Chinook Energy Announces Strategic Canadian Asset Acquisition

Chinook Energy Announces Strategic Canadian Asset Acquisition and New
Credit Facility 
CALGARY, ALBERTA -- (Marketwire) -- 12/17/12 -- Chinook Energy Inc.
(TSX:CKE) ("Chinook" or the "Company") is pleased to announce the
following developments:  
Strategic Acquisition 
Effective April 1, 2012, Chinook acquired certain assets in the
greater Grande Prairie area of northwestern Alberta from a senior
producer for $31 million, before closing adjustments and related
costs (the "Acquisition"). The acquired assets are within Chinook's
core Grande Prairie operating area and expand the Company's Dunvegan
and Doe Creek oil focus.  
Key attributes of the Acquisition are as follows: 


 
--  Approximately 17 net sections of land; 
--  Average 82% operated working interest in an established Dunvegan oil
    pool at Elmworth; 
--  Average 75% operated working interest in an established Dunvegan oil
    pool at Knopcik; 
--  Approximately 80% working interest in 10 additional sections of
    undeveloped land and royalties in the Sinclair area; 
--  Average production of 290 boe/d since April 1, 2012, with 60% being from
    oil and liquids; 
--  Approximately 1.52 MMboe of proved reserves and 2.21 MMboe of proved
    plus probable reserves based on an independent reserves evaluation
 
    prepared by McDaniel & Associates Consultants Ltd. effective July 1,
    2012; 
--  10 year proved developed producing reserve life index and 18 year proved
    plus probable reserve life index; 
--  Over 30 additional horizontal locations identified; and 
--  Significant waterflood upside.

 
New Credit Facility 
Chinook is also pleased to announce that it has entered into new a
credit facility with a syndicate of financial institutions to provide
for a $115 million revolving credit facility that will consist of a
$100 million syndicated credit facility and a $15 million operating
facility. This new credit facility, led by National Bank of Canada
with syndicated members ATB Financial and HSBC Bank Canada, replaces
the Company's existing syndicated credit facility and is secured by
Chinook's Canadian oil and gas assets.  
Chinook is also actively pursuing the establishment of a credit
facility secured by its Tunisian assets to support the continued
expansion of its international business. 
About Chinook Energy Inc. 
Chinook is a Calgary-based public oil and gas exploration and
development company that combines multi-zone conventional production
with resource plays in Western Canada with an exciting high growth
oil business onshore and offshore Tunisia in North Africa. 
Reader Advisory  
Forward-Looking Statements  
In the interest of providing shareholders and potential investors
with information regarding Chinook, including management's assessment
of the future plans and operations of Chinook, certain statements
contained in this news release constitute forward-looking statements
or information (collectively "forward-looking statements") within the
meaning of applicable securities legislation. Forward-looking
statements are typically identified by words such as "anticipate",
"continue", "estimate", "expect", "forecast", "may", "will",
"project", "could", "plan", "intend", "should", "believe", "outlook",
"potential", "target" and similar words suggesting future events or
future performance. In addition, statements relating to "reserves"
contained herein are deemed to be forward-looking statements as they
involve the implied assessment, based on certain estimates and
assumptions, that the reserves described can be economically produced
in the future. In particular, this news release contains, without
limitation, forward-looking statements pertaining to expectations of
management regarding the Acquisition, including synergies resulting
from the Acquisition and the effect of the Acquisition on Chinook.  
With respect to the forward-looking statements contained in this news
release, Chinook has made assumptions regarding, among other things:
the ability of Chinook to execute and realize on the anticipated
benefits of the Acquisition. Although Chinook believes that the
expectations reflected in the forward-looking statements contained in
this news release, and the assumptions on which such forward-looking
statements are made, are reasonable, there can be no assurance that
such expectations will prove to be correct. Readers are cautioned not
to place undue reliance on forward-looking statements included in
this news release, as there can be no assurance that the plans,
intentions or expectations upon which the forward-looking statements
are based will occur. By their nature, forward-looking statements
involve numerous assumptions, known and unknown risks and
uncertainties that contribute to the possibility that predictions,
forecasts, projections and other forward-looking statements will not
occur, which may cause Chinook's actual performance and financial
results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by
such forward-looking statements. These risks and uncertainties
include, without limi
tation, incorrect assessment of the value of the
Acquisition to Chinook; failure to realize the anticipated benefits
and synergies of the Acquisition; volatility in market prices for oil
and natural gas; and the general economic conditions in Canada, the
United States of America and globally. As a consequence, actual
results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the forgoing
list of factors is not exhaustive. Additional information on these
and other factors that could affect Chinook's operations and
financial results are included in Chinook's Annual Information Form
dated March 23, 2012 and other reports on file with Canadian
securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com) and at Chinook's website
(www.chinookenergyinc.com). Furthermore, the forward-looking
statements contained in this news release are made as at the date of
this news release and Chinook does not undertake any obligation to
update publicly or to revise any of the forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws. 
Barrels of Oil Equivalent 
Barrels of oil equivalent (boe) is calculated using the conversion
factor of 6 mcf (thousand cubic feet) of natural gas being equivalent
to one barrel of oil. Boe may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf:1 bbl (barrel) 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 different from
the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis
may be misleading as an indication of value. 
Reserve Life Index 
The reader is also cautioned that this news release contains the term
reserve life index ("RLI"), which is not a recognized measure under
GAAP. Management believes that this measure is a useful supplemental
measure of the length of time the reserves would be produced over at
the rate used in the calculation. Readers are cautioned, however,
that this measure should not be construed as an alternative to other
terms such as net income determined in accordance with GAAP as a
measure of performance. Chinook's method of calculating this measure
may differ from other companies, and accordingly, they may not be
comparable to measures used by other companies.
Contacts:
Chinook Energy Inc.
Walter Vrataric
President
(403) 261-6883 
Chinook Energy Inc.
L. Geoff Barlow
Vice-President, Finance and Chief Financial Officer
(403) 261-6883
www.chinookenergyinc.com