Border Announces Filing of Financials, Annual Information Form and Reserves Data and Provides Operational and Corporate Update

CALGARY, ALBERTA–(Marketwired – July 29, 2013) – Border Petroleum Corp. (“Border” or the “Corporation“) (TSX VENTURE:BOR) today announces financial results for its year ended March 31, 2013. The audited financial statements and management’s discussion & analysis (“MD&A”) have been filed on SEDAR. The Corporation also announces that pursuant to NI 51-101 it has filed its Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2 Report on Reserves Data by Independent Qualified Reserves Evaluator and Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure. Border’s Annual Information Form for the year ended March 31, 2013 has also been filed on SEDAR. Copies of the annual and NI 51-101 filings of the Corporation are available for viewing at www.sedar.com.

HIGHLIGHTS

The following are the highlights of Border’s operations for the year ended March 31, 2013:

• On July 16, 2012, the Corporation released initial results from its first two Slave Point horizontal wells in the Red Earth area (the “Initial Wells”).
• On September 28, 2012, Border completed a short form prospectus offering for aggregate gross proceeds of $18,001,080.
• On November 29, 2012, Border announced the completion of its first long-leg Slave Point horizontal well located at 10-15-85-10W5M (the “10-15 Well”) on the Loon River Cree Nation and the acquisition of 17 square kilometers of 3D seismic on the Loon Block.
• On February 28, 2013, Border provided an update with respect to the completion and testing of the 10-15 Well.
• Subsequent to its year-end, on April 29, 2013 Border announced the formation of a Special Committee of independent directors and the initiation of a strategic review process to identify, examine and consider a range of strategic alternatives with a view to maximizing shareholder value. The Special Committee retained Dundee Securities Ltd. and Macquarie Capital Markets Canada Ltd. as co-financial advisors to assist in the strategic review process.

FINANCIAL OVERVIEW

Certain selected financial and operational information for the year ended March 31, 2013 is set out below and should be read in conjunction with the Corporation’s audited consolidated financial statements and related MD&A. The following table provides a summary of key financial results for the twelve months ended March 31, 2013 and 2012:

A summary of financial and operating results for the year ended March 31, 2013 and 2012 are outlined in the following table.

RED EARTH UPDATE

Further to the press release issued on April 29, 2013, with respect to the long leg Slave Point horizontal well located at 10-15-85-10W5M (the “10-15 Well”) in the Red Earth area of northern Alberta, the 10-15 Well has been shut in since April 12, 2013 due to access issues related to wet weather conditions.

With respect to Border’s two short-leg horizontal wells on the Loon Block, the two wells are also currently shut-in due to weather related access issues.

LEDUC & NORRIS UPDATE

Border’s current net production at Leduc is approximately 158 boepd (approximately 8 percent oil). Border has an interest in 4,564 net acres in the Leduc area of central Alberta.

At Norris, Border is continuing pump optimization work on a number of its Mannville wells. Current production at Norris, where Border holds working interests varying from 57.5 percent to 100 percent in 452 net acres, is approximately 9 boepd net to Border (91 percent oil).

CORPORATE UPDATE

Border currently has a positive working capital balance of approximately $7.2 million and an unutilized bank line of $3.5 million. Border’s current total production is approximately 176 boepd (15 percent liquids). Border’s tax pool balance as at March 31, 2013 was approximately $45.4 million. Further, after taking into account qualifying expenditures of approximately $1.0 million in the quarter ended March 31, 2013, the Company has approximately $2.0 million of outstanding obligations to incur Canadian Exploration Expenses related to the September, 2012 flow-through share issuance.

On April 29, 2013, Border announced that it had formed a Special Committee of independent directors and initiated a strategic review process to identify, examine and consider a range of strategic alternatives available to Border, with a view to maximizing shareholder value. This process could result in a sale of the Corporation, a sale of a material portion of the Corporation’s assets, a merger, business combination or a corporate reorganization, among other alternatives. The Special Committee has retained Dundee Securities Ltd. and Macquarie Capital Markets Canada Ltd. as co-financial advisors to assist in the strategic review process.

The strategic review process is ongoing and Border does not intend to disclose developments with respect to the strategic review process unless and until the Board of Directors has approved a definitive transaction or strategic option, or unless otherwise required by law or disclosure of which is deemed appropriate.

EXECUTIVE CHANGE

Border announces that Kelly Kimbley, President and Chief Executive Officer, and Peter Fridrich, Vice President, Exploration, are no longer with the Corporation. Mr. Kimbley has also stepped down as a director of the Corporation. The Corporation wishes to thank Mr. Kimbley and Mr. Fridrich for their efforts and tenacity that allowed Border to pursue a unique and substantive opportunity. We wish them every deserved success in their future endeavours.

Border’s Chairman, Al Kroontje, P. Eng., has been appointed Interim Chief Executive Officer until the successful completion of the strategic review process currently being undertaken by the Special Committee and their financial advisors. Mr. Kroontje has accepted this appointment without compensation.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Border. Although Border believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Border can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (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 projections relating to production, costs and expenses, and health, safety and environmental risks), commodity 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. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Border’s disclosure documents on the SEDAR website at www.sedar.com.

The forward-looking statements contained in this document are made as of the date hereof and Border undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

BOE

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.