Shoreline Energy Corp. Acquires Royalty Interest in Prolific

Shoreline Energy Corp. Acquires Royalty Interest in Prolific Light
Oil Project in DJ Basin of Colorado 
CALGARY, ALBERTA -- (Marketwire) -- 11/21/12 -- Shoreline Energy
Corp. (the "Company" or "Shoreline") (TSX:SEQ) is pleased to announce
that the Company has closed its previously announced acquisition of
non-operated royalty interests in the prolific Wattenberg Colorado
light oil project (the "Wattenberg Project") located in the
Denver-Julesberg Basin ("DJ Basin") for approximately US$12.5 million
from a private company based in the United Sates (collectively, the
"Acquisition").  
The Acquisition will give Shoreline a variety of royalty interests
ranging up to 1.45% on over 150 land tracts representing over 22,000
gross acres of land, predominantly located in Weld County Colorado,
in the Wattenberg Project. The Wattenberg Project is currently an
area of a large scale, low risk horizontal development well program,
using multi-stage frac technology, led by Anadarko Petroleum Corp.
and Noble Energy Inc. (the "Operators"), with participation of a
number of other senior oil and gas producers. The Operators are
forecasting to invest in excess of $2.5 billion in 2012, targeting
light oil in the Niobrara and Codell Formations(1). The Operators
also forecast an average of between 500 and 1200 barrels of oil
equivalent ("BOE") per day per well and that horizontal wells in the
Wattenburg field could recover as much as 300,000 to 600,000 BOE per
well. Netbacks from Shoreline's royalty position is forecast to
average between $75.00 and $80.00 per BOE for 2013 based on current
forward strip commodity pricing. Shoreline estimates that based on
the current development practices of the operators, that there are
between 400 and 700 potential drilling locations on the acquired
acreage.(2) 
Chief Executive Officer, Trevor Folk explained, "We acquired royalty
interests in the Wattenberg Project for several reasons. First and
foremost, this asset provides the highest return of any project we
have evaluated whether in Canada or the U.S. Second, being in a
non-operated royalty position allows Shoreline to harvest passive
income from a world class oil project, a project which continues to
see accelerated drilling and continual upward revisions in production
and reserves per well, makin
g these assets a perfect fit for
Shoreline's mandate as a dividend paying, oil and gas production
company. Third, with the vast majority of these wells producing very
light sweet crude oil, we come closer to our goal of a balanced
commodity portfolio of 50% liquids and 50% natural gas. With
projected cash flows averaging $375,000 per month in 2013 and exiting
2013 at levels exceeding $750,000 per month, the acquisition
increases discretionary cash which can be redeployed to create
shareholder value through drilling of additional oil well in Canada,
acquire additional assets, or increase our cash dividend."  
The royalty package Shoreline has acquired includes royalty revenue
related to 300 existing producing low rate vertical oil wells.
Shoreline estimates that as of November 1, more than 20 horizontal
wells were drilled on the subject royalty lands, with nearly 60
additional locations permitted and scheduled to be drilled by the
Operators during the first 6 months of 2013.  
Shoreline has financed the Acquisitions with a combination of
existing cash on hand, debt and the issuance of 410,000 common shares
of Shoreline at a deemed price of $3.65 per share. The Company
expects to generate $4.6 million of cash flows from the Acquisitions
in the first year, providing an internal rate of return ("IRR") of
over 30%. Based on the anticipated drilling of additional wells in
late 2013 and through 2014, Shoreline forecasts that cash flow from
the royalties may exceed $11 million in 2014. Shoreline continues to
evaluate additional royalty and working interest acquisition
opportunities in the DJ Basin. 
Mr. Folk concluded, "Shoreline is pleased to have been able to create
two growing streams of cash flows - one from our producing wells and
previously announced successful drilling program in the Peace River
Arch area of Canada and one from our new position in Wattenberg.
These two cash flow streams provide Shoreline with additional
flexibility to evaluate future opportunities which provide potential
for good risk-adjusted returns." 
Shoreline will host a conference call on Wednesday November 28, 2012
at 9:30 a.m. (Mountain Time) to present its long term growth
strategy, including the Wattenberg acquisition and potential future
acquisitions.  
About Shoreline Energy  
Investor Information  
Shoreline is a Calgary, Alberta based corporation engaged in the
exploration, development and production of petroleum and natural gas.
Shoreline offers investors a combination of value growth via lower
risk development of additional oil reserves and production on its
current lands and pays a quarterly dividend. Shoreline has 5,659,438
common shares outstanding and 170,000 convertible debentures
outstanding. The Company's common shares are currently listed on the
TSX under the trading symbol "SEQ" and its debentures under the
trading symbol "SEQ.DB". Additional information regarding Shoreline
is available under the Company's profile at www.sedar.com or at the
Corporation's website, www.shorelineenergy.ca. 
Forward Looking and Cautionary Statements 
This news release contains forward-looking statements relating to the
anticipated closing date of the Acquisitions, potential future equity
offerings and debt repayment, future cash flows, future drilling
plans and other aspects of the Corporation's anticipated future
operations, strategies, financial and operating results and business
opportunities. These forward-looking statements may include opinions,
assumptions, estimates, management's assessment of value, reserves,
future plans and operations.   
Forward-looking statements typically use words such as "will,"
"anticipate," "believe," "estimate," "expect," "intend," "may,"
"project," "should," "plan," and similar expressions suggesting
future outcomes, and include statements that actions, events or
conditions "may," "would," "could," or "will" be taken or occur in
the future. The forward-looking statements are based on various
assumptions including expectations regarding the success of current
or future drill wells; the outlook for petroleum and natural gas
prices; estimated amounts and timing of capital expenditures;
estimates of future production; assumptions concerning the timing of
regulatory approvals; the state of the economy and the exploration
and production business; results of operations; business prospects
and opportunities; future exchange and interest rates; the
Corporation's ability to obtain equipment in a timely manner to carry
out development activities; and the ability of the Corporation to
access capital and credit. While the Corporation considers these
assumptions to be reasonable based on information currently available
to it, they may prove to be incorrect.  
Financial outlook information contained in this press release about
the Corporation's prospective cash flows and financial position is
based on assumptions about future events, including economic
conditions and proposed courses of action, based on management's
assessment of the relevant information currently available. Readers
are cautioned that any such financial outlook information contained
herein should not be used for purposes other than for which it is
disclosed herein.  
Forward-looking statements are subject to a wide 
range of
assumptions, known and unknown risks and uncertainties and other
factors that contribute to the possibility that the predicted outcome
will not occur, including, without limitation: risks associated with
oil and gas exploration, development, exploitation, production,
marketing and transportation; loss of markets; volatility of
commodities prices; currency fluctuations; imprecision of reserves
estimates; environmental risks; competition from other producers;
inability to retain drilling rigs and other services; incorrect
assessment of the value of acquisitions; failure to realize the
anticipated benefits of acquisitions; general economic conditions;
delays resulting from or inability to obtain required regulatory
approvals and to satisfy various closing conditions; and ability to
access sufficient capital from internal and external sources. Readers
are cautioned that the foregoing list of factors is not exhaustive.  
Although Shoreline believes that the expectations represented by such
forward-looking statements are reasonable, there can be no assurance
that such expectations will be realized. As a consequence, actual
results may differ materially from those anticipated in the
forward-looking statements and you should not rely unduly on
forward-looking statements. The forward-looking statements contained
in this news release are made as of the date of this news release.
Except as required by applicable law, Shoreline does not undertake
any obligation to publicly update or revise any forward-looking
statements. 
Note Regarding BOEs 
The term barrel of oil equivalent ("boe") may be misleading,
particularly if used in isolation. A conversion ratio for gas of 6
mcf:1 boe is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio based on the
current price of crude oil as compared to natural gas is
significantly equivalency conversion ratio of 6:1, utilizing a
conversion on a 6:1 basis is misleading as an indication of value. 
(1) Anadarko Petroleum Corporation, Noble Energy Inc., PDC Energy,
EOG Resources corporate presentations. 
(2) Well count based on published well spacing in development plans
outlined by Anadarko Petroleum Corporation and Noble Energy Inc. in
publicly available presentations. 
Contacts:
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
(403) 398-4070
tfolk@shorelineenergy.ca 
Shoreline Energy Corp.
Mr. Shaun Alspach
Executive Vice President, Business Development
(403) 398-4080
salspach@shorelineenergy.ca 
Shoreline Energy Corp.
Calgary Office
Suite 400, 209-8th Ave SW
Calgary, Alberta, T2P 1B8
(403) 767-9066
www.shorelineenergy.ca
 
 
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