www.exall.com - The International Resource Journal

EXALL ENERGY
www.exall.com
A new oil discovery
in Exall’s expert hands
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AUGUST 2010 • The International Resource Journal
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OIL & GAS
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OIL & GAS • Exall Energy
Based in Canada, Exall Energy Corporation is a junior oil and
gas exploration and production company developing a number of
currently producing, long life oil and gas assets—assets located in
the prolific Western Canadian Sedimentary Basin (mainly Alberta).
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OIL & GAS • Exall Energy
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OIL & GAS • Exall Energy
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The company, which was formed in December
discovery made during the 2010 winter
2006, was the direct result of a spin-out of oil
drilling program, and a disciplined capital
and gas assets previously held by Exall Resourc-
program focused on developing light
es Limited, which then changed its name to Gold
sweet crude opportunities, and existing
Eagle Mines Ltd. Following the name change,
good production practices and pool
the company successfully merged with partner
optimization strategies.
Southern Star Resources Inc., and acquired of
Kingsmere Exploration Ltd. in January 2007—
Exall’s strategy plays out across its international
forming Exall Energy. The company is listed on
and domestic portfolio spread, with Marten
the Toronto Stock Exchange under the symbol
Mountain continuing to deliver promising results.
“EE”, a laundry list of accomplishments to boast.
The most exciting announcement of late
International oil and gas
is the Marten Mountain oil discovery this year,
Nestled in Harrison County, Texas, approximately
which is part of a trend that the company has
150 miles east of Dallas, is Exall’s Susan B. Harris
been drilling since 2007. According to Exall, the
/ Layton Liquid rich natural gas project. Spanning
Marten Mountain oil discovery has the potential
1,055 acres (gross), 1.6 sections (gross) and 56.5
to “substantially increase Exall’s oil production.”
acres (net), 0.1 sections (net), the asset’s primary
Exall also has producing natural gas assets
production comes from the Cotton Valley Sand-
in Texas, U.S.A., and looks to continue building
stone geography of the locale. There are currently
its production and asset hold through strategic
11 producing gas wells, with production rates of
acquisitions and “the drill bit”.
approximately 188 boe/d and a net to Exall of
Exall’s strategy is to:
approximately nine boe/d. Operationally; Susan
• focus on building shareholder value in the
B. Harris/Layton currently produced multi-well
oil and gas industry
gas facilities which are operated by Cornstock Oil
• enhance shareholder value through
and Gas with a one per cent to 7.7 per cent work-
exploration and development and
ing Interest to Exall. This is a strong project which
selective acquisition opportunities
adds a significant input to the company’s overall
• continue to increase its oil production as
a result of the recent Marten Mountain
production base and highlights Exall’s keen eye for
key projects in all manner of locations.
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OIL & GAS • Exall Energy
Domestic Oil and Gas
kilometres Southeast of Calgary, Alberta.
This project stretches 40 acres (gross), 0.06
Aitken Creek The story of Exall’s Aitken Creek
sections (gross) and eight acres (net), 0.01
project, located in British Colombia, dates back
sections (net) and today offers great geological
to December 15, 2004 when at the Crown Land
promise. The current primary producing horizon
Sale, the company and its partners acquired four
of this electrified low-operating cost project
sections of undeveloped land.
is the Glauconite channel, and coupled with
“This acreage is prospective for natural
3-D seismic coverage turning up development
gas in several formations but will require
locations and the infill well order which allows
additional seismic data to confirm specific drilling
drilling within an inter-well spacing distance of
locations,” Exall says.
50 metres, it is plain to see why Exall selected
“On January 27, 2005 Exall and partners
this project for its portfolio. Bow Island has one
drilled and cased an exploratory well on the
producing well today which is operating at a rate
Aitken Creek natural gas prospect near Fort St.
of approximately 10 bopd and the net to Exall is
John in northeast British Columbia.”
approximately two boe/d.
At this time, Exall held a 12.5 per cent share
in the costs of the drilling, which subsequently
Jayar Located approximately 80 kilometres
demonstrated good reservoir and production
southeast of Grande Prairie, Alberta, is Exall’s
characteristics. Higher water saturations were
Jayar project; home to 16 producing wells
also found, leading the consortium to elect to
offering approximately 750 boe/d (6:1) of Sweet
suspend further development until commodity
40o Oil and 1,175 BTU Gas and NGL’s. Exall’s
prices improve sufficiently to continue with a
part in Jayar is a 7.25 - 14.5 per cent Working
more shallow formation. The project remains
Interest, with the outstanding 92.75 - 85.5 per
promising and in 2006 Exall rose to 22.5 per
cent held by Twin Butte Energy Limited under
cent interest in the project after buying out the
Operating Interest.
share in it of another company, Watt Energy.
“The wells currently produce to a multi-well oil
battery complete with a solution gas processing
Bow Island Exall has a 20 per cent interest
facility for the recovery of hydrocarbon liquids and
in the Bow Island project, situated in 200
sales compression,” Exall says.
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Mitsue Overlea/Black Spruce This Sweet 36-
The next step for Exall
41o API Oil project, located approximately 200
Plans for Marten Mountain in the coming months
kilometres Northwest of Edmonton, Alberta, is
include four drills for the summer of 2010 and
8,160 acres (gross), 12.7 sections (gross) and
two wells planned for the fall of 2010. Without
4,862 acres (net), 7.6 sections (net) is home to
question, these further developments to the
two producing wells which total around 50 bopd.
project stem from detailed research and the
Exall holds a working interest of 41.16 to 100
overwhelming experience the wider company has
per cent and operates the project. The primary
as a result of its variety of projects. Most recently
producing horizon is the Gilwood Formation from
on July 14, the company’s Second Quarter Op-
two zones and today the wells produce to single
erations Update announced that the latest Mar-
well batteries while the operated water injection
ten Mountain well [announced on April 13 when
wells and associated facilities offer pressure
it was drilled in the “B” Sand project area and
maintenance to the operation.
uncovered two zones of productive oil-saturated
reservoir sandstone] has been successfully com-
Mitsue Marten Mountain This is the Sweet
pleted, tied-in and placed on production [in the
40o API Oil project garnering great attention
10-25 discovery]. The company also drilled the
following the recent discoveries from the drilling
first of the four wells in the 10-25 discovery well
program and is located approximately 200
[in the “B” Sand area] which is expected to be
kilometres Northwest of Edmonton, Alberta.
completed, tied-in and in production by the third
There are three producing wells which offer an
quarter, 2010. It was also announced that a mid-
estimated 1,190 bopd and as operator Exall
year resource update will take place and results
holds a 59.34 to 73.89 per cent working interest
announced alongside second quarter financials
[approximately 790 boe/d net to Exall]. The
during August. By all accounts, Exall continues
project spans 9,160 acres (gross), 14.3 sections
to develop this new oil well discovery in a timely
(gross) and 6,024 acres (net), 9.4 sections (net),
and expert manner, and Marten Mountain looks
in which the primary producing horizon is the
increasingly more exciting for the company’s
Gilwood Formation from two zones. It is here with
shareholders.
Marten Mountain the company’s future plans for
development are unfurled.
exall.com
AS SEEN IN THE AUGUST 2010 ISSUE
OF THE INTERNATIONAL RESOURCE JOURNAL