Exceed Energy Announces Second Quarter 2007 Financial Results

Exceed Energy Inc. (TSX VENTURE:EX.A) (TSX VENTURE:EX.B) today announced that it
has filed its unaudited financial statements and management's discussion and
analysis for the period ended June 30, 2007 as well as the Company's 52-109 F2
CEO and CFO Certificates. This press release is meant to be read in concurrence
with the above filed documents. Copies of these documents are available on SEDAR
at www.sedar.com.


Third Quarter Outlook

Exceed Energy Inc. ("Exceed" or the "Company") currently is producing 275 BOE/D
(barrels of oil equivalent). Though the company conducted completion and tie-in
operations in the second quarter, as listed below, most of the production
additions realized from these operations were not realized until the third
quarter. In the third quarter the Company conducted completion and tie-in
operations at its Hussar gas well (35% Working Interest) and expects the well to
begin production in early September.


Second Quarter Operations Summary

In the second quarter the Company conducted field operations at Roxana,
Twinning, Coyote, Bashaw, and Spruce Grove. The second Roxana well (30% Working
Interest) was completed and brought on stream in the third quarter. A third
Roxana well (50% WI) is anticipated this fall. The Twinning well (12.5% WI) was
drilled and abandoned. The 10-18 Coyote well was completed and brought on stream
in the third quarter. The third well (12% WI) at Bashaw in which the Company has
an interest, was completed and put on production in the third quarter. The
recompleted 8-35 Ellerslie well (20% WI) at Spruce Grove was put on stream in
the second quarter.


The Company's second quarter production was significantly impacted by the annual
spring break up and by longer than anticipated gas plant turnarounds. Production
at Roxana was shut in for approximately a month due to break up, and production
at Spruce Grove and Golden Spike was shut in for two to three weeks due to plant
turnarounds. Just west of the Roxana, the Company holds a 30% working interest
in lands in the Culp area. Exceed expects to drill the first well (30% WI) on
these lands in the later half of 2007.


The Company has acquired additional acreage in the Cereal area. The Company has
two drill-ready locations (50 and 100% WI, respectively) identified on Company
lands.




Selected Financial Information

Selected Financial Information

Financial data           Three Months  Six Months  Three Months  Six Months
                              June 30,    June 30,      June 30,    June 30,
                                 2007        2007          2006        2006
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Oil and natural gas
 revenue, net of royalties    534,407   1,111,377       609,758   1,253,365
Operating expense             171,748     257,034       152,905     262,999
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Operating netback             362,659     854,343       451,853     990,366

Net loss                     (264,713)   (395,436)      (96,605)   (522,810)
  Per share, basic               0.00       (0.01)        (0.01)      (0.01)
  Per share, diluted             0.00       (0.01)        (0.01)      (0.01)
Cash flow from operations
 (non GAAP)                   139,460     482,842       285,458     653,546
  Per share, basic
   (non GAAP)                    0.00        0.01          0.00        0.03
  Per share, diluted
   (non GAAP)                    0.00        0.01          0.00        0.03

Total assets                           14,729,474                13,430,632
Total liabilities                       3,189,536                 5,037,874

Share capital data                      30-Jun-07                 30-Jun-06
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Number of class A
 common shares                         41,710,007                35,362,420
Number of class B
 common shares                          2,333,602                   852,125
Number of options
 outstanding                            2,104,000                 2,040,000
  Average exercise price                     0.21                      0.21
Number of options exercisable             744,000                      0.00
Number of compensation
 warrants exercisable                     371,429                      0.00
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Exceed Energy Inc.

Balance Sheets

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                                      June 30, 2007       December 31, 2006
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Assets                                   (unaudited)               (audited)
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Current assets
  Cash and short term investments     $   2,544,182           $   4,010,890
  Accounts receivable                       485,512                 425,560
  Prepaid expenses and deposits              89,951                  32,239
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                                          3,119,645               4,468,689

Refundable deposit (Note 3)                 143,315                 147,342

Property and equipment (Note 4)          11,466,514              10,620,840
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                                      $  14,729,474           $  15,236,871
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Liabilities and Shareholders' Equity

Current liabilities
  Accounts payable and accrued
   liabilities                        $   2,323,003           $   2,415,749

Asset retirement obligation (Note 7)        231,993                 174,328
Future income tax                           634,540                 768,797
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                                          3,189,536               3,358,874

Shareholders' equity

  Equity instruments (Note 8)            17,427,059              17,445,682
  Contributed surplus (Note 8)              675,087                 599,087
  Deficit                                (6,562,208)             (6,166,772)
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                                         11,539,938              11,877,997
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                                      $  14,729,474           $  15,236,871
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Indemnifications and contingencies
 (Note 12)
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Commitments (Note 13)
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Subsequent events (Note 14)
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The accompanying notes are an integral part of these financial statements
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Note: Please refer to the Financial Statements and Management Discussion
and Analysis at www.sedar.com in reference to the note numbers in this
table.


Exceed Energy Inc.

Statements of Operations and Deficit

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                                Three       Three           Six         Six
                                month       month         month       month
                               period      period        period      period
                                ended       ended         ended       ended
                              June 30,    June 30,      June 30,    June 30,
                                 2007        2006          2007        2006
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                           (unaudited) (unaudited)   (unaudited) (unaudited)


Revenue
  Oil and natural gas sales $ 618,806   $ 822,475   $ 1,418,740 $ 1,733,546
  Royalty expense             (84,399)   (247,701)     (307,363)   (542,096)
  Alberta Royalty Tax Credit        -      34,984             -      61,915
  Interest and other income    21,265      29,012        53,275      42,844
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                              555,672     638,770     1,164,652   1,296,209

Expenses
  Operating                   171,748     157,905       257,034     262,999
  General and administrative  244,150     145,129       422,951     279,665
  Stock based compensation
   (Note 8)                    38,000     (27,463)       76,000      92,663
  Interest                        313      50,278         1,824      99,999
  Depletion, depreciation
   and amortization (Note 4)  447,256     677,318       923,118   1,426,802
  Accretion of asset
   retirement obligation
   (Note 7)                     7,192      15,972        13,418      24,296
  Amortization of debenture
   issue costs                      -      11,746             -      23,363
  Accretion of debenture
   obligation                       -      22,000             -      43,700
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                              908,659   1,052,885     1,694,345   2,253,487

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Loss before taxes            (352,987)   (414,115)     (529,693)   (957,278)

Taxes
  Future tax recovery          88,274     317,510       134,257     434,468
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Net loss for the period      (264,713)    (96,605)     (395,436) (1,391,746)
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Deficit, beginning of
 period                    (6,297,495) (5,208,575)   (6,166,772) (4,782,370)

Deficit, end of period    $(6,562,208)$(5,305,180)  $(6,562,208)$(6,174,116)
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Net loss per common
 share (Note 8)
Basic and diluted               (0.00)$     (0.01)  $     (0.01)$     (0.01)
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The accompanying notes are an integral part of these financial statements
----------------------------------------------------------------------------
Note: Please refer to the Financial Statements and Management Discussion
and Analysis at www.sedar.com in reference to the note numbers in this
table.



Exceed Energy Inc.

Statement of Cash Flows

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                                Three       Three           Six         Six
                                month       month         month       month
                               period      period        period      period
                                ended       ended         ended       ended
                              June 30,    June 30,      June 30,    June 30,
                                 2007        2006          2007        2006
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                           (unaudited) (unaudited)   (unaudited) (unaudited)
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Cash provided by (used in)
Operating Activities
  Net loss for the period  $ (264,713) $  (96,605)   $ (395,436) $ (522,810)
  Items not requiring cash
   Depletion, depreciation
    and amortization          447,256     677,318       923,118   1,426,802
   Accretion of asset
    retirement obligation
    (Note 7)                    7,192      15,972        13,418      24,296
   Accretion of debenture
    obligation                      -      22,000             -      43,700
   Amortization of debenture
    issue costs                     -      11,746             -      23,363
   Future tax recovery        (88,275)   (317,510)     (134,258)   (434,468)
   Stock based compensation    38,000     (27,463)       76,000      92,663
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                              139,460     285,458       482,842     653,546
  Change in non-cash
   working capital related
   to operating activities
   (Note 10)                   85,697     284,180      (281,277)    234,846
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                              225,157     569,638       201,565     888,392

Financing Activities

  Issue of share capital,
   net of costs               (18,622)          -       (18,622)          -
  Increase in demand loan           -           -             -           -
  Change in non-cash
   working capital
   balances related to
   financing activities
   (Note 10)                   26,093       9,779       (45,638)    (50,608)
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                                7,471       9,779       (64,260)    (50,608)

Investing Activities

  Additions to property
   and equipment             (775,161)   (602,571)   (1,767,744) (1,147,542)
  Dispositions of property
   and equipment               43,200     272,544        43,200     272,544
  Increase (Decrease) in
   refundable deposit            (983)                    4,027            
  Change in non-cash working
   capital balances related
   to investing activities
   (Note 10)                  490,780     579,363       116,504     467,059
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                             (242,164)    249,336    (1,604,013)   (407,939)

Decrease in cash and
 short-term investments        (9,536)    828,753    (1,466,708)    429,845

Cash and short-term
 investments, beginning
 of period                  2,553,718   2,460,153     4,010,890   2,859,061
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Cash and short-term
 investments, end of
 period                  $  2,544,182 $ 3,288,906  $  2,544,182 $ 3,288,906
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Cash interest payments   $        313 $    50,278  $      1,824 $    99,999

The accompanying notes are an integral part of these financial statements
----------------------------------------------------------------------------
Note: Please refer to the Financial Statements and Management Discussion
and Analysis at www.sedar.com in reference to the note numbers in this
table.



Forward Looking Statements

This press release contains forward-looking statements including expectations of
future production, cash flow and earnings. These statements are based on current
expectations that involve a number of risks and uncertainties, which could cause
actual results to differ from those anticipated. These risks include, but are
not limited to: the risks associated with the oil and gas industry (e.g.
operational risks in development, exploration and production; delays or changes
in plans with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty of estimates
and projects relating to production, costs and expenses, and health, safety and
environmental risks), commodity price, price and exchange rate fluctuations and
uncertainties resulting from potential delays or changes in plans with respect
to exploration or development projects or capital expenditures. The Company has
also used certain measures of financial reporting that are commonly used as
benchmarks within the oil and natural gas production industry. The measures
discussed are widely accepted measures of performance and value within the
industry, and are used by analysts and investors to compare and evaluate oil and
natural gas exploration and producing entities. Most notably, these measures
include operating netback and cash flows from operations. Operating netback is a
benchmark used in the crude oil and natural gas industry to measure the
contribution of oil and natural gas sales subsequent to the deduction of
royalties and operating costs. Cash flow from operations is before changes in
non-cash working capital and site restoration expenditures, and is used to
analyze operations, performance and liquidity. These measures are not defined
under GAAP and should not be considered in isolation or as an alternative to
conventional GAAP measures. These measures and their underlying calculations are
not necessarily comparable to a similarly titled measure of another entity. When
these measures are used, they are defined as "non GAAP" and should be given
careful consideration by the reader. The term barrels of oil equivalent ("BOE")
may be misleading, particularly if used in isolation. A BOE conversion ratio for
natural gas of 6:1 has been used by the Company, which is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value of equivalency at the wellhead. All BOE conversions in
this report are derived by converting natural gas to crude oil in the ratio of
six thousand cubic feet of natural gas to one barrel of crude oil. Additional
information on these and other factors that could affect Exceed's operations or
financial results are included in Exceed's reports on file with Canadian
securities regulatory authorities that may be accessed at www.sedar.com or
through the Company's website, www.exceedenergy.com.