Perth, Aug 27, 2008 (ABN Newswire) - Exoma Energy Limited ("Exoma") (ASX:EXE) today said its first horizontal well into its Cleveland Formation, Ellis County, Oklahoma acreage has successfully commenced production, following the installation of pump jack, tank and pipeline facilities at the Brearley 1H-11 well site.

The Operator, Crusader Energy Group LLC, has handed the well operations from its exploration department to its production department and is currently calibrating the pmpjack.

Crusader estimates there is still approximately 5000 barrels of frac fluids left to recover and it will take approximately fourto six weeks of steady production before stabilised oil flow rates are available. Brearley 1H-11 tested at 170 barrels of oil per day in July before being put onto pump.

David Rowbottam, Managing Director's said, "Brearley 1H-11 will be a significant cash contributor for Exoma. Oil is being produced while the frac fluids are being pumped out and the well stabilised, and is being bunkered on site and trucked to the refinery in our normal sales process. We also expect gas rates to increase as the frac load is pumped from the well."

"The Operator has been encouraged by the results of the Brearley 1H-11 and analogous wells to the extent it has initiated early discussions on drilling a second horizontal into an adjoining acreae section. This is a ringing endorsement of Exoma's land acquisition and farm out business model."

Exoma Energy (25.87%) was free carried for the costs of the Brearley well, which reached a total measured depth of 13,041 feet and was targeting 1.5 BCF gas and 50,000 barrels of oil.

This is the final weekly drilling report from the Brearley 1H-11 well until stabilised production figures are reported by the Operator.