EXALL ENERGY CORPORATION RE-ESTABLISHES PARTIAL PRODUCTION IN THE WAKE OF THE SLAVE LAKE FIRES

CALGARY, May 26, 2011 /CNW Telbec/ - Exall Energy Corporation ("Exall" or the "Company") (TSX:EE) is pleased to provide 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.

With the return of certain essential personnel to Slave Lake over the past twenty-four hours, Exall has re-established partial production from its Marten Mountain operations. Full production, however, will remain curtailed until other third party operations in the Slave Lake area have been re-established.

In order to resume drilling and completion operations Exall is establishing a camp and has secured additional accommodations for drilling and completion personnel. Exall estimates that it will have all necessary approvals in place to recommence drilling and completion operations in early June.

Exall's current average daily production, as a result of the Slave Lake fires, is in the order of 450 boe/d as outlined below:

 
Field
 
May 26, 2011
Production Estimate
boe/d
May 26, 2011
Capability*
boe/d
     
Marten Mountain, Alberta 348 1,773
Jayar, Alberta 76 76
Overlea, Alberta 16 16
Harris Texas 9 9
Bow Island, Alberta 1 1
Corporate Total 450 1,875

* Productive capability assumes B trend waterflood approval at Marten Mountain, Mitsue, Alberta.

About Exall

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 and Texas. Exall Energy is currently developing the new Mitsue area "Marten Mountain" discovery in north-central Alberta.

Exall Energy currently has 61,808,854 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE.

Reader Advisory

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 law.

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:

For further information, please contact:

Exall Energy Corporation

Roger N. Dueck
President & CEO
Tel: 403-237-7820 ext. 223   
info@exall.com
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: mdagenais@renmarkfinancial.com
Florence Liberski : fliberski@renmarkfinancial.com
Tel.: (514) 939-3989 or (416) 644-2020
www.renmarkfinancial.com

 

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Exall Energy Corporation

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