Angle Energy Provides First Quarter Operational Update Showing Increased Oil Weighting and Higher Netbacks

CALGARY, ALBERTA–(Marketwire – March 11, 2013) – Angle Energy Inc. (“Angle” or the “Company”) (NGL.TO) today provided an update on its first quarter operations to March 11, 2013. Oil weighting has increased, netbacks are higher, and production and debt are in line with budget.

HIGHLIGHTS

• Corporate production for the first quarter is estimated to be 11,200 to 11,300 boe/d (30% light oil and condensate, 24% NGLs, and 46% natural gas) – within Angle’s budgeted production expectations while delivering a 3% higher light oil and condensate weighting.

• Operating cash flow netback in the quarter is estimated to be in excess of $29.00/boe, a 43% improvement over the average operating cash flow netback of $20.25/boe in 2012.

• Cardium production for the first quarter is estimated to have grown 24% from the fourth quarter of 2012 (approximately 4,000 boe/d per day Q1 average versus Q4 estimates of 3,230 boe/d).

• Drilled and rig released eleven (10.5 net) horizontal wells, nine (8.5 net) of which targeted the Cardium, and one (1.0 net) vertical well. Three additional horizontal wells (2.6 net) are currently drilling and will be rig released by the end of March.

• At Harmattan, five (5.0 net) wells in the Cardium light oil play have been completed and tested, with average flowing rates per well at the end of three to six day tests of approximately 260 boe/d (90% oil and NGLs). The wells have proven the southeastern extension of the play.

• At Ferrier/Strachan, three (2.5 net) Cardium horizontal wells were drilled and tested, with final rates of 775 boe/d (59% light oil), 1,400 boe/d (85% oil) and 1,600 boe/d (76% oil), respectively, after 7 to 15 days of testing. All three wells are currently being produced at restricted rates pending a planned facility expansion in the second quarter.

• Total debt at the end of the first quarter is estimated to be between $219 and $222 million, within forecast expectations. The Company expects to be in line with debt guidance to the end of the first half of 2013 which is $210 – $215 million. Angle has a corporate directive of managing its debt to cash flow ratio for the overall 2013 capital program to under 2.0 times on a fourth quarter annualized basis.

“The first quarter operational results build on the 2012 year-end reserves report and confirm our confidence in the quality of the company’s assets, and in its position as the fifth largest Cardium land holder in Canada,” said Gregg Fischbuch, Chief Executive Officer. “While we work to realize the potential of our assets on behalf of shareholders, Angle’s Board and Management continue to explore opportunities to close the gap between the trading price of the stock and its intrinsic net asset value.”

FIRST QUARTER OPERATIONAL UPDATE

Harmattan Cardium

The Cardium light oil play in Harmattan has provided exceptional light oil growth for Angle since the Company drilled its first “slick water” fractured well in the area in October 2011. Since 2011, Angle has drilled and completed a total of 24 Cardium horizontal wells at Harmattan, including five wells completed to date in the 2013 program.

The 2013 development program plans for the drilling of up to 22 gross horizontal wells. To date, five (5.0 net) wells have been completed and tested, two (2.0 net) wells are drilled and awaiting completion, and two (1.6 net) wells are being drilled. The total number of wells which will be completed in the 2013 program, post spring break up, is expected to be 12 (10.5 net).

Currently, Angle’s Cardium production from Harmattan exceeds 2,150 boe/d (83% light oil) at 100% working interest. Average 2012 operating netbacks were approximately $46/boe, and the Company has achieved a finding cost to date of $20.00/boe (proved plus probable), providing a robust recycle ratio of 2.3 times. Angle’s first three month (IP90) production addition costs have averaged $25,000/boepd, as calculated from the 19 wells on production over 90 days.

The early first quarter test results have proven a southeastern extension of the play. The following table outlines the five wells tested in the first quarter, showing light oil volumes (bbls/d) only (gas rates are minimal) – as compared to Angle’s type curve and the average rates per period to date from Angle’s producing wells:

Light Oil Rates in BBLS/D

Angle is currently budgeting a risked type curve for the play of 200 boe/d (80% light oil, 9% NGLs and 11% gas) for the first 30 days of production, with expected ultimate recoveries of 185 Mboe per well. This estimate is derived from Angle and industry results in “slick water” fractured Cardium wells in the Harmattan and Garrington areas.

Harmattan Cardium project operating costs of $8.20/boe were realized during 2012. The Company is constructing a 4,000 barrel/day battery in Harmattan, to efficiently accommodate Angle’s growing light oil production from this play. The battery is expected to be in operation early in the second quarter of 2013. It is expected to reduce operating expenses by $1.50/boe, and to reduce future per well development capital by approximately $0.3 million per well. The total drilling inventory in this play is approximately 175 wells, at a density of 4 wells per section.

Ferrier Cardium

In the first quarter, Angle drilled and completed 3 gross (2.5 net) Cardium horizontal wells at Ferrier. These wells commenced drilling in the fourth quarter of 2012 and completion and testing was conducted in the first quarter of 2013. The results have been positive and show high productivity.

The first well was tested over a 15 day period and produced 10,800 bbls of new oil during the test period. Production rates averaged over 1,600 boe/d (76% oil) at flowing tubing pressures of 7,600 kPa over the final six days of testing, after all load fluid had been recovered. The second well was flow tested over seven days, with a final test rate of 1,400 boe/d (85% oil) at 4,800 kPa flowing tubing pressure after all load oil had been recovered. The third well tested at an average rate of 775 boe/d (59% oil) over the last two days of the seven day test and produced 2,200 bbls of new oil.

Due to the high-volume characteristics of the first two wells, Angle expects to produce these wells at restricted rates of 800 to 900 boe/d per well over the first 30 days of production. Angle is planning a facility expansion to be completed in the second quarter of 2013 to accommodate the high production rates from the Cardium wells in this area. Following this expansion, Angle plans to drill a minimum of four additional wells in the second half of 2013.

The total drilling inventory in this play is 35 wells, at a density of four wells per section. Recycle ratios are estimated to be approximately 2.7 times, with producing netbacks of $27/boe and finding costs (proved plus probable) of $10/boe.

ABOUT ANGLE

Angle Energy Inc. is a public, Calgary-based oil and gas exploration and development company incorporated in 2004. Angle’s objective is to build shareholder value through the profitable growth of its high quality asset base through a combination of drilling and strategic acquisitions. Angle’s proven and dedicated team of industry specialists are focused on identifying and developing high quality assets in the Western Canadian Sedimentary Basin, with an emphasis in west central Alberta. Common shares of Angle are listed for trading on the Toronto Stock Exchange under the symbol “NGL.”

Basis of Presentation

Production information is commonly reported in units of barrel of oil equivalent (“boe”). For purposes of computing such units, natural gas is converted to equivalent barrels of crude oil using a conversion factor of six thousand cubic feet of gas to one barrel of oil. This conversion ratio of 6:1 is based on an energy equivalent conversion for the individual products, primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Such disclosure of boes may be misleading, particularly if used in isolation.

Forward-Looking Information

Information set forth in this press release contains estimates and forward-looking statements and are made as of March 11, 2013, including production test results, drilling results, drilling plans and exploring opportunities. These forward looking statements are based on assumptions as of that date. By their nature, estimated production results and operating netbacks, drilling plans and business opportunities are subject to numerous risks and uncertainties, some of which are beyond Angle’s control, including the impact of reservoir quality, decline rates, volatility of commodity prices, drilling techniques, costs of third party services, general economic conditions, industry conditions, environmental risks, competition and interest from other industry participants, the lack of availability of qualified personnel or management, ability to access sufficient capital from internal and external sources and ability to identify and consummate business opportunities. Readers are cautioned that the assumptions and factors discussed in this press release and in the are not exhaustive and that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise, and as such, undue reliance should not be placed on forward-looking statements. Angle’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these estimates and forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the estimates and forward-looking statements will transpire or occur, or if any of them do so, what benefits that Angle or its shareholders will derive there from. Furthermore, while the production test results are useful in confirming the presence of hydrocarbons, they are not necessarily indicative of long-term performance or of ultimate recovery from a well and should not be used to calculate the aggregate production for Angle. Unless required by law, Angle disclaims any intention or obligation to update or revise any estimates and forward-looking statements, whether as a result of new information, future events or otherwise. The estimates and forward looking statements are expressly qualified by these cautionary statements.

Angle Energy Inc.
Heather Christie-Burns
President and Chief Operating Officer
(403) 263-4179
(403) 263-4534

Angle Energy Inc.
Gregg Fischbuch
Chief Executive Officer
(403) 263-4179
(403) 263-4534

Angle Energy Inc.
Suite 700
324 Eighth Avenue SW
Calgary, Alberta T2P 2Z2
www.angleenergy.com