Peyto Adds 30,000 boe/d in 2012 Replacing 527% of Production

Peyto Adds 30,000 boe/d in 2012 Replacing 527% of Production 
CALGARY, ALBERTA -- (Marketwire) -- 02/13/13 -- Peyto Exploration &
Development Corp. (TSX:PEY) ("Peyto" or the "Company") is pleased to
present the results and analysis of the independent reserve report
effective December 31, 2012. The evaluation encompassed 100% of
Peyto's reserve assets and was conducted by InSite Petroleum
Consultants ("InSite").  
Peyto's capital program for 2012 was the largest in the Company's 14
year history with $452 million spent on developing Peyto's assets and
$166 million (net of dispositions) spent acquiring Open Range Energy
Corp. ("Open Range"). As a result, reserves per share grew in all
categories with total reserves exceeding 2.35 Trillion Cubic Feet
equivalent ("TCFe") or 392 mmboe at year end. 

--  Since the Company's inception in 1998, Peyto has explored for and
    discovered 2.9 TCFe of Alberta Deep Basin natural gas reserves, over 50%
    of which has now been developed. Each year the Company invests in the
    discovery of new reserves and the efficient and profitable development
    of existing reserves into high netback natural gas production. 
--  A total of $2.875 billion has been invested in the acquisition and
    development of the 1.52 TCFe of developed reserves at an average cost of
    $1.89/MCFe, while a weighted average field netback(1) of $5.24/MCFe has
    resulted in a cumulative recycle ratio of 2.8 times. 
--  Based on the December 31, 2012 evaluation, the debt adjusted, Net
    Present Value of the Proved plus Probable Additional reserves ("P+P NPV"
    - debt adjusted, 5% discount) was $34/share, comprised of $20/share of
    developed reserves and $14/share of undeveloped reserves. 

2012 Highlights 

--  For the year ended December 31, 2012, Peyto invested $452 million of
    capital to build a record 25,700 boe/d of new production(1) at a cost of
    $17,600/boe/d. This is the fourth year in a row that Peyto has built new
    production for less than $18,000/boe/d, inclusive of land, seismic,
    facilities and all well costs. In addition, Peyto invested $166 million
    (net of disposition) to purchase Open Range whose production totaled
    4,300 boe/d at December 31, 2012, for a cost of $38,600/boe/d. The
    combined capital efficiency was $20,600/boe/d. 
--  The Proved Producing ("PP"), Finding, Development and Acquisition
    ("FD&A") cost, inclusive of additions, revisions and production was
    $2.22/MCFe ($13.34/boe) while the average field netback(1) was
    $3.46/MCFe ($20.75/boe), resulting in a 1.6 times recycle ratio. PP F&D
    cost prior to the Open Range acquisition was $2.11/MCFe ($12.68/boe). 
--  Peyto replaced 414% of production with new Total Proved ("TP") reserves
    at a FD&A cost of $2.04/MCFe ($12.24/boe) and 527% of production with
    new Proved plus Probable Additional ("P+P") reserves at a FD&A cost of
    $1.68/MCFe ($10.07/boe) (including increases in Future Development
    Capital ("FDC") of $207 million and $247 million for the respective
    categories). For comparative purposes, FD&A costs before changes in FDC
    were $1.53/MCFe ($9.17/boe) and $1.20/MCFe ($7.19/boe), respectively. 
--  Company reserves increased by 24%, 23% and 22% to 0.9 TCFe, 1.7 TCFe and
    2.4 TCFe for PP, TP and P+P, respectively. Per share reserves were up
    15%, 14%, and 13% for these respective categories. 
--  The Reserve Life Index ("RLI") for the PP, TP and P+P reserves was
    maintained at 9, 15 and 22 years. 
--  At year end, P+P reserves of 392 mmboes (inclusive of 507 future
    locations) had been assigned to just 13% of Peyto's total Deep Basin

2013 Capital Budget 

--  Peyto is currently on track with its 2013 budgeted capital program of
    $450 to $500 million and is expecting to drill approximately 100 gross
    (85 net) wells. These wells are forecast to add between 25,000 boe/d and
    29,000 boe/d of new production by the end of the year. 

(1) Capital Expenditure, Field Netback (Revenue less Royalties,
Operating costs and Transportation), and Production are estimated and
remain unaudited at this time. 
(2) Recycle Ratio is Field Netback divided by FD&A. 
The following table summarizes Peyto's reserves and the discounted
Net Present Value of future cash flows, before income tax, using
variable pricing, at December 31, 2012.  

                              Gas     Oil & NGL          BCFe          MBOE 
Reserve Category            (mmcf)        (mstb)         (6:1)         (6:1)
Proved Producing          802,315        23,772           945       157,491 
Proved Non-producing       14,379           369            17         2,765 
Proved Undeveloped        560,468        22,752           697       116,163 
Total Proved            1,377,163        46,892         1,659       276,419 
Probable Additional       595,793        16,376           694       115,674 
Proved + Probable                                                           
 Additional             1,972,956        63,268         2,353       392,094 
                                  Before Tax Net Present Value ($thousands) 
                                                              Discounted at 
Reserve Category                0%            5%            8%           10%
Proved Producing     $  4,767,288  $  2,806,394  $  2,253,628  $  1,998,082 
Proved Non-producing $     81,116  $     38,250  $     26,696  $     21,680 
Proved Undeveloped   $  2,682,567  $  1,321,680  $    901,318  $    702,492 
Total Proved         $  7,530,971  $  4,166,323  $  3,181,642  $  2,722,254 
Probable Additional  $  3,491,750  $  1,565,561  $  1,072,704  $    857,665 
Proved + Probable                                                           
 Additional          $ 11,022,721  $  5,731,885  $  4,254,346  $  3,579,919 
Note: Based on the InSite report effective December 31, 2012. Tables may not
add due to rounding.                                                        

On behalf of shareholders, Peyto has analyzed the reserve evaluation
in order to answer three fundamental questions. 

1.   Base Reserves - How did the "base reserves" that were on production at
    the time of the last reserve report perform during the year, and how did
    any change in commodity price forecast affect their value? 
2.   Value Creation - How much valu
e did the 2012 capital investments
    create, both in current producing reserves and in undeveloped potential?
3.   Growth and Income - Are the projected cash flows capable of funding the
    growing number of undeveloped opportunities and a sustainable dividend
    stream to shareholders without sacrificing Peyto's financial

Base Reserves 
Peyto's existing Proved Producing reserves at the start of 2012 (base
reserves) were evaluated and adjusted for 2012 production as well as
any technical revisions resulting from the additional twelve months
of data. As part of InSite's independent engineering analysis, all
756 producing entities were evaluated. These producing wells and
zones represent a total gross Estimated Ultimate Recoverable (EUR)
volume of 1.4 TCF plus associated liquids. In aggregate, Peyto is
pleased to report that its total base reserves continue to meet with
expectation, which increases the confidence in the prediction of
future recoveries. 
For 2013, InSite is forecasting the total base production (all wells
on production at Dec. 31, 2012) to decline to approximately 37,000
boe/d by Dec. 31, 2013. Assuming the base production started the year
at 57,000 boe/d (actual production was lower due to plant outages)
then this implies a base decline rate of 35% over the first year.
This high decline rate is similar to last year and to be expected as
Peyto deploys increasing amounts of capital. The historical base
decline rates and capital programs are shown in the following table: 

                                2003    2004    2005    2006    2007    2008
Base Decline (%/yr)              31%     27%     30%     29%     23%     26%
Capital Expenditure ($MM)       $139    $231    $358    $312    $122    $139
(i) The base decline represents the aggregate annual decline of all wells on
 production at the end of the previous year.                                
                                        2009    2010    2011    2012   2013F
Base Decline (%/yr)                      20%     22%     33%     35%     35%
Capital Expenditure ($MM)                $73    $261    $379    $618    $500
(i) The base decline represents the aggregate annual decline of all wells on
 production at the end of the previous year.                                

The commodity price forecast used by the independent engineers in
this year's evaluation was lower than last year which had the effect
of reducing the Net Present Value of all reserve categories. InSite's
Alberta spot natural gas price forecast for the next 15 years, which
begins at $3.13/MMBTU, is on average 13% lower today than a year ago,
while their forecast for Alberta Condensate price, which accounts for
over 50% of Peyto's total natural gas liquid production and starts at
$97.20/bbl, is on average 14% lower. The debt adjusted NPV,
discounted at 5%, of last year's Proved Producing reserves, decreased
20% due to this change in commodity price forecasts, as described in
the following value reconciliation.  
InSite's price forecast used in the variable dollar economics is
available on their website at 
Value Creation/Reconciliation 
During 2012, Peyto invested a total of $618.0 million. The Company
spent $451.6 million on exploration and development activity and
$166.3 million (net of $20.9 million in divestitures) on the
acquisition of Open Range. By evaluating the economic results of
these 2012 capital investments, it allows Peyto to determine the best
use of capital on a go-forward basis, and illustrates the potential
returns that can be generated from future undeveloped opportunities.  
Exploration and Development Activity 
Of the total capital invested in exploration and development
activities, 12% was spent on new lands, seismic and facilities, while
the remaining 88% was spent developing existing reserves and
exploring for new reserves. Of the 86 wells drilled, 60 (53 net) were
previously identified as undeveloped reserves in last year's reserve
report (43 Proved, 17 Probable Additional). The remaining 26 wells
were not recognized in last year's report as they were deemed by
InSite to be too exploratory in nature. The undeveloped reserves
booked to the 60 locations at year end 2011 totaled 180.9 BCFe (3.0
BCFe/well) of Proved Undeveloped plus Probable Additional reserves
for a forecast capital investment of $294.9 million ($1.63/Mcfe). In
actuality, $277.7 million of capital ($1.42/Mcfe) was spent on these
60 wells during 2012, yielding a Proved Producing plus Probable
Additional volume of 196.1 BCFe (3.3 BCFe/well). With less capital
yielding even more reserves, the development of these 60 booked
locations produced an even better result than was originally
projected. This analysis helps to validate the accuracy of the
reserve and capital assignments of past undeveloped locations and
provides confidence in the quality of the estimates for future
undeveloped locations. 
Corporate Acquisition Activity 
On August 14, 2012 Peyto closed the acquisition of Open Range for an
effective total capital cost of $187.2 million. The acquisition was
conducted pursuant to a plan of arrangement with Peyto exchanging
0.0723 Peyto shares for each Open Range share (5.4 million Peyto
shares total) and assuming $75 million in net debt (inclusive of
transaction costs). On December 1, 2012 Peyto disposed of some minor
non-core Open Range assets in the Waskahigan area for total proceeds
of $20.9 million which effectively lowered the cost of the
acquisition at year end to $166.3 million. At December 31, 2012 the
acquired assets were producing 4,300 boe/d (net of the disposed
volumes) and were assigned Proved Producing reserves of 10.0 mmboes.
These reserves reflect both wells that were on production and
evaluated by the previous independent engineers on December 31, 2011
as well as the new 2012 drilling conducted by Open Range up to the
acquisition date, both adjusted for production to December 31, 2012.
The reserve assignments by InSite Petroleum Consultants as of
December 31, 2012 were consistent with the assignments given by the
previous engineers a year earlier for the same group of wells,
further illustrating the predictability of the Deep Basin resource
Value Reconciliation 
In order to measure the success of all of the capital invested in
2012, it is necessary to quantify the total amount of value added
during the year and compare that to the total amount of capital
invested. The independent engineers have run last year's reserve
evaluation with this year's price forecast to remove the change in
value attributable to both commodity prices and changing royalties.
This approach isolates the value created by the Peyto team from the
value created (or lost) by those changes outside of their control.
Since the capital investments in 2012 were funded from a combination
of cash flow, debt and equity, it is necessary to know the change in
debt and the change in shares outstanding to see if the change in
value is truly accretive to shareholders. 
At year end 2012, Peyto's estimated net debt had increased by $196.8
million to $662.4 million while the number of shares outstanding had
increased by 10.3 million shares to 148.7 million shares. The change
in debt includes all of the capital expenditures, as well as
acquisitions, and the total fixed and performance based compensation
paid out during the year. Although these estimates are believed to be
accurate, they remain unaudited at this time and are subject to
Based on this reconciliation of changes in BT NPV, the Peyto team was
able to create $963 million of Proved Producing, $1.36 billion of
Total Proven, and $2.0 billion of Proved plus Probable Additional
undiscounted reserve value, with $618 million of capital investment.
The ratio of capital expenditures to value creation is what Peyto
refers to as the NPV recycle ratio, which is simply the undiscounted
value addition, resulting from the capital program, divided by the
capital investment. For 2012, the Proved Producing NPV recycle ratio
is 1.6. 
The following table breaks out the value created by Peyto's capital
investments and reconciles the changes in debt adjusted NPV of future
net revenues using forecast prices and costs as at December 31, 2012. 

                                                           Proved Producing 
Discounted at                                      0%         5%        10% 
Before Tax Net Present Value at Beginning                                   
 of Year ($millions)                                                        
Dec. 31, 2011 Evaluation using InSite Jan.                                  
 1, 2012 price forecast, less debt             $4,344     $2,159     $1,326 
Per Share Outstanding at Dec. 31, 2011                                      
 ($/share)                                     $31.40     $15.60      $9.58 
 2012 sales (revenue less royalties and                                     
  operating costs)                              ($338)     ($338)     ($338)
 Net Change due to price forecasts (using                                   
  InSite Jan 1, 2012 price forecast)            ($625)     ($418)     ($293)
 Value Change due to discoveries                                            
  (additions, extensions, transfers,                                        
  revisions)                                     $963       $756       $631 
Before Tax Net Present Value at End of Year                                 
Dec. 31, 2012 Evaluation using InSite Jan.                                  
 1, 2013 price forecast, less debt             $4,105     $2,144     $1,336 
Per Share Outstanding at Dec. 31, 2012                                      
 ($/share)                                     $27.61     $14.42      $8.99 
Year over Year Change in Before Tax                                         
 NPV/share                                        -12%        -8%        -6%
Year over Year Change in Before Tax                                         
 NPV/share including Dividend ($0.72/share)       -10%        -3%         1%
                                         Tables may not add due to rounding.
                                                               Total Proved 
Discounted at                                      0%         5%        10% 
Before Tax Net Present Value at Beginning                                   
 of Year ($millions)                                                        
Dec. 31, 2011 Evaluation using InSite Jan.                                  
 1, 2012 price forecast, less debt             $7,236     $3,507     $2,030 
Per Share Outstanding at Dec. 31, 2011                                      
 ($/share)                                     $52.30     $25.35     $14.67 
 2012 sales (revenue less royalties and                                     
  operating costs)                              ($338)     ($338)     ($338)
 Net Change due to price forecasts (using                                   
  InSite Jan 1, 2012 price forecast)          ($1,025)     ($720)     ($507)
 Value Change due to discoveries                                            
  (additions, extensions, transfers,                                        
  revisions)                                   $1,363     $1,058       $845 
Before Tax Net Present Value at End of Year                                 
Dec. 31, 2012 Evaluation using InSite Jan.                                  
 1, 2013 price forecast, less debt             $6,869     $3,504     $2,060 
Per Share Outstanding at Dec. 31, 2012                                      
 ($/share)                                     $46.20     $23.57     $13.86 
Year over Year Change in Before Tax                                         
 NPV/share                                        -12%        -7%        -6%
Year over Year Change in Before Tax                                         
 NPV/share including Dividend ($0.72/share)       -10%        -4%        -1%
                                         Tables may not add due to rounding.
                                               Proved + Probable Additional 
Discounted at                                      0%         5%        10% 
Before Tax Net Present Value at Beginning                                   
 of Year ($millions)                                                        
Dec. 31, 2011 Evaluation using InSite Jan.                                  
 1, 2012 price forecast, less debt            $10,790     $5,018     $2,825 
Per Share Outstanding at Dec. 31, 2011                                      
 ($/share)                                     $77.99     $36.27     $20.42 
 2012 sales (revenue less royalties and                                     
  operating costs)                              ($338)     ($338)     ($338)
 Net Change due to price forecasts (using                                   
  InSite Jan 1, 2012 price forecast)          ($1,631)   ($1,078)     ($749)
 Value Change due to discoveries                                            
  (additions, extensions, transfers,                                        
  revisions)                                   $1,969     $1,416     $1,087 
Before Tax Net Present Value at End of Year                                 
Dec. 31, 2012 Evaluation using InSite Jan.                                  
 1, 2013 price forecast, less debt            $10,360     $5,070     $2,198 
Per Share Outstanding at Dec. 31, 2012                                      
 ($/share)                                     $69.69     $34.10     $19.63 
Year over Year Change in Before Tax                                         
 NPV/share                                        -11%        -6%        -4%
Year over Year Change in Before Tax                                         
 NPV/share including Dividend ($0.72/share)       -10%        -4%         0%
                                         Tables may not add due to rounding.

Growth and Income 
As a dividend paying growth corporation, Peyto's objective is to
profitably grow the resources which generate sustainable income
(dividends) for shareholders. In order for income to be more
sustainable and grow, Peyto must profitably find and develop more
reserves. Simply increasing production from the existing reserves
will not make that income more sustainable. Reserve Life Index (RLI),
or a reserve to production ratio, provides a measure of this long
term sustainability. 
During 2012, the Company was successful in replacing 284% of annual
production with new PP reserves, which resulted in a 24% increase.
Annual production increased 26%, from 12.9 mmboes to 16.3 mmboes,
therefore the Proved Producing reserve life index remained
effectively the same year over year. Similarly, the Total Proved and
P+P reserve life index remained virtually the same at 15 and 22
years, respectively. By comparison, Peyto's Proved Producing reserve
life is still one of the longest in the industry.  
The following table highlights the Company's historical Reserve Life

                  2003  2004  2005  2006  2007  2008  2009  2010  2011  2012
Proved Producing    10     9    11    12    13    14    14    11     9     9
Total Proved        13    12    14    14    16    17    21    17    16    15
Proved +                                                                    
 Additional         19    17    19    20    21    23    29    25    22    22

Future Undeveloped Opportunities 
With the expansion of Peyto's exploration and development activity
from $379 million in 2011 to $452 million in 2012, the Company has
again been able to increase the pace that undeveloped opportunities
are both recognized and developed. As a result, the number of future
drilling locations in the reserve report has increased to 507 gross
(401 net) locations from 437 gross (333 net) locations last year. Of
these future locations, 67% are categorized by the independent
reserve evaluators as Proven Undeveloped with the remaining 33% as
Probable Undeveloped. The net reserves associated with the
undeveloped locations total 1.18 TCFe (197 mmboes) while the total
capital required to develop them is estimated at $2.0 Billion or
$1.70/MCFe, This is forecast to create Net Present Value of $2.283
Billion (5% discount rate, post capital recovery) or $15.36 per
share. The development schedule for the undeveloped reserves is shown
in the following table of forecasted capital. 

                                                 Future Development Capital 
                 Proved Reserves       Proved+ Probable Additional Reserves 
Year         Undisc., ($Millions)                       Undisc., ($Millions)
2013                    $    377                                   $    500 
2014                    $    349                                   $    420 
2015                    $    286                                   $    393 
2016                    $    210                                   $    375 
2017                    $     93                                   $    331 
Thereafter              $      3                                   $     22 
Total                   $  1,318                                   $  2,041 

The existing producing reserves (PP) are forecast to generate over
$4.7 billion in undiscounted cash flow which should be more than
sufficient to fund the $2.0 billion in future development capital,
ensuring those reserve additions are accretive to shareholders.  
The following table outlines the 2012 performance ratios for all
three reserve categories. 

                                   Proved                  Proved + Probable
                                Producing   Total Proved          Additional
2012 FD&A Cost ($/boe)                                                      
(including the change in FDC)      $13.34         $12.24              $10.07
3 yr ave. FD&A Cost incl. FDC                                               
 ($/boe)                           $12.90         $13.04              $11.54
Reserve Life Index (years)                                                  
Q4 2012 average production(i)                                               
 - 49,527 boe/d                         9             15                  22
Reserve Replacement Ratio                                                   
2012 production(i) - 16.297                                                 
 million boes                         2.8            4.1                 5.3

(i) Q4 and 2012 production are estimated and remain unaudited at this

--  FD&A (finding, development and acquisition) costs are used as a measure
    of capital efficiency and are calculated by dividing the capital costs
    for the period, including the change in undiscounted future development
    capital ("FDC"), by the change in the reserves, incorporating revisions
    and production, for the same period (eg. Total Proved
    ($618+$207)/(276.4-225.3+16.297) = $12.24). 
--  The reserve life index is calculated by dividing the reserves (in boes)
    in each category by the annualized average production rate in boe/year
    (eg. Proved Producing 157,491/(49.527x365) = 8.7 yrs). Peyto believes
    that the most accurate way to evaluate the current reserve life is by
    dividing the proved developed producing reserves by the actual fourth
    quarter average production. In Peyto's opinion, for comparative
    purposes, the proved developed producing reserve life provides the best
    measure of sustainability. 
--  The reserve replacement ratio is determined by dividing the yearly
    change in reserves before production by the actual annual production for
    the year (eg. Total Proved ((276.4-225.3+16.297)/16.297) =4.1). 

Peyto has a reserves committee, comprised of independent board
members, that reviews the qualifications and appointment of the
independent reserve evaluators. The committee also reviews the
procedures for providing information to the evaluators. All booked
reserves are based upon annual evaluations by the independent
qualified reserve evaluators conducted in accordance with the COGE
(Canadian Oil and Gas Evaluation) Handbook and National Instrument
51-101. The evaluations are conducted using all available geological
and engineering data. The reserves committee has reviewed the
reserves information and approved the reserve report.  
2013 UPDATE 
The North American natural gas surplus that sent Canadian gas prices
tumbling to lows of $1.50/GJ in 2012, appears to have subsided, with
prices recovering to the $3/GJ level. At these price levels, Peyto
has a vast inventory of highly proven, development opportunities that
can generate profitable growth in production, reserves and funds from
operations, all on a per share basis, for many years to come.  
Through innovation, creativity and technology, Peyto continues to
drive costs down - both the cost to find and develop the Company's
liquids rich, natural gas resource plays, as well as the cost to
produce them to market. Peyto has proven that ownership and control
of processing infrastructure is crucial to controlling costs and so
it expects to continue to invest in new processing facilities to
accommodate growing production volumes. This operational control also
allows Peyto to modify and optimize existing and future facilities to
extract the highest possible revenue from the various hydrocarbon
products. For 2013, three new gas plants are planned, to add 90
mmcf/d of processing capacity, as well as initiating enhanced liquids
recovery projects for our existing Nosehill and Wildhay gas plants.  
Peyto believes that cost control, both the cost to develop and the
cost to produce, is paramount to enhancing the value of all current
and future reserves for shareholders. Timing the development of the
reserves, ensures that a minimum amount of capital is used to
generate the maximum possible return. 
For more in depth discussion of the 2012 reserve report, an interview
with the management will be available on Peyto's website by Friday,
February 22, 2013. A complete filing of the Statement of Reserves
(form 51-101F1), Report on Reserves (form 51-101F2), and Report of
Management and Directors on Oil and Gas Disclosure (form 51-101F3)
will be available in the Annual Information Form to be filed by the
end of March 2013. Shareholders are encouraged to actively visit
Peyto's website located at 
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
foregoing, this news release contains forward-looking information and
statements pertaining to the following: management's assessment of
Peyto's future plans and operations, capital expenditures, the
volumes and estimated value of Peyto's reserves, the life of Peyto's
reserves, production estimates, the ability to enhance value of
reserves for shareholders and ensure the reserves generate the
maximum possible return. Forward-looking statements or information
are based on a number of material factors, expectations or
assumptions of Peyto which have been used to develop such statements
and information but which may prove to be incorrect. Although Peyto
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 Peyto 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, the impact of
increasing competition, the timely receipt of any required regulatory
approvals, the ability of Peyto to obtain qualified staff, equipment
and services in a timely and cost efficient manner, drilling results,
field production rates and decline rates, the ability to replace and
expand reserves through development and exploration, future commodity
prices, currency, exchange and interest rates, regulatory framework
regarding royalties, taxes and environmental matters and the ability
of Peyto to successfully market its oil and natural gas products. By
their nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond these parties'
control, including the impact of general economic conditions,
industry conditions, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
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. Peyto'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 Peyto will derive therefrom. The forward-looking
information and statements contained in this news release speak only
as of the date of this news release, and Peyto 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.  
This news release contains information, including in respect of
Peyto's 2013 capital program, which may constitute future oriented
financial information or a financial outlook. Such information was
approved by management of Peyto on November 6, 2012, and such
information is included herein to provide readers with an
understanding of the Company's anticipated capital expenditures for
2013. Readers are cautioned that the information may not be
appropriate for other purposes. 
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.  
Some values set forth in the tables above may not add due to
rounding. It should not be assumed that the estimates of future net
revenues presented in the tables above represent the fair market
value of the reserves. There is no assurance that the forecast prices
and costs assumptions will be attained and variances could be
material. The aggregate of the exploration and development costs
incurred in the most recent financial year and the change during that
year in estimated future development costs generally will not reflect
total finding and development costs related to reserves additions for
that year. 
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein. 
Peyto Exploration & Development Corp.
Darren Gee
President and Chief Executive Officer
(403) 237-8911 
Peyto Exploration & Development Corp.
Jim Grant
Investor Awareness
(403) 451-4102
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