XXL Energy Corp.
TSX VENTURE : XL

XXL Energy Corp.

June 23, 2008 09:42 ET

XXL Energy Corp. Announces Entering Into a Loan With Giant Energy Ltd.

HOUSTON, TEXAS--(Marketwire - June 23, 2008) - XXL Energy Corp. (the "Company" or "XXL") (TSX VENTURE:XL) announces that it has entered into a loan pursuant to which it will borrow up to $1,000,000 (the "Loan") from Giant Energy Ltd. ("Giant"). The loan is unsecured and evidenced by a short-term promissory note (the "Promissory Note").

In accordance with the terms of the Promissory Note, Giant will lend XXL up to $1,000,000 for a term of up to 6 months (the "Term") at an annual rate of interest equal to ten percent (10%), such interest to be accrued and payable at the end of the Term. In consideration for the Loan, XXL will pay Giant a bonus consisting of up to 71,301 common shares in the capital of XXL (the "Bonus Shares"). The Bonus Shares will be subject to a 4 month hold period. XXL has determined that the Loan will allow XXL to have the financial wherewithal to meet near-term commitments as they become due and give XXL the time required to raise additional capital once market conditions have improved.

The entering into the Loan and the terms of the Promissory Note were approved by those directors of XXL who are independent of Giant. The remaining two directors of XXL, John Hislop and Clifford Adams, who are related parties, abstained from voting. After issuing all of the Bonus Shares, Giant will own 71,301 common shares in the capital of XXL, representing 1.4% of the issued and outstanding common shares of Exxel.

About XXL Energy Corp.

XXL, headquartered in Houston, is an independent oil and gas exploration and development company focused in the Greater Green River Basin of Wyoming, the Columbia River Basin of Washington, the Piceance Basin of Colorado, the Great Basin of Nevada, and the Williston Basin of North Dakota.

In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Company's assessment of its and its subsidiaries' future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). All statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate", "believe", "expect", "estimate" and similar expressions are generally intended to identify forward-looking statements. Similarly, forward-looking statements in this press release include, but are not limited to anticipated developments of the Company's drilling project in and the timing thereof, the Company's drilling project in and the timing thereof, capital investment levels and the allocation thereof, pipeline capacity, government royalty rates, reserve and resources estimates, the level of expenditures for compliance with environmental regulations, site restoration costs including abandonment and reclamation costs, exploration plans, acquisition and disposition plans including farmout plans, net cash flows, geographic expansion and plans for seismic surveys.
In addition, please note that statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described can be profitably produced in the future. Such statements represent the Company's internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of capital expenditures, anticipated future debt levels and incentive fees or revenues or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements are made as of the date hereof disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company shareholders and potential investors should carefully consider the information contained in the Company's filings with Canadian securities administrators at www.sedar.com before making investment decisions with regard to the Company.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • XXL Energy Corp.
    Victor Barcot
    EVP of Business Development and Investor Relations
    (713) 922-0383
    or
    Brisco Capital Partners Corp.
    Graeme Dick
    (403) 313-9663
    Email: graeme@briscocapital.com