Exceed Energy Inc.

Exceed Energy Inc.

October 04, 2007 13:08 ET

Exceed Announces Development Plans for Culp and Roxana

CALGARY, ALBERTA--(Marketwire - Oct. 4, 2007) - Exceed Energy Inc. (TSX VENTURE:EX.A) (TSX VENTURE:EX.B) ("Exceed" or the "Company") has 2.25 gross sections of land in the Culp area of Alberta (78-23W5M). The property is just west of the Company's interests in the Roxana area. Exceed accepted a farmin proposal earlier in 2007, the terms of which required an extensive 3D acquisition program. The proposing industry partner would earn 20 percent of Exceed's 50 percent working interest in the lands on delivery of the processed data. These terms have been met and Exceed's interest in the lands is now 30 percent.

The interpretation of the 3D has yielded very satisfactory results. The partners have identified 4 key locations and up to 4 follow up locations. The Beaverhill Lake ("BHL") formation is the primary target zone, the same formation that produces in Exceed's two Roxana oil wells. The first well location has been selected at 15-16-78-23W5M and is located on a closed structural feature on the Precambrian and BHL.

Nearby the partner's 15-16 location, in the southwest quarter of the same section, is an existing well in the BHL that has produced 159,000 bbls of light sweet oil to date. This location was imaged by the partner's 3D shoot and our intended location at 15-16 is interpreted to be structurally higher and larger in size. Typical BHL wells have stabilized initial production rates of 100 to 250 bbls per day of oil.

Galleon has been assigned operatorship and is proceeding to licence the 15-16 location. We expect the well to spud in late November 2007, and if successful, it would go on production quickly thereafter.

"Exceed is very pleased with the number and quality of locations identified by the 3D, said Richard Wolfli, President and CEO of Exceed. "We had anticipated two to three locations based on our older 2D seismic. Having identified four to eight locations was a pleasant surprise. Exceed will participate in the wells for its 30% working interest."

In the Roxana area Exceed's partner has proposed a shallow 950 meter Montney gas well. As discussed in previous press releases, Exceed has 10.25 gross sections of land in the Roxana area (6560 gross acres) that is prospective for shallow gas. Exceed has a 30 percent working interest in the well.

Exceed Energy Inc. is a Calgary based junior oil and gas company engaged in the development and exploration of oil and gas reserves in western Canada. Growth in the coming year will be driven by a large inventory of oil and gas drilling locations. Furthermore the Company continues to review acquisitions of oil and gas assets or the acquisition or merger with other companies.

Forward Looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projects relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect Exceed's operations or financial results are included in Exceed's reports on file with Canadian securities regulatory authorities that may be accessed at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Exceed Energy Inc.
    Richard Wolfli
    President and CEO
    (403) 508-1852
    (403) 508-1781 (FAX)