CORRECTION: Exall Energy Corporation Announces Results of a Midyear Reserves Update as at June 30, 2010

Thursday, Jul 29, 2010

A correction is being issued for the press release sent at 8:00AM ET July 28, 2010 due to an error in the third bullet of the highlights. The "P+P reserves to $93.5" was incorrectly listed as "P+P reserves to $993.5". The complete and correct release follows.

Exall Energy Corporation ("Exall") (TSX:EE) is pleased to announce the results of a midyear reserves update as at June 30, 2010. Exall's filings can all be found at www.exall.com or www.sedar.com.

Exall received the results of an independent engineering evaluation of its oil and gas reserves conducted by AJM Petroleum Consultants Ltd. effective June 30, 2010. This evaluation was prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101). This instrument, which was adopted by the Canadian Securities Administrators, sets out standards of disclosure for oil and gas activities and mandates the application of evaluation standards defined in the Society of Petroleum Evaluation Engineers (SPEE) Canadian Oil and Gas Evaluation Handbook (COGEH).

Highlights of June 30, 2010 reserves update include:

--  The addition of 930.4 Mboe of Total Proved ("TP") reserves and 525.7

    Mboe of Total Proved plus Probable ("P+P") reserves, 

--  Period Ended June 30, 2010 Company TP reserves of 2,082.0 Mboe (an

    increase of 81 percent from December 31 2009) and Company P+P reserves

    of 2,999.2 Mboe (an increase of 21 percent from December 31 2009), 

--  A 60 percent increase in the Net Present Value (NPV) of the P+P reserves

    to $93.5 million for the period ended June 30, 2010 (discounted at 10

    percent, before tax, utilizing the AJM price forecast effective December

    31, 2009) up from $58.6 million as at December 31, 2009. 

--  Reserve replacement was 6.3 times Total Proved and 3.6 times Proved plus

    Probable, and 

--  Reserve life index of 4.5 years Total Proved and 6.2 years Proved plus

    Probable based on the 2010 annual average production rate and the June

    30, 2010 period-end reserves.

To view the graphs associated with this release, please visit the following link: http://media3.marketwire.com/docs/ee0728fig1.pdf.

 

Source: Market Wire