marten Mountain, completed. Second leg currently drilling.
  • Warren F.E. Coles joins senior Calgary-based management team as VP, Finance & CFO

Good Production Practice (GPP)

The necessary approvals have been received from the ERCB (Alberta Energy Resources Control Board) for the Company's amended application to implement an enhanced oil recovery scheme by water injection at the Marten Mountain property, in the Mitsue Gilwood A Pool. As a result of the approval, the Marten Mountain 2-12-075-06 W5M well has been granted Good Production Practice (GPP) status effective immediately. The 2-12 well will utilize the Marten Mountain 102/14-01-075-06 W5M pipeline and battery facilities completed mid November 2009.


Exall's Marten Mountain production with the 102/14-1 and 2-12 producing under the GPP is currently 1,058 (NET) barrels of oil equivalent per day (boe/d). Combined with the Company's Jayar and Texas production of 140 boe / d, Exall is currently producing in excess of 1,100 boe/d.

Marten Mountain Project

Exall has drilled to total depth the first leg of the Marten Mountain Horizontal ("HZ") 10-12-075-06 W5M well. The Company is encouraged by the 800 metre HZ well as it has encountered approximately 280 metres of reservoir quality sand with good indications of porosity and hydrocarbons. The Company is currently running a liner for hole stability and will be drilling a second leg out of the same wellbore. By drilling the second leg from the existing wellbore, Exall is anticipating significant cost savings associated with the drilling operations. Results from the HZ 10-12 well are expected in early May 2010, once the second leg is completed and a service rig is engaged to commence well testing.

Senior Management

Exall Energy Corporation is pleased to announce that Warren F.E. Coles has joined its senior management team based in Calgary Alberta as Vice President Finance and Chief Financial Officer.

Mr. Coles brings to Exall Energy Corporation 20 years of financial and business experience and has a track record of economically achieving stakeholder growth through enhanced business productivity as well as through acquisitions. Prior to joining Exall, Mr. Coles served as the Vice President Finance for Black Mountain Energy Corporation from May 2008 to January 2010 and as the Chief Financial Officer for DeeThree Exploration Inc., Dual Exploration Ltd. and Deep Resources Ltd. from 2004 to 2008.

Prior to Deep Resources Ltd., he spent 10 years with Applied Terravision Systems Inc., a publicly traded technology firm that developed software for the North American oil & gas industries, culminating in his role as Chief Financial Officer. Mr. Coles has a Masters Degree in Business Administration (MBA) from the University of Calgary, as well as a Bachelors Degree in Commerce from the University of Calgary.

Options Grant

The Company has granted to certain employees 250,000 options to acquire common shares of the Company at an exercise price of $0.63 per share. The options have a term of five years from the date of grant and vest as to 1/3 after six months, a further 1/3 after 12 months, and 1/3 after 18 months. In addition, during January, 216,667 of its issued and outstanding Options where exercised for gross proceeds of $105,000.

About Exall

Exall Energy Corporation 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 is currently developing a new oil discovery at Marten Mountain in north-central Alberta.

The Company currently has 46,137,894 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.

Contact Information

  • Exall Energy Corporation
    Frank S. Rebeyka
    Vice Chairman & CEO
    Exall Energy Corporation
    Roger N. Dueck
    President & COO
    403-237-7820 x 223