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Advantage Announces Evaluation of Glacier's Montney Contingent Resources

   Advantage Announces Evaluation of Glacier's Montney Contingent Resources

PR Newswire

CALGARY, July 15, 2013

(TSX: AAV, NYSE: AAV)

(All reserve and resource volumes are "working interest" and "sales" except
where otherwise indicated)

CALGARY, July 15, 2013 /PRNewswire/ - Advantage Oil & Gas Ltd. ("Advantage")
engaged Sproule Associates Ltd. ("Sproule") as an independent qualified
reserve evaluator to provide an evaluation of the petroleum and natural gas
Montney best estimate contingent resources ("2C") and related future net
revenue of Advantage's Glacier property as of March 31, 2013 ("Sproule 2C
Contingent Evaluation") in accordance with National Instrument 51-101 and the
Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). The evaluation
utilized Sproule's price forecast as of March 31, 2013.

The Sproule 2C  Contingent Evaluation is  an addendum to  the earlier  Sproule 
reports evaluating the petroleum and natural gas Montney contingent  resources 
and reserves for Glacier, which were also effective as of March 31, 2013.  The 
results of these earlier reports were  press released by Advantage on May  21, 
2013. The volumes  of reserves and  resources as reported  in the Sproule  2C 
Contingent Evaluation are unchanged from those previously reported in the  May 
21, 2013 press release. The new  Sproule 2C Contingent Evaluation includes  an 
estimate of  the  future  net  revenue  associated  with  Advantage's  Glacier 
contingent resources, which was not included in the earlier reports.

Summary

                  Company Working Interest Volume  Before Tax NPV, Million $
                   Sales      NGL        Gas          0%       10%     15%
                     Gas     (mmbbl)   Equivalent
                    (Tcf)                (Tcfe)
Reserves - 2P ^(1)   1.54     11.0        1.61        6,486    1,723   1,104
Resource -           3.53     109.8       4.18       19,133    3,092   1,565
contingent
resources 2C ^(2)
Total 2P Reserves    5.07     120.8       5.79       25,619    4,815   2,669
plus 2C contingent
resources

Note: ^(1) Represents proved plus probable reserves ("2P").
      ^(2) Represents the best estimate of contingent resources ("2C").

  *Sproule included the following comments in their report:

       *The contingent resources at Glacier are all considered to be Economic
         Contingent Resources based on the forecast commodity prices, capital
         costs and operating costs as at March 31, 2013.

       *The contiguous land position, operational control and extensive
         delineation drilling to date across layers 1, 2, 3, 4 and 5 have
         positioned the Glacier asset such that the pace of full scale
         development could easily be accelerated if additional capital was
         invested in area development.

       *The main contingencies to be overcome to turn these contingent
         resources into reserves at Glacier are:

            *Continued horizontal multi-stage frac development drilling to
              prove up areas and layers that have not been developed yet;
            *Capital access to advance the development plan; and
            *Expansion of infrastructure to facilitate full scale
              development.

  *Sproule's 2C Contingent Evaluation included the drilling of 1,120 future
    contingent locations with a total undiscounted capital expenditure of $8.3
    billion which includes the necessary facilities and infrastructure costs.

  *Sproule's combined evaluation of 2P reserves plus 2C resources includes a
    total of 1,429 future locations with a total undiscounted capital
    expenditure of $10.2 billion.

Evaluation Methodology
(Resources definitions are included in Appendix A)

  *Sproule evaluated the economics of Glacier's 2C resources based on a
    development scenario that was provided by Advantage.

  *Sproule's 2P reserve estimate at Advantage's Glacier property included a
    development plan which assumed a maximum production rate of 200 mmcf/d is
    reached in 2015 and maintained until 2026.

  *The Glacier 2C Contingent Evaluation assumed that the gas plant capacity
    increases over and above the estimated 2P reserves by 100 mmcf/d per year
    of raw gas starting in 2015 to a total throughput of 600 mmcf/d raw gas by
    2018. The 600 mmcf/d raw facility throughput capacity was then maintained
    to the year 2032 by drilling wells as required.

  *The best estimate of Advantage's ultimate recoverable sales gas from
    Glacier as of March 31, 2013 based on the development plan is 5.7 Tcf
    which is categorized as follows:

Glacier W.I. Ultimate Recoverable Sales Gas^(1)
                                     Tcf % of Total
Reserves - 2P                         1.6    28%
Resources - 2C                        3.5    62%
Prospective Resources - Best Estimate 0.6    10%
Total Ultimate Recoverable            5.7    100%

Notes:
       Ultimate recoverable sales gas is not a category of resources defined
^(1)  in the COGE Handbook. As used in the press release ultimate recoverable
       sales gas represents the arithmetic sum of 2P reserves, 2C resources
       and the best estimate of prospective resources.
       Recoverable gas volumes were classified as contingent resources if they
       were within 3 miles of a sustained production test. Prospective
^(2)  resources are assigned if future locations were more than 3 miles from
       a sustained gas test in any Montney layer. Prospective resources have
       not been included in the cash flow runs provided in the Sproule 2C
       Contingent Evaluation.

  *Sproule utilized the following reserves and resources per well in their
    evaluation of the 2P and 2C future net revenue at Glacier:

                                                           2P Reserves plus
                                      2C Contingent          2C Contingent
                  2P Reserves           Resources             Resources
             Undeveloped          Undeveloped           Undeveloped
               Locations  Bcf/well  Locations  Bcf/well    Locations  Bcf/well
Upper and         250       4.8        294       4.2         544       4.5
Lower
Montney
Middle            59                   826                   885
Montney                     3.7                  3.4                    3.4
Total/Average     309       4.6       1,120      3.6        1,429      3.8

Appendix A — Reserve and Resource Definitions

Reserves are estimated remaining quantities of oil and natural gas and related
substances anticipated to be recoverable from known accumulations, as of a
given date, based on the analysis of drilling, geological, geophysical and
engineering data; the use of established technology; and specified economic
conditions, which are generally accepted as being reasonable. Reserves are
classified according to the degree of certainty associated with the estimates
as follows:

    Proved Reserves are those reserves that can be estimated with a high
  degree of certainty to be recoverable. It is likely that the actual
    remaining quantities recovered will exceed the estimated proved reserves.
  
    Probable Reserves are those additional reserves that are less certain to
  be recovered than proved reserves. It is equally likely that the actual
    remaining quantities recovered will be greater or less than the sum of the
    estimated proved plus probable reserves.

Resources encompasses all petroleum quantities that originally existed on or
within the earth's crust in naturally occurring accumulations, including
Discovered and Undiscovered (recoverable and unrecoverable) plus quantities
already produced. "Total resources" is equivalent to "Total Petroleum
Initially-In-Place". Resources are classified in the following categories:

    Contingent Resources are those quantities of petroleum estimated, as of a
    given date, to be potentially recoverable from known accumulations using
  established technology or technology under development but which are not
    currently considered to be commercially recoverable due to one or more
    contingencies. There is no certainty that it will be commercially viable
    to produce any portion of the contingent resources.
  
  Economic Contingent Resources are those contingent resources that are
    currently economically recoverable.
  
    Prospective Resources are those quantities of petroleum estimated, as of a
    given date, to be potentially recoverable from undiscovered accumulations
  by application of future development projects. There is no certainty that
    any portion of the prospective resources will be discovered. If
    discovered, there is no certainty that it will be commercially viable to
    produce any portion of the prospective resources.

Uncertainty Ranges are described by the Canadian Oil and Gas Evaluation
Handbook as low, best, and high estimates for reserves and resources as
follows:

    Low Estimate: This is considered to be a conservative estimate of the
    quantity that will actually be recovered. It is likely that the actual
  remaining quantities recovered will exceed the low estimate. If
    probabilistic methods are used, there should be at least a 90 percent
    probability (P90) that the quantities actually recovered will equal or
    exceed the low estimate.
  
    Best Estimate: This is considered to be the best estimate of the quantity
    that will actually be recovered. It is equally likely that the actual
  remaining quantities recovered will be greater or less than the best
    estimate. If probabilistic methods are used, there should be at least a 50
    percent probability (P50) that the quantities actually recovered will
    equal or exceed the best estimate.
  
    High Estimate: This is considered to be an optimistic estimate of the
    quantity that will actually be recovered. It is unlikely that the actual
  remaining quantities recovered will exceed the high estimate. If
    probabilistic methods are used, there should be at least a 10 percent
    probability (P10) that the quantities actually recovered will equal or
    exceed the high estimate.

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, 
the  expected  future  development  capital,  plans  and  drilling   locations 
associated with the reserves  and resources on  the Glacier property,  certain 
assumptions associated  with  the  evaluation  of  the  Glacier  reserves  and 
resources, the  expected  contingencies to  overcome  to turn  the  contingent 
resources into reserves  and the expected  additional plant capacity  required 
for development  of  the  contingent  resources  .  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. 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, including,  but  not  limited to,  certain  assumptions  made  by 
Sproule as noted  herein, 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.  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. In addition, for further details of Sproule's  evaluation 
of Advantage's Glacier  reserves and resources  see Advantage's press  release 
dated May  21, 2013  which is  also available  on SEDAR  at www.sedar.com  and 
www.advantageog.com.

Throughout this press  release the term  Tcfe (trillion of  cubic feet of  gas 
equivalent) is used.  Such term  may be  misleading, particularly  if used  in 
isolation. The conversion ratio used herein of 1 barrel per six thousand cubic
feet (1 bbl: 6 mcf) of barrels of oil to natural gas equivalent 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 following abbreviations used in this press release have the meanings set
forth below:

mmbbls million barrels
mmcf   million cubic feet
mmcf/d million cubic feet per day
tcf    trillion cubic feet
tcfe   trillion cubic feet of natural gas equivalent on the basis of 1 barrel
       of oil to 6 thousand cubic feet of natural gas
      

Where any disclosure  of reserves  data and resources  is made  in this  press 
release that does  not reflect all  reserves of Advantage,  the reader  should 
note that the  estimates of  reserves, future  net revenue  and resources  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