Fugitive William Bicknell remains in hospital Monday after police say he engaged in a standoff in northern Alberta on the weekend. Newly obtained video shows police frantically surrounding a vehicle with their guns drawn.

The convicted murderer was finally captured near Sexsmith Saturday night. Police allege Bicknell entered an elderly woman's residence north of Sexsmith around 7:30 a.m. Saturday. CTV News was told the woman was held hostage until she managed to escape around 4 p.m. and alert authorities.

Bicknell was serving a life sentence for the second-degree murder of a B.C. woman. He had been at large since police say he overpowered a guard while on an escorted pass from the Drumheller Correctional Facility on March 10th.

After allegedly gaining control of the vehicle he was riding in, officials say he held the Correctional Services employee hostage and made his way to Edmonton.

Police say a vehicle pursuit then began at the residence, ending about 24 kilometres away at Township Road 734 and Range Road 55.

Police also say the standoff started after a vehicle entered the ditch. The video taken by John Tschetter shows a car in the distance on the left side of the road in the ditch allegedly stolen and driven by Bicknell.

Tschetter says he heard gunshots police are alleged to have traded with Bicknell on the road near Sexsmith.

"I was just scared he might fire back. There was one cop car sitting with one window shot out of it, but most guns were pointed the other way," said Tschetter.

A media release stated a five-year RCMP member posted out of Grande Prairie was shot upon and sustained non-life-threatening injuries.

The area was contained and RCMP say the escapee surrendered just after 8 p.m. Saturday.

"It's alleged that there was a number of firearms seized from the scene and that will form part of the investigation," said Insp. Peter Puszka.

Bicknell was taken to the Queen Elizabeth II hospital in Grande Prairie with undetermined injuries following his arrest. Police won't say if he was shot.

He was eventually airlifted to an Edmonton hospital where he remains Monday.

On Monday the road where the shootout is alleged to have happened remained blocked off by police.

Neighbours who live near the woman who was taken hostage describe her as a nice lady and were relieved when friends told them she got away unharmed.

A family friend told CTV News the woman is not yet ready to tell her story to media.

Additional charges are pending against Bicknell.

He is already facing charges in connection to allegedly holding a man hostage for 10 hours in Vegreville last Thursday. The farm where a 72-year-old man was held hostage at gunpoint is located a few kilometres from where Bicknell grew up.

The man who was taken hostage told CTV it was a horrifying experience. The victim would not appear on camera for CTV for fear of retribution, but claims Bicknell spoke openly about his escape from prison.

Brian Bradshaw lives near the home where the hostage taking took place and is within site of the farm where Bicknell grew up.

"He was probably comfortable because he'd lived here for so long that he would probably come back because the area was comfortable," he said.

Some now question why Bicknell was given the chance to escape in the first place as he was watched only by a guard without a weapon and was not shackled.

"I do want to make sure that changes are brought into force and that we don't see a circumstance like this ever being able to happen again," said Chris Warkentin, MP for Peace River.

Provincial politicians are calling on action from the federal government to ensure a similar incident doesn't occur again.

"These things shouldn't happen in the first place. Let's tighten this system up -- that's just not at all acceptable," said Minister of Sustainable Resource Development Mel Knight.

Staff at the Drumheller Correctional Facility will be among many questioned in the review of what happened. A report on the incident is expected in the coming months.

With files from Sean Amato and Scott Roberts