Excelsior Energy Limited
TSX VENTURE : ELE

Excelsior Energy Limited

March 05, 2008 20:43 ET

Excelsior Releases Operations Update

CALGARY, ALBERTA--(Marketwire - March 5, 2008) - Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company") is pleased to announce that it is nearing completion of its drilling programs at Hangingstone and West Surmont.

At Hangingstone, the company is currently drilling the last core well of the 24 well program. The joint venture partners have approved the drilling of an additional two core wells to better delineate an area of high quality, homogeneous bitumen sands. Initial well results will be disclosed on completion of the additional wells which should be completed on or about March 10, 2008.

David Winter, CEO and President commented "We are very pleased with our operational performance at Hangingstone, the 24 wells have been drilled on time and under budget, we have encountered significant thicknesses of high quality bitumen reservoir sands", he further added, "on completion of the 24 wells Excelsior will have met its farm-in obligations and fully earned its 75% working interest in the Hangingstone property".

The McMurray Formation in the core wells is being fully cored and evaluated with a full suite of wireline logs to confirm reservoir thickness and quality. This data will enable the Company to evaluate the geometry and spatial distribution of the reservoir fluvial channel sands. Core analysis is ongoing with completion expected prior to May 30, 2008. The core data will be integrated with the wireline log data to determine reservoir parameters and net pay thicknesses. The data will then be integrated with Excelsior's seismic data set to generate reservoir quality and thickness maps.

Updated resource reports prepared by McDaniel & Associates Consultants Ltd. are expected in the end June/early July timeframe.

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 holds a 100% 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 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.

Forward-Looking Statements: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management. Readers are cautioned not to place undue reliance on these statements.

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

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