Exall Energy Corporation reported production and earnings results for the third quarter and nine months ended September 30, 2012. For the quarter, the company's gross sales were CAD 7,060,000 against CAD 8,044,000 a year ago. Funds from operations were CAD 3,291,000 or CAD 0.04 per diluted share against CAD 4,715,000 or CAD 0.07 per diluted share a year ago. Comprehensive income was CAD 588,000 or CAD 0.01 per basic and diluted share against CAD 1,492,000 or CAD 0.02 per and diluted basic share a year ago. Capital expenditures, net were CAD 5,028,000 against CAD 16,402,000 a year ago. Total capital expenditures were CAD 5,028,000 against CAD 16,402,000 a year ago.

For the nine months, the company's gross sales were CAD 23,458,000 against CAD 22,886,000 a year ago. Funds from operations were CAD 11,707,000 or CAD 0.14 per diluted share against CAD 12,378,000 or CAD 0.20 per diluted share a year ago. Comprehensive income was CAD 2,862,000 or CAD 0.05 per diluted share against CAD 4,694,000 or CAD 0.07 per diluted share a year ago. Capital expenditures, net were CAD 38,052,000 against CAD 35,149,000 a year ago. Net debt (excluding convertible debentures) as on September 30, 2012 was CAD 36,893,000 compared to CAD 32,645,000 as at September 30, 2011. Total capital expenditures were CAD 38,052,000 against CAD 35,149,000 a year ago.

The company's average daily production for the third quarter of 2012 decreased 6% to 991 barrels of oil per day (boe/d) from 1,049 boe/d in the third quarter of 2011.

On a year over year basis production has increased 8% to 1,072 boe/d in nine months of 2012 due primarily to the continued drilling success on the north waterflood channel at Marten Mountain /Mitsue, Alberta.

During the fourth quarter of 2012 the company plans to drill, case and tie-in through the company-owned pipeline and battery facilities two gross (1.44 net) wells plus drill one gross (0.72 net) Water Source well servicing the North Waterflood. Additionally, one gross (0.74 net) well will be converted into a Water Injection well servicing the North Waterflood.