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Angle Energy Inc. Provides Operational Update and 2013

Angle Energy Inc. Provides Operational Update and 2013 Guidance 
CALGARY, ALBERTA -- (Marketwire) -- 01/09/13 -- Angle Energy Inc.
("Angle" or the "Company") (TSX:NGL) is pleased to provide
shareholders with the following activity updates and corporate
information. 
HIGHLIGHTS 


 
--  Angle drilled and rig released 10 gross (8.3 net) horizontal wells in
    the fourth quarter of 2012, with 6 gross (4.3 net) wells targeting
    Cardium light oil, with a 100% success rate. Currently, Angle has 3
    gross (2.5 net) horizontal wells in completion operations or awaiting
    completion. 
    
--  Due to Angle's oil weighting in the fourth quarter of 2012, it is
    anticipated that quarterly cash flow will be in the guided range of
    approximately $25 - $26 million (estimated and unaudited). 
    
--  The previously announced Edson gas asset disposition has closed for
    gross proceeds of $74 million, reducing Angle's bank debt to
    approximately $100 million and enhancing Angle's capital focus on our
    expansive Cardium light oil drilling inventory. 
    
--  Angle has retained the Cardium and the Duvernay lands in the Edson area.
    The undrilled Cardium light oil inventory in the Edson area is 142 gross
    (75 net) wells. 
    
--  Field estimated production, post the disposition of the Edson gas
    assets, is currently at 11,300 boe/d with approximately 27% light oil
    and condensate, 27% NGLs and 46% natural gas. 
    
--  The most recent 100% working interest Harmattan Cardium horizontal light
    oil well, drilled in the southern area of the project, has averaged 283
    boe/d (78% oil, 11% NGLs, 11% natural gas) in its first two weeks of
    production. This well has provided key productivity information to
    increase expected year end reserve bookings on the Cardium play in this
    area. Angle has 176 gross (176 net) undrilled locations in inventory in
    this high netback, light oil play. 
    
--  The most recent 100% working interest Ferrier Cardium horizontal well
    was brought on production in late November and averaged 990 boe/d over
    its first 30 days of production (53% oil, 12% NGLs, 35% natural gas).
    This well has produced over 20,000 barrels of light oil in its first 50
    days of production and continues to perform well 
above the existing area
    type curve. Angle is awaiting completion of a two-well Cardium pad in
    this area and has recently spud a third well with completion planned for
    February. Angle has 58 gross (50 net) undrilled locations in inventory
    in this high netback light oil and liquids play.

 
CLOSING OF EDSON GAS ASSET DISPOSITION 
The Company is pleased to report that it has closed its previously
announced sale of its Edson gas assets for gross proceeds of $74
million. Proceeds from the disposition were used to reduce bank
indebtedness and apply additional capital towards exploitation of
Angle's extensive Cardium light oil inventory. 
Concurrent with the closing of this disposition, the borrowing limit
of Angle's credit facility was re-determined by its lenders at $215
million. Following the closing of the dispositions, Angle's bank
indebtedness totaled approximately $100 million (excludes working
capital deficiency and $60 million in outstanding convertible
debentures).  
The Edson area remains a core land position for Angle post the
disposition, with 18,953 net acres (29.6 net sections) of undeveloped
Cardium land, and 35,680 net acres (55.75 net sections) of
undeveloped Duvernay land.  
OPERATIONAL UPDATE 
Angle drilled and rig released 10 gross (8.3 net) horizontal wells in
the fourth quarter of 2012, with 6 gross (4.3 net) wells targeting
Cardium light oil. In 2012, Angle drilled 45 gross (37.4 net)
horizontal wells and 1 gross (1.0 net) directional well with a 100%
success rate. Currently, Angle has 1 gross (1.0 net) liquids-rich
Mannville gas well, and 2 gross (1.5 net) Cardium oil wells in
Ferrier in completion operations or awaiting completion. Current
drilling activity includes 4 gross wells, all 100% working interest. 
Of the 46 wells drilled in 2012, 30 gross (23.1 net) horizontal wells
targeted our Cardium light oil projects. Of the 23.1 net Cardium
wells, 18 net wells are in the Harmattan Cardium project. 
Fourth quarter production is expected to average 13,800 - 14,000
boe/d of which 24% is light oil and condensate, 23% is NGLs and 53%
is natural gas. This estimate is inclusive of the production from the
Edson gas assets in the month of December. Light oil and condensate
production has increased over 50% from January 2012 (approximately
2,200 bbl/d) to 3,300 bbl/d in December 2012. Average NGL and natural
gas production for the quarter was lower than anticipated due to
reduced ethane recoveries at the Harmattan Deep Cut facility (275
boe/d), unscheduled facility downtime at the Ferrier Strachan plant
during November and December (140 boe/d) and budgeted changes as
related to the Edson gas asset disposition and lower than anticipated
gas volumes in Lone Pine Creek (600 boe/d), affecting the quarter by
approximately 1,015 boe/d. Ethane extraction does not affect Angle's
cash flow, as revenue from this product is received on the basis of
gas heat equivalency. Due to Angle's higher oil weighting in the
quarter, it is anticipated that quarterly cash flow will be in the
guided range of approximately $25 - $26 million (estimated and
unaudited).  
Current field estimated production, post closing of the Edson gas
asset disposition, is 11,300 boe/d with approximately 27% light oil
and condensate, 27% NGLs and 46% natural gas 
2013 CAPITAL PROGRAM AND GUIDANCE 
Angle's 2013 capital expenditure program focuses on the highest rate
of return projects in the Company's development portfolio, with
emphasis on light oil growth in the Cardium plays across the Company.
The full year budget includes $145-$160 million in total capital, of
which $125-$140 million is allocated to drill 43 - 47 gross (34 - 38
net) wells and related completion, equipping and tie in activities.  
Facility capital of $10 million is expected to construct the central
oil battery, initially sized to process 4,000 bbls/d of light oil,
and related emulsion gathering lines at Harmattan. Drilling,
completion, equipping and tie-in capital is expected to be allocated
approximately 75 - 80% to the Cardium light oil projects in
Harmattan, Ferrier and Edson, and 20 - 25% to Mannville liquids-rich
gas and light oil in Harmattan and Ferrier. Capital may be allocated
towards the Duvernay shale or other high value projects and is not
primarily included in the development budget.  
Expected production volumes resulting from the year's capital program
will be in the range of 11,300 - 11,700 boe/d, with December month
average volumes estimated at 12,000 - 13,000 boe/d. During the year,
the production mixture is expected to average approximately 45%
natural gas, 25% NGLs, and 30% light oil and condensate. The December
month volumes are expected to average approximately 45% natural gas,
23% NGLs, and 32% light oil and condensate. 
Expected results in the first half of 2013 from the capital
expenditure program are as follows, with specific focus on the
Cardium drilling program at Harmattan, Ferrier and Edson: 


 
                                                           Cardium Light Oil
                                        Angle Corporate             Projects
                                                                            
Gross Wells                                        20.0                 15.0
Net Wells                                          16.9                 11.9
Capital Expenditures                        $75 - $85MM          $52 - $57MM
                                                                            
Cash Flow                                    $43 - 49MM      $21.5 - $24.5MM
                                                                            
H1 2013-End Debt                          $200 - $215MM                     
                                                                            
H1 2013 Average Production        11,300 - 11,500 boe/d  3,700 - 3,900 boe/d
H1 2013 Average Production % Gas                     46                   31
Exit H1 2013 Production           11,500 - 12,000 boe/d  4,100 - 4,300 boe/d
Exit H1 2013 Production % Gas                        44                   30
                                                                            
                                                                            
Commodity Pricing Assumptions H1 2013                                       
Gas ($/GJ)                                                            $3.10 
WTI ($/bbl)                                                          $90.00 
Differential to Edmonton Light ($/bbl)                               -$6.00 
Edmonton Light ($/bbl)                                               $84.00 
C3% of WTI                                                               29%
C4% of WTI                                                               69%
C5% of WTI                                                              105%

 
RETIREMENT ANNOUNCEMENT 
Stuart Symon, Vice President Finance and CFO, will be retiring from
Angle Energy at the end of the first quarter of 2013. As well as
assisting in the year end financial preparations, Stuart will aid in
the transition to a successor and ensure continuity for Angle's
shareholders. Angle's board and management wish to thank Stuart for
his contributions to the Company's success and wish him all the best
in the future.  
SUMMARY  
Angle's business plan is to continue to focus on cash flow per share
growth, and proving up its extensive Cardium light oil drilling
inventory. Angle is a major Cardium land holder in Alberta, with over
212 net sections (135,680 acres) of undeveloped Cardium land in its
portfolio which is estimated to be the fifth largest land position in
the Cardium. Additionally, Angle has a high quality drilling
inventory in liquids-rich gas plays in the Mannville, and exposure to
the prospective Duvernay shale play. The Company is also focused on
maintaining the right degree of leverage within its corporate
structure and pursuing growth alongside rate of return. We look
forward to reporting the Company's year end 2012 reserves and
financial results within the next two months.  
ABOUT ANGLE 
Angle Energy Inc. is a Calgary based public oil and gas exploration
and development company that was incorporated in 2004. Angle's goal
is to grow our high quality, focused 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.  
Future Outlook and Forward-Looking Information 
Information set forth in this press release contains forward-looking
statements and are made as of January 9, 2013 and based on
assumptions as of that date. Forward looking statements include 2013
expectations of drilling locations, capital allocation, production
growth, increases in oil production, asset mix, and cash flow. In
addition to commodity price assumptions, the forward looking
statements have also been made based on assumptions relating to past
drilling results, well performance and past operations on the drilled
areas including access and lack of disruption at facilities and
infrastructure. By their nature, forward-looking statements are
subject to numerous risks and uncertainties, some of which are beyond
Angle's control, including the impact of general economic conditions,
industry conditions, volatility of commodity prices, currency
fluctuations, imprecision of reserves estimates, environmental risks,
reservoir quality, inability to drill, complete, and tie-in wells on
schedule due to land surface issues, the a lack of oilfield services
being available on a cost efficient basis, mechanical failure, poor
weather or inability to access infrastructure and facilities,
unplanned processing issues, competition from other industry
participants, the lack of availability of qualified personnel or
management, stock market volatility and ability to access sufficient
capital from internal and external sources.  
The drilling plans and expected costs and results of drilling are
subject to all the aforementioned risks and uncertainties, as well as
those risk factors identified by Angles' most recent MD&A and Annual
Information Form..  
Readers are cautioned that the assumptions and factors discussed in
this press release are not exhaustive and that the assumptions used
in the preparation of such information, including the commodity price
assumptions, 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 forward-looking statements,
and accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what benefits that Angle will derive
there from. Unless required by law, Angle disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
The forward looking statements are expressly qualified by these
cautionary statements.
Contacts:
Angle Energy Inc.
Heather Christie-Burns
President and Chief Operating Officer
(403) 263-4534
(403) 263-4179 (FAX) 
Angle Energy Inc.
Gregg Fischbuch
Chief Executive Officer
(403) 263-4534
(403) 263-4179 (FAX) 
Angle Energy Inc.
Stuart Symon
Chief Financial Officer
(403) 263-4534
(403) 263-4179 (FAX) 
Angle Energy Inc.
Suite 700
324 Eighth Avenue SW
Calgary, Alberta  T2P 2Z2
www.angleenergy.com