Exall Energy Corporation

Exall Energy Corporation

November 27, 2007 09:00 ET

Exall Energy Corporation, Operations Update, November, 2007

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) - Exall Energy Corporation (TSX:EE) ("Exall" or the "Company") announced today a number of recent developments.


- Operations update at Mitsue core area

- Exall successful at October 17, 2007 Alberta Crown Land Sale

- Exall plans wells at Mitsue and North Sea.

Exall has completed and fracture stimulated two wells in the Mitsue area northwest of Edmonton. The wells are currently on production and recovering stimulation fluids. In addition to the completions, a water injection well was worked over to enable higher injection rates in order to increase oil production from the project. An estimate of production additions from the total project will be given once a stabilized rate is established from the new wells.

Exall acquired an interest in two additional Alberta Crown P&NG leases at its Mitsue core area at the October 17, 2007 Alberta Crown land sale. The leases are located in the Company's Marten Mountain prospect area and will allow Exall to continue development of the new discovery well drilled last winter. The total acreage acquired adds 512 hectares (338 ha net) which brings the total net acreage in the Mitsue core area to 2,864 ha (7,160 acres).

Exall plans to drill two wells on the Marten Mountain prospect this winter to follow up on the previously announced oil discovery (see Press release dated May 29, 2007). The discovery well was suspended due to borehole conditions and the company plans to re-drill the horizontal leg in January, 2008.

In southern Alberta, a well drilled by Exall in the Bow Island area in November did not find economic volumes of hydrocarbons and was abandoned. Exall had a 20% working interest in the well.

Exall has agreed to participate as to its 10% working interest in the drilling of a proposed well on Block 21/22 in the central UK North Sea, operated by Sterling Resources. A technical review conducted by the operator in early November has tied the prospect to the recently developed Sheryl oil discovery, operated by Oilexco and located 15 kilometers to the southeast of the proposed location. Exall and partners have a two-year period in which to drill the well under the terms imposed by the UK government.

Exall Energy Corporation is a Canadian junior energy company formed in November, 2006 and engaged in the exploration and development of oil and natural gas in Alberta, B.C., Texas and the U.K. North Sea.

Contact Information

  • Exall Energy Corporation
    Frank S. Rebeyka
    President and CEO
    (403) 237-7820
    (403) 262-4723 (FAX)
    Website: www.exall.com