Exall Energy Corporation

Exall Energy Corporation

February 11, 2015 18:37 ET

Exall Energy Corporation Announces Revised Process to Pay Out Existing Credit Facility

CALGARY, ALBERTA--(Marketwired - Feb. 11, 2015) - Exall Energy Corporation ("Exall" or the "Company") (TSX:EE)(TSX:EE.DB) announced today that, further to its February 9, 2015 announcement, Viking Investments Group, Inc. (the "Lender") has provided Exall with a non-binding letter of intent (the "LOI") pursuant to which, as a preliminary step (the "Interim Financing"), it would loan $35.0 million to Exall in order to allow Exall to retire its existing facility with Exall's current senior Canadian lender (the "Facility") in full, in consideration for an assignment of the Facility and security package. It is anticipated that the Interim Financing would permit Exall to pay off the Facility on or about February 23, 2015, several weeks ahead of the financing (the "Financing") which is expected to close in mid-March as announced on February 9, 2015. Exall's existing senior Canadian lender had previously stipulated it would not act under its security until after February 13, 2015 and Exall will be approaching its current senior lender to request additional time to complete the transaction but there is no guarantee that this request will be granted.

The LOI contemplates that the Interim Financing would be for a term of not more than 90 days and remains subject to the parties executing a definitive agreement. The Lender's obligation to fund will be conditional upon, among other things, the Lender having secured financing sufficient to allow it to advance the loan proceeds.

Exall's public filings can all be found at www.exall.com or www.sedar.com.

About Exall

Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta. Exall Energy is currently developing the new Mitsue area "Marten Mountain" discovery in north-central Alberta.

Exall Energy currently has 66,634,854 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE. The Company's convertible debentures are listed on the Toronto Stock Exchange under the trading symbol EE.DB.

Reader Advisory

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

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