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Lone Pine Resources Announces Appointment of Chief Executive Officer, First Quarter 2013 Operational Update and Credit Facility

Lone Pine Resources Announces Appointment of Chief Executive Officer, First 
Quarter 2013 Operational Update and Credit Facility Amendments 
CALGARY, ALBERTA -- (Marketwired) -- 04/19/13 -- Lone Pine Resources
Inc. ("Lone Pine" or the "Company") (NYSE:LPR) (TSX:LPR) today
announced the appointment of a permanent Chief Executive Officer, an
operational update from the Company's first quarter of 2013
activities and the completion of the semi-annual redetermination of
the Company's borrowing base and other amendments to the agreement
governing its credit facility. 
Appointment of Chief Executive Officer 
Lone Pine is pleased to announce the appointment of Tim Granger to
the position of President & Chief Executive Officer and as a Director
of the Company effective April 22, 2013. Mr. Granger joins Lone Pine
with more than 28 years of experience in exploitation, production
operations and asset management in the oil and gas industry. Most
recently, Mr. Granger served as the Chief Executive Officer and
Managing Director of Molopo Energy Limited, an Australian Stock
Exchange listed E&P company with assets in Canada and the United
States. Prior to joining Molopo Energy Limited in January 2012, Mr.
Granger served as the President & Chief Executive Officer and as a
Director of Compton Petroleum Corporation, a Toronto Stock Exchange
and New York Stock Exchange listed Canadian E&P company from January
2009 to December 2011. Mr. Granger graduated from Carleton University
with a Bachelor of Science Degree in Mechanical Engineering. 
Patrick R. McDonald, the Chairman of the Board of Directors, stated,
"We are very excited to have an experienced leader of Tim's caliber
join Lone Pine as our new permanent President & Chief Executive
Officer. Tim has a wealth of experience in operations, acquisitions
and divestitures and capital markets gained through a diverse set of
experiences in the past. These skills will serve him well in his new
role as he takes the leadership role in advancing Lone Pine's plan to
deleverage our balance sheet and position our portfolio of exciting
assets for future growth." 
This appointment concludes the process to secure a permanent
President & Chief Executive Officer for the Company and the Board of
Directors are very pleased with the final outcome
. The Board of
Directors would like to thank the interim Chief Executive Officer,
David Fitzpatrick, for his exemplary performance in leading Lone Pine
over the past two months. Pursuant to Mr. Fitzpatrick's agreement
with the Company, he will remain an executive officer of Lone Pine on
a full time basis through the end of May 2013 to facilitate a smooth
transition to new leadership. 
First Quarter 2013 Operational Update 
In the first quarter of 2013, Lone Pine drilled 8 gross (6.8 net)
wells, completed 9 gross (7.3 net) wells and brought onstream 9 gross
(7.3 net) wells, all of which were located in the Evi area, with a
100% success rate. Drilling activity at Evi in the quarter primarily
focused on infill wells located in the central area of the play where
the Company could take advantage of the available cost efficiencies
of pad drilling, batch completions and proximity to existing
flowlined infrastructure. Lone Pine estimates that pad drilling and
batch completions has resulted in up to a 15% reduction in the
average drilling and completion costs compared to previous individual
well costs of approximately $3.0 million per well. Also, Lone Pine
estimates that producing wells that are flowlined into existing
infrastructure and that reduce the need for infield trucking have the
potential to save up to $4.00 per barrel of average production
expenses. 
Lone Pine drilled six net operated wells that were brought onstream
in the quarter, although five of the wells were not brought onstream
until late March so the production impact was not reflected in the
quarter. Total net sales volumes at Evi for the first quarter of 2013
are expected to be approximately 2,450 boe/d (2,900 boe/d working
interest). 
The table below highlights Lone Pine's estimated first quarter of
2013 sales volumes and capital expenditures compared to the Company's
previously released guidance: 


 
                                          Q1/13 Estimate     H1/13 Guidance 
                                        ------------------------------------
Working Interest Sales Volumes                                              
 (MMcfe/d)                                            57            52 - 54 
% Liquids                                             34%                35%
                                                                            
Net Sales Volumes (MMcfe/d)                           49            45 - 47 
% Liquids                                             35%                35%
                                                                            
Capital Expenditures ($MM)              $             33   $             35 

 
Current total corporate net sales volumes are estimated at 49 MMcfe/d
(57 MMcfe/d working interest). With the onset of spring break-up in
the Company's core operating areas, Lone Pine has now largely
completed its first half of 2013 capital program and expects to
return to the field in July, depending on field conditions. 
Evi Waterflood Update 
Lone Pine continues to monitor its operated waterflood pilot and
remains pleased with the reservoir response to date. At year- end
2012, DeGolyer & MacNaughton, Lone Pine's independent qualified
reserves evaluators, attributed 110,000 barrels of estimated proved
and probable reserves (determined in accordance with Canadian
National Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities) to the Evi waterflood pilot. This represents less than 1%
of the proved and probable reserves of 35 million barrels booked to
the Evi field under primary recovery. Analogous Slave Point
waterfloods have demonstrated that ultimate waterflooding recovery
has the potential to double the recovery versus that of primary
production alone. 
The Company has engaged RPS Energy Canada Ltd., a leading
international petroleum engineering consulting firm, to assist with
waterflood simulation and geological modeling that will be used in
the interpretation and design of future waterflood pilots. The 36
section simulation area is expected to be completed by the end of the
second quarter and will be used by the Company in determining the
location of future waterfloods. Lone Pine plans to initiate at least
one horizontal waterflood pilot project in the second half of 2013. 
Borrowing Base Redetermination 
Lone Pine's lenders have completed the semi-annual review of Lone
Pine's borrowing base available under its five-year syndicated credit
facility. Effective April 15, 2013, the borrowing base has been
revised from the previously available $275 million to $185 million,
which includes the effect of asset dispositions completed in the
first quarter of 2013 together with updated year-end engineering data
and price forecasts. In addition, the credit facility has been
amended such that the Company's Total Debt to EBITDA financial
covenant, which previously had a permitted ratio of 4.0 to 1.0, has
been increased to 4.5 to 1.0 for any quarterly period ending on or
before June 30, 2013. The result of this redetermination is
consistent with Lone Pine's strategy of presenting a fiscally
disciplined deleveraging plan to the lending syndicate. The expanded
liquidity under the credit facility's financial covenant is expected
to provide Lone Pin
e with adequate near term liquidity to complete
the Company's previously announced asset portfolio review process. As
of March 31, 2013, Lone Pine's long term debt consisted of $152
million outstanding under the credit facility and US$198 million of
senior notes. 
First Quarter 2013 Earnings Release Date 
Lone Pine has scheduled its first quarter 2013 earnings release to be
issued after the close of trading on the New York Stock Exchange and
Toronto Stock Exchange on Thursday, May 9, 2013. 
A conference call is scheduled for Friday, May 10, 2013 at 10:00 AM
MT to discuss the release. To participate, please dial 866-318-8616
(toll-free from North America) or 617-399-5135 and request the Lone
Pine teleconference (ID#44284279) or listen to the webcast on Lone
Pine's website at www.lonepineresources.com. A replay will be
available through June 10, 2013 by dialing 888-286-8010 or
617-801-6888 and entering passcode #80212384. 
Forward-Looking Statements 
This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934 and Canadian securities laws.
All statements, other than statements of historical facts, that
address activities that Lone Pine assumes, plans, expects, believes,
projects, estimates or anticipates (and other similar expressions)
will, should or may occur in the future are forward-looking
statements. The forward-looking statements provided in this news
release are based on management's current belief, based on currently
available information, as to the outcome and timing of future events.
Lone Pine cautions that the Company's business strategy, its plans
for development of its assets, its plans for waterflooding, its
liquidity expectations and infrastructure related cost savings and
other forward-looking statements relating to Lone Pine are subject to
all of the risks and uncertainties normally incident to such
endeavors. 
These risks relating to Lone Pine include, but are not limited to,
oil and natural gas price volatility, its access to cash flows and
other sources of liquidity to fund its capital expenditures, its
level of indebtedness, its ability to replace production, the impact
of the current financial and economic environment on its business and
financial condition, a lack of availability of, or increase in costs
relating to, goods and services, environmental risks, drilling and
other operating risks, regulatory changes, the uncertainty inherent
in estimating future oil and gas production or reserves and other
risks as described in reports that Lone Pine files with the
Securities and Exchange Commission ("SEC"), including its Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K and the other reports that Lone Pine files with
the SEC and with Canadian securities regulators. Any of these factors
could cause Lone Pine's actual results and plans to differ materially
from those in the forward-looking statements. 
Units of Equivalency 
This news release discloses certain information on an "equivalency"
basis with oil and NGL quantities converted to Mcfe (thousand cubic
feet of gas equivalent) or MMcfe (million cubic feet of gas
equivalent) based on a conversion ratio of one bbl of liquids to six
Mcf of natural gas. Units of equivalency such as Mcfe and MMcfe may
be misleading, particularly if used in isolation. A Mcfe conversion
ratio of one bbl of crude oil or NGLs to six Mcf of natural gas is
based on an energy equivalency conversion method primarily applicable
at the burner tip and does not represent a value equivalency at the
wellhead. Although this conversion ratio is an industry accepted
norm, it is not reflective of price or market value differentials
between product types. Capital expenditure estimates are based on our
current expectations as to the level of capital expenditures that
will be justified based upon the other assumptions set forth in this
news release as well as expectations about other operating and
economic factors. 
Disclosure of Reserves Information 
All estimates of proved reserves and related future net revenue
disclosed in this news release have been prepared in accordance with
NI 51- 101. Estimates of reserves and future net revenue made in
accordance with NI 51-101 will differ from corresponding estimates
prepared in accordance with applicable SEC rules and disclosure
requirements of FASB, and those differences may be material. NI
51-101, for example, requires disclosure of reserves and related
future net revenue estimates based on forecast prices and costs,
whereas SEC and FASB standards require that reserves and related
future net revenue be estimated using constant prices and costs (with
prices based on a historical 12-month average price). In addition, NI
51-101 permits the presentation of reserves estimates on a "company
gross" basis, representing Lone Pine's working interest share before
deduction of royalties, whereas SEC and FASB standards require the
presentation of net reserve estimates after the deduction of
royalties and similar payments. There are also differences in the
technical reserves estimation standards applicable under NI 51-101
and, pursuant thereto, the Canadian Oil and Gas Evaluation Handbook,
and those applicable under SEC and FASB requirements. Further
information regarding the principal differences between the
methodology and other requirements applicable under NI 51-101 and
those applicable under corresponding U.S. standards is contained in
the Statement of Reserves Data and Other Oil and Gas Information
under NI 51-101 that Lone Pine files with securities regulatory
authorities in Canada, copies of which are available on SEDAR at
www.sedar.com and on the Company's website at
www.lonepineresources.com. 
In addition to being a reporting issuer in certain Canadian
jurisdictions, Lone Pine is a registrant with the SEC and subject to
domestic issuer reporting requirements under U.S. federal securities
law, including with respect to the disclosure of reserves and other
oil and gas information in accordance with U.S. federal securities
law and applicable SEC rules and regulations (collectively, "SEC
requirements"). Disclosure of such information in accordance with SEC
requirements is included in the Company's Annual Report on Form 10-K
and in other reports and materials filed with or furnished to the SEC
and, as applicable, Canadian securities regulatory authorities. The
SEC permits oil and gas companies that are subject to domestic issuer
reporting requirements under U.S. federal securities law, in their
filings with the SEC, to disclose only estimated proved, probable and
possible reserves that meet the SEC's definitions of such terms. Lone
Pine has disclosed only estimated proved reserves in its filings with
the SEC. In addition, Lone Pine prepares its financial statements in
accordance with United States generally accepted accounting
principles, which require that the notes to its annual financial
statements include supplementary disclosure in respect of the
Company's oil and gas activities, including estimates of its proved
oil and gas reserves and a standardized measure of discounted future
net cash flows relating to proved oil and gas reserve quantities.
This supplementary financial statement disclosure is presented in
accordance with FASB requirements, which align with corresponding SEC
requirements concerning reserves estimation and reporting. 
It should not be assumed that the estimates of future net revenues
contained herein represent the fair market value of the Company's
reserves. There is no assurance that the forecast prices and cost
assumptions applied by DeGolyer &MacNaughton in evaluating the
reserves of Lone Pine will be attained, and variances could be
material. The reserves estimates attributed to the Company's
properties are estimates only and there is no guarantee that the
estimated reserves will be recovered. Actual crude oil, natural gas
and NGL reserves may be greater than or less than the estimates
provided herein, and the difference may be material. 
The determination of oil and gas reserves involves estimating
subsurface accumulations of oil and natural gas that cannot be
measured in an exact manner. The preparation of estimates is subject
to an inherent degree of associated risk and uncertainty, including 
many factors that are beyond our control. The estimation and
classification of reserves is a complex process involving the
application of professional judgment combined with geological and
engineering knowledge to assess whether specific classification
criteria have been satisfied. It requires significant judgments and
decisions based on available geological, geophysical, engineering and
economic data as well as forecasts of commodity prices and
anticipated costs. The accuracy of any reserves estimate is a
function of the quality of available data and its interpretation, and
estimates by different reserves engineers often vary, sometimes
significantly. As circumstances change and additional data becomes
available, whether through the results of drilling, testing and
production or from economic factors such as changes in product prices
or development and production expenses, reserves estimates also
change. Revisions may be positive or negative. Oil and gas quantities
ultimately recovered will vary from reserves estimates. 
Lone Pine Resources Inc. is engaged in the exploration and
development of natural gas and light oil in Canada. Lone Pine's
principal reserves, producing properties and exploration prospects
are located in Canada in the provinces of Alberta, British Columbia,
and Quebec and the Northwest Territories. Lone Pine's common stock
trades on the New York Stock Exchange and the Toronto Stock Exchange
under the symbol LPR. For more information about Lone Pine, please
visit its website at www.lonepineresources.com.
Contacts:
Lone Pine Resources Inc.
David M. Fitzpatrick
Interim Chief Executive Officer
(403) 292-8000 
Lone Pine Resources Inc.
Shane K. Abel
Vice President, Finance & Treasurer
(403) 292-8000