Exall Energy Corporation ("Exall " or the "Company") (TSX: EE) reports that it has shut in its 921 boe/d of Marten Mountain production in response to the fires in and aroud Slave Lake Alberta. Exall's public filings can all be found at www.exall.com or www.sedar.com.
Devastating fires in and around Slave Lake, on Sunday May 15, 2011, have resulted in the mandatory evacuation of the residents of Slave Lake after a fast-moving wildfire caught community officials off guard. Hundreds of homes, churches and businesses have been destroyed. So too has the town hall, library and radio station. The power is out, cellphone service has been spotty, and 7,000 residents were forced to flee through a single road, the only highway open as fires rage on all sides.
During the mandatory evacuation Exall field operators were able to shut in all of the Company's Marten Mountain production for precautionary reasons.
Effective Monday May 16(th), Exall received Force Majeure notification from Enerchem International Inc., the purchaser of Exall's production from Marten Mountain. The notice cited that "Due to the forest fire situation in and around the Town of Slave Lake and the mandatory evacuation order issued by Alberta Sustainable Resources and Development, Enerchem International Inc. has been required to suspend all turnaround activities and shut down and secure the Slave Lake Plant site until further notice."
Exall is currently making attempts to determine the impact the fires have had on its facilities and will provide additional information later today.
It is unclear at this time when production operations, as well as drilling operations, will recommence at Marten Mountain. Exall is continuously monitoring the situation and will update investors with further press releases as additional information becomes available.
Exall's current average daily production, as a result of the Slave Lake fires is approximately 124 boe/d. As at May 16, 2011 Exall's net productive capacity is as outlined below:
May 16, 2011 May 16, 2011 Field Production Capability* boe/d boe/d Marten Mountain, Alberta 0 1,750 Jayar, Alberta 90 90 Overlea, Alberta 20 20 Harris Texas 13 13 Bow Island, Alberta 1 2 Corporate Total 124 1,875
* Productive capability assumes B trend waterflood approval at Marten Mountain, Mitsue, Alberta.
The events that unfolded since Sunday May 15, 2011 will forever remain in the hearts and minds of the Slave Lake community. The devastating fires have literally changed the face of the Slave Lake community. Exall Energy's thoughts and prayers go out to those impacted by the fires.