Crew Energy Inc. Announces 2013 Budget Targeting 15% Increase

Crew Energy Inc. Announces 2013 Budget Targeting 15% Increase in
Liquids Production- January 7, 2013 
CALGARY, ALBERTA -- (Marketwire) -- 01/07/13 -- Crew Energy Inc.
("Crew" or the "Company") (TSX:CR) is pleased to announce its Board
of Directors has approved a 2013 capital budget of $219 million. The
2013 program is designed to focus on the Company's operating strategy
to invest in the highest rate of return projects while also further
defining and capturing hydrocarbon resource. Funding of this program
will come from cash flow from operations and bank debt. The 2013
program is expected to provide 15% liquids growth spearheaded by the
drilling of 101 (99.0 net) wells with 87% of the wells targeting oil
and 13% of the wells targeting liquids rich natural gas.  
In 2012, Crew achieved its target exit rate of 28,000 boe per day
prior to the closing of the Kobes disposition (sale of 625 boe per
day) and is estimating fourth quarter production based on preliminary
field estimates of approximately 27,000 boe per day, an increase of
approximately 3% over the prior quarter. With the sale of 625 boe per
day and the shut-in of 400 boe per day of natural gas production that
became uneconomic with the expiration of a transportation contract
late in 2012, Crew is currently producing approximately 27,000 boe
per day. In the fourth quarter, the Company drilled 24 gross wells
including one well at Kobes which was included in the fourth quarter
disposition, one well each at Septimus and the Deep Basin which were
part of the accelerated 2013 program; 13 wells at Princess including
a horizontal well that tested at a rate of 800 boe per day based on
144 hours and eight heavy oil wells at Lloydminster which included
three successful horizontal wells at Wildmere that tested two
separate Mannville formations. We also initiated water injection on
our eighth waterflood at Princess as part of our long term enhanced
recovery project and completed a produced water disposal well at
Septimus that will eliminate approximately $1.0 million of water
handling costs annually. 
Production growth is forecasted to accelerate throughout 2013 with a
target exit rate of 29,000 to 30,000 boe per day and an annual
average of 27,500 to 28,500 boe per day. This year's program will
maintain a focus on secondary recovery programs at Princess and
Lloydminster with a forecasted four to six new projects planned.
These investments provide some of the highest rates of return in the
Company and are expected to measurably reduce corporate declines over
time. Capital will also be allocated to land retention and resource
capture initiatives at Septimus and in the greater Kakwa area of the
Deep Basin. Complementary asset acquisitions are continually being
monitored and evaluated but are presently not part of the exploration
and development budget.  
Crew plans to invest in its four main operating areas; Lloydminster,
Princess, Septimus and the Deep Basin in 2013. The Company's ability
to invest at attractive economics in these areas has been enhanced by
the Company's 2013 hedging program with 48% of forecasted natural gas
production and 37% of forecasted liquids production hedged at
attractive prices. 
At Lloydminster, Crew expects to drill 60 wells where the Company is
following up on a number of 2012 exploration and development
successes on lands acquired in 2011 and on recently purchased Crown
land. Company owned processing infrastructure provides excellent
logistics and superior netbacks and the low capital costs
consistently generate exceptional returns even in the current wide
heavy oil differential environment. In addition to the drilling
program, the Company plans to recomplete 40 to 60 wells in the area
in 2013. 
At Princess, Crew will focus on the optimization of existing
production, implementation of three to five new waterfloods and the
drilling of 21 wells. Crew's existing waterfloods have been very
successful in stemming declines in pools where they have been
implemented. Longer term, the Company is targeting decline rates in
the area to be reduced to the 20 to 25% range. Based on this program,
it is expected this area will generate significant positive free cash
flow in 2013. 
In the greater Septimus area, Crew will drill 11 (9.0 net) wells with
seven (7.0 net) wells targeting liquids rich natural gas and two (2.0
net) wells targeting oil at Tower. Crew has reduced costs in this
area by over 10% by optimizing capital efficiencies through pad
drilling and modified completion techniques which have also resulted
in improved individual well performance. The Company has also
invested in water source and disposal infrastructure in the area to
further reduce our cost structure, all of which has resulted in
enhanced economics with rates of return improving from 20% to
approximately 40% despite the current commodity price environment.
Crew also plans to work with the owner of the Crew operated Septimus
gas plant to expand the facility from its current capacity of 46 mmcf
per day to 64 mmcf per day with construction expected to commence in
2013. The planned increase in capacity will allow for increased
production from the area in 2014 and a corresponding decrease in per
unit operating costs of greater than 15% due to a further improvement
in operating efficiencies. 
In the greater Kakwa area of the Deep Basin, Crew plans to drill
seven (6.8 net) wells targeting liquids rich natural gas. This area
is characterized by lower decline production and high liquids content
in the 90 bbls per mmcf range of which roughly a third is condensate
driving favorable returns. Crew is evaluating a more significant
infrastructure expansion for the Kakwa area to take advantage of
proposed pipeline expansions and provide for future growth. 

2013 CAPITAL EXPENDITURE BY TYPE                                            
Drilling and Completions                                              151.8 
Equip/Tie-in/Facilities                                                25.6 
Optimization                                                           18.3 
G & A/Environmental/other                                              12.8 
Land & Seismic                                                         10.5 
Total Capital                                                         219.0 

Crew's budget and guidance are best estimates based on certain
assumptions including operating results and commodity prices and will
be regularly monitored by management. Additional information
regarding our 2013 budget can be found within the latest presentation
on the Company's website at Our primary goal is
to proactively manage our capital program as it relates to
operational success and fluctuating commodity prices with a goal to
maintain financial flexibility and achieve our production goals. 
Forward-looking information and statements 
This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The use
of any of the words "expect", "anticipate", "continue", "estimate",
"may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking
information or statements. In particular, but without limiting the
forgoing, this news release contains forward-looking information and
statements pertaining to the following: the Company's planned capital
expenditure program, drilling plans, estimated and expected
production levels and commodity mix; anticipated reductions in
decline rates at Princess, future commodity prices, the future
differential between WTI prices and WCS prices, future royalty rates,
the future exchange rate for the Canadian dollar to the US dollar,
operating costs, transportation costs, general and administrative
costs, interest costs, the Company's cash flow from operations,
future results from operations; future development and exploration
activities and related capital expenditures and adequacy of
anticipated methods of financing, the number of wells to be drilled
and completed and related production expectations; and the amount and
timing of capital projects. 
Forward-looking statements or information are based on a number of
material factors, expectations or assumptions of Crew which have been
used to develop such statements and information but which may prove
to be incorrect. Although Crew believes that the expectations
reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking
statements because Crew can give no assurance that such expectations
will prove to be correct. In addition to other factors and
assumptions which may be identified herein, assumptions have been
made regarding, among other things: the impact of increasing
competition; the general stability of the economic and political
environment in which Crew operates; the timely receipt of any
required regulatory approvals; the ability of Crew to obtain
qualified staff, equipment and services in a timely and cost
efficient manner; drilling results; the ability of the operator of
the projects in which Crew has an interest in to operate the field in
a safe, efficient and effective manner; the ability of Crew to obtain
financing on acceptable terms; field production rates and decline
rates; the ability to replace and expand oil and natural gas reserves
through acquisition, development and exploration; the timing and cost
of pipeline, storage and facility construction and expansion and the
ability of Crew to secure adequate product transportation; future
commodity prices; currency, exchange and interest rates; regulatory
framework regarding royalties, taxes and environmental matters in the
jurisdictions in which Crew operates; the ability of Crew to
successfully market its oil and natural gas products; ability to
improve upon historical recovery factors.  
The forward-looking information and statements included in this news
release are not guarantees of future performance and should not be
unduly relied upon. Such information and statement, including the
assumptions made in respect thereof, involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to defer materially from those anticipated in such
forward-looking information or statements including, without
limitation: changes in commodity prices; changes in the demand for or
supply of Crew's products; unanticipated operating results or
production declines; changes in tax or environmental laws, royalty
rates or other regulatory matters; changes in development plans of
Crew or by third party operators of Crew's properties, increased debt
levels or debt service requirements; inaccurate estimation of Crew's
oil and gas reserve and resource volumes; limited, unfavourable or a
lack of access to capital markets; increased costs; a lack of
adequate insurance coverage; the impact of competitors; and certain
other risks detailed from time-to-time in Crew's public disclosure
documents, (including, without limitation, those risks identified in
this news release and Crew's Annual Information Form). 
The forward-looking information and statements contained in this news
release speak only as of the date of this news release, and Crew does
not assume any obligation to publicly update or revise any of the
included forward-looking statements or information, whether as a
result of new information, future events or otherwise, except as may
be required by applicable securities laws. 
BOE equivalent 
Barrel of oil equivalents or 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
Crew is a Calgary, Alberta based oil and gas exploration, development
and production company whose shares are traded on The Toronto Stock
Exchange under the trading symbol "CR".
Crew Energy Inc.
Dale Shwed
President and C.E.O.
(403) 231-8850 
Crew Energy Inc.
John Leach
Senior Vice President and C.F.O.
(403) 231-8859 
Crew Energy Inc.
Rob Morgan
Senior Vice President and C.O.O
(403) 513-9628
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