Texalta Petroleum Ltd.

Texalta Petroleum Ltd.

January 18, 2006 11:00 ET

Texalta Petroleum Ltd.: Pipeline Project Underway New Well to be Licenced

CALGARY, ALBERTA--(CCNMatthews - Jan. 18, 2006) - Texalta Petroleum Ltd. (TSX VENTURE:TEX.A) ("TEX.A") announces that work will begin today on the pipeline to tie the Petrex Texalta Queensdale W. 8-25-6-2 W2 well in to the battery facility at 8-26-6-2 W2. Environmental concerns caused a delay in completion of the creek crossing which have now been addressed and the project should be complete in the next 7-10 days. Upon completion, sales of associated gas from the 8-25 well will begin.

Texalta also announces it is submitting an application for a drilling licence for the Texalta et al 10-14-7-3 W2M well in the Wordsworth area of southeast Saskatchewan.

Texalta remains fully funded to drill three prospect areas in Saskatchewan, as previously announced, as soon as a rig becomes available.

TEX.A is engaged in the exploration, acquisition and development of prospective oil & gas properties in Saskatchewan and Alberta. The Company also holds a 50 percent working interest in two exploration permits covering in excess of 5.5 million acres of prospective land in the Georgina Basin, Northern Territory, Australia.

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

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