Crew Energy Inc. - Announces 2013 Year End Reserves

 NEWS RELEASE TRANSMITTED BY Marketwired  FOR: Crew Energy Inc.  TSX SYMBOL:  CR  FEBRUARY 18, 2014  Crew Energy Inc. - Announces 2013 Year End Reserves  CALGARY, ALBERTA--(Marketwired - Feb. 18, 2014) - Crew Energy Inc. (TSX:CR) of Calgary, Alberta ("Crew" or the "Company") is pleased to announce the results of its independent reserve evaluation for the year ended December 31, 2013 as prepared by Sproule Associates Ltd. ("Sproule").  2013 HIGHLIGHTS  /T/  --  Achieved finding and development ("F&D") costs of $9.05 per boe on  proved plus probable reserves, including changes in future development  capital, resulting in a recycle ratio of 2.4 times;   --  Achieved all-in finding, development and acquisition ("FD&A") costs of  $9.65 per boe on proved plus probable reserves, including changes in  future development capital, resulting in a recycle ratio of 2.3 times;   --  Proved reserves increased 35% to 115.2 mmboe after production of 10.0  mmboe and net acquisitions of 2.4 mmboe. Proved reserves per share also  increased 35%;   --  Proved plus probable reserves increased 29% to 197.3 mmboe after  production of 10.0 mmboe and net acquisitions of 6.2 mmboe. Proved plus  probable reserves per share increased 28%;   --  Generated a proved plus probable reserve replacement ratio on production  of 543% and a proved reserve replacement ratio on production of 401%;   --  Crew's Septimus Montney program achieved F&D costs of $6.38 per boe on  proved plus probable reserves, including changes in future development  capital resulting in a recycle ratio of 3.1 times;   --  Proved plus probable reserves at Crew's Septimus Montney property  increased 82% year over year. Average proved plus probable undeveloped  Montney natural gas reserves increased to 4.3 bcf per well from 3.2 bcf  per well in 2012 and 2.6 bcf per well in 2011;   --  Proved plus probable reserves at Crew's Lloydminster property increased  18% over 2012 as a result of a successful 2013 drilling and recompletion  program;   --  Crew's net asset value increased 17% over 2012 to $13.99 per share  (reserves net present value discounted at 10%).  --  Crew achieved its targeted exit production range with December 2013  production averaging 29,300 boe per day while fourth quarter production  averaged 28,682 boe per day.  /T/  RESERVES  The reserves data set forth below is based upon an independent reserves assessment and evaluation prepared by Sproule with an effective date of December 31, 2013 (the "Sproule Report"). The following presentation summarizes the Company's crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for the Company's reserves using forecast prices and costs based on the Sproule Report. The Sproule Report has been prepared in accordance with definitions, standards, and procedures contained in the COGE Handbook and NI 51-101. The reserves evaluation was based on Sproule forecast escalated pricing and foreign exchange rates at December 31, 2013 as outlined in the table herein entitled "Price Forecast".   All evaluations and summaries of future net revenue are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein. Reserves included herein are stated on a company gross basis (working interest before deduction of royalties without including any royalty interests) unless noted otherwise. In addition to the detailed information disclosed in this news release, more detailed information will be included in the Company's Annual Information Form (the "AIF") which will be filed on the Company's profile at www.sedar.com in March 2014.   See "Information Regarding Disclosure on Oil and Gas Reserves and Operational Information" for additional cautionary language, explanations and discussions and "Forward Looking Information and Statements" for a statement of principal assumptions and risks that may apply.   Reserves Summary  In 2013, the Company's total proved plus probable reserves increased to 197.3 mmboe while proved reserves increased to 115.2 mmboe. The year over year growth in proved plus probable reserves of 29% was achieved after 10.0 mmboe of 2013 production. Of the increase in proved plus probable reserves, pool extensions and improved recoveries accounted for 25.6 mmboe which was concentrated at Crew's Septimus Montney property in northeast British Columbia. In the Sproule Report, approximately 298 undeveloped locations are booked in Crew's four core areas out of an inventory of over 2,500 potential drilling locations.  Northeast British Columbia Montney  At Crew's Septimus Montney property, proved plus probable reserves increased 82% to 84.7 mmboe. The majority of this increase occurred in the proved producing category recognizing better type well performance as a result of improved completion techniques and infrastructure enhancements. At Septimus, average proved plus probable undeveloped Montney reserves increased to 4.3 bcf per well from 3.2 bcf per well in 2012 and 2.6 bcf per well in 2011. Crew currently has 69 undeveloped locations booked at Septimus at an average proved plus probable reserve booking of 772 mboe per location (15% ngls), with 52 of those locations booked in the proved undeveloped category. The Company plans on drilling 14 net wells targeting liquids rich natural gas in northeast British Columbia in 2014.  At Tower, Crew drilled one well in 2013 and has booked proved plus probable reserves per well of 155 mboe (60% liquids) from six (4.6 net) locations. Evolving drilling and completion practices continue to improve the estimated ultimate recoveries of this play.  The Company has over 130 sections of land that are prospective for Montney oil production.   Deep Basin, Alberta  Proved plus probable reserves are unchanged after accounting for production. Crew plans to drill one Falher well in 2014 while the well drilled in 2012 continues to produce at over 10 mmcf per day surpassing the previously booked type curve. The Company has 98 undeveloped Cardium locations booked in this area.  Princess, Alberta  Proved plus probable reserves decreased 5% to 22.7 mmboe after accounting for production. The Company's limited 2013 capital spending at Princess was focused on waterflood optimization in the Pekisko and drilling on Crew's developing Mannville play. Crew currently has 40 undeveloped locations booked at Princess with 22 of those locations booked in the Mannville. The average undeveloped proved plus probable reserve booking in the Mannville oil play is 95 mboe per well. Crew plans to drill 16 net wells targeting Mannville oil in 2014.  Lloydminster, Alberta/Saskatchewan  Proved plus probable reserves increased 18% to 12,452 mboe, reflecting the successful 2013 drilling and recompletion program. Crew currently has 62 undeveloped locations booked at Lloydminster with 22 of those locations horizontal. The average undeveloped proved plus probable horizontal booking is 61 mbbls per location with vertical undeveloped proved plus probable reserve booking at 42 mbbls per location.  Crew plans to drill 14 net horizontal and 11 net vertical wells at Lloydminster in 2014.  The following table provides summary reserve information based upon the Sproule Report and using the published Sproule (2013-12-31) price forecast.   /T/  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Natural Gas   Natural Barrels of oil  Oil (3)        Liquids       gas  equivalent(2) ----------------------------------------------------------------------------  Gross(1)       Gross(1)  Gross(1)       Gross(1)  (mbbl)         (mbbl)    (mmcf)         (mboe) ---------------------------------------------------------------------------- Proved                                                                        Producing                    10,015          6,185   165,775         43,829  Non-producing                 2,410            181     4,733          3,379  Undeveloped                   7,566         11,790   291,966         68,017 ---------------------------------------------------------------------------- Total proved                  19,990         18,155   462,474        115,224 Probable                      14,430         13,195   326,722         82,078 ---------------------------------------------------------------------------- Total proved plus probable    34,420         31,350   789,198        197,302 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Notes:                                                                       (1) "Gross" reserves means Crew's working interest (operating and non-        operating) share before deduction of royalties and without including any  royalty interest of the Company.                                         (2) Oil equivalent amounts have been calculated using a conversion rate of    six thousand cubic feet of natural gas to one barrel of oil.             (3) Includes light, medium, and heavy oil. See the Company's AIF for          detailed product type categorization.                                    (4) May not add due to rounding.                                              /T/  Reserves Values  The estimated before tax future net revenues associated with Crew's reserves effective December 31, 2013 and based on the Sproule Report and the published Sproule (2013-12-31) future price forecast are summarized in the following table:  /T/  ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (MM$)                         0%         5%        10%        15%        20% ----------------------------------------------------------------------------  Proved                                                                         Producing              932,722    749,116    633,020    553,488    495,649   Non-producing          102,317     80,409     65,937     55,769     48,281   Undeveloped          1,095,908    647,576    406,710    264,723    174,885  ------------------------------------------------------- Total proved           2,130,947  1,477,102  1,105,668    873,980    718,816 Probable               2,064,605  1,116,771    712,425    500,738    373,551  ------------------------------------------------------- Total proved plus                                                             probable              4,195,552  2,593,873  1,818,094  1,374,718  1,092,367 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Notes:                                                                       (1) The estimated future net revenues are stated before deducting future      estimated site restoration costs and are reduced for estimated future     abandonment costs and estimated capital for future development            associated with the reserves.                                            (2) See the Company's AIF for the after-tax present values of future net      revenue attributed to Crew's reserves.                                   (3) May not add due to rounding.                                              /T/  Price Forecast  The Sproule (2013-12-31) price forecast is summarized as follows:  /T/  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  $US/$Cdn              Edmonton   Western Natural gas             Year        Exchange       WTI @     light    Canada    AECO/NIT   Westcoast  Rate     Cushing crude oil    Select        spot   Station 2 ----------------------------------------------------------------------------  (US$/bbl)  (C$/bbl)  (C$/bbl)  (C$/mmbtu)  (C$/mmbtu) 2014           0.940       94.65     92.64     77.81        4.00        3.95 2015           0.940       88.37     89.31     75.02        3.99        3.94 2016           0.940       84.25     89.63     75.29        4.00        3.95 2017           0.940       95.52    101.62     85.36        4.93        4.88 2018           0.940       96.96    103.14     86.64        5.01        4.96 2019           0.940       98.41    104.69     87.94        5.09        5.04 2020           0.940       99.89    106.26     89.26        5.18        5.13 2021           0.940      101.38    107.86     90.60        5.26        5.21 2022           0.940      102.91    109.47     91.96        5.35        5.30 2023           0.940      104.45    111.12     93.34        5.43        5.38 2024           0.940      106.02    112.78     94.74        5.52        5.47 2025 +         0.940     1.5%/yr   1.5%/yr   1.5%/yr     1.5%/yr     1.5%/yr ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Notes:                                                                       (1) Inflation is accounted for at 1.5% per year.                              /T/  Reserves Reconciliation  The following summary reconciliation of Crew's gross reserves compares changes in the Company's reserves as at December 31, 2013 to the reserves as at December 31, 2012 based on the Sproule (2013-12-31) future price forecast.   /T/  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Oil   Oil       NGL's    Natural Gas  Equivalent  TOTAL PROVED             (mbbls) (1)     (mbbls)         (mmcf)      (mboe)  ---------------------------------------------------------------------------- Opening Balance               20,617      14,483        299,922      85,087  Extensions & Improved                                                         Recovery                      2,601         841         47,372      11,337  Infill Drilling                1,008       1,388         84,175      16,425  Technical Revisions             (441)      2,074         52,366      10,361  Acquisitions                       0         556         14,785       3,020  Dispositions                     (68)       (102)        (2,625)       (608) Economic Factors                  78          (1)        (2,790)       (387) Production                    (3,805)     (1,084)       (30,731)    (10,011) ---------------------------------------------------------------------------- Closing Balance               19,990      18,155        462,474     115,224  ----------------------------------------------------------------------------  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Oil   Oil       NGL's    Natural Gas  Equivalent  PROVED PLUS PROBABLE     (mbbls) (1)     (mbbls)         (mmcf)      (mboe)  ---------------------------------------------------------------------------- Opening Balance               34,691      25,794        554,945     152,976  Extensions & Improved                                                         Recovery                      4,519       2,462        111,933      25,636  Infill Drilling                1,849       2,027        123,148      24,401  Technical Revisions           (2,800)        939         (1,631)     (2,132) Acquisitions                       0       1,393         37,003       7,560  Dispositions                    (166)       (202)        (5,872)     (1,347) Economic Factors                 132          20            403         219  Production                    (3,805)     (1,084)       (30,731)    (10,011) ---------------------------------------------------------------------------- Closing Balance               34,420      31,349        789,198     197,302  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Notes:                                                                       (1) Includes light, medium, and heavy oil. See the Company's AIF for          detailed product type categorization.                                    (2) May not add due to rounding                                               /T/  Capital Program Efficiency   During 2013, Crew's capital expenditures (unaudited), net of acquisitions and dispositions, resulted in proved plus probable reserve additions of 54.3 mmboe at a net FD&A cost of $9.65 per boe including changes in future development capital ("FDC"). Proved reserve additions in 2013 were 40.1 mmboe which were added at a net FD&A cost of $12.28 per boe including changes in FDC.   The efficiency of the Company's capital program for the year ended December 31, 2013 and historical comparatives are summarized below.   /T/  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Three Year      2013              2012           2013-2011     ----------------------------------------------------------------------------  Proved            Proved            Proved  plus              plus              plus  Proved Probable   Proved Probable   Proved Probable ----------------------------------------------------------------------------  Exploration and                                                               Development                                                                  expenditures(2)                                                             ($ thousands)           220,034  220,034  258,791  258,791  854,699  854,699 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Acquisitions/                                                                 (Dispositions) (1)                                                          ($ thousands)            40,218   40,218  (96,557) (96,557) 485,988  485,988 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Change in future                                                              development capital                                                         (2) ($ thousands)                                                             - Exploration and                                                             Development           211,741  215,403  167,932  168,815  421,667  561,083  - Acquisitions/                                                               Dispositions           21,101   48,815  (34,940)(119,180)  94,177  136,760 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Reserves additions with                                                       revisions and economic                                                       factors (Mboe)                                                               - Exploration and                                                             Development            37,736   48,124   22,777   36,504   77,902  115,534  - Acquisitions/                                                               Dispositions            2,412    6,213   (3,090) (10,579)  20,272   35,624 ----------------------------------------------------------------------------  40,148   54,337   19,687   25,925   98,174  151,158 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Finding & Development                                                         Costs(2 & 3)($/boe)                                                          - with revisions and                                                          economic factors        11.44     9.05    18.73    11.71    16.27    12.25  Finding, Development &                                                        Acquisition Costs (3 &                                                       4) ($/boe)                                                                   - with revisions and                                                          economic factors        12.28     9.65    15.00     8.17    18.82    13.49  Recycle Ratio(5)                                                              (F,D,&A)                   1.8      2.3      1.5      2.7                    Reserves Replacement        401%     543%     193%     254%                   Reserve Life Index                                                            based on annualized                                                          2013 fourth quarter                                                          production (years)        11.0     18.9      8.6     15.5                   ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  (1) Acquisition costs related to the 2011 corporate acquisition of Caltex     reflects the consideration paid for the shares acquired plus the net      debt assumed, both valued at closing and does not reflect the fair        market value allocated to the acquired oil and gas assets under           International Financial Reporting Standards ("IFRS"). Acquisition costs   in 2013 related to the announced Montney acreage acquisition referenced   in the July 9, 2013 press release.                                       (2) The aggregate of the exploration and development costs incurred in the    most recent financial year and the change during that year in estimated   future development costs generally will not reflect total finding and     development costs related to reserve additions for that year.            (3) Calculation includes changes in future development costs.                (4) Crew calculates FD&A costs which incorporate both the costs and           associated reserve additions related to acquisitions net of any           dispositions during the year. Since acquisitions and divestitures have    had a significant impact on Crew's annual reserve replacement costs, the  Company believes that FD&A costs provide a meaningful portrayal of        Crew's cost structure.                                                   (5) The 2013 recycle ratio is calculated using the Company's Q4 2013          operating net back of $22.12 per boe (unaudited) which includes           commodity related hedging gains and losses for the quarter.               /T/  Future Development Capital  The following table provides a summary of future development capital based upon the Sproule Report.  /T/  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Total   Total Proved Future Development Capital ($thousands)                Proved     + Probable ---------------------------------------------------------------------------- 2014                                                  141,312        183,702 2015                                                  118,176        233,412 2016                                                  155,716        228,795 2017                                                  136,566        178,547 2018                                                   33,910         33,979 Remainder                                             100,926        136,865 ---------------------------------------------------------------------------- Total undiscounted                                    686,606        995,300 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  /T/  Net Asset Value  The following table provides a calculation of Crew's estimated net asset value at December 31, 2013 based on the estimated future net revenues associated with Crew's proved plus probable reserves before income tax as presented in the Sproule Report and including Crew's internal assessment of undeveloped land values.  /T/  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  5%       10%   Discount  Discount  ---------------------------------------------------------------------------- ($ thousands)                                                                Proved plus probable reserves                           2,593,873 1,818,094  Undeveloped Land (1)                                      297,330   297,330  Long-term debt as at December 31, 2013 (2)               (343,311) (343,311) Estimated working capital deficiency as at December 31,                       2013 (2&3)                                               (40,103)  (40,103) Proceeds from dilutive stock options                       15,035    15,035  ---------------------------------------------------------------------------- Net asset value                                         2,522,824 1,747,045   Diluted Common shares outstanding (thousands)             124,891   124,891  ---------------------------------------------------------------------------- Net asset value per share                                  $20.20    $13.99  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------  Notes:                                                                       (1) Based upon an internal evaluation of the fair market value of the         Company's undeveloped land holdings as at December 31, 2013, which        evaluation was completed principally using industry activity levels,      third party transactions and land acquisitions that occurred in           proximity to the Company's undeveloped lands during the past year.       (2) Figures include estimated information based on unaudited financial        results that may change.                                                 (3) Working capital deficiency includes an estimate of the Company's          accounts receivable less accounts payable and accrued liabilities as at   December 31, 2013.                                                        /T/  2014 Guidance  In December, Crew provided details of the Company's 2014 budget including forecast average production of 29,500 to 30,500 boe per day and exit production of 31,500 to 32,500 boe per day based upon planned exploration and development capital expenditures of $246 million to facilitate the initial phases of the Company's five year Montney development plan. Crew achieved its exit guidance with December 2013 average production of 29,300 boe per day and average fourth quarter 2013 production of 28,682 boe per day.  Exploration and development capital expenditures of $220 million were on budget in 2013. For detailed information regarding our 2014 capital program, please see our press release dated December 16, 2013.  CAUTIONARY STATEMENTS  Unaudited financial information  Certain financial and operating information included in this press release for the quarter and year ended December 31, 2013, including finding and development costs and net asset value, are based on estimated unaudited financial results for the quarter and year then ended, and are subject to the same limitations as discussed under Forward Looking Information set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2013 and changes could be material.  Information Regarding Disclosure on Oil and Gas Reserves and Operational Information  Our oil and gas reserves statement for the year ended December 31, 2013, which will include complete disclosure of our oil and gas reserves and other oil and gas information in accordance with NI 51-101, will be contained within our Annual Information Form which will be available on our SEDAR profile at www.sedar.com. The recovery and reserve estimates contained herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In relation to the disclosure of estimates for individual properties, such estimates may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. The Company's belief that it will establish additional reserves over time with conversion of probable undeveloped reserves into proved reserves is a forward-looking statement and is based on certain assumptions and is subject to certain risks, as discussed below under the heading "Forward-Looking Information and Statements".  In relation to the disclosure of net asset value ("NAV"), the NAV table shows what is normally referred to as a "produce-out" NAV calculation under which the current value of the Company's reserves would be produced at forecast future prices and costs and do not necessarily represent a "going concern" value of the Company. The value is a snapshot in time and is based on various assumptions including commodity price forecasts and foreign exchange rates that vary over time. It should not be assumed that the future net revenues estimated by Sproule represent the fair market value of the reserves, nor should it be assumed that Crew's internally estimated value of its undeveloped land holdings represent the fair market value of the lands.  Resource Estimates  This news release contains references to estimates of oil and gas classified as Total Petroleum Initially In Place ("TPIIP") in the Septimus area of Crew's operations in northeastern British Columbia which are not, and should not be confused with, oil and gas reserves. Such estimates are based upon independent resource evaluations effective as at April 30, 2013 and May 31, 2013, respectively, prepared in accordance with the Canadian Oil and Gas Evaluation Handbook. Such estimates are subject to a number of cautionary statements, assumptions, risks, positive and negative factors relevant to the estimates and contingencies, the details of which were set forth in Crew's previously disseminated press release dated July 9, 2013. Accordingly, readers are referred to and encouraged to review the sections entitled "Montney Resource Evaluation", "Definitions of Oil and Gas Resources and Reserves" and "Information Regarding Disclosure on Oil and Gas Reserves, Resources and Operational Information" in the July 9, 2013 press release for applicable definitions, cautionary language, explanations and discussion of resources estimated herein, all of which is incorporated herein by reference.   Forward-looking information and statements  This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.  In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: the recognition of significant additional reserves under the heading "Reserves", the volumes and estimated value of Crew's oil and gas reserves; the life of Crew's reserves; the volume and product mix of Crew's oil and gas production; future oil and natural gas prices and Crew's commodity risk management program; future results from operations and operating metrics, future development, exploration, acquisition and development activities (including drilling plans) and related production including 2014 average and exit production forecasts and reserves expectations.  The recovery and reserve estimates of Crew's reserves and resources provided herein are estimates only and there is no guarantee that the estimated reserves or resources with be recovered. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Crew will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities consistent with past operations; the quality of the reservoirs in which Crew operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Crew's reserve volumes; continued availability of debt and equity financing and cash flow to fund Crew's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Crew operates; and the ability of Crew to successfully market its oil and natural gas products.  The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Crew's products, the early stage of development of some of the evaluated areas; the potential for variation in the quality of the Montney formation; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents, (including, without limitation, those risks identified in this news release and Crew's Annual Information Form).  The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.  BOE equivalent  Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE 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 ration based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 ratio may be misleading as an indication of value.  Crew is a Calgary, Alberta based oil and gas exploration, development and production company whose shares are traded on The Toronto Stock Exchange under the trading symbol "CR".  -30- FOR FURTHER INFORMATION PLEASE CONTACT:  Crew Energy Inc. Dale Shwed President and C.E.O. (403) 231-8850 or Crew Energy Inc. John Leach Senior Vice President and C.F.O. (403) 231-8859 or Crew Energy Inc. Rob Morgan Senior Vice President and C.O.O. (403) 513-9628  INDUSTRY:  Energy and Utilities - Oil and Gas   SUBJECT:  DRO