Advantage Announces Glacier December 31, 2012 Reserves

            Advantage Announces Glacier December 31, 2012 Reserves

PR Newswire

CALGARY, March 13, 2013

1032% of Production Replaced by Glacier Reserves Additions at an all-in F&D
cost of $4.41/boe ($0.73 mcf)

(TSX: AAV, NYSE: AAV)

CALGARY, March 13, 2013 /PRNewswire/ - Advantage Oil & Gas Ltd. ("Advantage"
or the "Corporation") is pleased to announce the December 31, 2012 reserves
for our Montney resource property at Glacier, Alberta ("Glacier") (see page 5
"Independent Reserve Evaluator").

Glacier 2012 Reserve Highlights

  *Advantage's 2012 Glacier capital program replaced 1032% of Glacier 2012
    production. Our 2012 and three year Finding & Development ("F&D") costs
    including the change in Future Development Capital ("FDC") are as follows:

                                                 
                                    2012          Three Years Ended
                                                                          2012
2P F&D including change in       $4.41/boe or        $6.34/boe or
FDC                                      $0.73/mcf               $1.06/mcf
                                                 
                                                 

  *The recycle ratio associated with our F&D costs based on Sproule's
    forecast of 2013 operating netbacks at Glacier are as follows:

                                                        $/mcf
           Revenue (based on AECO price of             
                      $3.31/mmbtu)                                      $3.09
           Royalties (at 5.2%)                         (0.16)
           Operating cost                               (0.33)
           Sproule 2013 Glacier operating netback       $2.60
                                                            
           Recycle Ratio for 2012 ($2.60/$0.73)          3.6x
           Recycle Ratio for the three years ended     
                      2012 ($2.60/$1.06)                                 2.5x
                                                    

  *Our three year all-in Finding and Development cost of $1.06/mcf combined
    with our 2.5x Recycle Ratio, (which is based on a $3.31/mmbtu AECO gas
    price) demonstrates the solid economics of our Glacier property. These
    results are primarily based on the development of high heat content gas in
    the Upper and Lower Montney which are proving to be economic even at
    current gas pricing.
  *The Middle Montney is demonstrating its economic viability due to the
    significant increase in test rates on recent well completions and the high
    liquids yields associated with this interval.
  *We are currently working on a two year development plan that will focus on
    doubling production throughput at Glacier to 200 mmcf/d by early 2015.
    This program will be designed to further the delineation of the Middle and
    Lower intervals in order to increase reserves on the property.
  *Glacier's proven and probable ("2P") reserves increased by 28% to 1.41
    Tcfe (235.5 mmboe). Proven reserves increased by 26% to 0.89 Tcfe and now
    represent 63% of Glacier 2P reserves.
  *Technical revisions accounted for 48% of the 2P reserve additions in
    2012. These revisions, which did not require any increase in future
    development capital, can be attributed to drilling results during 2012 and
    improved production performance from older producing wells. Future
    development capital included in the Glacier 2012 2P reserve report is
    $1.54 billion compared to $1.41 billion in the 2011. Sproule is
    forecasting production throughput to grow to 200 mmcf/d by early 2015 at
    Glacier and have included estimates of capital required for plant upgrades
    and a shallow cut liquids extraction plant.
  *The Net Present Value of the Sproule 2P Glacier reserves increased by 20%
    over 2011 to $1.41 billion as at December 31, 2012 (at a 10% discount
    factor on a pre-tax basis). This occurred in spite of a reduction in the
    natural gas price forecast which averaged 6% lower during the first five
    years of the Sproule Report as compared to the initial five year period in
    the 2011 report.

Background - Advantage 2012 Technical Studies & Evaluation at Glacier

Over the course of 2012, Advantage conducted a series of studies and  analysis 
of the Montney formation designed  to enhance our geological understanding  of 
the rock properties of all the identified reservoir intervals at Glacier. This
work consisted of the following components:

i)      Core Study - this work included obtaining and analyzing additional
        core samples in several stratigraphic units within the Montney at
        Glacier and incorporating external core data from other areas in the
      Montney fairway. The data was compared to our existing well logs and
        then utilized to better define the mineralogy which was incorporated
        into updating and refining our reservoir characterization and
        petrophysical models of the Montney formation. The findings of this
        study were critical in supporting the Completion Study.
ii)     Completion Study - this study included a comprehensive review of
        completion design and fracture stimulation techniques which included
        the evaluation of 135 wells and approximately 1,500 fracs within the
        Montney fairway. The work involved a comparison of mechanical
      stimulation tools, frac fluid types (poly-CO2, slickwater, binary,
        hydrocarbon), frac size, pumping rates and initial and long term
        production behavior. External completion specialists who are familiar
        with recent frac techniques utilized in both Canada and the US were
        also consulted to review our data and enhance our understanding of the
        results.
     

Study Results

The results of our Core Study  reinforced our earlier views that greater  than 
250 meters  of  Montney reservoir  at  Glacier  is gas  charged  with  average 
effective porosities of approximately  5% in the Upper  and Lower Montney  and 
between 3% to 3.5% in the liquids rich Middle Montney interval.

Our Completion Study determined that initial production rates and reserves can
be significantly  enhanced  by utilizing  a  variety of  alternative  fracture 
stimulation techniques based  upon the specific  reservoir properties of  each 
interval. In  particular, our  completion  designs for  the Middle  and  Lower 
Montney were  altered  substantially to  take  into account  the  unique  rock 
characteristics of these horizons. These changes in frac design resulted in a
significant increase in average production test rates on wells completed  with 
the new techniques.

Middle Montney - 337% Increase in Well Test Rates with High Liquids Yields

The Middle Montney formation is approximately 150 meters thick and is  present 
across our entire land block as confirmed by vertical well control at  Glacier 
and vertical wells that offset our  acreage. In 2011, we completed and  tested 
three existing vertical wells in the Middle Montney and demonstrated that  the 
formation is a liquids rich over-pressured, reservoir.

Prior to  completion  of  our  2012 Core  and  Completion  Studies,  Advantage 
completed four  horizontal wells  in  the Middle  Montney which  included  the 
9-9-76-12W6 well. This well  was drilled into an  interval that produced  the 
highest liquids yield of all  four wells and had an  initial test rate of  1.8 
mmcf/d at a flowing pressure of 3.1 mpa after 99 hours of flow.

During the winter of 2012, we drilled three additional horizontal wells in the
same interval as the 9-9-76-12W6  well. These three wells were  strategically 
located in different  corners of  our land block  in order  to delineate  this 
interval across our property. New completion techniques were employed on these
wells that were specifically designed for this interval based on our 2012 Core
and Completion Studies.  The results of  these wells are  shown in the  table 
below:

                                Final       Flow
               Hz Well      Test Rate Pressure   Flow
                Location      (mmcf/d)     (mpa)    Hours
New Wells 02/1-16-76-13W6     3.7        3.3        120
           7-7-77-13W6          7.5        8.6        85
           13-29-76-12W6        7.3        7.9        72
           Average              6.2        6.6         

The average  test rate  of these  three new  wells was  337% higher  than  the 
initial 9-9-76-12W6 well.  These new  wells also confirmed  that the  liquids 
content of this  interval is consistent  across the land  block. On  average, 
Sproule assigned a C3+ liquids yield of 42 bbls/mmcf to this interval.

Lower Montney - 327% Increase in Well Test Rates

In late 2012, two  lower Montney wells were  also completed with  specifically 
designed completion techniques based on our 2012 Core and Completion Studies.
These wells demonstrated  a 327% increase  when compared to  the average  test 
rates of three immediately offsetting Lower Montney horizontal wells that were
completed in 2010 and  2011 using our conventional  frac design. In  addition, 
the average flowing pressure of the two  new wells increased by 202% over  the 
initial three wells. The comparative results are as follows:

                               Final       Flow
                Hz Well      Test Rate Pressure   Flow
                Location      (mmcf/d)     (mpa)    Hours
 Old Wells                                           
           02/16-7-76-13W6     4.6        6.3        45
           16-6-76-13W6         4.2        3.4        49
           02/1-6-76-13W6       3.6        3.7        87
           Average              4.2        4.5         
New Wells                                          
           10-7-76-13W6        14.6        10.0       109
           7-7-76-13W6         12.5        8.2        66
           Average             13.6        9.1         

The 10-7-76-13W6 was recently  brought on production at  a restricted rate  of 
13.2 mmcf/d at  11.3 mpa  and the 7-7-76-13W6  will be  brought on  production 
shortly. Production rates are being restricted  to avoid sand erosion of  our 
surface  facilities  and  to  avoid  plant  upsets  due  to  the  very  strong 
productivity of these wells.

Upper Montney

The Upper Montney  wells at Glacier  continue to demonstrate  solid long  term 
production performance  which has  been recognized  by Sproule  in their  2012 
report. Our oldest  Upper Montney  wells have  over four  years of  production 
history and estimates of ultimate recoverable reserves per well have increased
each year.

A total of  15 Upper  Montney wells  were carried  forward from  our Phase  IV 
program at the  beginning of  2012. Our  previous completion  design will  be 
utilized on nine of these Upper Montney  wells. Six of these nine wells  have 
been completed  with average  test rates  of 7.3  mmcf/d at  6.0 mpa  and  are 
consistent with previous results. The  remaining six Upper Montney wells  are 
in the process of being completed  with modified frac designs and the  results 
will be available after spring break-up.

Glacier - Future Undeveloped Locations

The following table  sets out  detailed information contained  in the  Sproule 
Report broken  out for  each of  the  main intervals  in the  Glacier  Montney 
formation:

                                                                       % of
                                                             Average   Total
            # of Gross Hz Wells      2P Recovery per Well      Pay    Acreage
                                  Developed Undeveloped Thickness   with
                                   (bcf/well)   (bcf/well)   (meters)  Reserves
         Developed Undeveloped                                     Assigned
 Upper       73           174          4.3          4.7         50      77.8%
Middle      7           15           3.4          4.2         150      2.2%
 Lower       15           77           3.7          5.0         50      27.6%
 Total       95           266                                 250     21.9%

To date  Sproule has  assigned reserves  to only  21.9% of  the total  Montney 
formation at Glacier.

The Middle Montney formation has reserves assigned to only 2.2% of our acreage
with an  average undeveloped  2P  Recovery per  well  of 4.2  bcf/well.  This 
includes approximately 42 bbls/mmcf of natural gas liquids for each well which
significantly enhances  the  value  of  this  horizon.  Further  drilling  is 
required to delineate the Middle Montney both aerially and vertically with the
potential for up to 1,000 wells across the entire land block.

Reserve assignments in the Lower  Montney have improved substantially in  2012 
due to  improvements  in  our  frac design  combined  with  stable  production 
profiles from  our existing  wells. The  Lower Montney  is present  over  our 
entire land block  and is confirmed  by vertical well  control at Glacier  and 
vertical and horizontal wells that offset our land block. However, only 29.4%
of our Lower Montney  acreage has reserves  assigned which leaves  significant 
potential for  future  growth  with  additional  delineation  and  development 
drilling.

Looking Forward

  *Glacier continues to exceed our expectations in terms of well performance
    and economic efficiencies due to its superior cost structure which is
    among the lowest in North America. Sproule's 2012 Glacier reserves report
    provides further confirmation of the quality of our asset and demonstrates
    the economic growth potential and scalability of this property even in the
    current low gas price environment.
  *Our focus in 2012 which consisted of conducting comprehensive studies of
    well cores and alternative completion techniques in the Montney formation
    significantly enhanced our understanding of the complex geology at
    Glacier.
  *The results were pivotal in re-designing our completion techniques which
    resulted in test rates increasing by 337% in the Middle Montney and 327%
    in the Lower Montney. This led to higher reserve assignments in these
    intervals in the Glacier year-end reserve report.
  *Our three year all-in 2P Finding and Development cost of $1.06/mcf
    combined with our 2.5x Recycle Ratio, (which is based on a $3.31/mmbtu
    AECO gas price) demonstrates the solid economics of our Glacier property.
    These results are primarily based on the development of high heat content
    gas in the Upper and Lower Montney which are proving to be economic even
    at current gas pricing.
  *The Middle Montney is demonstrating its economic viability due to the
    significant increase in test rates on recent well completions and the high
    liquids yields associated with this interval.
  *We are currently working on a two year development plan that will focus on
    doubling production throughput at Glacier to 200 mmcf/d by early 2015.
    This program will be designed to further the delineation of the Middle and
    Lower intervals in order to increase reserves on the property.

Independent Reserve Evaluator

  *Sproule Associates Ltd. ("Sproule") was engaged as an independent
    qualified reserve evaluator to evaluate the Corporation's year-end
    reserves as of December 31, 2012 in accordance with National Instrument
    51-101 ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook
    ("COGE Handbook"). Reserves are stated on a gross working interest basis
    unless otherwise indicated. All references to year end 2012 financial and
    operating data are estimates and are unaudited.
  *Advantage's year-end 2012 corporate reserves will be included with our
    year-end financial and operating information which is scheduled to be
    released on March 26, 2013.

Appendix A - Glacier Reserve Summary

Advantage  engaged  our  independent  qualified  reserves  evaluator   Sproule 
Associates Ltd. ("Sproule") to update the reserves analysis for the Company in
accordance with  National  Instrument  51-101  and  the  COGE  Handbook.  The 
following tables incorporate only the  reserves assigned to the  Corporation's 
property at  Glacier,  Alberta. The  estimates  of reserves  and  future  net 
revenue for the Glacier property may not reflect the same confidence level  as 
estimates or reserves  and future net  revenue for all  properties due to  the 
effects of aggregation.

Reserves and  production information  included  herein is  stated on  a  gross 
working interest basis (before royalty burdens and including royalty interests
receivable) unless noted otherwise.  This summary contains several  cautionary 
statements that are  specifically required by  NI 51-101. In  addition to  the 
detailed  information  disclosed   in  this  press   release,  more   detailed 
information about all  of the Corporation's  reserve on a  net interest  basis 
(after royalty  burdens  and  including  royalty interests)  and  on  a  gross 
interest basis (before royalty burdens  and excluding royalty interests)  will 
be included  in  Advantage's  Annual  Information Form  ("AIF")  and  will  be 
available at www.advantageog.com and www.sedar.com in the coming weeks.


Glacier Gross Working Interest Reserves (Working Interest only)
Summary as at December 31, 2012
                              Natural
                           Gas Liquids   Natural Gas   Equivalent
                              (mbbl)        (mmcf)        (mboe)
Proved                                                        
Developed Producing                -      177,020      29,503
Developed Non-producing          147       23,169       4,009
Undeveloped                    1,629      676,092     114,311
Total Proved                   1,776      876,281     147,823
Probable                         861      520,690      87,643
Total Proved + Probable        2,637    1,396,971     235,466
                                                    

           
Glacier Present Value of Future Net Revenue using Sproule price and cost
forecasts ^(1)(2)
($000)
                                              Before Income Taxes
                                                 Discounted at
                                 0%                  10%               15%
Proved                                                              
Developed Producing         $644,357            $351,202          $290,241
Developed Non-producing      89,286              53,590            44,783
Undeveloped                1,969,132             471,237          237,894
                                                                   
Total Proved               2,702,775             876,029          572,918
                                                                   
Probable                   2,619,965             540,728          325,730
Total Proved + Probable   $5,322,740          $1,416,757         $898,648

^(1)     Advantage's crude oil, natural gas and natural gas liquid reserves
         were evaluated using Sproule's
         product price forecast effective December 31, 2012 prior to the
       provision for income taxes, interests,
         debt services charges and general and administrative expenses. It
         should not be assumed that the
         discounted future revenue estimated by Sproule represents the fair
         market value of the reserves.
^(2)     Assumes that development of Glacier will occur, without regard to the
       likely availability to the
         Company of funding required for that development.
      

Sproule Price Forecasts

The present value of future  net revenue at December  31, 2012 was based  upon 
natural gas and natural  gas liquids pricing  assumptions prepared by  Sproule 
effective December 31, 2012. These forecasts are adjusted for reserve quality,
transportation charges and  the provision of  any applicable sales  contracts. 
The price assumptions  used over the  next seven years  are summarized in  the 
table below:

                                                                    
          Alberta       Henry Hub                  Edmonton
Year     AECO-C       Natural     Edmonton     Butane     Edmonton    Exchange
        Natural Gas      Gas        Propane     ($Cdn/bbl)    Pentanes    PlusRate
        ($Cdn/mmbtu)   ($US/mmbtu)   ($Cdn/bbl)                ($Cdn/bbl)   ($US/$Cdn)
2013     3.31         3.65       47.15      63.02      90.53      1.001
2014     3.72         4.06       50.22      66.96      96.19      1.001
2015     3.91         4.24       49.45      65.74      94.44      1.001
2016     4.70         5.04       53.82      71.13     102.18      1.001
2017     5.32         5.66       54.97      72.20     103.71      1.001
2018     5.40         5.74       55.74      73.28     105.27      1.001
2019     5.49         5.83       56.52      74.38     106.85      1.001
                                                                    


Glacier Gross Working Interest Reserves Reconciliation
                                                                 
                                   Natural Gas  Natural     Oil
Proved                             Liquids      Gas    Equivalent
                                     (mbbl)     (mmcf)     (mboe)
Opening balance Dec. 31, 2011              -   701,364   116,894
Extensions                             1,629    49,951     9,954
Improved recovery                          -         -         -
Infill Drilling                            -         -         -
Discoveries                              147     8,161     1,507
Economic factors                           -      (79)      (13)
Technical revisions                        -   150,227    25,038
Acquisitions                               -         -         -
Dispositions                               -         -         -
Production ^                               -   (33,343)   (5,557)
                                                                 
Closing balance at Dec. 31, 2012       1,776   876,281   147,823
                                                                 
                                                                 
                                   Natural Gas  Natural     Oil
Proved + Probable                  Liquids      Gas    Equivalent
                                     (mbbl)     (mmcf)     (mboe)
Opening balance Dec. 31, 2011              - 1,102,466   183,744
Extensions                             2,214    71,790    14,179
Improved recovery                          -         -         -
Infill Drilling                            -         -         -
Discoveries                              423    14,712     2,875
Economic factors                           -      (92)       (15)
Technical revisions                        -   163,678    27,280
Acquisitions                             -    77,760    12,960
Dispositions                               -         -         -
Production                                 -   (33,343)    (5,557)
                                                                 
Closing balance at Dec. 31, 2012       2,637 1,396,971   235,465
                                                        


Glacier Finding, Development & Acquisitions Costs ("FD&A") ^(1)(2)(3)
2012 FD&A Costs - Gross Working Interest Reserves excluding Future Development
                                                                       Capital
                                                        
                                                  Proved    Proved + Probable
Capital expenditures ($000)                      $119,164             $119,164
Acquisitions net of dispositions ($000)^(4)             -                    -
Total capital ($000)                             $119,164             $119,164
                                                                           
Total mboe, end of year                           147,823              235,465
Total mboe, beginning of year                     116,894              183,744
Production, mboe                                    5,557                5,557
Reserve additions, mboe                            36,486               57,278
                                                                           
2012 FD&A costs ($/boe)                             $3.27                $2.08
2011 FD&A costs ($/boe)                             $6.93                $8.32
Three year average FD&A costs ($/boe)               $4.45                $4.48
2012 F&D costs ($/boe)                              $3.27                $2.08
2011 F&D costs ($/boe)                              $6.93                $8.32
Three year average F&D costs ($/boe)                $4.45                $4.48
                                                                           
NI 51-101
2012 FD&A Costs - Gross Working Interest Reserves including Future Development
Capital
                                                 Proved    Proved + Probable
Capital expenditures ($000)                      $119,164             $119,164
Acquisitions net of dispositions ($000)^(4)             -                    -
Net change in Future Development Capital
($000)                                            131,967              133,188
Total capital ($000)                             $251,131             $252,352
Reserve additions, mboe                            36,486               54,278
                                                        
2012 FD&A costs ($/boe)                             $6.88                $4.41
2011 FD&A costs ($/boe)                             $9.24                $7.41
Three year average FD&A costs ($/boe)               $9.30                $6.34
2012 F&D costs ($/boe)                              $6.88                $4.41
2011 F&D costs ($/boe)                              $9.24                $7.41
Three year average F&D costs ($/boe)                $9.30                $6.34

                                                                           
^(1) Under NI 51-101, the methodology to be used to calculate FD&A costs
     includes incorporating changes
     in future development capital ("FDC") required to bring the proved
     undeveloped and probable reserves
     to production. For continuity, Advantage has presented herein FD&A
     costs calculated both excluding
     and including FDC.
^(2) 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.
     Changes in forecast FDC occur
     annually as a result of development activities, acquisition and
     disposition activities and capital cost
     estimates that reflect Sproule's best estimate of what it will cost to
     bring the proved undeveloped and
     probable reserves on production.
^(3) In all cases, the FD&A number is calculated by dividing the identified
     capital expenditures by the applicable
     reserve additions. 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. 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.
^(4) 2012 acquisitions at Glacier consisted of a transaction where lands
     with no reserves assigned at the end
     of 2011 were exchanged for lands where Sproule assigned probable
     reserves at the end of 2012


Advisory

The  information  in  this  press  release  contains  certain  forward-looking 
statements,  including  within  the  meaning  of  the  United  States  Private 
Securities Litigation Reform Act  of 1995. These  statements relate to  future 
events or  our future  intentions or  performance. All  statements other  than 
statements   of   historical   fact   may   be   forward-looking   statements. 
Forward-looking statements are often, but not always, identified by the use of
words  such   as  "seek",   "anticipate",  "plan",   "continue",   "estimate", 
"demonstrate", "expect",  "may",  "will", "project",  "predict",  "potential", 
"targeting", "intend",  "could",  "might", "should",  "believe",  "would"  and 
similar expressions and  include statements  relating to,  among other  things 
management's intent to  focus on  doubling production  throughput at  Glacier, 
expectation that  the Glacier  Development plan  will be  designed to  further 
delineate the Middle and Lower Glacier intervals to increase reserves,  future 
development capital  associated with  the reserves  on the  Glacier  property, 
management's belief  that the  Glacier property  demonstrates economic  growth 
potential and scalability  despite low gas  price environment, expected  plans 
and timing of drilling and completion  of wells, expected increases and  rates 
of production,  expected  plans  to expand  facilities  and  projections  with 
respect to individual wells, regions, properties or projects. These statements
involve substantial  known and  unknown risks  and uncertainties,  certain  of 
which are  beyond  Advantage's  control,  including:  the  impact  of  general 
economic conditions;  industry conditions;  changes  in laws  and  regulations 
including the adoption of new  environmental laws and regulations and  changes 
in how they are interpreted and enforced; fluctuations in commodity prices and
foreign exchange  and  interest  rates; stock  market  volatility  and  market 
valuations; volatility in market prices  for oil and natural gas;  liabilities 
inherent in  oil and  natural gas  operations; uncertainties  associated  with 
estimating oil and natural gas reserves; competition for, among other  things, 
capital, acquisitions of  reserves, undeveloped lands  and skilled  personnel; 
incorrect assessments of the value of acquisitions; changes in income tax laws
or changes in  tax laws and  incentive programs  relating to the  oil and  gas 
industry and  income trusts;  geological, technical,  drilling and  processing 
problems and other difficulties in producing petroleum reserves; and obtaining
required approvals of  regulatory authorities.  Advantage's actual  decisions, 
activities, results, performance or  achievement could differ materially  from 
those expressed  in,  or  implied by,  such  forward-looking  statements  and, 
accordingly, no assurances can be given that any of the events anticipated  by 
the forward-looking statements will transpire or occur or, if any of them  do, 
what benefits that Advantage will derive from them. Except as required by law,
Advantage  undertakes  no  obligation  to   publicly  update  or  revise   any 
forward-looking  statements.  For  additional  risk  factors  in  respect  of 
Advantage and its business, please refer to its Annual Information Form  dated 
March  23,   2012  which   is  available   on  SEDAR   at  www.sedar.com   and 
www.advantageog.com.

References in this press release to  initial test production rates are  useful 
in confirming  the  presence  of  hydrocarbons, however  such  rates  are  not 
determinative of the rates  at which such wells  will commence production  and 
decline thereafter. Such  rates are  not necessarily indicative  of long  term 
performance or of ultimate recovery. While encouraging, readers are  cautioned 
not to place reliance  on such rates in  calculating the aggregate  production 
for Advantage.

Barrels of oil  equivalent (boe) may  be misleading, particularly  if used  in 
isolation. A boe conversion ratio has been calculated using a conversion  rate 
of six thousand cubic  feet of natural  gas to one  barrel. "Tcf" stands  for 
trillion cubic feet of natural gas and "bcf" stands for billion cubic feet  of 
natural gas.  Such  conversion  rates  are  based  on  an  energy  equivalency 
conversion method  application at  the  burner tip  and  do not  represent  an 
economic 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.

The Corporation discloses several financial measures that do not have any
standardized meaning prescribed under GAAP. These financial measures include
operating netbacks. Management believes that these financial measures are
useful supplemental information to analyze operating performance and provide
an indication of the results generated by the Corporation's principal business
activities prior to the consideration of how those activities are financed or
how the results are taxed. Investors should be cautioned that these measures
should not be construed as an alternative other measures of financial
performance as determined in accordance with GAAP. Details of how operating
netbacks are calculated are included havein Advantage's method of calculating
these measures may differ from other companies, and accordingly, they may not
be comparable to similar measures used by other companies.

Where any disclosure of reserves data is made in this press release that does
not reflect all reserves of Advantage, the reader should note that the
estimates of reserves and future net revenue for individual properties or
groups of properties may not reflect the same confidence level as estimates of
reserves and future net revenue for all properties, due to the effects of
aggregation.



SOURCE Advantage Oil & Gas Ltd.

Contact:

Investor Relations
Toll free: 1-866-393-0393

Advantage Oil & Gas Ltd.
700, 400 -3^rd Avenue SW
Calgary, Alberta
T2P 4H2
Phone: (403) 718-8000
Fax: (403) 718-8300
Web Site:www.advantageog.com
E-mail:ir@advantageog.com