Gallic provides update on operations in Tunisia

    GALLIC ENERGY LTD. (TSX Venture Exchange: GLE.A)

    CALGARY, Aug. 1 /CNW/ - Gallic Energy Ltd. ("Gallic") (formerly Exceed
Capital Holdings Ltd.) is pleased to announce that drilling of the Bhayra Rigo
No.1 well on the Jorf permit commenced on July 30, 2007. The exploratory well
will be drilled to approximately 2,500 metres in order to test a large Permian
age reef structure which had been identified through the interpretation of
older vintage seismic data. A new 166 km 2D seismic program, acquired at the
beginning of 2007, confirmed the presence of this structure and of several
other anomalies also interpreted as potential reef build-ups. The well is
expected to take until the end of August to reach the final depth. Gallic will
pay 15% of drilling and completion costs to earn a 10% interest in the Bhayra
Rigo No.1 well, with a further option to farm-in on drilling into other
structures within the concession on the same terms. The national oil company,
ETAP, has the right to back in on a new discovery to the extent of a 50%
participation. In the event ETAP elects to participate, they are carried
through the initial exploration and appraisal phase and will repay their share
of past costs through their share of production.
    The Jorf permit, located onshore south-central Tunisia, encompasses an
area of approximately one million acres. The northern boundary of the Jorf
permit is within 35 kilometres of the Gulf of Gabes. Major oil and gas
pipelines from the giant El Borma oil and gas field and other southern
Tunisian oil fields traverse the Jorf Prospect (within 40 kilometres from the
Bharya Rigo No. 1 well) and connect to the La Skhira oil terminal in the Gulf
of Gabes.
    The common shares of Gallic are listed on the TSX Venture Exchange under
the symbol GLE.A. There are 135,094,982 shares issued and outstanding.

    Forward-looking Statements

    This press release contains forward-looking statements and the reader is
cautioned not to place undue reliance on these statements, as there can be no
assurance that the plans, intentions or expectation upon which they are based
will occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predications, forecasts,
projections and other forward-looking statements will not occur or that actual
results would differ materially from estimated or implied results. Additional
information on these and other factors that could affect Gallic's operations
and/or financial results are included in Gallic's reports on file with
Canadian securities regulatory authorities. Gallic does not assume any
obligation to update these forward-looking statements, except as required by

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

For further information:

For further information: Mr. Richard W. DeVries, President, Tel: (718)
874-8319, Fax: (403) 770-8810

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Gallic Energy Ltd.

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