Excelsior Energy Limited

Excelsior Energy Limited

March 27, 2007 08:00 ET

Excelsior Releases DeGolyer and MacNaughton's Preliminary Bitumen in Place Estimate for the Hangingstone Heavy Oil Project in the Athabasca Oils Sands Area

CALGARY, ALBERTA--(CCNMatthews - March 27, 2007) - Excelsior Energy Limited. (CNQ:EXEL) ("Excelsior") is pleased to announce DeGolyer and MacNaughton ("DeGolyer") has completed an audit of geological mapping and a preliminary determination of bitumen in place on Excelsior's Hangingstone property, near Fort McMurray, Alberta.

For the report, DeGolyer audited the geological mapping of the property which covers 39 sections (24,960 acres), and determined the net sand thickness with greater than 70% bitumen saturation and average porosity greater than 30%. DeGolyer estimated that 1.618 billion barrels of bitumen in place may be contained in gross oil sands thicker than 30 meters. Furthermore, DeGolyer estimated that 2.493 billion barrels of bitumen in place may be contained in gross oil sands greater than 15 meters. Upon earning, Excelsior's 52.5% working interest share of estimated bitumen in place will be 849 million barrels and 1.309 billion barrels bitumen in place respectively.

The bitumen in place is contained in four mapped "pods" which will be the focus of the 24 well evaluation program to delineate a core area for a SAGD pilot project. A 137 Km seismic acquisition program is underway on the Hangingstone property.

About Excelsior Energy:

The Company is active in oil sands exploration and appraisal in the Hangingstone area near Fort McMurray, Alberta and will hold a 52.5% working interest in 39 contiguous sections on completion of its farm-in obligations. The Company also holds a 100% working interest in Blocks 16/1a and 16/6c in the UK North Sea and minor interests in gas production in Alberta.

The Company strategy is to capture oil and gas appraisal and development opportunities where we can leverage Management's diverse international experience and field development expertise. This includes heavy oil reservoir engineering and development of complex fields. The scale of the oil sands resource opportunity in Alberta complements Excelsior's international portfolio and strategy.

Contact Information