Excelsior Energy Limited

Excelsior Energy Limited

April 30, 2010 18:36 ET

Excelsior Files Year End Disclosure Documents and Announces 2009 Results

CALGARY, ALBERTA--(Marketwire - April 30, 2010) - Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company") announces that it filed today on SEDAR its Annual Information Form which includes the Company's oil and gas information for the year ended December 31, 2009 as mandated by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators.

Additionally, the Company has filed its audited financial statements for the year ended December 31, 2009 and related management discussion and analysis with the Canadian Securities Regulatory Authorities.

2009 Highlights

  • The Company completed a 29 core well drilling program in 2009 at Hangingstone for a total of 55 delineation wells in 39 sections. The results of the drilling program achieved all the program objectives to support a project application at Hangingstone and further delineate three of five areas that encountered thick net bitumen pay identified in the 2007/2008 winter drilling program.
  • The Company submitted an experimental in situ combustion technology "COGD" project application to the provincial government in 2009 ("the Project Application") at Hangingstone to test this technology. The Project Application will seek approval to operate three COGD well arrays with a production target of up to 1,000 barrels of bitumen per day with a budget of $50 million. It is anticipated approval of the Project Application is expected in the latter half of 2010 with subsequent implementation and commissioning of the pilot in the first quarter of 2011. In 2009 Excelsior filed a patent application for the pre-ignition heat cycle involved in the COGD process.
  • The Company requires funding for the COGD pilot project and engaged CIBC World Markets Inc. as its strategic advisor to assist in identifying a joint venture partner for its COGD pilot project at Hangingstone or other value creating opportunities.
  • Through its partially owned subsidiary, ENS Energy Ltd., Excelsior Energy North Sea Limited ("EENS") was awarded licence P1691 for two new blocks at 16/1b and 16/2c in the United Kingdom Continental Shelf 25th Licensing Round by UK Department of Energy and Climate Change in March 2009. These blocks were contiguous to licence P1500 awarded in 2007. The P1500 licence was relinquished in 2009 as EENS was not able to demonstrate the financial capacity to undertake a drilling program for an exploratory well by November 30, 2009, and a request to extend this deadline to February 28, 2010 was declined. The relinquishment of licence P1500 in the North Sea due to the inability to attract a joint interest partner or other financing for the project has resulted in a re-evaluation by ENS of the North Sea as the international focus. Other international opportunities are being explored by ENS with a focus on heavy oil in the Middle East and Northern Africa that are onshore and have a shorter cycle time to production. ENS is not expecting to continue its work program in the North Sea and all capitalized costs for the North Sea cost centre have been written off.

2010 Activity and Outlook

  • The Company entered into an agreement on April 13, 2010, to finance up to $20,000,000 in non-brokered private placements. The net proceeds of the offering will be used to fund further delineation at Hangingstone and for general corporate purposes. The private placement financings are subject to regulatory approval and conditions, as well as other customary closing conditions. The private placement financings are currently under review with regulatory authorities.
  • Pursuant to the Hangingstone farm-in agreement, in January 2010 the Company exercised its option to acquire and cancel the gross overriding royalty that encumbered the Company's Hangingstone oil sands property. Excelsior issued 1,445,056 common shares in consideration for the acquisition and cancellation of the gross overriding royalty.
  • To assist funding the COGD project, the Company re-submitted its application to the Alberta government's Innovative Energy Technology Program ("IETP") for the COGD experimental technology in the amount of $10 million. The IETP program provides for royalty credits being awarded for capital spent on new technology in the energy industry. Excelsior has also applied for $22 million of funding from Climate Change and Emissions Management Corporation ("CCEMC"), a non-profit organization with a mandate to manage and administer the Climate Change and Emissions Management Fund. CCEMC will award funding to companies with projects that aim to reduce greenhouse gas emissions. Resolution on both these initiatives is expected by mid year.
Selected Information        
($'s except weighted average shares) Dec 31, 2009   Dec 31, 2008  
Gas revenue 12,552   108,001  
Royalties (349 ) (16,496 )
Operating expenses (13,613 ) (35,102 )
  Net gas revenue (1,410 ) 56,403  
Interest and other income 39,132   317,672  
General and administrative expense 1,294,237   1,537,808  
Net loss and comprehensive loss (2,026,687 ) (3,401,081 )
Loss per share (basic and diluted) (0.01 ) (0.03 )
Capital expenditures        
  Petroleum and natural gas properties - cash 8,793,895   14,285,031  
Cash flows        
  Cash flows used in operations (1,022,859 ) (1,086,857 )
  Cash flows used in investing (11,160,234 ) (13,597,374 )
  Cash flows from financing -   12,583,640  
  Change in cash and cash equivalents (12,183,093 ) (2,100,591 )
  Cash and cash equivalents, beginning of year 13,748,057   15,848,648  
  Cash and cash equivalents, end of year 1,564,964   13,748,057  
Basic and diluted weighted average number of shares outstanding 143,060,590   119,986,718  

Copies of all of the Company's 2009 year-end disclosure documents may be obtained at www.sedar.com.

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 potential to improve economic and environmental impact in the development and recovery of heavy oil and bitumen. An application for an experimental pilot project to field demonstrate the COGD technology was submitted in the second quarter of 2009. Project approval is expected in the latter half of 2010 with subsequent implementation and commissioning in early 2011. 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 with developing technologies to produce oil and gas.

Forward Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward-looking statements and information concerning: anticipated regulatory approvals, expected timing on project applications, use of proceeds of the Company's proposed financing activities, anticipated production and recovery results using the Company's COGD process, the sufficiency of its current funding to meet planned expenditure requirements, the plans of its subsidiary companies in meeting their contractual commitments, joint venture opportunities and financing arrangements.
The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by Excelsior, including expectations and assumptions concerning: prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future drilling results and production rates; reserve and resource volumes; the success obtained in drilling new wells; the anticipated production rates and recoverability factors based on certain modeling results conducted by third parties; the success of the process conducted by CIBC on terms acceptable to the Company; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; and the receipt, in a timely manner, of regulatory approvals. Although Excelsior believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Excelsior can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the oil and gas industry in general such as: 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 and resource estimates; the uncertainty of estimates relating to production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation or petroleum and natural gas and loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory approvals; inaccuracies in modeling results conducted by third parties; the ability of the Company to identify and enter into a binding agreement with a joint venture partner on terms acceptable to the Company; and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Excelsior are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
The forward-looking statements and information contained in this press release are made as of the date hereof and Excelsior undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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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