Exxel Energy provides operational update

(TSX-V Symbol: EXX)

HOUSTON, TX, March 14 /CNW/ - Exxel Energy Corp. ("Exxel" or the "Company") (TSX Venture - EXX) announced the following operational update.

Exxel Energy Corp. Provides Update on Activities in Columbia River Basin

The Company intends to continue to expand in the Columbia River Basin of central Washington State, U.S.A. and intends to continue to actively acquire additional acreage to further consolidate and high-grade its position. Exxel's current leasehold position in the Columbia River Basin is approximately 340,000 net mineral acres, an increase of approximately 15,000 net mineral acres since November 2006.

In order to evaluate its prospects within the Columbia River Basin, the Company previously acquired and was interpreting Magnetotelluric geophysical data ("MT") previously shot by third parties. In order to continue its evaluation, the Company has retained Chinook Geoconsulting, Inc. to begin conducting additional MT acquisitions and MT interpretation keying on regional trends in mid-March 2007. The Company intends to continue to examine its options for the exploration and development of its acreage as it further delineates its prospects in the Columbia River Basin.

Cliff Adams, President and CEO, comments, "We are extremely excited about our progress in the Columbia River Basin as a result of our ongoing technical evaluation and our ability to high-grade and expand our acreage position within the basin. We have assembled a world class team of professionals and consultants to fully analyze our prospect areas. Clearly, the Company is very well positioned in the Columbia River Basin and we will continue to examine how best to leverage this position for the benefit of our shareholders."

Amendment of Piceance Basin Agreement

Exxel also announced that it has entered into certain agreements to amend, and to resolve certain commercial disputes related to, its previously announced contractual arrangements by and between Exxel, Apollo Energy LLC ("Apollo") and ATEC Energy Ventures LLC ("ATEC")(together "Apollo/ATEC") in the Rifle Creek area of the Piceance Basin, Garfield County, Colorado, U.S.A. ("Rifle Creek"). As part of the amendments, Exxel has agreed to pay U.S.$775,000 for the purchase of a 1.875% backin working interest within original Rifle Creek area of mutual interest from Apollo/ATEC and for Apollo/ATEC's agreement to relinquish their right as exclusive leasing agent within the area of mutual interest and to eliminate all past and future drilling requirements. Exxel has also agreed to utilize the services of Apollo for land services on a month-to-month basis.

Company Grants Stock Options to Ben Law

The Company has granted stock options on a total of 300,000 common shares of the Company to Ben Law for past and ongoing services rendered to the Company in connection with the strategy and analysis of its Columbia River Basin project. The options shall vest evenly over three years from the effective grant date of March 12, 2007. 100,000 options are exercisable at $4.00 per share, 100,000 options at $5.00 per share and 100,000 at $6.00 per share. The options will be subject to the Company's 2006 Stock Option Plan (approved on September 7, 2006). The grant of options is subject to regulatory approval.

Ben Law was formerly with the U.S. Geological Survey for 27 years and has published 170 scientific papers. Ben has spent a large part of his career focused on basin center gas accumulations, including his study of the Columbia River Basin.

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RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Company's assessment of its and its subsidiaries' future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). All statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate", "believe", "expect", "estimate" and similar expressions are generally intended to identify forward-looking statements. Similarly, forward-looking statements in this press release include, but are not limited to anticipated developments of the Company's drilling project in and the timing thereof, the Company's drilling project in and the timing thereof, capital investment levels and the allocation thereof, pipeline capacity, government royalty rates, reserve and resources estimates, the level of expenditures for compliance with environmental regulations, site restoration costs including abandonment and reclamation costs, exploration plans, acquisition and disposition plans including farmout plans, net cash flows, geographic expansion and plans for seismic surveys. In addition, please note that statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described can be profitably produced in the future. Such statements represent the Company's internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of capital expenditures, anticipated future debt levels and incentive fees or revenues or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements are made as of the date hereof disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company shareholders and potential investors should carefully consider the information contained in the Company's filings with Canadian securities administrators at www.sedar.com before making investment decisions with regard to the Company.