Excelsior Energy Limited
TSX VENTURE : ELE

Excelsior Energy Limited

March 27, 2008 13:22 ET

Excelsior Updates Hangingstone Reserve and Resource Estimates

CALGARY, ALBERTA--(Marketwire - March 27, 2008) - Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company") is pleased to announce the completion of an updated independent evaluation of bitumen reserves and resources on Excelsior's Hangingstone property, near Fort McMurray, Alberta. The effective date of the evaluation is December 31, 2007 ("the effective date"). The report was prepared in respect of Excelsior's year end reporting obligations under NI 51-101. The effective date of the evaluation provided for the inclusion of two wells from this winters' core drilling program. An additional 24 wells were drilled, cored and logged after the effective date of the report. A complete resource analysis of the Hangingstone asset including all 26 core wells is expected to be available in the second quarter, 2008.

The reserve and resource estimates were prepared by DeGolyer and MacNaughton in a report ("the DeGolyer report") with an effective date of December 31, 2007. The DeGolyer report was prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101.

Bitumen Reserves

Well control and the presence of a prior cyclic steam stimulation project on the lands provided for an assignment of 43.9 million barrels of probable reserves to Excelsior's working interest share on 2.5 sections of Hangingstone lands. Probable and possible bitumen reserves were estimated at 53.7 million barrels to Excelsior's working interest share as of the effective date.

The DeGolyer report estimated that Excelsior's probable reserves would generate $ 1,875 million of future net revenue with a net present value of $ 123.7 million discounted at 10%, after deduction of $ 415.7 million in future capital requirements and abandonment costs of $ 0.5 million.

Probable plus possible bitumen reserves were forecast to generate $ 2,373.5 million of future net revenue with a 10 percent present value of $ 147.9 million, after deduction of future capital requirements of $ 526.6 million.

Contingent Resources

The DeGolyer report was also able to assign additional contingent resources to Hangingstone lands. Best estimate contingent resources were estimated at 253.3 million barrels (Excelsior's working interest share); low estimate contingent resources were estimated at 94.7 million barrels (Excelsior's working interest share) and high estimate contingent resources were estimated at 571.6 million barrels (Excelsior's working interest share). Contingent resources are further categorized as marginal (Marginal Contingent Resources - Those quantities associated with technically feasible projects that are either currently economic or projected to be economic under reasonably forecasted improvements in commercial conditions but are not committed for development because of one or more contingencies).

The resource volumes have not been classified as reserves at this time pending delineation drilling, development planning and regulatory applications. Resource values should be considered as indicative in nature only.

Estimations of reserves and future net revenue discussed in this press release constitute forward looking statements. See "Forward Looking Statements" below. All references to future net revenue in this press release are estimated before tax.

Robert Bailey, COO and Vice President of Excelsior commented; "DeGolyer and MacNaughton integrated Excelsior's seismic data and 2007 drilling results in the current analysis. The enhanced data set provided for significant increases in probable reserves and best estimate contingent resources on the Hangingstone asset. The balance of the winter drilling program, including 24 additional core wells, is expected to allow for additional resource bookings."



Summary Tables

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Excelsior Energy Limited
Hangingstone 75% Working Interest
Bitumen Reserves (MMbbl)
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30/04/2007 31/12/2007

Probable (2P) (1) 19.2 43.9
Probable plus Possible (2) 40.2 53.7
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Excelsior Energy Limited
Hangingstone 75% Working Interest
Bitumen Reserves (MMbbl)
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31/05/2007 31/12/2007

Low Estimate Contingent (3) (4) (5) 82.9 94.7
Best Estimate Contingent (6) 130.2 253.3
High Estimate Contingent (7) 193.1 576.6
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Excelsior Energy Limited
10 % Value of Future Net Revenue (8)
Forecast Prices and Costs
Bitumen Reserves and Resources (MM $)
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30/04/2007 31/12/2007

Probable (2P) 57.8 123.7
Probable plus Possible 99.3 147.9
Low Estimate Contingent - -
Best Estimate Contingent - -
High Estimate Contingent - -
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Notes:

1) Probable reserves are those additional reserves that are less certain to
be recovered than proven reserves. It is equally likely that the actual
remaining quantities recovered will be greater or less than the sum of
the proven plus probable reserves.
2) Possible reserves are those additional reserves that are less certain to
be recovered than probable reserves. There is only a 10 % probability
that the quantities actually recovered will equal or exceed the sum of
the proven plus probable plus possible reserves.
3) Contingent resources are those quantities of oil and gas, estimated on a
given date, to be potentially recoverable from known accumulations but
are not currently economic. The DeGolyer report has categorized these
resources as contingent as additional delineation drilling, development
planning, project design and further regulatory applications are
required.
4) Contingent resources are further categorized as sub-marginal.
Sub-marginal contingent resources are those quantities associated with
technically feasible projects that are either economic or are expected
to be economic under reasonable forecasted improvements in commercial
conditions but are not committed for development because of one or more
contingencies.
5) Low Estimate is considered to be a conservative estimate of the quantity
that will actually be recovered from the accumulation. If probabilistic
methods are used, this term reflects P90 confidence level.
6) Best Estimate is considered to be the best estimate of the quantity that
will actually be recovered from the accumulation. If probabilistic
methods are used this term is a measure of central tendency of the
uncertainty distribution (P50).
7) High Estimate is considered to be an optimistic estimate of the quantity
that will actually be recovered from the accumulation. If probabilistic
methods are used the term reflects a P10 confidence level.
8) All references to future net revenue in this table are estimated before
tax.


About Excelsior Energy:

Excelsior is active in oil sands exploration and appraisal in the Hangingstone and West Surmont areas near Fort McMurray, Alberta. Excelsior holds a 75% working interest in 39 contiguous sections at Hangingstone and will own a 75 % working interest in an additional 19 contiguous sections at West Surmont upon 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.

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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