Excelsior Energy Limited

Excelsior Energy Limited

November 29, 2007 19:02 ET

Excelsior Reports Results for Third Quarter 2007-Strong Balance Sheet Supports Winter Core Drilling Program

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2007) - (TSX VENTURE:ELE) ("Excelsior" or the "Company") is pleased to report results for the three and nine month periods ended September 30, 2007 and 2006. The Company is continuing to focus efforts on oil sands exploration and appraisal in the Hangingstone and West Surmont areas near Fort McMurray, Alberta. As well, Excelsior has identified and mapped several leads in its two part-blocks in the United Kingdom North Sea. Excelsior ended the quarter with cash and cash equivalents of $15.2 million and working capital of $12.0 million.

"We are very excited to be entering the winter drilling season with a strong balance sheet and a drilling rig and services contracted for our Hangingstone program," said David Winter, President and Chief Executive Officer. "We look forward to completing our 24-well Hangingstone core drilling program and a portion of our 18-well West Surmont core drilling program prior to spring break-up. These wells will provide the data necessary to confirm the resource potential of our oil sands properties and to delineate potential sites for a SAGD pilot project on the Hangingstone property."

Third Quarter Operational Highlights:

- In July 2007, Excelsior executed a farm-in agreement to earn a 75% working interest in 18 contiguous sections of the West Surmont property. In September the Company added one section to its West Surmont land position, making it a total of 19 contiguous sections (9,120 net acres) of oil sands leases.

- Also in July 2007, the Company closed a transaction to acquire an additional 22.5% working interest in the Hangingstone property, bringing Excelsior's working interest in the property to 75%. The Hangingstone property consists of 39 contiguous sections (18,720 net acres) approximately 28 kilometres south of Fort McMurray. The productive reservoir is the McMurray Formation which is comprised of thick fluvial and estuarine channel sands with net bitumen pay thicknesses up to 37 metres.

- In September 2007, Excelsior completed the acquisition of 72.5 kilometres of 2D seismic data at West Surmont and acquired an additional 73.1 kilometres of 2D seismic data from a third party vendor. The acquisition of seismic in summer rather than during the normal winter operations season gives Excelsior a significant time advantage by accelerating the drilling into the 2007/2008 drilling season.

Fourth Quarter Activities Update and Outlook:

- The Company has contracted two drilling rigs to drill the well programs at Hangingstone and West Surmont. The Company expects to commence its 24-well core drilling program at Hangingstone in December 2007. The Company has received approval of its Oil Sands Exploration plan for 44 well locations at Hangingstone.

- Interpretation of the West Surmont seismic data is nearing completion. The Company has submitted its Oil Sands Exploration plan to support a core well program this winter.

- The Company entered into an agreement in November 2007 to finance a portion of the Surmont core drilling program (nine to 12 wells) in the 2007/08 winter season and initial costs in the UK North Sea. The Company will raise gross proceeds of up to $8.7 million in common shares and flow through common shares.

- Also in November 2007, Excelsior announced it has engaged the services of Noble House Capital Corp. to assist the Company in effective communication with investors and to broaden its exposure to retail and private investors.

The following information is selected highlights of the results of operations for Excelsior for the three and nine months ended September 30, 2007 and 2006 and should be read in conjunction with the management discussion and analysis and unaudited interim consolidated financial statements for the three and nine months ended September 30, 2007, available online at www.sedar.com.

Selected Information

($'s except weighted Nine Nine Three Three
average shares) Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
(restated) (restated)
Gas revenue 76,357 87,928 16,537 27,064
Royalties (16,830) (48,382) (2,894) (9,123)
Operating costs (10,721) (9,529) (2,456) 1,005
Net gas revenue 48,806 30,017 11,187 18,946
Interest revenue 243,021 65,097 188,683 39,938
General and
administrative expense 811,834 1,113,280 316,607 708,547
Net and comprehensive
loss (3,654,264) (1,103,162) (3,030,554) (684,094)
Loss per share (basic
and diluted) (0.07) (0.08) (0.03) (0.04)
Cash flows used in
continuing operations (758,557) (1,070,375) (190,641) (526,885)
Capital expenditures
Petroleum and natural
gas properties - cash
additions 28,412,026 211,165 19,457,407 64,069
Petroleum and natural
gas properties - non-
cash additions 13,413,697 125,000 5,099,602 -
Total additions 41,825,723 336,165 24,557,009 64,069
Weighted average number
of shares outstanding 54,812,486 13,934,209 93,971,291 17,576,209

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 as operator in 58 contiguous sections on completion of its farm-in obligations. The Company also owns 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. The Company's strategy is to capture oil and gas appraisal and development opportunities where it can leverage Management's diverse international 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.

Contact Information