Excelsior Energy Limited
CNQ : EXEL

Excelsior Energy Limited

April 30, 2007 18:57 ET

Excelsior Reports December 31, 2006 Results

CALGARY, ALBERTA--(CCNMatthews - April 30, 2007) - Excelsior Energy Limited. (CNQ:EXEL) ("Excelsior") has filed its year end audited financial statements, management discussion and analysis, statement of reserves data, report of independent qualified reserves evaluator and related report of management and directors with securities regulatory authorities in Canada for the 15 month period ended December 31, 2006. These documents are available on the System for Electronic Document Analysis and Retrieval at www.sedar.com. The reserves were evaluated by Sproule Associates Limited effective December 31, 2006.



Selected Financial Information

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2006 2005
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Gas revenue $ 193,238 $ -
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General and administrative expense 1,844,323 151,404
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Write-down of petroleum and natural
gas properties 1,884,786 -
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Net loss $ (3,689,781) (67,611)
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Loss/share $ (0.25) $ (0.01)
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Cash flows used in continuing operations (1,765,071) (142,927)
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Weighted average number of shares outstanding 15,036,063 9,973,826
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Net revenue

Gas revenue was generated from the non-operated gas well at Hastings Alberta, which was acquired in November, 2005. The well averaged 57 mcfd (net to Excelsior) for the 15 month period ended December 31, 2006 at an average price of $7.38 per mcf. Crown royalties (net of Alberta royalty tax credit) of $29,255 averaged 15% of revenue. Operating costs of $25,853 averaged $0.99 per mcf. Depletion for the Hastings property was calculated at a rate of $5.41 per mcf, totalling $141,669.

General and Administrative Expenses

General and administrative expenses increased to $1,844,323 for the period ended December 31, 2006 compared to $151,404 for the year ended September 30, 2005. Excelsior changed its primary business activity in the year ended September 30, 2005 to petroleum and natural gas exploration, development and exploitation and general and administrative expenses were minimal reflecting Excelsior in the start up phase of activity, compared to the period ended December 31, 2006, which reflected 15 months of active operations. In 2006 consulting and legal services of approximately $450,000 were provided to Excelsior for support and technical analysis of oil and gas assets pursuant to its new business development objectives. Also included in general and administrative expenses in 2006 were severance costs of $450,000 paid to former directors and officers of Qeva and $130,000 relating to the costs of the unsuccessful financing expensed in the fall. The Company leased office space in 2006 and incurred expenditures associated with maintaining these premises for the 15 month period ended December 31, 2006.

Write-down of petroleum and natural gas properties

During the period ended December 31, 2006 Excelsior was required to withdraw from a farm-in agreement to earn their working interest in a UK North Sea licence. The costs associated with this property totalling $1,536,519 were written off.

At December 31, 2006 the ceiling test assessment for impairment of the Hastings property resulted in a write-down of $348,267.

Outlook

The Company will focus its near-term efforts primarily on the Hangingstone Oil Sands project pursuant to a farmin agreement entered into in 2007. In April, 2007 the seismic acquisition was completed comprising of 135 kilometres of 2D seismic data with processing expected to be completed on or around April 30, 2007. Excelsior will undertake to obtain equity financing to fund the $14.4 million capital budget for this project for remaining land and related costs and a 24 well core drilling program. The equity financing required for this project will allow Excelsior to earn its 52.5% working interest pursuant to the farmin agreement. The Company's ability to raise equity financing will be subject to market conditions at that time.

Excelsior anticipates initiating a program to re-process 3D seismic on its UK North Sea licence in 2007. The cost of this program is budgeted to be $500,000.

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.

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