Texalta Petroleum Ltd.

Texalta Petroleum Ltd.

September 08, 2009 09:30 ET

Texalta Completing Third Development Well at Wordsworth, SK

CALGARY, ALBERTA--(Marketwire - Sept. 8, 2009) - Texalta Petroleum Ltd. ("Texalta") (TSX VENTURE:TEX.A) is pleased to announce that its third horizontal development well at Wordsworth, Saskatchewan was drilled to depth of 1930 meters on September 1, 2009. Analysis of drilling results indicate that this well should be capable of production similar to the nearby producers to the west. Completion of this well will begin as soon as the drilling rig is moved off and a service rig can be placed on site.

Texalta has surveyed the location for the fourth horizontal development well to the east of the third well. This well has a simple land component and arrangements should be in place to commence drilling by November 2009.

The Wordsworth pool can potentially accommodate an additional 8 wells in which Texalta as operator holds a 47.5 percent working interest. The conversion of the 3B9-23/4A10-23-7-3W2 well to a disposal facility has been completed and flowline from its 2A2-23-7-3-W2 Battery to the new disposal well is underway. The disposal facility will significantly reduce monthly operating costs for trucking to outside facilities.

The Company continues to have cash on hand and cash flow dedicated to the current drilling and completion plans. Texalta produces approximately 175 boe per day at an average cost of $12 per bbl and has no debt.

TEX.A is a Calgary based company engaged in the exploration, acquisition and development of prospective oil & gas properties in Saskatchewan and Alberta, Canada. The company's wholly owned subsidiary, Texalta Australia Pty. Ltd. holds 82 percent working interest in two exploration permits covering in excess of 5.5 million acres of prospective land in the Georgina Basin, Northern Territory, Australia.

Note: BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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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