CALGARY, May 16 /CNW Telbec/ - Exall Energy Corporation ("Exall " or the "Company") (TSX: EE) reports that it has shut in its 921 boe/d of Marten Mountain production in response to the fires in and aroud Slave Lake Alberta.  Exall's public filings can all be found at or

Devastating fires in and around Slave Lake, on Sunday May 15, 2011, have resulted in the mandatory evacuation of the residents of Slave Lake after a fast-moving wildfire caught community officials off guard. Hundreds of homes, churches and businesses have been destroyed. So too has the town hall, library and radio station. The power is out, cellphone service has been spotty, and 7,000 residents were forced to flee through a single road, the only highway open as fires rage on all sides.

During the mandatory evacuation Exall field operators were able to shut in all of the Company's Marten Mountain production for precautionary reasons.

Effective Monday May 16th, Exall received Force Majeure notification from Enerchem International Inc., the purchaser of Exall's production from Marten Mountain. The notice cited that "Due to the forest fire situation in and around the Town of Slave Lake and the mandatory evacuation order issued by Alberta Sustainable Resources and Development, Enerchem International Inc. has been required to suspend all turnaround activities and shut down and secure the Slave Lake Plant site until further notice."

Exall is currently making attempts to determine the impact the fires have had on its facilities and will provide additional information later today.

It is unclear at this time when production operations, as well as drilling operations, will recommence at Marten Mountain. Exall is continuously monitoring the situation and will update investors with further press releases as additional information becomes available.

Exall's current average daily production, as a result of the Slave Lake fires is approximately 124 boe/d. As at May 16, 2011 Exall's net productive capacity is as outlined below:

Field  May 16, 2011
May 16, 2011
Marten Mountain, Alberta
Jayar, Alberta
Overlea, Alberta
Harris Texas
Bow Island, Alberta
Corporate Total 124 1,875

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

The events that unfolded since Sunday May 15, 2011 will forever remain in the hearts and minds of the Slave Lake community. The devastating fires have literally changed the face of the Slave Lake community. Exall Energy's  thoughts and prayers go out to those impacted by the fires.

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

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.

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 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:

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:

Renmark Financial Communications Inc.

Maurice Dagenais:
Florence Liberski :
Tel.: (514) 939-3989 or (416) 644-2020

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Exall Energy Corporation

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