XCD Energy Ltd. (fka ETKEF)

[J Man]

NIOBRARA SHALE OIL PROJECT APPRAISAL PROGRAM UPDATE - 8/4/11

Battle Mountain 14-10L – The well has reached its total depth of 7,500 ft. Wire-line logs have been run and the well has been successfully cased and cemented ready for completion.

Preliminary interpretation of wire-line logs and correlation to offset wells show that the Niobrara section in this well contains significant potential pay zones (‘benches’), as expected.

In addition the Frontier Sandstone exhibits hydrocarbon saturation and is also being considered as a pay zone for fracture stimulation and completion. The fracture stimulation program is currently being designed with Halliburton and is expected to start in August 2011.

This looks very encouraging for the Niobrara play!