TORONTO, ONTARIO--(CCNMatthews - June 27, 2005) - Exall Resources Limited ("Exall")(TSX:EXL):
- New Farm-In Agreement Signed, Bonn Accord, Alberta
- Aitken Creek Gas Discovery, Ongoing Program
- Jayar Update
- Gold Eagle - Bruce Channel Drilling
- Corporate Re-Organization
Exall Resources Limited ("Exall")(TSX:EXL) is pleased to provide shareholders with the following update of corporate activity.
New farm-in agreement signed, Bonn Accord, Alberta
Exall has entered into a Participation Agreement for a Seismic Review Option and Farm-In Agreement in the Bonn Accord area, Alberta located southwest of Edmonton. The agreement includes one section of land and one definite medium depth drilling location with one primary and two secondary targets. Depending on results, a second location is possible on the section. Exall's working interest is 50% which is subject to a non-convertible over riding royalty.
Aitken Creek Gas Discovery
This gas discovery was announced by press release dated January 27, 2005. New 3D seismic will be completed this summer to further define the structure. Subsequent to completion of the seismic program a number of new drill locations are expected to be defined in preparation for the next series of wells. Testing on the initial discovery well may be completed this fall depending on the results of the seismic as two possible zones remain untested. Exall has a 12.5% interest in this "earn-in" well to payout (BPO) which reverts to a 7.5% interest after payout (APO).
This field and associated facilities continue to operate at greater than 500 BOE/d net to Exall 72.5 BOE/d (WI is 14.5%). Additional development drilling locations are being studied. Cyries Energy has completed its option to drill with 4 successful wells completed and tied-in under a farmout agreement with Exall and Drilcorp. Exall and Drilcorp plan further work at Jayar during 2005.
Gold Eagle Mine Property
The Bruce Channel diamond drilling program is ongoing with Cochenour style, "Balmer assemblage", rocks currently being encountered in the drilling. The focus of this program is to intercept and confirm previously encountered mineralized zones found in BC#4 (see press release dated May 13, 2004), which would represent the down dip extension of the high grade Cochenour-Willans orebody.
At the annual meeting held May 11, 2005, shareholders approved the split and dividend of a new gold company to be named Gold Eagle Mines Ltd. Currently Exall is waiting on a tax ruling from the Canada Revenue Agency ("CRA") in order to implement the split and dividend on a tax free basis to shareholders. CRA has recently informed Exall that the ruling is expected from Ottawa in July.
Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL (S.E.C. registration #82-3535). Exall is active in gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas.
There are currently 56 million common shares issued and outstanding.
FORWARD LOOKING STATEMENTS:
The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
FOR FURTHER INFORMATION PLEASE CONTACT:
Exall Resources Limited
Stephen G. Roman
Chairman, President and CEO