Excelsior Energy Limited
TSX VENTURE : ELE

Excelsior Energy Limited

November 16, 2009 06:30 ET

Excelsior Engages CIBC World Markets to Assist in Evaluating Joint Venture Opportunities for the Hangingstone COGD Project

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2009) - Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company") is pleased to announce it has engaged CIBC World Markets Inc. ("CIBC") as its strategic advisor to identify and secure a major joint venture partner for the development of its experimental in situ combustion overhead gravity drainage ("COGD") pilot project at the Company's Hangingstone oilsands property near Fort McMurray, Alberta.

In advance of retaining CIBC, the Company has attained several important milestones towards developing the Hangingstone property. In June 2009, Excelsior submitted an application for the approval of its planned COGD pilot project with regulatory authorities, and received confirmation the application was administratively complete and a public notice filed in August 2009. The Company also filed a patent application for the proprietary process associated with COGD in September 2009. In addition, a July 1, 2009, resource evaluation by the independent petroleum engineers, McDaniel & Associates of Calgary, confirmed the high quality bitumen resource at Hangingstone. The Company is now preparing for project execution and has engaged the global reach of CIBC to identify a potential joint venture candidate to fund the COGD pilot project operations which are expected to commence mid 2010.

COGD is a proprietary technology developed by Excelsior and its technical advisors Hot-Tec Energy Inc. ("Hot-Tec"). Hot-Tec is a private company affiliated with members of the In Situ Combustion Research Group, Department of Chemical and Petroleum Engineering, University of Calgary. Research and development of the COGD technology is also supported by, advanced computer simulation modelling (CMG's "STARS" model). COGD technology is forecasted to require 80% less water and natural gas than current SAGD technology ("steam-assisted gravity drainage") for in situ projects. More importantly, improved recovery factors in excess of 65%, or double those of SAGD, are also expected from COGD technology. The cost of the experimental pilot project is estimated to be approximately $35 to $50 million dollars which contemplates a 1,000 barrel per day facility and up to three COGD well arrays.

About Excelsior

Excelsior is an early stage, oil sands company with 58 operated sections on two contiguous blocks in the Hangingstone and West Surmont areas of the Athabasca Oil Sands Region near Fort McMurray, Alberta. The Company has developed a proprietary in situ combustion technology ("Combustion Overhead Gravity Drainage" or "COGD") which has game-changing potential in the development and recovery of heavy oil and bitumen. In addition, the Company indirectly holds a 100% working interest in UK North Sea Licences P1500 and P1691 covering four part-blocks through its 75% owned subsidiary ENS Energy Ltd. Excelsior's strategy is to capture oil and gas appraisal and development opportunities where we can leverage Management's diverse international operating, heavy oil and field development expertise.

Forward-Looking Statements

In the interest of providing Excelsior's shareholders and potential investors with information regarding Excelsior, certain statements contained in this press release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. This press release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's deployment of their COGD technology, timing of commencement of the pilot project, costs associated with the pilot project and expected results from the deployment of such technology are forward-looking statements. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumption including that there is no guarantee that the Company's Process can or will successfully prepare a viscous oil reservoir for exploitation using in-situ combustion, the cost savings and operational efficiencies that the Company expects from its proprietary processes can be achieved and even if the Company's COGD technology can be used as described in this press release, there is no guarantee that such use will result in improved efficiencies compared to other available technologies.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, Excelsior does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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