Waldron Energy Corporation Announces 2012 Year End Results, 2012 Year End Reserves, Operations Update and Provides Update on

Waldron Energy Corporation Announces 2012 Year End Results, 2012 Year End 
Reserves, Operations Update and Provides Update on Property
Disposition Process 
CALGARY, ALBERTA -- (Marketwire) -- 04/01/13 -- Waldron Energy
Corporation ("Waldron" or the "Corporation") (TSX:WDN) is pleased to
announce its financial and operational results for the year and three
months ended December 31, 2012. The Corporation's audited year-end
financial statements and Annual Information Form ("AIF") including a
statement on reserves data and other information specified in NI
51-101 are available for review at www.sedar.com and on the
Corporation's website at www.waldronenergy.ca. 


 
2012 Financial Highlights                                                   
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                                 Three months ended              Year ended 
                                       December 31,            December 31, 
                                   2012        2011        2012        2011 
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Financial (000's except for                                                 
 per share amounts)                                                         
Petroleum and natural gas                                                   
 sales                        $   6,674   $   8,536   $  24,530   $  33,218 
Funds from operations(1)          3,037       4,199       8,191      14,559 
 Per share basic &                                                          
  diluted(1)(2)                    0.08        0.12        0.22        0.42 
Net loss                         (8,417)    (14,319)    (18,339)    (14,482)
 Per share basic &                                                          
  diluted(2)                      (0.21)      (0.42)      (0.50)      (0.44)
Net proceeds from the                                                       
 issuance of equity                   -         (19)      3,166      14,128 
Total net proceeds and funds                                                
 from operations                  3,037       4,180      11,357      28,687 
Capital expenditures(3)           1,370       6,411      12,230      46,922 
Dispositions        
                  -         456           -         456 
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Working capital deficiency                                                  
 (excluding bank debt)                                    1,969       5,846 
Bank debt                                                33,950      29,200 
Property and equipment                                   84,821      99,903 
Exploration and evaluation                                                  
 assets                                                  10,565      10,677 
Shareholders' equity                                     48,574      62,871 
Number of shares outstanding                                                
 at year end                                             40,035      34,333 
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Notes:                                                                      
(1)    Funds from operations is a non-GAAP measure and the Corporation      
       calculates this measure as cash provided from operations before      
       changes in non-cash working capital and decommissioning expenses.    
(2)    At December 31, 2012 there were 2,733,000 (2010 - 3,281,500) options 
       and 7,182,560 (2011 - 7,182,560) warrants outstanding that were not  
       included in the calculation of weighted average shares outstanding as
       the effect would be anti-dilutive.                                   
(3)    Capital expenditures exclude dispositions and share-based            
       compensation and include decommissioning expenditures.               
                                                                            
2012 Operational Highlights                                                 
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                                 Three months ended              Year ended 
                                       December 31,            December 31, 
                                   2012        2011        2012        2011 
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Operating                                                                   
Production                                                                  
  Natural Gas (mcf/d)            10,715      12,506      10,951      12,342 
  NGL (bbls/d)                      538         559         511         444 
  Light crude oil (bbls/d)          160         167         174         186 
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  BOE/day                         2,484       2,810       2,510       2,687 
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Realized Pricing                                                            
  Natural Gas ($/Mcf)        $     3.34        3.33  $     2.50        3.82 
  Natural gas liquids                                                       
   ($/bbl)                        44.02       63.52       50.20       61.03 
  Light crude oil ($/bbl)         81.86       93.87       80.35       90.54 
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  Average realized price                                                    
   ($/boe)                        29.20       33.01       26.70       33.87 
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Netback per boe                                                             
  Sales price                $    29.20  $    33.01  $    26.70  $    33.87 
  Realized gain on                                                          
   derivative instruments          0.41           -        0.27           - 
  Royalties                       (2.87)      (4.13)      (2.48)      (4.22)
  Operating expenses              (7.62)      (6.50)      (9.08)      (8.81)
  Transportation expenses         (1.82)      (1.94)      (1.86)      (1.76)
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  Operating netback          $    17.30  $    20.44  $    13.55  $    19.08 
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  Operating field cash flow                                                 
   ($000's)                  $    3,954       5,284  $   12,448      18,713 
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Waldron produced on average 2,484 boe per day (28% oil and liquids)
during the fourth quarter of 2012, resulting in $3.0 million in funds
from operations, an increase over average production of 2,235 boe per
day and $1.1 million in funds from operations in the third quarter of
2012. The Corporation estimates net debt at the end of March 2013 to
be approximately $34.5 million. The Corporation exited 2012 with
total net debt of $35.9 million representing a net debt to annualized
fourth quarter funds from operations ratio of 2.87 to 1. 
Waldron is encouraged by the recent increase in natural gas prices in
the fourth quarter of 2012 and into 2013. The Corporation's outlook
for 2013 natural gas pricing is approximately $3.65 per mcf, and
additionally, as a result of incremental heating value, Waldron
expects to receive approximately $0.15-0.20 per mcf in addition to
the $3.65 per mcf pricing. Comparatively, had Waldron realized the
outlook $3.85 per mcf natural gas price in place of the $2.50 per mcf
actually realized in 2012, natural gas sales in 2012 would have been
$5.4 million higher. 
2013 Hedging Update 
Subsequent to the year ended December 31, 2012, the Corporation has
entered into the following commodity price derivative contracts: 


 
                                  Type of      Quantity      Contract price 
Period              Commodity     Contract     Contracted    ($CDN)         
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Apr 1, 2013 - Dec                                                           
31, 2013            Crude Oil     Swap         200 bbl/d     WTI $96.31/bbl 
                                                                            
Apr 1, 2013 - Oct                                                           
31, 2013            Natural gas   Swap         1,680 mcf/d   AECO $3.77/mcf 
                                                                            
May 1, 2013 - Oct                                                           
31, 2013            Natural gas   Swap         707 mcf/d     AECO $3.83/mcf 
                                                                            
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Conversion factor: 1 Mcf = 1.131 GJ                                         

 
Bank Update 
Subsequent to December 31, 2012, the Corporation's lender completed
its review and the revolving operating demand loan credit facility of
$36.0 million remains unchanged. The next review period is expected
to occur on July 31, 2013. The Corporation's undrawn $5.0 million
development demand loan facility was expected to remain unutilized
and was not renewed. At the end of March 2013, the Corporation's net
debt balance was approximately $34.5 million. 
Property Disposition Process 
The Corporation previously announced it was pursuing the disposition
of its interests in its undeveloped Duvernay lands as well as a
producing property in the Greater Pembina area through the initiation
of a formal process. The Corporation is continuing this process and
is evaluating its options. The Corporation is encouraged by the
recent increase in the outlook on natural gas prices and believes
this will have a positive impact on the overall market. The
Corporation will closely monitor market conditions and evaluate
opportunities as they arise. 
2013 Guidance 
Q1 2013 production is estimated to be 2,150 - 2,200 boe per day,
which was temporarily impacted by approximately 65 boe per day due to
a January 2013 third party plant outage in the Strachan area. The
Corporation will continue to concentrate on debt reduction through to
the end of break-up in the second quarter of 2013 and will provide
guidance regarding its second half of 2012 capital program in June
2013. Current production is approximately 2,100 boe per day and
average production for the second quarter of 2013 is expected to be
approximately 2,000 - 2,050 boe per day. 
2012 Reserves Summary 
Waldron is pleased to provide the following summary results from its
annual independent reserve evaluation completed by GLJ Petroleum
Consultants ("GLJ") for all of the Corporation's properties effective
December 31, 2012 (the "GLJ Report"). These estimates were prepared
in accordance with National Instrument 51-101 Standards of Disclosure
for Oil and Gas Activities ("NI 51-101") and the full reserves
information is included in the Corporation's AIF. 
The following tables summarizes the Corporation's gross and net
interests in proved and probable reserves at December 31, 2012 as
assessed in the GLJ Report prepared in accordance with NI 51-101
using the GLJ January 1, 2013 forecast prices and cost assumptions. 


 
                      ------------------------------------------------------
                                        RESERVES SUMMARY (1)                
                      ------------------------------------------------------
                                                               TOTAL OIL    
                          OIL & NGLS      NATURAL GAS(2)     EQUIVALENT(3)  
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                         Gross       Net    Gross      Net    Gross      Net
RESERVES CATEGORY       (Mbbl)    (Mbbl)   (Mmcf)   (Mmcf)   (Mboe)   (Mboe)
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Proved                                                                      
Producing                  998       751   15,521   13,794    3,585    3,050
  Developed Non-                                                            
   Producing                83        60    2,037    1,789      422      358
  Undeveloped              268       199    4,814    4,180    1,070      896
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TOTAL PROVED             1,349     1,010   22,372   19,763    5,078    4,304
PROBABLE                 1,352       998   24,819   21,450    5,489    4,573
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TOTAL PROVED PLUS                                                           
 PROBABLE                2,702     2,008   47,192   41,213   10,567    8,877
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Notes:                                                                      
(1)    Numbers in this table are subject to rounding.                       
(2)    Natural gas volumes include solution gas volumes associated with the 
       Corporation's light and medium crude oil reserves.                   
(3)    Natural gas is converted to barrels of oil equivalent ("boe") at a   
       ratio of six thousand standard cubic feet to one barrel of oil.      

 
Net Present Values of Future Net Revenue 
The following table summarizes Waldron's share of the net present
value of future net revenue attributable to its reserves before taxes
but prior to the provision for interest and general and
administrative expenses: 


 
                                --------------------------------------------
                                      NET PRESENT VALUES OF FUTURE NET      
                                           REVENUE(1)(2)(3)(4)(5)           
                                 BEFORE INCOME TAXES DISCOUNTED AT (%/year) 
----------------------------------------------------------------------------
                                         0%         5%        10%        15%
RESERVES CATEGORY                      (M$)       (M$)       (M$)       (M$)
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  Proved                                                                    
  Producing                          74,417     57,879     47,859     41,125
  Developed Non-Producing             7,805      5,338      3,958      3,090
  Undeveloped                        10,881      6,636      4,046      2,376
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TOTAL PROVED                         93,103     69,852     55,863     46,591
PROBABLE                             86,132     48,096     29,260     18,434
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TOTAL PROVED PLUS PROBABLE          179,235    117,949     85,123     65,025
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Notes:                                                                      
(1)    Gross reserves are the Corporation's total interest share before the 
       deduction of royalties and without including any royalty interest of 
       the Corporation.                                                     
(2)    Utilizes GLJ Petroleum Consultants escalated price forecasts as of   
       January 1, 2013.                                                     
(3)    Natural gas volumes include solution gas volumes associated with the 
       Corporation's light and medium crude oil reserves.                   
(4)    Natural gas is converted to barrels of oil equivalent ("boe") at a   
       ratio of six thousand standard cubic feet to one barrel of oil.      
(5)    Numbers in this table are subject to rounding.                       
                                                                            
Net Asset Value                                                             
                                                                            
The following table summarizes the Corporation's net asset value at December
 31, 2012:                                                                  
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Net Asset Value (December 31, 2012)                                    2012 
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(000's)                                                                     
Proved plus Probable NI 51-101 discounted at 10%             $       85,123 
Undeveloped Land, Seismic and Other Assets (internal                        
 estimate)                                                           18,000 
Net Debt                                                            (35,919)
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Net Asset Value - Basic                                      $       67,204 
Basic Common Shares Outstanding (at Dec. 31, 2012)                   40,035 
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Net Asset Value - Basic and diluted (per share)(1)           $         1.68 
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Notes:                                                                      
(1)    Net Asset Value numbers are at December 31, 2012 and do not          
       incorporate changes in dilutives post December 31, 2012.             

 
Investor Information 
Waldron is a Calgary, Alberta based corporation engaged in the
exploration, development and production of petroleum and natural gas.
The Corporation's common shares are currently listed on the Toronto
Stock Exchange under the trading symbol "WDN." Additional information
regarding Waldron is available under the Corporation's profile at
www.sedar.com or at the Corporation's website, www.waldronenergy.ca. 
Forward Looking and Cautionary Statements 
This news release contains forward-looking statements relating to the
Corporation's plans and other aspects of the Corporation's
anticipated future operations, strategies, financial and operating
results and business opportunities. These forward-looking statements
may include opinions, assumptions, estimates, management's assessment
of value, reserves, future plans and operations. 
Forward-looking statements typically use words such as "will,"
"anticipate," "believe," "estimate," "expect," "intend," "may,"
"project," "should," "plan," and similar expressions suggesting
future outcomes, and include statements that actions, events or
conditions "may," "would," "could," or "will" be taken or occur in
the future. Specifically, this press release contains forward-looking
statements relating to the results and timing of operations;
anticipated debt reduction; whether or not recent industry results
are favorable; whether or not additional reserves are recognized;
whether or not the Corporation achieves guidance; the character and
nature of the Corporation's asset base; whether or not the asset base
is prospective; and number of horizontal drilling locations and
opportunities. The forward-looking statements are based on various
assumptions including expectations regarding the success of current
or future drill wells; the outlook for petroleum and natural gas
prices; estimated amounts and timing of capital expenditures;
estimates of future production; assumptions concerning the timing of
regulatory approvals; whether or not proved producing reserves form
the borrowing base; the state of the economy and the exploration and
production business; results of operations; business prospects and
opportunities; future exchange and interest rates; the Corporation's
ability to obtain equipment in a timely manner to carry out
development activities; and the ability of the Corporation to access
capital and credit. While the Corporation considers these assumptions
to be reasonable based on information currently available to it, they
may prove to be incorrect. 
Forward-looking statements are subject to a wide range of
assumptions, known and unknown risks and uncertainties and other
factors that contribute to the possibility that the predicted outcome
will not occur, including, without limitation: risks associated with
oil and gas exploration, development, exploitation, production,
marketing and transportation; loss of markets; volatility of
commodities prices; currency fluctuations; imprecision of reserves
estimates; environmental risks; competition from other producers;
inability to retain drilling rigs and other services; general
economic conditions; delays resulting from or inability to obtain
required regulatory approvals; and ability to access sufficient
capital from internal and external sources. Readers are cautioned
that the foregoing list of factors is not exhaustive. 
Although Waldron believes that the expectations represented by such
forward-looking statements are reasonable, there can be no assurance
that such expectations will be realized. As a consequence, actual
results may differ materially from those anticipated in the
forward-looking statements and you should not rely unduly on
forward-looking statements. The forward-looking statements contained
in this news release are made as of the date of this news release.
Except as required by applicable law, Waldron does not undertake any
obligation to publicly update or revise any forward-looking
statements. 
Note Regarding Non-GAAP Measures 
Funds from operations, operating netback and net debt are not
recognized measures under IFRS as issued by the International
Accounting Standards Board ("IASB"). Management believes that in
addition to cash flow from operations and net earnings, funds from
operations and operating netback are useful supplemental measures as
they demonstrate the Corporation's ability to generate the cash
necessary to fund future growth through capital investment or repay
debt if incurred in future periods. The Company uses net debt (bank
debt plus negative working capital or less positive working capital,
both excluding bank debt) as an alternative measure of outstanding
debt and is used as a measure to assess the Company's financial
position. Investors are cautioned, however, that these measures
should not be construed as an alternative to cash flow from operating
activities or net earnings determined in accordance with IFRS as an
indication of the Corporation's performance or financial position.
The Corporation's method of calculating these measures may differ
from other entities and, accordingly, they m
ay not be comparable to
measures used by other entities. For these purposes, the Corporation
defines funds from operations as cash flow from operations before
changes in non-cash operating working capital, financing expenditures
related to the costs of acquisitions and decommissioning expenditures
and defines operating netback as revenue less royalties, operating
and transportation expenses. Net debt is defined as current assets
less current liabilities. 
Note Regarding BOEs 
The term barrel of oil equivalent ("boe") may be misleading,
particularly if used in isolation. A conversion ratio for gas of 6
mcf:1 boe 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 conversion ratio
of 6:1, utilizing a conversion on a 6:1 basis is misleading as an
indication of value.
Contacts:
Waldron Energy Corporation
Ernie Sapieha
President & CEO
esapieha@waldronenergy.ca 
Waldron Energy Corporation
Jeff Kearl
VP Finance & CFO
jkearl@waldronenergy.ca 
Waldron Energy Corporation
Murray Stodalka
EVP Engineering & Operations
mstodalka@waldronenergy.ca