Glacier Upper Montney Well Tested at Record 21 Mmcf/d, Lower Montney Wells Continue to Outperform, Strategic Alternatives

  Glacier Upper Montney Well Tested at Record 21 Mmcf/d, Lower Montney Wells
            Continue to Outperform, Strategic Alternatives Update

PR Newswire

CALGARY, Dec. 4, 2013

(TSX: AAV) (NYSE: AAV)

CALGARY, Dec. 4, 2013 /PRNewswire/ - Advantage Oil & Gas Ltd. ("Advantage" or
the "Corporation") is pleased to provide the following operational update
related to our current Phase VI Glacier Development program and an update on
our strategic alternatives process. Our Phase VI drilling program commenced in
August 2013 and is designed to increase Glacier production to 135 mmcfe/d in
April 2014 which represents a production growth of 25% compared to April 2013.

New Glacier Upper Montney Well Tested at a Record 21 Mmcf/d

  *A new Upper Montney well located at 100/5-20-76-12w6 was recently
    completed with a 14 stage high rate slick water frac utilizing an open
    hole packer system. This well is located in the eastern portion of our
    Glacier land block north of our Glacier gas plant.
  *The new 100/5-20-76-12w6 Upper Montney well was production tested for 71
    hours and demonstrated a final gas flow rate at the end of the test period
    of 18.4 mmcf/d at a final flowing pressure of 8,633 kpa. The final gas
    flow rate normalized to our gas gathering system average pressure of 3,000
    kpa is 21.2 mmcf/d.
  *The 100/5-20-76-12w6 well demonstrated a final gas flow rate that is two
    to three times better than directly offsetting older Upper Montney wells
    completed with our previous frac technique. This new Upper Montney well
    also represents the best well we have drilled at Glacier on a total rate
    and rate per frac basis as compared to our 80 Glacier Upper Montney wells
    and the 105 total Glacier Montney wells drilled and completed to date.
  *We believe that continued refinement of completion techniques and the
    development of new technology combined with our significant experience at
    Glacier will improve well performance in all layers of our Montney
    "Pentastack".

Lower Montney Wells Continue to Outperform

  *In order to prove up reserves in the eastern half of our Glacier land
    block where no Lower Montney reserves have been booked by our third party
    independent engineering firm, Sproule & Associates Limited ("Sproule"),
    several Lower Montney wells are included in our current Phase VI drilling
    program. One of these wells is located at 100/1-16-76-12w6 which has
    recently been drilled and completed with a 14 stage high rate slick water
    frac utilizing an open hole packer system.
  *The new 100/1-16-76-12w6 Lower Montney well was production tested for 72
    hours and demonstrated a final gas flow rate at the end of the test period
    of 6.7 mmcf/d at a final flowing pressure of 4,218 kpa. The final gas flow
    rate normalized to our gas gathering system average pressure of 3,000 kpa
    is 6.8 mmcf/d.
  *The success of the 100/1-16-76-12w6 well demonstrates that the Lower
    Montney reservoir is highly productive in the eastern half of our Glacier
    land block. Additionally, this successful result provides additional
    confidence that conversion of economic contingent resources, as identified
    by Sproule, is possible through drilling and utilization of revised
    completion techniques.
  *As indicated in our press release dated November 7, 2013, two new Lower
    Montney wells located in the southwest portion of our Glacier land block
    were completed in October 2013 and tested at a combined final flow rate of
    20 mmcf/d. These two new wells are the southernmost horizontal wells we
    have drilled in the Lower Montney and illustrate that the southern portion
    of our Glacier land block is also capable of being highly productive in
    the Lower Montney formation. These two new wells will also result in new
    reserve additions in this area.
  *These two new Lower Montney wells were brought on-production in November
    2013 and demonstrated strong production rates in excess of the final test
    rates. The first Lower Montney well at 100/15-31-75-13w6 commenced
    production at a rate of 11.9 mmcf/d and the second Lower Montney well at
    100/10-31-75-13w6 commenced production at a rate of 11.8 mmcf/d. After two
    weeks of continuous production, both wells are still capable of sustaining
    these rates and have been choked back due to wellsite facilities
    constraints.
  *These two new Lower Montney wells are demonstrating initial production
    trends that are similar to our earlier Lower Montney well at
    100/7-7-76-13w6 which was completed with a similar frac design in Q1 2013.
    The 100/7-7-76-13w6 well was brought on production at 12 mmcf/d and has
    produced 1.8 bcf after nine months of production as compared to an average
    of 0.61 bcf per well from older offset Lower Montney wells.
  *These initial production rates and sustainment of strong rates
    significantly outperform our historical Lower Montney type curves.

Glacier Gas Plant Throughput Tested at 139 Mmcf/d

  *Strong well results at Glacier combined with the processing of third party
    natural gas volumes during November provided the opportunity to conduct a
    throughput test at our Glacier gas plant.
  *For several sustained periods in November, the Glacier gas plant processed
    natural gas volumes up to 139 mmcf/d sales with no operational issues.
    Recent regulatory approvals have been received and the gas plant is
    currently licensed to handle up to 160 mmcf/d of natural gas. The addition
    of one new compressor to the existing gas plant is required to increase
    processing capacity to 195 mmcf/d of natural gas sales.

Phase VI Glacier Capital Development Program On-Track

  *Our Phase VI Glacier capital development program which is designed to ramp
    Advantage production to 135 mmcfe/d is progressing on-track with three
    drilling rigs.
  *To date, 13 of the total 22 wells in the program have been rig released.
    Of the 13 wells drilled, six are Lower Montney wells, three are Middle
    Montney wells and four are Upper Montney wells.
  *We anticipate additional well completion information will be available
    during the latter half of December 2013.

Strategic Alternatives Process Update

  *The Corporation's previously announced strategic alternatives process
    remains ongoing. The bid date communicated to interested parties has now
    passed and the Corporation, along with its financial advisors, is
    reviewing the proposals received from those parties who submitted bids.
  *The Corporation cautions that there is no assurance that the strategic
    process will result in an acceptable transaction.

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", "illustrate",  "expect", "may",  "will", "project",  "predict", 
"potential", "possible",  "targeting", "intend",  "could", "might",  "should", 
"believe",  "confidence",  "would"   and  similar   expressions  and   include 
statements relating to, but not  limited to, anticipated effect of  refinement 
of completion techniques, development of new technology and our experience  at 
Glacier on  well  performance;  the  Corporation's  anticipated  drilling  and 
completion  plans;   anticipated   timing  of   additional   well   completion 
information; the  Corporation's development  plan  to increase  production  at 
Glacier and the  anticipated production  levels and  timing thereof;  expected 
reserve additions  in  the  southwest  portion  of  our  Glacier  land  block; 
anticipated production and forecast production levels under the  Corporation's 
Phase VI  capital development  program; and  the status  of the  Corporation's 
strategic alternatives process. 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; 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; ability  to 
obtain  required  approvals  of  regulatory  authorities;  ability  to  access 
sufficient capital from internal and external sources; and failure to complete
an acceptable transaction pursuant to the Corporation's strategic alternatives
process. 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 estimates 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, final  gas flow rates  and average  gas 
flow rates 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. A pressure transient  analysis or well-test interpretation  has 
not been carried out  in respect of the  100/5-20-76-12 w6 Upper Montney  well 
and the  100/1-16-76-12w6 Lower  Montney  well. Accordingly,  the  Corporation 
cautions that the test results should be considered to be preliminary.

Barrels of  oil  equivalent (boe)  and  thousand  cubic feet  of  natural  gas 
equivalent (mcfe) may be  misleading, particularly if  used in isolation.  Boe 
and mcfe conversion ratios have been calculated using a conversion rate of six
thousand cubic feet of natural gas equivalent to one barrel of oil. A boe  and 
mcfe 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.

The following abbreviations used in this press release have the meanings set
forth below:

      
mcf    thousand cubic feet
mcfe   thousand cubic feet of natural gas equivalent, using the ratio of 6 mcf
       of natural gas to 1 bbl of oil
mmcfe  million cubic feet of natural gas equivalent, using the ratio of 6 mcf
       of natural gas to 1 bbl of oil
mmcf   million cubic feet
mmcf/d million cubic feet per day
bbl    barrel
Boe/d  barrels of oil equivalent per day
      



SOURCE Advantage Oil & Gas Ltd.

Contact:

Investor Relations
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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