Exall Resources Limited
TSX : EXL

Exall Resources Limited

September 08, 2005 10:20 ET

Exall Successful In UK North Sea, 23rd Bidding Round

TORONTO, ONTARIO--(CCNMatthews - Sept. 8, 2005) - Exall Resources Limited ("Exall") (TSX:EXL) announced today that its recent bid for oil and gas concessions in the UK North Sea was successful with the award of two Blocks, 21/22 and 21/28b acquired through its wholly owned subsidiary Exall Energy (UK) Ltd.

Exall and its partners, Sterling Resources Ltd. (SLG:TSX-V) and Grove Energy Ltd. (GRV:TSX-V) bid on the blocks during the 23rd Bidding Round held in June, 2005. Blocks 21/22 and 21/28b are located in the Central North Sea and adjacent to the Fyne and Dandy oil discoveries. Sterling Resources operates the blocks with a 50% interest, Grove Energy has a 30% interest, Subsurface Information Ltd. has a 10% interest and Exall will have a 10% interest. Each participant will pay their pro rata share of expenses.

All blocks have been offered as Promote Licences with reduced licence fees for the first two years and work commitments in general involving the purchase of existing seismic data and geological and geophysical studies to firm up the currently identified prospects and leads. Prior to applying for these Blocks, Sterling, through an agreement with Western Geco, had access to modern seismic data over the areas.

Seismic anomalies have been outlined on these blocks within the Eocene Tay sands and will be evaluated in conjunction with Sterling's neighbouring 21/23 block. In addition, seven structural leads have been identified in the Upper Jurrasic Fulmar Formation with reserve expectations of approximately 20 million barrels (mmbbls) each, based on the first of those evaluated to date.

"The Board and Management at Exall are excited about the prospects of significant oil discoveries in this prolific oil region of the North Sea" said Stephen Roman, Exall's Chairman and CEO. "We have excellent partners with a long history of operating in the region and look forward to adding significant international exploration exposure to complement Exall's domestic oil and gas exploration and production activities."

Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL (S.E.C. registration #82-3535). Exall is active in its business of gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas.

There are currently 56.9 million common shares issued and outstanding.

FORWARD LOOKING STATEMENTS:

The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

Contact Information

  • Exall Resources Limited
    Stephen G. Roman
    Chairman, President and CEO
    (416) 368-3949
    www.exall.com