Excelsior Energy Limited

Excelsior Energy Limited

December 06, 2007 09:00 ET

Excelsior Commences Operations At Hangingstone Oil Sands Property

CALGARY, ALBERTA--(Marketwire - Dec. 6, 2007) - Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company") is pleased to announce that it has commenced winter operations at the Hangingstone oil sands property in the Athabasca Oil Sands region, near Fort McMurray, Alberta. Excelsior has received approval of Hangingstone Oil Sands Exploration Plan ("OSE") 070034 and lease and access construction has started. Two drilling rigs have been contracted for the Company's 24-well core drilling program. The McMurray Formation reservoir at Hangingstone is comprised of thick fluvial and estuarine channel sands. Existing well control penetrated reservoirs with net bitumen pay thicknesses up to 37 meters.

"We are very excited to be starting our core drilling program at Hangingstone", said Robert Bailey, Excelsior's Chief Operating Officer. "By March 2007 we expect to fully core and evaluate the McMurray Formation with a full suite of wireline logs to confirm reservoir thickness and quality."

The Company plans to move one of the two contracted rigs to its nearby West Surmont oil sands property, once it has received approval of the West Surmont OSE. Excelsior plans to drill an additional 9 to 12 core wells in Q1 2008 at West Surmont.

About Excelsior Energy

Excelsior is active in oil sands exploration and appraisal in the Hangingstone and West Surmont areas near Fort McMurray, Alberta and will hold a 75% working interest in 58 contiguous sections on completion of its farm-in obligations. The Company also holds a 100% working interest in Blocks 16/1a and 16/6c in the UK North Sea and a minor interest in gas production in Alberta. Excelsior's strategy is to capture oil and gas appraisal and development opportunities by leveraging Management's diverse international experience and field development expertise. This includes heavy oil reservoir engineering and development of geologically complex fields. The scale of the oil sands resource opportunity in Alberta complements Excelsior's international portfolio and strategy.

Forward-Looking Statements: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided. Readers are cautioned not to place undue reliance on these statements.

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

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