Exxel Energy Completes Initial Piceance Basin Acreage Acquisition

VANCOUVER, B.C., June 20 /CNW Telbec/ - Exxel Energy Corp. (the
"Company") (TSX-V: EXX) has previously announced its agreement to acquire an
initial 41.67% working interest in 4,000 net acres in the Rifle Creek area in
the Piceance Basin, Garfield County, Colorado, and its closing with respect to
approximately 2,500 of those acres at a cost of US$3,159,208. The Company has
now closed on the remaining 1,500 acres, approximately, and in that regard a
further US$1,744,862 has been released from escrow in payment, completing the
initial acreage acquisition. The Company has also advanced a further
US$100,569 to secure approximately 335 acres of top leases. As announced
June 9, 2005, the Company has exercised its option to pay a further
US$7,000,000 into escrow for the acquisition of additional acreage beyond the
initial 4,000 acres. Further closings will occur as additional acreage is
assembled.

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