Exall Energy Corporation announces exercise and closing of Over-Allotment Option

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CALGARY, April 11, 2012 /CNW Telbec/ - Exall Energy Corporation (TSX: EE) ("Exall Energy", or the "Company") is pleased to announce the full exercise and closing of the over-allotment option (the "Over-Allotment Option") granted by the Company to a syndicate of underwriters co-led by Stonecap Securities Inc. and Emerging Equities Inc., and including Acumen Capital Finance Partners Limited, Dundee Securities Ltd. and Raymond James Ltd. (collectively, the "Underwriters") whereby an additional $3.0 million aggregate principal amount of 7.75% convertible unsecured subordinated debentures (the "Convertible Debentures") have been issued at a price of $1,000 per Convertible Debenture on the same terms and conditions as the Offering (as hereinafter defined). The Over-Allotment Option was granted to the Underwriters in connection with the Company's public offering of $20.0 million principal amount of Convertible Debentures (the "Offering") which closed on March 29, 2012. The aggregate gross proceeds received by the Company pursuant to the Offering and the Over-Allotment Option is $23.0 million.

The net proceeds from the Offering and the Over-Allotment Option will be used to expand and accelerate the Company's capital program for the development of the Company's Gilwood light oil exploration and development program in Mitsue, Alberta and for additional working capital.

The Convertible Debentures are convertible into common shares of the Company at the option of the holder at a conversion price, subject to certain adjustments, of $2.15 per common share at any time prior to redemption or maturity and are listed for trading on the Toronto Stock Exchange under the symbol "EE.DB".

About Exall Energy
Exall Energy is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta. Exall Energy is currently developing the new Mitsue area Marten Mountain discovery in north-central Alberta.

Exall Energy currently has 62,328,854 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 www.sedar.com. 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.

Exall Energy Corporation

Frank S. Rebeyka
Vice Chairman
Tel: [phone]
 
Roger N. Dueck
President & CEO
Tel: [phone] x 223
[email protected]

Warren F.E. Coles
VP - Finance & CFO
Tel: [phone] x 224

Please visit Exall Energy's website at: www.exall.com

Renmark Financial Communications Inc.

Maurice Dagenais: [email protected]
Nadia Marks : [email protected]
Tel.: [phone] or [phone]
www.renmarkfinancial.com