Texalta's Seismic Results in Drilling 4 Saskatchewan Wells

Based on extensive seismic work on three of its key areas, Texalta Petroleum intends to drill four horizontal development wells this summer on its lands in the southeast area of Saskatchewan. The first well will be drilled at Wordsworth as a follow up to its new pool discovery well at 2A2-23 / 3A11-14-7-3 W2.

The second well will be drilled at West Wildwood as a follow up to its new pool discovery well at 4A16-31 / 4D4-2-7-2 W2. The third and fourth wells will be drilled within the boundaries of the West Queensdale field in which Texalta has working interests in five horizontal and six vertical wells.

Considering the production rates of the offsetting wells, the company expects that these four wells will more than double the present income from its Saskatchewan operations and drilling should be completed by October 2008.

Texalta's recent exploratory well at North Willmar, Saskatchewan did not respond to stimulation as we had anticipated and consequently with partner approval will be abandoned in June 2008.