Exall Energy Corporation announced updates to Waterflood Project status, operations and progress on 3D seismic interpretation. The company reported that its current production of 1,400 boepd, an 18% increase over May average production, Interpretation of the 56 section 3D seismic program in the Mitsue area acquired in the first quarter of 2012 is progressing with initial indications of 20 Tier I, 12 Tier II and 46 Tier III locations identified on nine Gilwood channel trends; Four enhanced recovery applications submitted to the ERCB in 2012 have been approved to date and one new well active, starting injection April 1 2012; two additional water injection wells in projects which had previously been approved by the ERCB were given Directive 51 Operational Approval to initiate injection, effective June 6, 2012 with injection commencing immediately thereafter; production from company's closest offsetting producer to the first activated water injection well continues to improve, from 50 boe per day to 175 boe per day in response to water injection over a period of two months; injection of produced water into the Water Disposal Well drilled and completed by Exall during First Quarter has begun on a temporary basis and upon completion of the short tie-in to the battery is expected to reduce trucking and disposal costs by $50,000 per month net to the company; field construction of the main power line by ATCO has been completed with installation of distribution system ongoing with substantial savings in rental and fuel costs upon completion, expected to be approximately $100,000 per month net to company and drilling has begun on the first well of the summer-fall program. Interpretation of the 56 section 3D seismic program in the Mitsue area acquired in the first quarter of 2012 is progressing with initial indications of 20 Tier I, 12 Tier II and 46 Tier III locations identified on nine Gilwood channel trends.