Excelsior Energy Limited

Excelsior Energy Limited

June 09, 2008 06:00 ET

Excelsior's North Sea Subsidiary Closes Financing and Appoints New Board

CALGARY, ALBERTA--(Marketwire - June 9, 2008) - Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company") is pleased to announce the closing of a $1 Million private placement in its North Sea subsidiary, 1385302 Alberta Ltd. ("NorthseaCo") as previously disclosed on April 9, 2008.

The private placement consisted of 4,000,000 units (the "Units") issued at a subscription price of $0.25 per Unit. Each unit consists of one common share in the capital of the NorthseaCo (a "Common Share") and one half of a common share purchase warrant (each whole warrant a "Warrant") of NorthseaCo. Each whole Warrant entitles the holder thereof to acquire one Common Share at a price of $0.60 per Common Share. The Warrants will expire two years from the date of the closing of the private placement. Certain insiders of the Company, including management and directors, participated in purchasing approximately 50% of the Units sold. The proceeds will be used to fund ongoing technical work and business development activities of NorthseaCo in the United Kingdom. After closing the private placement, NorthseaCo has 16,000,000 common shares issued and outstanding. Excelsior owns 75% of NorthseaCo (on a non-diluted basis) and will hold the shares corporately.

The Board of Directors of NorthseaCo will be comprised of Mr. Gerald Roe, Mr. Donald Copeland, Mr. Hussein Charanek, Dr. David Winter, Mr. Harley Winger, Mr. Richard Grafton and Mr. James Howe. Mr. Roe recently retired from Oilexco Incorporated where he served as Chief Operating Officer. Mr. Copeland is the president of Pangman International Limited, a private investment and consulting company. Mr. Copeland was a former director and Chairman of Oilexco Incorporated. Mr. Charanek is an independent businessman with financial interests in energy and experience in domestic and international capital markets. The remaining board members are representatives of the Excelsior Board.

David Winter has agreed to serve as Director and Chief Executive Officer of NorthseaCo. Mary Kennedy and Robert Bailey will serve as Chief Financial Officer and Chief Operating Officer respectively. Excelsior will manage the initial operations and corporate development of NorthseaCo through a services agreement. The Management team will be augmented with the growth of NorthseaCo.

David Winter, President and CEO of the Company commented, "We welcome the new Board members to the team and look forward to working with them. With their successful North Sea experience, and our extensive international experience and expertise we aim to expand the asset base of NorthseaCo and build a successful international oil company active in the North Sea." He added, "Restructuring the company allows Excelsior to focus on its oil sands development, and gives us the ability to independently and more effectively grow and finance North Sea activities. We plan to initiate a public company strategy for NorthseaCo in the near term."

NorthseaCo will manage and finance the work program in the 100% working interest licence P.1500, blocks 16/1a and 16/6c, UKCS. Block 16/1a and 16/6c were awarded to Excelsior in April 2007, and are located within quadrant 16 of the central North Sea, a few kilometres northwest of the West Brae field. A number of leads and prospects have been identified and mapped in Eocene aged and Palaeocene aged sand reservoirs, which are productive in the neighbouring West Brae field. The primary prospect lies up dip from a well drilled in 1992, which penetrated a 15 metre thick oil column in the target reservoir sands. An independent evaluation of the prospect by PGL Consultants estimated a range of oil in place of between 50 million and 220 million barrels. NorthseaCo is currently reprocessing just over 300 square kilometres of 3-D seismic data to better image the reservoir sands and to define a drilling location to test the prospect., The asset is situated several kilometres from existing infrastructure with spare capacity.

Stock Option Grant:

The Company is pleased to report the Excelsior Board of Directors approved and issued 1,935,000 stock options to purchase common shares of the Excelsior Energy Limited on June 3, 2008, exercisable at $0.46 per share for a period of five years from the date of grant to directors, management and employees.

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 indirectly holds a 75% 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.

Forward Looking Statements: This press release contains forward-looking statements. Management's assessment of future plans and operations, expected production levels, operating costs, capital expenditures, the nature of capital expenditures, methods of financing capital expenditures, future engineering reports and the timing of increases in production may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward looking statements contained in this press release are made as at the date of this press release and the Company does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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

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