Exall Energy Corporation announces revised process to pay out existing credit facility

CALGARY, Oct. 6, 2014 /CNW Telbec/ - Exall Energy Corporation ("Exall" or the "Company") (TSX:EE andTSX:EE.DB) announced today that further to its September 25, 2014 announcement, one of the syndicate members that was providing the underlying funding for a debenture purchase agreement (the "Agreement") with a private Canadian lender (the "Lender") has agreed as a preliminary step to pay out Exall's existing facility with Exall's current senior Canadian lender (the "Facility') in full, in consideration for an assignment of the Facility and security package. Exall's current senior Canadian lender had previously stipulated it would not act under its security until after September 30, 2014, which was intended to permit the Agreement with the Lender to be closed.  However, the parties have been advised that closing of the transaction with the Lender has been delayed until later in October, and as a result Exall and the Lender were forced to revise the prior process to accommodate Exall's current senior Canadian lender.  Exall's public filings can all be found at www.exall.com or www.sedar.com.

The Lender intends to complete the original Agreement in late October with Exall, which will result in the issuance of a $35 million debenture, fully secured by Exall's assets (the "Debenture"), at which time the interim lender will be paid out in full.  At that point the other related transactions described in the September 25, 2014 press release, being the previously announced sale of 18% of the Exall working interest, in the Mitsue oil and gas properties to a private corporation for $14,000,000, along with the purchase of 15 million common shares of Exall, at 20 cents per share, for total gross proceeds to Exall of $3,000,000 under a private placement, are both expected to close.

About Exall

Exall 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 is currently developing the new Mitsue area "Marten Mountain" discovery in north-central Alberta.

Exall currently has 66,634,854 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE. The Company's convertible debentures are listed on the Toronto Stock Exchange under the trading symbol EE.DB

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.

SOURCE: EXALL ENERGY CORPORATION

Exall Energy Corporation

Roger N. Dueck
President & CEO
Tel: [phone] x 223
 
Warren F.E. Coles
Vice-President & CFO
Tel: [phone] x 224
[email protected]

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

Renmark Financial Communications Inc.
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Joshua Ciarrocca : [email protected]
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