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Palliser Oil & Gas Corporation Reports 2013 Year End Reserves, Operations Update, and Corporate Update

 Palliser Oil & Gas Corporation Reports 2013 Year End Reserves, Operations  Update, and Corporate Update  /NOT FOR DISTRIBUTION IN THE UNITED STATES NEWSWIRE SERVICES OR FOR  DISSEMINATION IN THE UNITED STATES/  CALGARY, Feb. 25, 2014 /CNW/ - Palliser Oil & Gas Corporation ("Palliser" or  the "Company") (TSXV: PXL) would like to provide information on its oil and  gas reserves as of December 31, 2013 and an operations and corporate update.  Highlights of Palliser's Year End 2013 Reserves are as follows:            --  Generated one and four year average total proved plus probable             finding, development and acquisition ("FD&A") costs of $24.90             and $22.45 respectively per boe including changes in future             development capital ("FDC"); and         --  Increased corporate proved and probable reserves by 19 percent             from 7,921 Mboe at December 31, 2012 to 9,410 Mboe at December             31, 2013, replacing 274% of the Company's 2013 production.  Reserves Summary  Palliser's reserves have been independently evaluated by the Corporation's  independent reserve engineering firm, Sproule Unconventional Limited  ("Sproule").  The reserves were evaluated in accordance with National  Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI  51-101") and the Canadian Oil and Gas Evaluation Handbook (""COGEH"") reserves  definitions.  Reserves and Net Present Value (Forecast Prices and Costs)  The following tables summarize Palliser's remaining gross interest reserve  volumes along with the value of future net revenue utilizing Sproule's  forecast pricing and cost estimates as at December 31, 2013.                                                                   Reserves                                                                                  Oil & NGL       Gas         BOE                                Gross  Net  Gross Net  Gross  Net     December 31, 2013          Mbbls Mbbls MMcf  MMcf Mboe  Mboe     Proved                                                              Producing                1,746 1,382   468  446 1,834 1,466       Non-producing            1,149   887     -    - 1,149   887       Undeveloped              2,058 2,064     -    - 2,508 2,064     Total proved               5,402 4,332   468  446 5,491 4,416       Probable                 3,903 3,070    97   92 3,919 3,085     Total proved plus probable 9,306 7,402   565  539 9,410 7,502                                                                     Net present value of future net revenue                                                                 Present value ($000's)(1)                                                      discounted at rate of     December 31, 2013                             0%       5%      10%     Proved                                                                   Producing                              $45,378  $41,735  $38,786       Non-producing                           30,390   22,019   16,537       Undeveloped                             46,891   38,313   31,595     Total proved                             122,659  102,066   86,918     Probable                                 101,539   80,870   66,343     Total proved plus probable              $224,198 $182,936 $153,261     (1) Values shown are calculated on a before tax basis  Pricing Assumptions  The following benchmark prices, inflation rates and exchange rates were used  by Sproule for the forecast price and cost evaluation effective December 31,  2013.                                                                             WTI   WCS 20.5 API Exchange  AECO Spot      Rate     Year     US $/bbl    CDN $/bbl     Rate  Cdn $/MMbtu  % / year                                                                2014       94.65        77.81      0.94       4.00       1.5%     2015       88.37        75.02      0.94       3.99       1.5%     2016       84.25        75.29      0.94       4.00       1.5%     2017       95.52        85.36      0.94       4.93       1.5%     2018       96.96        86.64      0.94       5.01       1.5%     2019       98.41        87.94      0.94       5.09       1.5%     2020       99.89        89.26      0.94       5.18       1.5%     2021       101.38       90.60      0.94       5.26       1.5%     2022       102.91       91.96      0.94       5.35       1.5%     2023       104.45       93.34      0.94       5.43       1.5%     2024+   +1.5%/year  +1.5%/year     0.94  +1.5%/year  +1.5%/year  Crude oil price is WTI at Cushing, Oklahoma, natural gas is the AECO spot price  Reserves Reconciliation  The following table is a reconciliation of Palliser's gross interest reserves  at December 31, 2013 and December 31, 2012 using Sproule's forecast pricing  and cost estimates as at December 31, 2013 and December 31, 2012.                                                                                                   Heavy Oil (Mbbl) (3)    Natural Gas( MMcf)           BOE (Mboe)     Reserves    Proved Probable  Total  Proved Probable Total Proved Probable  Total                                                                                     December     5,460    2,310   7,771    712      187   898  5,579    2,342   7,921     31, 2012     Additions    1,438    1,995   3,433      0        0     0  1,438    1,995   3,433     (1)     Revisions    (644)    (402) (1,046)  (172)     (90) (262)  (674)    (418) (1,092)     (2)     Acquistions    -        -       -      -        -      -     -        -       -                  6,254    3,903  10,158    540       97   636  6,343    3,919  10,262     Production   (841)      -     (841)   (72)      -    (72)  (853)      -     (853)                                                                                     December     5,412    3,903   9,316    468       97   565  5,491    3,919   9,410     31, 2013     (1)  Additions include discoveries, extensions, infill drilling and          improved recovery     (2)  Technical revisions include technical revisions and economic          factors     (3)  Heavy Oil also includes a very small component of light/medium oil          and natural gas liquids  Finding, Development and Acquisition Costs  The following table summarizes Palliser's finding, development and acquisition  costs for the years ended December 31, 2013, 2012, 2011 and 2010 including  future development costs.                                                                                             2013       2012       2011       2010 2010 - 2014     Proved                                                            Capital           $ 24,991  $ 42,449   $ 44,042   $ 13,596   $     expenditures                                                  125,077     FDC - opening     $ 36,690  $   9,954  $   9,165  $   4,048  $     balance(1)                                                        4,048     FDC - closing     $ 47,939  $ 36,690   $   9,954  $   9,165  $     balance                                                         47,939     FDC -             $ 11,249  $ 26,736   $          $   5,117  $     change                                     789                  43,891     Capital                                                           expenditures       including FDC   $ 36,240  $ 69,185   $ 44,831   $ 18,713   $     change                                                        168,968                                                                       Reserves               765      4,594        912        882       7,153     additions                                                                       FD&A (before      $         $          $   48.29  $   15.41  $     FDC)               32.67       9.24                               17.49     FD&A (after FDC)  $         $   15.06  $   49.16  $   21.22  $                        47.37                                          23.62                                                                       Proved plus                                                       probable     Capital           $ 24,991  $ 42,449   $ 44,042   $ 13,596   $     expenditures                                                  125,077     FDC - opening     $ 40,728  $ 22,793   $ 15,965   $   7,441  $     balance                                                           7,441     FDC - closing     $ 74,059  $ 40,728   $ 22,793   $ 15,965   $     balance                                                         74,059     FDC -             $ 33,331  $ 17,935   $   6,828  $   8,524  $     change                                                          66,618     Capital                                                           expenditures       including FDC   $ 58,322  $ 60,384   $ 50,870   $ 22,120   $     change                                                        191,695                                                                       Reserves             2,342      4,782      1,413      1,813       8,537     additions                                                                       FD&A (before      $         $          $   31.17  $          $     FDC)               10.67       8.88                  7.50         14.65     FD&A (after FDC)  $         $   12.63  $   36.00  $   12.20  $                        24.90                                          22.45                                                                       Operating         $         $   28.69  $   18.03  $   22.03  $     netback            20.36                                          22.77     Recycle ratio          1.9        3.2        0.6        2.9         1.6     (before FDC)     Recycle ratio          0.8        2.3        0.5        1.8         1.0     (after FDC)     (1) Future capital expenditures required to convert proved         non-producing and probable reserves into proved producing  Undeveloped Land  The following table summarizes Palliser's undeveloped land holdings and the  fair value of those landholdings, as at December 31, 2013 and 2012:                                                                                                2013          2012     Acres                        Gross    Net  Gross    Net                                                                Alberta                      35,984 28,109 53,231 45,264     Saskatchewan                 20,232 20,031 19,090 18,880     Total                        56,216 48,140 72,321 64,144     Average working interest               86%           89%  Net Asset Value                                                                Reserve value ($000)                            2013     2012     Proved + probable  (1)                      $153,261 $126,820       Add: land value(2)                          11,090   10,860       Seismic(2)                                   1,350    1,350       Working capital (net debt)  (3)           (47,365) (37,345)     Net asset value                             $118,336 $101,685     Year end shares outstanding (000's)           63,916   58,916     Net asset value per share - basic              $1.85    $1.73     Fully diluted shares outstanding              64,754   64,432     Net asset value per share - fully diluted      $1.83    $1.66     (1) Present value discount 10% before taxes.     (2) Valuation is based on management's estimation of fair market         value.  Land value assumes $300 per acre for undeveloped heavy oil         acreage with no booked reserves and $100 per acre for natural gas         acreage with no booked reserves.     (3) Working capital (net debt) for 2013 is unaudited and subject to         change,  Working capital (net debt) is a non-IFRS measure         representing the total bank loan, accounts payable and accrued         liabilities, less accounts receivable, deposits and prepaid         expenses.  Reserve Life Index ("RLI")  The reserve life index has been calculated based on year end reserves divided  by fourth quarter 2013 average production of 2,040 boe per day.                                                                                                                            Proved Proved plus                                                                    probable     Total Company interest reserves (Mboe)                5,491       9,410     Fourth quarter 2013 production average (boe/d)        2,040       2,040     RLI based on fourth quarter 2013 production average     7.4        12.6     (years)  Operations Update  Palliser achieved production of 2,037 boe/d (99% oil weighting) during the  fourth quarter of 2013.  The capital program for 2013 amounted to $25.0  million and the Company exited 2013 with net debt of $47.4 million (production  and financial amounts are unaudited and subject to change).  Production in the first quarter of 2014 is forecasted to average 1,800 to  1,900 boe/d.  Capital expenditures in the first quarter are forecast to be  limited to approximately $2 million, and funds flow from operating activities  will be negatively impacted by an increase in propane costs, resulting in  increased operating costs and lower operating netbacks.  The Company is  forecasting net debt of approximately $49 million at the end of the first  quarter.  Corporate Update  The Company's producing base, inventory of over 160 heavy oil locations, 9  salt water disposal facilities, in combination with the capacity to ship up to  75% of our product by rail, provides a platform for significant future growth.  Given Palliser's current financial position, the Company is examining any and  all avenues to further improve the interests of shareholders.  Options being  examined include joint ventures, corporate combinations, asset sales and  financing options.  The Company also announces that Allan Carswell, President, COO, and a director  of the Company, has left his positions with Palliser on mutually agreed upon  terms.  The Board of Directors wishes Mr. Carswell success in his future  endeavors and thanks him for his contributions to the Company.  Kevin Gibson will be assuming the responsibilities as President of the Company  in addition to his current role as CEO.  Palliser is a Calgary-based emerging junior oil and gas company currently  focused on heavy oil production in the greater Lloydminster area of both  Alberta and Saskatchewan. For further information regarding Palliser Oil & Gas  Corporation, the reader is invited to visit the Company's website at  www.palliserogc.com.  Forward-Looking Statements  Certain statements contained herein constitute forward-looking statements or  information (collectively "forward-looking statements") within the meaning of  applicable securities legislation, including, but not limited to management's  assessment of future plans and operations, including: commodity focus;  drilling plans and potential locations; expected production levels;  development plans; reserves growth; production and operating sales and  expenses; reservoir characteristics; the results of applying certain  operational development techniques; certain economic factors; and capital  expenditures.  Forward-looking statements are typically identified by words  such as "anticipate", "estimate", "expect", "forecast", "may", "will",  "project" and similar words suggesting future events or performance or may be  identified by reference to a future date. In addition, statements relating to  oil and gas reserves and resources are deemed to be forward-looking statements  as they involve the implied assessment, based on certain estimates and  assumptions, that the reserves or resources described, as the case may be,  exist in the quantities predicted or estimated and can be profitably produced  in the future.  With respect to forward-looking statements herein, Palliser  has made assumptions regarding, among other things; future capital expenditure  levels; future oil and natural gas prices; "differentials" between West Texas  Intermediate and Western Canadian Select benchmark pricing; future oil and  natural gas production levels; future water disposal capacity; future exchange  rates and interest rates; ability to obtain equipment and services in a timely  manner to carry out development activities; ability to market oil and natural  gas successfully to current and new customers; the impact of increasing  competition; the ability to obtain financing on acceptable terms; and the  ability to add production and reserves through development and exploitation  activities. Although Palliser believes that the expectations reflected in the  forward-looking statements contained herein, and the assumptions on which such  forward-looking statements are made, are reasonable, there can be no assurance  that such expectations will prove to be correct. Readers are cautioned not to  place undue reliance on forward-looking statements included herein, as there  can be no assurance that the plans, intentions or expectations upon which the  forward-looking statements are based will occur. By their nature,  forward-looking statements involve numerous risks and uncertainties that  contribute to the possibility that the forward-looking statements will not  occur, which may cause Palliser's actual performance and financial results in  future periods to differ materially from any estimates or projections.   Additional information on these and other factors that could affect Palliser's  results are included in reports on file with Canadian securities regulatory  authorities, including the Company's Annual Information Form, and may be  accessed through the SEDAR website at www.sedar.com.  The forward-looking statements contained herein speak only as of the date  hereof. Except as expressly required by applicable securities laws, Palliser  does not undertake any obligation to, nor does it intend to, publicly update  or revise any forward-looking statements, whether as a result of new  information, future events or otherwise. The forward-looking statements  contained herein are expressly qualified by this cautionary statement.  In  addition, readers are cautioned that historical results are not necessarily  indicative of future performance.  Production volumes are commonly expressed on a barrel of equivalent ("BOE")  basis whereby natural gas volumes are converted at a ratio of six thousand  cubic feet to one barrel of oil.  The intention is to convert oil and natural  gas measurement units into one basis for improved analysis of results and  comparisons with other industry participants. The term BOE may be misleading,  particularly if used in isolation.  The conversion ratio is based on an energy  equivalent method and does not represent an economic value equivalency at the  wellhead.  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 Press release.    SOURCE  Palliser Oil & Gas Corporation  Kevin J. Gibson President & CEO kgibson@palliserogc.com (403) 209-5717  or   Ivan J. Condic Vice President, Finance and CFO icondic@palliserogc.com (403)  209-5718    To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/February2014/25/c7331.html  CO: Palliser Oil & Gas Corporation ST: Alberta NI: OIL FIELD