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

Exxel Energy Corp. Provides Update on Activities in Columbia River Basin Vancouver, B.C. - September 20, 2006 - Exxel Energy Corp. (TSX-V: EXX) (the "Company") announces the following lease update and report on activity in the Columbia River Basin ("CRB"). Exxel Energy (USA) Inc. ("Exxel"), a wholly owned subsidiary of the Company, recently acquired additional oil and gas mineral rights in the basin, increasing Exxel's total leasehold position in the CRB to approximately 325,000 net acres. The leasehold interests are undeveloped and Exxel's working interest is 100 percent. Exxel intends to continue to actively acquire additional acreage to further consolidate its position within the CRB. The Company is currently reviewing its options for the development of its substantial acreage in the basin. Cliff Adams, President and CEO, comments, "We are excited about recent developments in the Columbia River Basin, which appears to be an emerging basin centered gas play being driven by the efforts of major and large independent oil and gas companies. In addition, recent announcements and the permitting of new wells by several operators have been very encouraging and point to the continued emergence of this frontier gas basin." For further information concerning this announcement, please contact Victor Barcot, EVP of Business Development and Investor Relations, at (713) 922-0383. Renmark Financial Communications Inc. Neil Murray-Lyon : nmurraylyon@renmarkfinancial.com Christine Stewart : cstewart@renmarkfinancial.com Tel. : (514) 939-3989 Fax : (514) 939-3717 www.renmarkfinancial.com 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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.