CALGARY, July 19, 2011 /CNW Telbec/ - Exall Energy Corporation ("Exall" or the "Company") (News - Market indicators) is pleased to provide an update on its Marten Mountain operations.  Exall's public filings can all be found at www.exall.com or www.sedar.com.

HIGHLIGHTS:

• The ERCB has approved the Marten Mountain South Waterflood Project (located in Township 74 Range 5-6 in which Exall holds a 71.925% working interest)
• Good Production Practice has also been granted to the wells in the project
• Three producing oilwells, one injection well and one water source well are included in the South Marten Mountain Waterflood Project Area
• Source and injection well recompletions are under way
• A gas compressor and dehydrator  are on order to facilitate handling of increased solution gas volumes, with estimated completion late August, 2011
• Drilling and completion operations have resumed in the wake of the May 15, 2011 Slave Lake fire with two drilling rigs and two service rigs operating for Exall
• Exall has drilled two horizontal wells, spud a third well and currently has two wells undergoing completion
• First horizontal well is testing oil at approximately 400 boepd (290 net to Exall)

Exall is pleased to announce that the ERCB has approved the Marten Mountain South Waterflood Project located in Township 74 Ranges 5-6W5. Exall holds a 71.925% working interest in the project. Good Production Practice has also been granted to the wells in the project subject to the initiation of water injection and conservation of produced solution gas. The Waterflood Project Area encompasses 256 hectares (640 acres) and includes three producing oilwells, one injection well and one saline water source well.  Source and injection well recompletions are under way. A second solution gas compressor and a larger dehydrator  are on order to facilitate handling of increased solution gas volumes under GPP, with estimated completion in late August, 2011.

Drilling and completion operations are under way after being interrupted by the recent Slave Lake fire. In order to resume drilling and completion operations Exall has established a camp and has secured additional accommodations for drilling and completion personnel. Exall recommenced drilling and completion operations in early June and to date has drilled two horizontal wells, spud a third well and currently has two service rigs working on completions. The first horizontal is currently undergoing swab testing and is producing clean oil at the rate of 400 boepd (290 boepd net to Exall). The well is also producing 2% invert and water and will be cleaned up prior to placing on pump through the Exall battery facilities. It is expected that the well will be equipped and tied in prior to the end of July.

Heavy rain through June and July has caused flooding in the Slave Lake area which has also led to delays in operations on Exall's properties.

As a result of the Waterflood approval and recent drilling activity, Exall's average daily production is projected to be in the order of 2,000 boe/d upon waterflood implementation and GPP at Marten Mountain South which is anticipated to be completed in Q3.

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

Exall Energy currently has 61,808,854 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.