Advantage Announces 2012 Year End Financial Results and 2012 Year End Corporate Reserves

    Advantage Announces 2012 Year End Financial Results and 2012 Year End
                              Corporate Reserves

PR Newswire

CALGARY, March 27, 2013

Solid Production, Successful Well Results and a Low Cost Structure at Glacier
Drives Strong Operating Efficiencies

(TSX: AAV, NYSE: AAV)

CALGARY, March 27, 2013 /PRNewswire/ -  Advantage Oil & Gas Ltd.  ("Advantage" 
or the  "Corporation") is  pleased  to announce  the financial  and  operating 
results for the year  ended December 31, 2012  and the accompanying  Corporate 
reserves as of December 31, 2012.  The following press release summarizes  and 
discusses the unconsolidated financial and operating highlights for  Advantage 
(excludes Longview Oil Corp).

                              Three months ended         Year ended
                                 December 31             December 31
                              2012       2011       2012       2011
                                                                 
Financial ($000, except as                                         
otherwise indicated)
Sales including realized     $  36,556  $  55,555  $ 126,749  $ 268,336
hedging
    per share ^ (2)         $    0.22  $    0.33  $    0.76  $    1.62
    per boe                 $   19.15  $   26.73  $   15.97  $   31.41
Funds from operations        $  16,890  $  33,587  $  47,046  $ 143,295
    per share ^ (2)         $    0.10  $    0.20  $    0.28  $    0.87
    per boe                 $    8.85  $   16.15  $    5.94  $   16.77
Dividends received from      $   3,172  $   4,417  $  14,350  $  11,780
Longview
    per share ^ (2)         $    0.02  $    0.03  $    0.09  $    0.07
Total capital expenditures   $  35,849  $  77,176  $ 130,570  $ 202,147
Working capital deficit ^    $  35,467  $  70,564  $  35,467  $  70,564
(3)
Bank indebtedness            $ 161,630  $ 142,548  $ 161,630  $ 142,548
Convertible debentures       $  86,250  $  86,250  $  86,250  $  86,250
(face value)
Shares outstanding at end      168,383    166,304    168,383    166,304
of period (000)
Basic weighted average         168,383    166,249    167,509    165,371
shares (000)
Operating                                                          
Daily Production                                                   
    Natural gas (mcf/d)       116,929    127,265    122,069    123,246
    Crude oil and NGLs          1,261      1,378      1,337      2,864
     (bbls/d)
    Total boe/d @ 6:1          20,749     22,589     21,682     23,405
Average prices (including                                          
hedging)
    Natural gas ($/mcf)     $    2.70  $    3.78  $    2.09  $    4.19
    Crude oil and NGLs      $   65.21  $   89.14  $   68.35  $   76.45
     ($/bbl)
                                                                 
Proved plus probable                                               
reserves
    Crude oil & NGLs                                8,611      6,185
     (mbbls)
    Natural gas (bcf)                             1,556.4    1,270.0
    Total mboe                                    268,020    217,858
    Reserve life index                               35.4       26.4
     (years) ^(4)
     Non-consolidated financial
(1) and operating highlights                                       
     for Advantage excluding
     Longview.
     Based on weighted
(2)  average shares                                                
     outstanding
     Working capital deficit includes trade and
(3) other receivables, prepaid expenses and                            
     deposits,
     and trade and other
    accrued liabilities, and                                       
     the other liability
     Based on fourth
(4) quarter average                                               
     production rates
                                                          



Solid  Production  and  Successful  Well  Results  at  Glacier  Drives  Strong 
Operating Netbacks

  *Funds from operations for the fourth quarter of 2012, excluding dividends
    received from Longview Oil Corp. ("Longview") increased 63% to $16.9
    million or $0.10 per share as compared to the third quarter of 2012. Funds
    from operations improved due to a 41% increase in the average AECO
    Canadian natural gas price to $3.22/mcf for the current quarter as
    compared to $2.28/mcf for the immediate prior quarter. Advantage's
    realized natural gas price of $2.94/mcf in the fourth quarter includes
    among other factors, deductions for unutilized TransCanada pipeline firm
    service commitments at Glacier.
  *The tax-free dividend income received from Longview amounted to $3.2
    million ($0.02 per share) during the fourth quarter of 2012 as a result of
    Advantage's 45.2% ownership in the common shares of Longview.
  *Production during the fourth quarter of 2012 averaged 20,749 boe/d (94%
    natural gas) and was comparable to the third quarter of 2012 which
    reflects our decision to maintain production at Glacier between 90 and 100
    mmcf/d. Advantage production was also impacted during the fourth quarter
    of 2012 as production from our Lookout Butte property (approximately 1,000
    boe/d) in southern Alberta was curtailed in June 2012 and was brought back
    on production in November 2012. The curtailment occurred due to a fire
    that occurred at a third party gas plant where production from Lookout
    Butte is processed.
  *Advantage's average royalty rate was 3.5% for the fourth quarter of 2012
    and averaged 5.7% for the entire 2012 year. Advantage's royalty rates have
    decreased due to lower natural gas prices and lower average royalties
    attributed to production from Glacier. Advantage's royalty rate was
    particularly low for the current quarter as we benefited from gas cost
    allowance adjustments received with respect to prior years.
  *Operating expense for the three months ended December 31, 2012 was
    $5.23/boe ($0.87/mcf) and reflects the continued efficiencies created by
    processing our natural gas production through our 100% owned Glacier gas
    plant. Total capital expenditures for the three months ended December 31,
    2012 were $35.8 million and $130.6 million for 2012. Our capital
    expenditures are focused primarily on Glacier development where we spent
    $119.2 million for the year ended December 31, 2012. This program included
    the completion of our Phase IV Glacier development program in June 2012
    and initiation of our Phase V capital program during H2 2012.
  *As of December 31, 2012, bank indebtedness was $161.6 million, leaving an
    undrawn credit facility of $138.4 million (46% available on a $300 million
    credit facility). In addition, Advantage's 45.2% ownership in the shares
    of Longview had an asset value of approximately $114 million as at
    December 31, 2012. Our undrawn credit facility, ownership of Longview
    shares and cash flow provide financial flexibility to support our
    continued Montney drilling and completion plans.
  *Advantages tax pools as of December 31, 2012 are approximately $1.2
    billion of which approximately $721 million are non-capital losses that
    are 100% deductible.

Corporate Reserve Additions  Replace 736%  of Production  at an  FD&A Cost  of 
$4.29/boe

  *Sproule Associates Ltd. ("Sproule") was engaged as an independent
    qualified reserve evaluator to evaluate and audit Advantage's year end
    reserves (the "Sproule Report") in accordance with National Instrument
    51-101 ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook
    ("COGE Handbook").
  *The Reserves Summary presented in Appendix 1 are those of Advantage and
    excludes Longview. The Reserves Summary includes all properties of
    Advantage as at December 31, 2012, including those properties subject to
    disposition after year end. Advantage disclosed Glacier specific reserves
    and associated information in a press release dated March 13, 2013.
  *Our 2012 capital program replaced 736% of corporate production adding 58.1
    mmboe of Proved plus Probable reserves ("2P"). At December 31, 2012 we had
    2P reserves of 268.0 mmboe with proved reserves representing 64% of the
    total. The vast majority of reserve additions are attributed to Glacier
    where improved drilling results during 2012 and improved production
    performance from older producing wells resulted in positive technical
    revisions.
  *Finding, Development & Acquisition ("FD&A") cost on a 2P reserve basis was
    $4.29/boe or $0.72/mcf including the change in Future Development Capital
    ("FDC"), resulting in a recycle ratio of 3.4x using our fourth quarter
    2012 operating netback of $14.57/boe.
  *The strong reserve replacement efficiencies are driven primarily by our
    Montney development program at Glacier where recent changes in completion
    design and frac techniques based on comprehensive Montney core and
    completion studies conducted by Advantage in 2012 has resulted in
    increasing the average test rates by 337% in the Middle Montney and 327%
    in the Lower Montney. These results reinforced our earlier views that
    greater than 250 meters of Montney reservoir are gas charged and 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. This has significantly
    increased our confidence in the economic growth potential at Glacier which
    we believe will lead to significant increases in reserves and contingent
    resources in the future. At year end 2012, Sproule has assigned reserves
    to only 21.9% of the total Montney acreage at Glacier.
  *Advantage's December 31, 2012 Net Asset Value ("NAV") is $9.26/share at a
    10% discount rate pre-tax.
  *The Corporation's 2P Reserve Life Index ("RLI") is 35.4 years using our
    fourth quarter 2012 average production rate.

Looking Forward - Glacier Success Drives Development Plan to Double Production
to 200 mmcf/d by 2015

  *Glacier continues to exceed our expectations in terms of well performance
    and cash flow netbacks due to its superior cost structure, which is among
    the lowest in North America. Improved results through the employment of
    alternative completion designs in the Middle and Lower Montney combined
    with delineation drilling and solid production performance from the Upper
    Montney resulted in a significant increase in reserves as reflected in the
    Sproule report. The strong results provide further confirmation on the
    reservoir quality, economic viability and future growth potential of
    Glacier even in this low gas price environment.
  *We are currently working on a two year development plan that will increase
    natural gas throughput at Glacier to approximately 140 mmcf/d by the
    spring of 2014 and 200 mmcf/d by the spring of 2015. This plan will be
    designed to further delineate the Middle and Lower Montney intervals where
    only 2.2% and 27.6% of the total acreage, respectively, has been assigned
    reserves at year end 2012. The Glacier gas plant is currently capable of
    processing 140 mmcf/d due to expansion work that was completed in 2012.
    Future gas plant upgrades will be required in order to increase processing
    capacity to 200 mmcf/d which can be achieved with a modest amount of
    capital. Options to process and extract liquids from the Middle Montney
    will also be evaluated and included in the development plan. We anticipate
    announcing our capital program and budget for the period July 1, 2013 to
    June 30, 2014 before mid-year 2013.
  *The additional activities undertaken in late 2012 at Glacier which
    included core studies, utilization of alternative completion designs and
    completion of additional wells in the Lower, Middle and Upper Montney
    formations resulted in an increase in our capital expenditure program for
    the 12 months ending June 30, 2013 which is anticipated to be
    approximately $115 to $125 million. This also includes expenditures for
    increasing the water disposal and the electrical power generation capacity
    at our Glacier gas plant which will reduce operating costs during the
    second half of 2013.

Commodity Hedging Program

  *Advantage has entered into a number of natural gas hedges to reduce the
    volatility of future cash flows for the period from January 2013 to March
    2015. Advantage now has the following hedges in place:

                                           Average Price
           Period    Average Volume Hedged    $Cdn. AECO
           2013 Year     29,224 mcf/d          $3.31/mcf
           2014 Year     33,174 mcf/d          $3.78/mcf
           2015 Q1       33,174 mcf/d          $4.01/mcf
                                           

  *Additional details on our hedging program are available at our website at
    www.advantageog.com.

Strategic Alternatives Review

  *Advantage initiated a strategic alternatives review process appointing
    FirstEnergy Capital Corp. and RBC Capital Markets as financial advisors
    and formed a special committee of the Board of Directors (the "Special
    Committee") to oversee the process. The financial advisors will contact a
    broad spectrum of parties to solicit interest in a possible sale or other
    strategic transaction with the Corporation.
  *The Special Committee's financial advisors are currently compiling
    information in respect of the Corporation to be provided to interested
    parties. This information will include Advantage's December 31, 2012 year
    end independent reserve report which will be updated to reflect wells
    drilled and completed since December 31, 2012 along with an updated
    independent Glacier contingent resource assessment that incorporates new
    well results and core analysis. We anticipate these reports will be
    available by the end of April. It is the Corporation's current intention
    not to disclose developments with respect to this process until the Board
    has approved a specific transaction or otherwise determines that
    disclosure is necessary or appropriate. The Corporation cautions that
    there are no assurances or guarantees that this process will result in any
    transactions or, if any transactions are undertaken, the terms, magnitude
    of net proceeds, or timing of any such transactions.

Consolidated Financial Statements and MD&A

Advantage's audited  consolidated  financial  statements for  the  year  ended 
December 31, 2012 together with the notes thereto, and Management's Discussion
and Analysis for the three months and  year ended December 31, 2012 have  been 
prepared  in  accordance  with  International  Financial  Reporting  Standards 
("IFRS") and posted on our website at www.advantageog.com and filed under  our 
profile on SEDAR at www.sedar.com.

                            APPENDIX 1 - Reserves

Advantage  engaged  our  independent  qualified  reserves  evaluator   Sproule 
Associates Ltd. ("Sproule") to  update the reserves  analysis for the  Company 
(the "Sproule  Report") in  accordance with  National Instrument  51-101  ("NI 
51-101") and the COGE Handbook.

The Sproule  Report  includes  only  Advantage's  "stand-alone"  reserves  and 
excludes the assets in Longview Oil Corp.

Reserves and production  information included  herein is stated  on a  Company 
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
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) is included in Advantage's Annual Information Form  ("AIF") 
and is available at www.advantageog.com and www.sedar.com.

Highlights - Company Interest Reserves (Working Interests plus Royalty
Interests Receivable)

                                         December 31, 2012 December 31, 2011
                                                           
Proved plus probable reserves (mboe)               268,436           218,386
Present Value of 2P reserves discounted
at 10%, before tax ($000)^(1)                   $1,694,555        $1,438,679
Net Asset Value per Share discounted at
10%, before tax ^(2)                                 $9.26             $9.35
Reserve Life Index (proved plus probable
- years) ^(3)                                         35.4              26.4
Reserves per Share (proved plus probable)
^(2)                                                  1.59              1.31
Bank debt per boe of reserves ^(4)                   $0.60             $0.66
Convertible debentures per boe of
reserves ^(4)                                        $0.32             $0.40
                                                           

^(1) Assumes that development of each property will occur, without regard to
     the likely availability to the Company
     of funding required for that development.
^(2) Based on 168.383 million Shares outstanding at December 31, 2012, and
     166.304 million Shares outstanding
     as December 31, 2011.
^(3) Based on Q4 average production and company interest reserves.
^(4) Using boe's may be misleading, particularly if used in isolation. In
     accordance with NI 51-101, a boe conversion
     ratio for natural gas of 6 mcf: 1 bbl has been used which 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.
    

Company Interest Reserves (Working Interests plus Royalty Interests
Receivable)

Summary as at December 31, 2012

                                             Natural                   Oil
                         Light & Heavy Oil Gas Liquids Natural Gas Equivalent
                       Medium Oil
                          (mbbl)    (mbbl)      (mbbl)      (mmcf)     (mboe)
Proved                                                                   
Developed Producing         1,339        15       2,292     264,110     47,664
Developed                      39         -         242      28,993      5,113
Non-producing
Undeveloped                    47         -       1,926     694,569    117,735
Total Proved                1,425        15       4,460     987,672    170,512
Probable                      853        10       1,992     570,411     97,924
Total Proved +              2,278        25       6,452   1,558,083    268,436
Probable
                                                               



Gross Working Interest Reserves (Working Interest only)

Summary as at December 31, 2012

                                             Natural                   Oil
                         Light & Heavy Oil Gas Liquids Natural Gas Equivalent
                       Medium Oil
                          (mbbl)    (mbbl)      (mbbl)      (mmcf)     (mboe)
Proved                                                                   
Developed Producing         1,279         3       2,262     262,925     47,365
Developed                      39         -         242      28,856      5,090
Non-producing
Undeveloped                    45         -       1,926     694,563    117,732
Total Proved                1,363         3       4,430     986,344    170,187
Probable                      827         5       1,983     570,105     97,833
Total    Proved     +       2,190         8       6,413   1,556,449    268,020
Probable
                                                               



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        $969,481   $527,205   $434,660
Developed Non-producing     102,564     61,127     50,732
Undeveloped               2,022,373    491,560    250,204
TOTAL PROVED              3,094,418  1,079,892    735,596
Probable                  2,862,722    614,663    375,670
Total Proved + Probable   5,957,140  1,694,555  1,111,266
                                  

^(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 each property 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 
crude oil and natural  gas 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:

                                                       
             WTI Edmonton Light Alberta AECO-C   Henry Hub   Exchange
       Crude Oil      Crude Oil    Natural Gas Natural Gas       Rate
Year    ($US/bbl)     ($Cdn/bbl)   ($Cdn/mmbtu) ($US/mmbtu) ($US/$Cdn)
2013        89.63          84.55           3.31        3.65      1.001
2014        89.93          89.84           3.72        4.06      1.001
2015        88.29          88.21           3.91        4.24      1.001
2016        95.52          95.43           4.70        5.04      1.001
2017        96.96          96.87           5.32        5.66      1.001
2018        98.41          98.32           5.40        5.74      1.001
2019        99.89          99.79           5.49        5.83      1.001
                                                       

Net Asset Value using Sproule price and cost forecasts (Before Income Taxes)

The following net asset value ("NAV") table shows what is normally referred to
as a  "produce-out" NAV  calculation  under which  the  current value  of  the 
Company's reserves would be produced at forecast future prices and costs.  The 
value is a  snapshot in  time and is  based on  various assumptions  including 
commodity prices and foreign exchange rates that vary over time.

                                                                
                                         Before Income Taxes Discounted at
                                                                
($000, except per Share amounts)                  0%         10%         15%
Net asset value per Share (1) - December       $27.94       $9.35       $6.43
31, 2011
                                                                
Present value proved and probable          $5,957,140  $1,694,555  $1,111,266
reserves
Undeveloped acreage and seismic ^(2)          31,418      31,418      31,418
Working capital (deficit) and other         (33,326)    (33,326)    (33,326)
Convertible debentures                      (86,250)    (86,250)    (86,250)
Bank debt                                  (160,616)   (160,616)   (160,616)
Longview shares at market value              113,999     113,999     113,999
                                                                
Net asset value - December 31, 2012       $5,822,365   1,559,780     976,491
                                                                
Net asset value per Share ^ (1) -              $34.58       $9.26       $5.80
December 31, 2012
                                                                

^(1) ^Based on 168.383 million Shares outstanding at December 31, 2012, and
      166.304 million Shares
      ^outstanding at December 31, 2011.
 ^(2) ^Internal estimate

Gross Working Interest Reserves Reconciliation

                                                             
                         Light &  Heavy   Natural Natural        Oil
                                                   Gas
                           Medium    Oil  Liquids     Gas Equivalent
                               Oil
Proved                   (mbbl) (mbbl)   (mbbl)  (mmcf)     (mboe)
Opening balance Dec.         1,461        6      2,678   817,781      140,442
31, 2011
Extensions                      4      -      1,629    49,962        9,960
Improved recovery             -      -        -       -          -
Infill Drilling                14      -          2    22,468        3,761
Discoveries                     1      -        147     8,161        1,508
Economic factors                6      (1)      (132)   (2,961)        (621)
Technical revisions           183      (1)        368   136,500       23,300
Acquisitions                  -      -        -       -          -
Dispositions                 (77)      -        (3)     (890)        (228)
Production                   (229)      (1)      (259)  (44,677)      (7,935)
                                                                        
Closing balance at Dec.      1,363        3      4,430   986,344      170,187
31, 2012
                                                             



Gross Working Interest Reserves Reconciliation (continued)

                                                             
                       Light &  Heavy   Natural   Natural        Oil
                                                 Gas
                         Medium    Oil  Liquids       Gas Equivalent
                             Oil
Proved + Probable      (mbbl) (mbbl)   (mbbl)    (mmcf)     (mboe)
Opening balance Dec.       2,331       11      3,843  1,270,043      217,858
31, 2011
Extensions                    5      -      2,214      71,803       14,186
Improved recovery           -      -        -         -          -
Infill Drilling              46      -          8          49           62
Discoveries                   1      -        423      14,712        2,876
Economic factors            (9)      -      (218)     (4,557)        (986)
Technical revisions         140      (1)        406     172,371       29,273
Acquisitions                -      -        -      77,760       12,960
Dispositions               (95)      -        (3)     (1,054)        (274)
Production                (229)      (1)      (259)    (44,677)      (7,935)
                                                                        
Closing balance at         2,190        9      6,413  1,556,450      268,020
Dec. 31, 2012
                                                             



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)             $130,570           $130,570
Acquisitions net of dispositions ($000) (13,967)           (13,967)
Total capital ($000)                    $116,603           $116,603
                                                 
Total mboe, end of year                  170,187            268,020
Total mboe, beginning of year            140,442            217,858
Production, mboe                         (7,936)            (7,936)
Reserve additions, mboe                   37,681             58,098
                                                 
2012 FD&A costs ($/boe)                     3.09               2.01
2011 FD&A costs ($/boe)                  $(69.42)             $19.27
Three year average FD&A costs ($/boe)    $(0.86)            $(1.24)
2012 F&D costs ($/boe)                      $3.44              $2.24
2011 F&D costs ($/boe)                     $8.10             $10.89
Three year average F&D costs ($/boe)       $5.00              $5.38
                                                                  



NI 51-101
2012 FD&A Costs - Gross Working Interest Reserves including Future Development
Capital

                                                         
                                                 Proved  Proved + Probable
Capital expenditures ($000)                    $130,570            $130,570
Acquisitions net of dispositions ($000)        (13,967)            (13,967)
Net change in Future Development Capital         131,511             132,737
($000)
Total capital ($000)                           $248,114            $249,340
Reserve additions, mboe                          37,681              58,098
                                                         
2012 FD&A costs ($/boe)                           $6.58               $4.29
2011 FD&A costs ($/boe)                        $(60.95)              $21.38
Three year average FD&A costs ($/boe)             $5.05               $1.48
2012 F&D costs ($/boe)                            $6.91               $4.51
2011 F&D costs ($/boe)                            $9.79               $8.85
Three year average F&D costs ($/boe)              $9.62               $6.97
                                                         

^(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.

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,  but not limited  to, 
the estimated royalty rate for the life of a Glacier Montney horizontal  well; 
the  Corporation's  anticipated  drilling  and  completion  plans;   estimated 
production from the remainder of 2013 from the completion of the Corporation's
wells drilled  inventory;  effect of  undrawn  credit facility,  ownership  of 
Longview shares and cash flow  on the Corporation's financial flexibility  and 
drilling and  completion  plans;  terms  of  the  Transaction,  including  the 
anticipated timing of  the completion thereof  and the use  of these  proceeds 
therefrom and the effect on the Corporation's credit facility; current  status 
and the  plans of  the  Special Committee  in  relation to  the  Corporation's 
strategic alternatives review process; expected effect of utilizing a  variety 
of alternative fracture stimulation techniques on initial production rates and
reserves; the Corporation's development plan to increase production at Glacier
and  the  anticipated   production  levels   and  timing   thereof;  and   the 
Corporation's estimated capital expenditure program  for the 12 months  ending 
June 30, 2013. In addition, statements relating to "reserves" or  "resources" 
are deemed  to be  forward-looking  statements, as  they involve  the  implied 
assessment, based on certain estimates and assumptions, that the resources and
reserves described can be profitably produced in the future.

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.

These  statements   involve   substantial   known  and   unknown   risks   and 
uncertainties, certain of which are beyond Advantage's control, including, but
not limited to: changes in general economic, market and business  conditions; 
industry  conditions;  actions  by  governmental  or  regulatory   authorities 
including increasing taxes  and changes  in investment  or other  regulations; 
changes in tax laws,  royalty regimes and incentive  programs relating to  the 
oil and  gas industry;  the  effect of  acquisitions; Advantage's  success  at 
acquisition, exploitation  and development  of reserves;  unexpected  drilling 
results,  changes  in  commodity  prices,  currency  exchange  rates,  capital 
expenditures, reserves or  reserves estimates and  debt service  requirements; 
the occurrence of unexpected events involved  in the exploration for, and  the 
operation and development of,  oil and gas properties;  hazards such as  fire, 
explosion, blowouts,  cratering, and  spills, each  of which  could result  in 
substantial damage to  wells, production  facilities, other  property and  the 
environment or  in  personal injury;  changes  or fluctuations  in  production 
levels; delays  in anticipated  timing of  drilling and  completion of  wells; 
individual well productivity;  competition from other  producers; the lack  of 
availability of  qualified personnel  or management;  credit risk;  individual 
well productivity; changes in laws  and regulations including the adoption  of 
new environmental laws and regulations and changes in how they are interpreted
and enforced; our ability to comply  with current and future environmental  or 
other  laws;  stock  market  volatility  and  market  valuations;  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; geological,  technical, 
drilling and processing problems and other difficulties in producing petroleum
reserves; risk related to the  Transaction, including failure to complete  the 
Transaction on  the terms  contemplated  or at  all;  failure to  realize  the 
anticipated benefits of the sale of the Corporation's non-core assets; failure
to realize  the  benefits from  or  complete  a transaction  pursuant  to  the 
strategic alternatives review process; ability to obtain required approvals of
regulatory authorities and ability to access sufficient capital from  internal 
and external sources.  Many of  these risks and  uncertainties and  additional 
risk factors are described in the Corporation's Annual Information Form  which 
is available  at  www.sedar.com  and  www.advantageog.com.  Readers  are  also 
referred to risk  factors described  in other documents  Advantage files  with 
Canadian securities authorities.

With respect to  forward-looking statements contained  in this press  release, 
Advantage has made assumptions regarding:  conditions in general economic  and 
financial markets;  effects of  regulation by  governmental agencies;  current 
commodity prices and  royalty regimes; future  exchange rates; royalty  rates; 
future  operating  costs;  availability  of  skilled  labor;  availability  of 
drilling and related equipment; timing and amount of capital expenditures; the
impact of increasing competition; the price of crude oil and natural gas; that
the Corporation will  have sufficient  cash flow,  debt or  equity sources  or 
other  financial  resources  required  to  fund  its  capital  and   operating 
expenditures and requirements  as needed; that  the Corporation's conduct  and 
results of  operations will  be  consistent with  its expectations;  that  the 
Corporation will have the ability to  develop the Corporation's crude oil  and 
natural gas properties in the manner currently contemplated; current or, where
applicable, proposed assumed  industry conditions, laws  and regulations  will 
continue in effect or as anticipated;  and the extimates of the  Corporation's 
production and reserves volumes and the assumptions related thereto (including
commodity prices and development costs) are accurate in all material respects.

These forward-looking statements are made as of the date of this press release
and Advantage  disclaims  any intent  or  obligation to  update  publicly  any 
forward-looking statements, whether  as a  result of  new information,  future 
events  or  results  or  otherwise,  other  than  as  required  by  applicable 
securities laws.

References in this  press release  to initial production  test rates,  initial 
"productivity", initial  "flow" rates,  "flush" production  rates and  "behind 
pipe production"  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 and are not 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  of oil.  A  boe 
conversion ratio of 6 mcf:1 bbls 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.

The Corporation  discloses several  financial measures  that do  not have  any 
standardized meaning prescribed under  IFRS. These financial measures  include 
funds from  operations  and  cash 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.  Investors should  be  cautioned 
that these measures should not be  construed as an alternative to net  income, 
cash  provided  by  operating  activities  or  other  measures  of   financial 
performance as  determined  in accordance  with  IFRS. 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.





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
 
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