Exxel Energy Corp. announces Galaxy's termination of the letter of intent for purchase of Galaxy's 25% interest in the Rifle Creek Project

(TSX-V Symbol: EXX)

VANCOUVER, Oct. 23 /CNW/ - Exxel Energy Corp. ("Exxel") (TSX-V Symbol:
EXX) today announced that Galaxy Energy Corporation ("Galaxy") (AMEX Symbol:
GAX) had provided notice of termination of the non-binding letter of intent
dated September 28, 2006 between Exxel and Galaxy (the "LOI") for the purchase
of Galaxy's undivided 25% working interest in the Garfield County, Colorado,
project known as Rifle Creek (the "Rifle Creek Project").
Exxel Energy USA Inc., Exxel's wholly-owned subsidiary, will continue to
own a 75% working interest in the Rifle Creek Project and Galaxy, through its
wholly-owned subsidiary Dolphin Energy Corporation, will continue to own the
remaining 25% working interest in the Rifle Creek Project. The Rifle Creek
Project consists of a total of approximately 6,300 net acres in the Piceance
Basin, Garfield County, Colorado, USA.

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responsibility for the adequacy or accuracy of this release.