Exceed Energy Inc.
TSX VENTURE : EX.A
TSX VENTURE : EX.B

Exceed Energy Inc.

November 27, 2007 18:18 ET

Exceed Energy Announces Third Quarter 2007 Results

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) - Exceed Energy Inc. (TSX VENTURE:EX.A) (TSX VENTURE:EX.B) today announced that it has filed its unaudited financial statements and management's discussion and analysis for the period ended September 30, 2007 as well as the Company's 52-109 F1 & F2 CEO and CFO Certificates. This press release is meant to be read in concurrence with the above filed documents and the Company's December 31, 2006, annual report. Copies of these documents are available on SEDAR at www.sedar.com.

Quarterly Financial Highlights

(as compared to the third quarter of 2006)

- Cashflow up over 102% to $503,564

- Gross revenue up 45%

- Net loss down 99% to $4,505

- BOE per day production up 37%

- Depletion down 20% on a per BOE basis

Third Quarter Operations Summary

In the third quarter the Company conducted field operations at Roxana, Coyote, Bashaw, and Hussar. The second Roxana well (30% Working Interest) was completed and brought on stream in the third quarter. A third Roxana well (50% WI) is anticipated to be drilled this winter. The 10-18 Coyote well (100% WI) was completed and brought on stream in the third quarter. The third well (12% WI) at Bashaw in which the Company has an interest, was completed and put on production in the third quarter. The Company holds an interest in Bashaw 16-12 that achieved payout at the end of August, as such the Company's working interest in the well increased to 12 percent. The Company tied in and put on production a Belly River well (35 % WI) at Hussar.

The Company began pipeline operations to tie-in the associated gas from the Roxana wells to a nearby facility in the third quarter.

Outlook and subsequent operational events

The Company has drilled and cased the 3-12 well in Bashaw as a potential oil and gas well with multiple zone potential. The well will be completed, tested and put on production in the coming months.

The Company has drilled and abandoned its first Culp area Beaverhill Lake zone location (30% Working Interest) at 15-16-78-23W5M on November 25, 2007. The Company is currently merging newly shot 3D into its existing data and updating its interpretations. The Company has two or more additional location on its lands at Culp.

Exceed has a large inventory of locations to drill oil and gas targets. The Company is evaluating the optimal timing for drilling these opportunities based on changing market and regulatory conditions.



Selected Financial Information

Three Nine Three Nine
Financial data Months Months Months Months
September September September September
30, 2007 30, 2007 30, 2006 30, 2006
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Oil and natural gas revenue,
net of royalties 867,937 1,979,314 531,408 1,784,773
Operating expense 204,894 461,928 125,897 388,896
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Operating netback 663,043 1,517,386 405,511 1,395,877

Net loss (4,505) (399,941) (301,870) (824,680)
Per share, basic 0.00 (0.01) (0.01) (0.02)
Per share, diluted 0.00 (0.01) (0.01) (0.02)
Cash flow from operations
(non GAAP) 503,564 986,406 249,696 903,242
Per share, basic (non GAAP) 0.01 0.02 0.01 0.02
Per share, diluted (non GAAP) 0.01 0.02 0.01 0.02

Total assets 13,990,844 14,443,162
Total liabilities 2,440,510 4,436,952

September September
Share capital data 30, 2007 30, 2006
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Number of class A common
shares (Note 1) 41,076,720 41,710,007
Number of class B common
shares 2,333,602 852,125
Number of options
outstanding 2,104,000 2,040,000
Average exercise price 0.21 0.21
Number of options
exercisable 744,000 .00


Exceed Energy Inc.
Balance Sheets

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September 30, December 31,
2007 2006
Assets (unaudited) (audited)

Current assets
Cash and short term investments $ 735,514 $ 4,010,890
Accounts receivable 874,338 425,560
Prepaid expenses and deposits 76,457 32,239
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1,686,309 4,468,689

Refundable deposit (Note 3) 157,161 147,342

Property and equipment (Note 4) 12,147,374 10,620,840
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$ 13,990,844 $ 15,236,871
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Liabilities and Shareholders' Equity

Current liabilities
Accounts payable and accrued liabilities $ 1,734,171 $ 2,415,749


Asset retirement obligation (Note 7) 240,024 174,328
Future income tax 466,315 768,797
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2,440,510 3,358,874

Shareholders' equity
Equity instruments (Note 8) 17,403,960 17,445,682
Contributed surplus (Note 8) 713,087 599,087
Deficit (6,566,713) (6,166,772)
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11,550,334 11,877,997
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$ 13,990,844 $ 15,236,871
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Indemnifications and contingencies (Note 12)
Commitments (Note 13)
Subsequent events (Note 14)

The accompanying notes are an integral part of these financial statements
Note: Please refer to the Financial Statements and Management Discussion and
Analysis at www.sedar.com in reference to the note numbers in this table.


Exceed Energy Inc.
Statements of Operations and Deficit

----------------------------------------------------------------------------
Three Three Nine Nine
month month month month
period period period period
ended ended ended ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue
Oil and natural gas
sales $ 1,047,754 $ 720,286 $ 2,466,494 $ 2,453,832
Royalty expense (179,817) (205,245) (487,180) (747,341)
Alberta Royalty Tax
Credit - 16,367 - 78,282
Interest and other
income 16,055 34,383 69,330 77,227
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883,992 565,791 2,048,644 1,862,000
Expenses
Operating 204,894 125,897 461,928 388,896
General and
administrative 173,369 139,362 596,320 419,027
Stock based
compensation 38,000 55,317 114,000 147,980
(Note 8)
Interest 2,166 50,836 3,990 150,835
Depletion,
depreciation and
amortization
(Note 4) 630,262 564,385 1,553,380 1,991,187
Accretion of asset
retirement
obligation (Note 7) 8,031 340 21,449 24,636
Amortization of
debenture issue
costs - 11,875 - 35,238
Accretion of
debenture obligation - 22,300 - 66,000
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1,056,722 970,312 2,751,067 3,223,799

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Loss before taxes (172,730) (404,521) (702,423) (1,361,799)

Taxes
Future tax recovery 168,225 102,651 302,482 537,119
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Net loss for the
period (4,505) (301,870) (399,941) (824,680)
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Deficit, beginning
of period (6,562,208) (5,305,180) (6,166,772) (4,782,370)

Deficit, end of
period $ (6,566,713) $ (5,607,050) $ (6,566,713) $ (5,607,050)
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Net loss per common
share (Note 8)
Basic and diluted 0.00 $ (0.01) $ (0.01) $ (0.02)
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The accompanying notes are an integral part of these financial statements

Note: Please refer to the Financial Statements and Management Discussion and
Analysis at www.sedar.com in reference to the note numbers in this table.


Exceed Energy Inc.
Statement of Cash Flows

----------------------------------------------------------------------------
Three Three Nine Nine
month month month month
period period period period
ended ended ended ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
Cash provided by
(used in)
Operating Activities
Net loss for the
period $ (4,505) $ (301,870) $ (399,941) $ (824,680)
Items not
requiring cash
Depletion,
depreciation and
amortization 630,262 564,385 1,553,380 1,991,187
Accretion of asset
retirement
obligation (Note 7) 8,031 340 21,449 24,636
Accretion of
debenture
obligation - 22,300 - 66,000
Amortization of
debenture issue
costs - 11,875 - 35,238
Future tax
recovery (168,224) (102,651) (302,482) (537,119)
Stock based
compensation 38,000 55,317 114,000 147,980
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503,564 249,696 986,406 903,242
Change in non-cash
working capital
related to
operating
activities(Note 10) (243,886) (91,336) (525,163) 143,510
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259,678 158,360 461,243 1,046,752
Financing Activities
Issue of share
capital, net of
costs 1,860,005 1,860,005
Increase in share
issuance costs (23,099) - (41,721) -
Increase in demand
loan - - - -
Change in non-cash
working capital
balances
related to
financing
activities
(Note 10) 2,153 557 (43,485) (50,051)
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(20,946) 1,860,562 (85,206) 1,809,954
Investing Activities
Additions to
property and
equipment (1,311,122) (887,958) (3,078,866) (2,035,500)
Dispositions of
property and
equipment - - 43,200 272,544
(Increase)
Decrease in
refundable deposit (13,846) (96,046) (9,819) (96,046)
Change in non-cash
working capital
balances
related to
investing
activities
(Note 10) (722,432) (352,271) (605,928) 114,788
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(2,047,400) (1,336,275) (3,651,413) (1,744,214)

Decrease in cash
and short-term
investments (1,808,668) 682,647 (3,275,376) 1,112,492

Cash and short-term
investments,
beginning of period 2,544,182 3,288,906 4,010,890 2,859,061

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Cash and short-term
investments, end of
period $ 735,514 $ 3,971,553 $ 735,514 $ 3,971,553
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Cash interest
payments $ 2,166 $ 50,836 $ 3,990 $ 150,835
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The accompanying notes are an integral part of these financial statements
Note: Please refer to the Financial Statements and Management Discussion and
Analysis at www.sedar.com in reference to the note numbers in this table.


Forward Looking Statements

This press release contains forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projects relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company has also used certain measures of financial reporting that are commonly used as benchmarks within the oil and natural gas production industry. The measures discussed are widely accepted measures of performance and value within the industry, and are used by analysts and investors to compare and evaluate oil and natural gas exploration and producing entities. Most notably, these measures include operating netback and cash flows from operations. Operating netback is a benchmark used in the crude oil and natural gas industry to measure the contribution of oil and natural gas sales subsequent to the deduction of royalties and operating costs. Cash flow from operations is before changes in non-cash working capital and site restoration expenditures, and is used to analyze operations, performance and liquidity. These measures are not defined under GAAP and should not be considered in isolation or as an alternative to conventional GAAP measures. These measures and their underlying calculations are not necessarily comparable to a similarly titled measure of another entity. When these measures are used, they are defined as "non GAAP" and should be given careful consideration by the reader. The term barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. A BOE conversion ratio for natural gas of 6:1 has been used by the Company, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value of equivalency at the wellhead. All BOE conversions in this report are derived by converting natural gas to crude oil in the ratio of six thousand cubic feet of natural gas to one barrel of crude oil. Additional information on these and other factors that could affect Exceed's operations or financial results are included in Exceed's reports on file with Canadian securities regulatory authorities that may be accessed at www.sedar.com or through the Company's website, www.exceedenergy.com.

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