Recovery Energy Inc. Provides Shareholder Update Letter

Recovery Energy Inc. Provides Shareholder Update Letter

DENVER, Aug. 29, 2013 (GLOBE NEWSWIRE) -- Recovery Energy, Inc. (Nasdaq:RECV),
an independent oil and gas exploration and production company with operations
and assets in the Denver-Julesburg Basin, today issued the following
shareholder update letter from W. Phillip Marcum, CEO and A. Bradley Gabbard,
President and Chief Financial Officer.

Dear Recovery Energy Shareholders:

First and foremost, we wish to thank you for your continued support. We are
pleased to share with you our vision for the Company's future. Recovery Energy
has achieved meaningful progress, especially in this past half year, as we
continue to make measured gains toward implementing plans to create and
capture shareholder value. To that end, we are pursuing an expansive growth
program, which will leverage our proven assets while capitalizing on our
diverse opportunities across both conventional and unconventional horizons. We
expect the next six months to mark a major inflection point in our growth. To
be sure, our best days are before us as we have amassed the right mix of
opportunities and expertise to realize what we believe will be a promising
future.

Multifaceted Approach to Reserves Growth

Our operations are focused within the Denver-Julesburg (DJ) basin where we
control approximately 115,000 net acres, comprised primarily of long-term
leases and mainly contiguous land positions in Adams, Arapahoe, Washington and
Weld Counties, in Colorado, Carbon, Goshen, Laramie and Platte counties in
Wyoming, and Banner, Kimball and Scotts Bluff Counties in Nebraska.

Our plans include a multifaceted approach to growth with both conventional and
unconventional drilling programs, thereby diversifying our risk/reward
profile. With proved reserves of approximately 419 MBOE (Dec 2012) and current
net production of approximately 190 boepd, we have a strong foundation to
build from. 

The company plans to grow reserves through a conventional drilling program
that targets oil and liquids rich horizons such as the Muddy "J", Wykert and
other conventional reservoirs, and through an unconventional, horizontal
drilling program that targets principally the Niobrara and Codell
formations—both of which hold significant resource potential that can be
partially de-risked via the use of 3D seismic, and can experience
substantially improved recoveries via the use of multi-stage frac
technology.

We have identified numerous conventional and unconventional drilling locations
across our undeveloped lease inventory, and are well positioned to increase
daily oil production through both programs. We have kicked off our 2013
conventional development activities, and, late this year, plan to commence
horizontal drilling activities on one of our key Niobrara/Codell prospects
located in the heart of the Greater Wattenberg field.

Niobrara and Beyond

Recovery Energy's current Drilling Program has, as cornerstones, three
Niobrara/Codell prospects located in the Greater Wattenberg field, which is
the center of the Niobrara/Codell horizontal tight oil play.Development
commenced on one of these properties in 2012.With respect to the remaining
two properties, development will commence on one of the properties late this
year.The remaining property is scheduled to be developed in 2014.Initial
planning activities related to both of these properties will, in part, be
funded by proceeds from the recent issuance of convertible debentures.We
envision the development of 18 gross (7 net) producing horizontal wells on
these two Wattenberg properties.Full development of just these two properties
will require an investment of up to $30 million by the Company, and is
projected to add more than 2.0 million in net BOE to our resource portfolio.

Beyond these key properties, the Company has identified within its holdings a
wealth of other potential unconventional opportunities across multiple
horizons, and numerous low risk, conventional drilling opportunities,
including several offsets to existing production.

While we view our conventional prospects as an important part of our future,
the opportunity to develop unconventional resources via horizontal drilling
allows for superior potential production/per acre compared to conventional
drilling.

To place the DJ Basin opportunity in context, oil majors Shell Exploration and
Production, ConocoPhillips, Australia's Samson Oil and Gas, and Canada's
Encanaall have been identified as having significant acreage interests
throughout the Niobrara Region and the Wattenberg fields. Similarly, Noble
Energy, with holdings of some 860,000 net acres, is the largest leaseholder in
the DJ basin by a wide margin.Likewise, Anadarko Petroleum, EOG Resources,
Quicksilver Resources, Whiting Petroleum, Synergy Resources, Ultra Petroleum,
PDC Energy, Carrizo Oil and Gas all have substantial acreage interests in the
Niobrara play in the Wattenberg Field and expansive plans to bring wells
online in the coming year and beyond.

As further evidence of the extent of the opportunity, we note that the State
of Colorado reported total oil production of 49.3 million barrels in 2012
compared to 39.1 million barrels in 2011, an increase of 26%
(source—DOE-EIA).We believe that most of this increase can be attributed to
activity in the DJ Basin.

Risk Diversification

While our holdings in the Wattenberg Field represents a significant investment
and focus of the Company, we are also utilizing proceeds from our recent
financing to commence development of our Silo East Prospect and to drill an
offset well in our Hanson prospect area. We have completed a "proof of
concept" workover of our Anderson Well (Silo East), which is yielding good
initial production, the result of which has confirmed the potential for the
drilling of multiple conventional offsets on the Silo East prospect. Our
conventional drilling program will encompass the further development of the
Silo East field, as well as other similar prospects in the Company's Pine
Bluffs and Stateline prospect areas.

Finally, we expect that our 2014 capital budget will include the acquisition
of 3D seismic in certain specific areas of Pine Bluffs and Stateline Prospects
which will allow us to assess the potential for numerous pay zones in these
areas, including Niobrara, Codell, Greenhorn, "J" Sand, and Wykert.We also
plan to begin initial planning activities to commence evaluation of the
potential of numerous conventional and unconventional multi-pay zones
underlying our Southeast Hartville Uplift Prospect.

Capitalization and Funding for Future Growth

Recovery issued additional convertible debentures in July 2013 to fund a
portion of the conventional and horizontal drilling programs.We both
participated in this financing, along with certain existing debenture holders,
as well as certain affiliates of current debenture holders.This is noteworthy
as it speaks volumes about the confidence we share in realizing our future
vision.In addition, in April we completed preliminary restructuring of our
major debts, which modified the interest rate and monthly payment provisions
of our secured debt, and modified the due dates of both our secured debt and
our convertible debentures to May 2014.

Growth Drivers and Revenue Impact

With numerous identified drilling opportunities, subject to further funding,
we expect to realize substantial increases in our daily production rates and
reserve values. Achieving these goals will place the company in a position to
create significant shareholder value.

In closing, we firmly believe that Recovery Energy has the talent, resources
and strategic elements necessary to create the future we envision with the
continued support of you, our shareholders.

Sincerely,

W. Phillip Marcum A. Bradley Gabbard,
CEO President and
Chief Financial Officer

About Recovery Energy, Inc.

Recovery Energy, Inc. ("Recovery Energy") is a Denver-based independent oil
and gas exploration and production company that operates in the
Denver-Julesburg (DJ) Basin where it holds approximately 130,000 gross,
115,000 net acres. Recovery Energy's focus is to grow reserves and production
through a combination of acquisitions and conventional and unconventional
drilling activity, targeting the various oil-bearing formations that produce
in the DJ Basin.

Forward Looking Statements

This press release includes "forward-looking statements" as defined by the
U.S. Securities and Exchange Commission ("SEC"), including, without
limitation, statements regarding the Company's expectations, beliefs,
intentions or strategies regarding the future. Such forward-looking statements
relate to, among other things the Company's: (1) proposed exploration and
drilling operations, (2) expected production and revenue, and (3) estimates
regarding the reserve or resource potential of its properties. These
statements are qualified by important factors that could cause the Company's
actual results to differ materially from those reflected by the
forward-looking statements. Such factors include but are not limited to: (1)
the Company's ability to finance its continued exploration and drilling
operations, (2) positive confirmation of the reserves, production and
operating expenses associated with the Company's properties; and (3) the
general risks associated with oil and gas exploration and development,
including those risks and factors described from time to time in the Company's
reports and registration statements filed with the SEC.

CONTACT: MDC GROUP
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