Excelsior Energy Limited

Excelsior Energy Limited

June 18, 2008 17:49 ET

Excelsior Announces Financing for North Sea Subsidiary

CALGARY, ALBERTA--(Marketwire - June 18, 2008) -


Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company") is pleased to announce that its 75% owned subsidiary, ENS Energy Ltd. ("ENS") (formerly 1385302 Alberta Ltd.) intends to enter into a private placement financing of up to $5 million. After the restructuring of Excelsior's UK subsidiary, announced on April 9, 2008, ENS wholly owns the UK subsidiary that holds a 100% working interest in licence P.1500, blocks 16/1a and 16/6c, in the United Kingdom Continental Shelf ("UKCS"). Excelsior currently owns 75% of ENS following closing of an ENS private placement announced on June 9, 2008.

The ENS Board of Directors has approved a non-brokered private placement financing of up to $5 million. The private placement contemplates the issuance of up to 10 million units ("Units") at a subscription price of $0.50 per Unit. Each Unit will consist of one common share of ENS ("Common Share") and one half of a Common Share purchase warrant (each whole warrant a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.90 per Common Share. The Warrants will expire two years from the date of the closing of the private placement. ENS intends to use the proceeds to fund ongoing technical work on license P.1500 and business development activities in the United Kingdom. ENS currently has 16 million Common Shares issued and outstanding (19.6 million fully diluted).

David Winter, President and CEO of Excelsior and ENS commented, "This financing will assist ENS to expand its asset base with a focus on properties with near term production in the North Sea with a view to a public company strategy for ENS".

ENS will manage and finance the work program in the 100% working interest license P.1500, blocks 16/1a and 16/6c, UKCS. Block 16/1a and 16/6c were awarded in April 2007, and are located within Quadrant 16 of the central North Sea, a few kilometres northwest of the West Brae field. ENS is currently reprocessing just over 300 square kilometers of 3-D seismic data to better image the reservoir sands and to define a drilling location on a prospect which contains an abandoned well drilled in 1992 which penetrated a 15 meter oil column.

About Excelsior Energy

Excelsior is active in oil sands exploration and appraisal in the Hangingstone and West Surmont areas near Fort McMurray, Alberta and will hold a 75% working interest in 58 contiguous sections on completion of its farm-in obligations. The Company also indirectly holds a 75% working interest in Blocks 16/1a and 16/6c in the UK North Sea and a minor interest in gas production in Alberta. Excelsior's strategy is to capture oil and gas appraisal and development opportunities where the Company can leverage Management's diverse international experience and field development expertise. This includes heavy oil reservoir engineering and development of complex fields.

Forward Looking Statements: This press release contains forward-looking statements. Management's assessment of future plans and operations, expected production levels, operating costs, capital expenditures, the nature of capital expenditures, methods of financing capital expenditures, future engineering reports and the timing of increases in production may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward looking statements contained in this press release are made as at the date of this press release and the Company does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The Units, Common Shares and Warrants have not been registered under the United States Securities Act of 1933, as amended, and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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