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Marquee Energy Ltd. announces acquisition to further consolidate its oil focused Michichi core area, operations update, and

Marquee Energy Ltd. announces acquisition to further consolidate its oil 
focused Michichi core area, operations update, and upward revision to 2014 
guidance 
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED 
STATES/ 
CALGARY, Feb. 24, 2014 /CNW/ - Marquee Energy Ltd. ("Marquee" or the 
"Company") (TSXV: MQL) is pleased to announce that it has entered into an 
agreement with Paramount Resources Ltd. ("Paramount") to acquire from 
Paramount (the "Acquisition") certain low decline, operated, producing assets 
(the "Assets") contiguous with the Company's operations at Michichi. The 
Assets are estimated by Marquee's management to have annualized 800 boe/d of 
production and include 120 net sections of land with 50 net sections of oil 
prone Mannville/Banff rights, a gas processing facility with 20mmcf/d 
capacity, and extensive gas gathering infrastructure covering four townships 
of land.  The Assets are immediately offsetting Marquee's Michichi lands and 
production, and are adjacent to the Company's most recent Banff oil producer. 
This well has been on production since December 16, 2013 and averaged over 230 
boe/d (80% oil and liquids) during the month of January 2014. On the 
Acquisition lands, Marquee has identified more than 20 unbooked near term 
horizontal drilling locations for Mannville and Banff oil potential in close 
proximity to this well. 
The purchase price is $11,650,000 (the "Purchase Price") and will be paid 
through the issuance of 13,705,883 common shares ("Shares") in the capital of 
Marquee at $0.85 per Share. On completion of the Acquisition Paramount will 
own approximately 14% of the outstanding Shares of Marquee. As one of 
Marquee's directors is also a director of Paramount, Paramount is considered a 
"non-arm's length" party under the rules of the TSX Venture Exchange (the 
"TSXV"), and as a result 5,257,067 of the Shares to be issued to Paramount 
will be subject to a Non-Voting Agreement pursuant to which Paramount will 
agree not to exercise the voting rights in respect of such Shares until either 
Marquee obtains shareholder approval ("Shareholder Approval") to permit voting 
of these Shares, or the TSXV requirement for Shareholder Approval has been 
waived or no longer applies. Marquee will seek to obtain Shareholder Approval 
at its annual meeting of shareholders, which will be held as soon as 
practicable, and in any event by no later than May 15, 2014. Marquee will be 
recommending that its shareholders vote in favour of the Shareholder Approval. 
If Shareholder Approval is not obtained on or before May 15, 2014, Marquee 
will be required to issue Paramount an additional 400,000 Shares. The closing 
of the Acquisition is subject to customary conditions including receipt of 
TSXV approval and is expected to occur on or about March 6, 2014. 
National Bank Financial Inc. and Peters & Co. Limited are acting as joint 
financial advisors to Marquee with respect to the Acquisition. National Bank 
Financial Inc. has provided the Board of Directors of Marquee with its opinion 
that, subject to its review of the final form of documents effecting the 
Acquisition, the consideration to be paid by Marquee for the Assets is fair, 
from a financial point of view, to Marquee shareholders. 
ACQUISITION OVERVIEW 
Pro Forma the Acquisition, Marquee will be the largest landowner and control 
the most extensive gathering and processing system in the Michichi area. The 
Acquisition increases Marquee's undeveloped land base at Michichi to over 
135,000 net acres, and increases the Mannville/Banff oil drilling inventory to 
over 175 net horizontal drilling locations. The addition of a 100% owned and 
operated gas plant and an extensive gathering system extends Marquee's control 
of infrastructure to over seven townships or 250 square miles. 
Marquee estimates the value of the undeveloped lands included in this 
Acquisition at approximately $4.9 million. The Acquisition, before accounting 
for land value, has the following characteristics: 


    •     Purchase Price                         $11.65 million
    •     Annualized Production  (1)             800 boe/d (95% gas)
    •     Proved Developed Producing ("PDP")     2,110 Mboe
    Reserves (2)
    •     Proved Reserves(2)                     2,573 Mboe
    •     Proved NPV 10% (2)(3)                  $10.8 million
    •     Proved + Probable Reserves (2)         3,605 Mboe
    •     Proved + Probable NPV 10% (2)(3)       $15.7 million
    •     Proved + Probable RLI (2)(1)           12.3 years
    •     $/flowing boe of production            $14,560/boe/d
    •     $/boe PDP Reserves                     $5.52/boe
    •     $/boe Proved Reserves                  $4.52/boe
    •     $/boe P+P Reserves                     $3.23/boe
    •     2013 Net Operating Income (4)          $2.3 million
    •     Undeveloped Lands                      23,400 net acres
    •     Undeveloped Land value (internal       $4.9 million
    estimate)
    Notes:  
           (1)     Estimated annualized production.
                   Derived from the Paramount Reserves Report prepared by
           (2)     an independent reserves evaluator effective September
                   30, 2013.
           (3)     Before tax net present value based on a 10 percent
                   discount.
           (4)     Revenue less royalties and operating costs, average
                   realized unhedged gas price $3.24/mcf.

OPERATIONS UPDATE

Marquee has drilled six wells at Michichi and two wells at Lloydminster since 
the beginning of Q4 2013 and is currently drilling a seventh well at Michichi. 
Both wells at Lloydminster and three of the six completed Michichi wells are 
now on production. The Company plans to drill and tie-in two more wells at 
Lloydminster in the first quarter. Three of the six Michichi wells are 
completed and will be on production before the end of the quarter. The current 
well being drilled will complete the winter program, with new drilling to 
resume in June at Michichi and Lloydminster.

Production in Q4 2013 averaged 2,113 boe/d and January 2014 production averged 
3,800 boe/d (53% oil and liquids) based on field estimates. Anticipated 
production levels for the month were negatively impacted by a number of 
factors including cold weather, access issues, facility restrictions and lower 
than type curve results for the first two Michichi wells tied in late Q4, 
2013. Approximately 600 boe/d (60% gas) of production was impacted which 
included 380 boe/d (80% gas) on existing producing assets by weather and 
mechanical issues, and 220 boe/d (40% gas) related to a delay in the 
completion and tie-in of the last well drilled by Marquee in 2013 and third 
party facility restrictions on non-operated properties. Efforts are underway 
to have production affected by weather, mechanical problems and tie-in delays 
on-stream in the second quarter of 2014.

Marquee has already begun to extensively apply 2D and 3D seismic to map both 
the Banff and Detrital (Mannville) oil plays at Michichi. As noted above, the 
first well location identified and drilled using 3D seismic is the Banff 
horizontal well that directly offsets the Acquisition. In late 2013, the 
company shot a new 18 square mile 3D seismic program at Michichi and now 
possesses an inventory of more than 274 square miles of 3D seismic in the 
area. The Acquisition will contribute an additional 45 square miles of 3D 
seismic coverage. The combined database will be valuable in identifying and 
selecting future high quality, low risk horizontal oil drilling locations.

GUIDANCE

The following sets forth Marquee's upwardly revised guidance estimates for 
2014, taking into account the information provided in the operations update 
and the March 1 effective date of the Acquisition:
                                         2014E Guidance (After Acquisition)
    •     Shares Outstanding       98.2 million
    •     2014 Average             4,900-5,100 boe/d
    Production
    •     2014 Exit Production     5,600-5,700 boe/d
    •     2014 Forecast Cash       $38-40 million
    Flow(1)
    •     2014 exit debt to        1.9 times
    2014 cash flow(1)
    •     2014 Capital Program     $46 million
    Notes:
              (1)      Based on $95 CDN WTI, $3.60 AECO and -$25/bbl heavy
                      oil differential

On closing of the Acquisition, Marquee will have grown from100 boe/d to over 
4,600 boe/d in less than three years. The Company has achieved consistent year 
over year growth in production, reserves, and cash flow since its 
recapitalization in June of 2011 and is now the most active driller in the 
Michichi Mannville/Banff oil play where it owns and operates gathering and 
processing infrastructure that accesses more than 250 sections of land.

ABOUT MARQUEE ENERGY LTD:

Marquee Energy Ltd. is a publicly traded Calgary-based growth oriented junior 
oil and gas company currently focused on high rate of return oil development 
and production. Marquee is committed to growing the company through 
exploitation of existing opportunities and continued consolidation within its 
core area at Michichi. An updated presentation and additional information 
about Marquee may be found on its website www.marquee-energy.com and in its 
continuous disclosure documents filed with Canadian securities regulators on 
the System for Electronic Document Analysis and Retrieval (SEDAR) at 
www.sedar.com.

FORWARD LOOKING INFORMATION

This press release contains certain forward looking information (collectively 
referred to herein as "forward looking statements") within the meaning of 
applicable Canadian securities laws and forward looking within the meaning of 
the U.S. Private Securities Reform Act of 1995. Forward looking statements are 
often, but not always, identified by the use of words such as "anticipate", 
"believe", "plan", "potential", "intend", "objective", "continuous", 
"ongoing", "encouraging", "estimate", "expect", "may", "will", "project", 
"should", or similar words suggesting future outcomes.  Forward-looking 
statements contained in this press release include but are not limited to:
        --  the timing of matters related to the Acquisition;
        --  the anticipated benefits of the Acquisition;
        --  the anticipated drilling inventory available to Marquee
            following completion of the Acquisitoin;
        --  the expectation of reduced operating and capital costs;
        --  the accretive nature of the Acquisition;
        --  anticipated production levels, debt to cash flow ratios,
            reserves, operating net-backs, and those other metrics related
            to the Acquisition;
        --  anticipated cash flow, cash flow per share, reserves, drilling
            locations, net debt, production levels, debt to cash flow
            ratios and those other metrics anticipated for Marquee after
            giving effect to the Acquisition; and
        --  anticipated receipt of TSXV approval of the Acquisition.

In addition, statements relating to "reserves" are by their nature 
forward-looking information, as they involve the implied assessment, based on 
certain estimates and assumptions that the reserves described can be 
profitably produced in the future. The recovery and reserves estimates 
provided herein are estimates only and there is no guarantee that the 
estimated reserves will be recovered. The estimated future net revenue from 
the production of the disclosed oil and natural gas reserves does not 
represent the fair market value of these reserves.

The forward looking statements contained in this document are based on certain 
key expectations and assumptions made by Marquee, including but not limited to:
        --  that the Acquisition and all required approvals will be
            completed within the timeline anticipated by Marquee;
        --  that parties will be able to satisfy, in a timely manner, the
            other conditions to the closing of the Acquisition;
        --  that the Assets continue to operate in all respects consistent
            with their current performance;
        --  that Marquee will be able to successfully implement its planned
            capital program in respect of its existing assets and the
            Assets acquired pursuant to the Acquisition.

Readers are cautioned that the foregoing list of risk factors is not 
exhaustive.  Although management of Marquee considers these assumptions to be 
reasonable based on information currently available to them, undue reliance 
should not be placed on the forward looking statements because no assurances 
can be given by Marquee that they may prove to be correct.

By their very nature, forward looking statements are subject to certain risks 
and uncertainties (both general and specific) that could cause actual events 
or outcomes to differ materially from those anticipated or implied by such 
forward looking statements. These risks and uncertainties include, but are not 
limited to:
        --  risks associated with the oil and gas industry (e.g.
            operational risks in development, exploration and production;
            delays or changes in plans with respect to exploration or
            development projects or capital expenditures);
        --  drilling plans and operational activities may be delayed or
            modified to react to market conditions;
        --  regulatory approvals or availability of services causing
            results to be delayed;
        --  preliminary production results may not necessarily be
            indicative of longer term results or that wells will ultimately
            perform on the type curves assumed;
        --  changes in commodity prices;
        --  changes in tax laws;
        --  changes in royalty rates;
        --  the uncertainty of estimates and projections relating to
            production, cash generation, costs and expenses;
        --  imprecision of reserves estimates and estimates of recoverable
            quantities of oil, natural gas and liquids;
        --  health, safety, litigation and environmental risks;
        --  access to capital;
            failure to realize anticipated production increases,
            anticipated cost savings and other synergies in connection with
            the Acquisition;
        --  risks regarding the integration of Marquee and the Assets;
        --  incorrect assessment of the value of Marquee and/or the Assets;
        --  failure to obtain the required shareholder, TSXV and other
            third party approvals;
        --  unforeseen delays in satisfying the conditions required to be
            satisfied to implement the Acquisition; and
        --  those other risks described in Marquee's Annual Information
            Form dated March 21, 2013, filed on
            SEDAR under Marquee's profile on
            www.sedar.com.

In addition, there are no assurances the Acquisition will be completed. As a 
consequence, actual results may differ materially from those anticipated in 
the forward looking statements and readers should not place undue reliance on 
the forward looking information contained in this press release.

The forward looking statements contained in this press release are made as of 
the date hereof and neither Marquee undertake any obligation to update 
publicly or to revise any of the included forward looking statements, except 
as required by applicable law. The forward looking statements contained herein 
are expressly qualified by this cautionary statement.

Barrels of oil equivalent (boe) may be misleading, particularly if used in 
isolation. A boe conversion ratio of six Mcf to one bbl is based on an energy 
equivalency conversion method primarily applicable at the burner tip and do 
not represent a value equivalency at the wellhead. Given that the value ratio 
based on the current price of oil as compared to natural gas is significantly 
different from the energy equivalency conversion ratio of six to one, 
utilizing a boe conversion ratio of six Mcf to one bbl may be misleading as an 
indication of value.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that 
term is defined in the policies of the TSX Venture Exchange) accepts 
responsibility for the adequacy or accuracy of this release.



SOURCE  Marquee Energy Ltd. 
Marquee Energy Ltd. Richard Thompson President & Chief Executive Officer (403) 
817-5561 
Roy Evans Vice President, Finance & Chief Financial Officer (403) 817-5568 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2014/24/c6646.html 
CO: Marquee Energy Ltd.
ST: Alberta
NI: OIL NASDAQ MNA  
-0- Feb/24/2014 12:00 GMT
 
 
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