One well has been completed and flowed an average of 450 barrels of 40 degrees API sweet oil and 175mcfpd of solution gas (480boepd, 353boepd net) over a three day test period. The final 24 hour flow rate averaged 450 barrels of oil and 127mcf of solution gas (348boepd net).

The offset wells were drilled from the same surface location as the discovery well and will immediately be tied into the Exall pipeline completed in the fourth quarter of last year.

The company had earlier constructed a tie-in point for these wells on the pipeline to facilitate ease of tie-in operations. Exall expects the first offset well will be on production through the Exall facility by mid-August.

Exall has earned additional interest in the discovery well, offset wells and adjacent acreage through a farmin, and currently owns a 71.89% working interest and is the operator.

The wells drilled this summer have established continued sand development on the Marten Mountain ‘B’ Sand trend. Exall is currently in the process of designing and building a gas tie-in facility to handle the excess solution gas production which currently restricts oil production rates in the Marten Mountain area.