Exall Energy Corporation
TSX : EE
TSX : EE.DB

Exall Energy Corporation

March 09, 2015 10:42 ET

Exall Energy Corporation Updates Expected Timing to Pay Out Existing Credit Facility

CALGARY, ALBERTA--(Marketwired - March 9, 2015) - Exall Energy Corporation ("Exall" or the "Company") (TSX:EE)(TSX:EE.DB) announced today that, further to its February 9, 2015 and February 11, 2015 announcements, Viking Investments Group, Inc. ("Viking") has advised Exall that given the current timing, it is considering dispensing with a bridge financing arrangement as a means to retire Exall's existing facility with its current senior Canadian lender (the "Facility") in full, and instead utilize proceeds from a larger, long-term debt financing being contemplated by Viking in Mauritius with assistance from BAO Capital Sarl (the "Bond Transaction"). Approximately $35.0 million from the Bond Transaction would be used to pay the Facility in full, in consideration for an assignment of the Facility and security package. Viking has advised Exall it expects the Bond Transaction will close by the end of March, 2015. Exall is working with its existing senior Canadian lender on this proposed change.

In addition, Exall notes that the next semi-annual interest payment under Exall's outstanding $23 million convertible debenture is due on March 31, 2015, in the amount of $888,808.22. Absent closing of the Bond Transaction, and other financing arrangements, Exall will not have proceeds available to make this required interest payment.

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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