CALGARY, May 16 /CNW Telbec/ - Exall Energy Corporation ("Exall" or the
"Company") (TSX: EE) is providing an update on its Marten Mountain
operations in the wake of the fires in and around Slave Lake Alberta.
Exall's public filings can all be found at www.exall.com or www.sedar.com.
Ariel surveillance of the Marten Mountain area indicates that Exall's
facilities and operations have NOT currently been impacted by the
fires, and are not at this time under threat from the fires. The fires
currently appear to be south and east of Exall's Marten Mountain
operations. Exall plans to visit Marten Mountain several times over the
next few days in an attempt to monitor the situation.
Exall is currently evaluating alternatives that would see it truck its
oil production to either of CCS Judy Creek, CCS Mitsue or CCS High
Prairie (subject to any Plains Midstream Rainbow Pipeline restrictions)
and flow its natural gas production to the CNRL Mitsue Gas Plant,
should the Force Majeure situation remain in effect at Enerchem
International Inc. This will allow Exall to resume operations at Marten
Mountain in as timely a fashion as possible. However, it remains
unclear at this time when these operations, as well as drilling
operations, will recommence.
As indicated, Exall is continuously monitoring the situation and will
update investors with further press releases as additional information
Exall's thoughts and prayers remain with those impacted by, and those
fighting, the Slave Lake fires.
Exall is a junior oil and gas company active in its business of oil and
gas exploration, development and production from its properties in
Alberta, British Columbia and Texas. Exall Energy is currently
developing the new Mitsue area "Marten Mountain" discovery in
Exall Energy currently has 61,738,854 common shares outstanding. The
Company's common shares are listed on the Toronto Stock Exchange under
the trading symbol EE.
This news release contains forward-looking statements, which are subject
to certain risks, uncertainties and assumptions, including those
relating to results of operations and financial condition, capital
spending, financing sources, commodity prices and costs of production.
By their nature, forward-looking statements are subject to numerous
risks and uncertainties that could significantly affect anticipated
results in the future and, accordingly, actual results may differ
materially from those predicted. A number of factors could cause actual
results to differ materially from the results discussed in such
statements, and there is no assurance that actual results will be
consistent with them. Such factors include fluctuating commodity
prices, capital spending and costs of production, and other factors
described in the Company's most recent Annual Information Form under
the heading "Risk Factors" which has been filed electronically by means
of the System for Electronic Document Analysis and Retrieval ("SEDAR")
located at www.sedar.com. Such forward-looking statements are made as at the date of this news
release, and the Company assumes no obligation to update or revise
them, either publicly or otherwise, to reflect new events, information
or circumstances, except as may be required under applicable securities
For the purposes of calculating unit costs, natural gas has been
converted to a barrel of oil equivalent (boe) using 6,000 cubic feet
equal to one barrel (6:1), unless otherwise stated. The boe conversion
ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion
method and does not represent a value equivalency; therefore boe may be
misleading if used in isolation. This conversion conforms to the
Canadian Securities Regulators' National Instrument 51-101 - Standards
of Disclosure for Oil and Gas Activities.
SOURCE EXALL ENERGY CORPORATION
For further information:
Exall Energy Corporation
| Roger N. Dueck |
President & CEO
Tel: 403-237-7820 ext. 223
| Glen D. Kerr |
Chief Operating Officer
Tel: 403-237-7820 ext. 227
| Warren F.E. Coles |
VP - Finance & CFO
Tel: 403-237-7820 x 224
Please visit Exall Energy's website at: www.exall.com
Renmark Financial Communications Inc.
Maurice Dagenais: email@example.com
Florence Liberski : firstname.lastname@example.org
Tel.: (514) 939-3989 or (416) 644-2020