Advantage Announces Glacier 2013 Reserves Additions Replace 840% of Production, Achieves 135 mmcfe/d Phase VI Production Ahead

Advantage Announces Glacier 2013 Reserves Additions Replace 840% of 
Production, Achieves 135 mmcfe/d Phase VI Production Ahead of Schedule with 
Capital Spending Below Budget 
(TSX: AAV, NYSE: AAV) 
CALGARY, March 11, 2014 /CNW/ - Advantage Oil & Gas Ltd. ("Advantage" or the 
"Corporation") is pleased to report strong year end 2013 reserve additions for 
its Montney resource property at Glacier, Alberta ("Glacier").  Proven plus 
probable ("2P") reserve additions were achieved at a finding and development 
cost of $1.33/mcfe ($7.99/boe) and a recycle ratio of 2.1.  Total 2P reserves 
are up 20% to 1.7 trillion cubic feet ("Tcfe").  We are also pleased to report 
Glacier production reached our 135 mmcfe/d Phase VI target ahead of schedule 
with capital spending below budget. 
Advantage's year-end 2013 corporate reserves which will include the impact of 
non-core asset divestures during 2013 will be released on March 27, 2014 with 
its year-end financial and operating results.  All references to year end 2013 
financial and operating data in this release are estimates and are unaudited. 
Glacier 2013 Reserve Report Summary( ) 


        --  Advantage replaced 840% of Glacier's 2013 annual production
            based on Sproule's 2013 Glacier reserve report(1)(2).
        --  Glacier reserve additions were achieved at a proven and
            probable ("2P") Finding & Development ("F&D") cost including
            the change in Future Development Capital ("FDC") as follows:
                                            
                               2013           3 Years Ended 2013
    2P F&D including     $1.33/mcfe or     $1.06/mcfe or $6.36/boe
    change in FDC            $7.99/boe
    (1)      Sproule Associates Ltd. ("Sproule") was engaged as an
             independent qualified reserve evaluator to evaluate Glacier's
             year-end reserves as of December 31, 2013 ("Sproule 2013
             Glacier reserve report") in accordance with National
             Instrument 51-101 ("NI 51-101") and the Canadian Oil and Gas
             Evaluation Handbook ("COGE Handbook").  Reserves are stated on
             a gross (before royalties) working interest basis before
             unless otherwise indicated.
    (2)      Only 12 of our 22 wells in our current Phase VI Glacier
             drilling program had well test data available for Sproule to
             utilize in their December 31, 2013 reserve report.  The
             remaining wells were or will be tested after December 31,
             2013.
              
        --  Sproule's 2013 Glacier reserve report demonstrates the
            continued and efficient conversion of identified natural gas
            and liquids resources at Glacier into 2P reserves. In
            comparison to the Sproule 2012 Glacier reserve report, the
            increase in reserves are indicated below by category:
      o Glacier's 2P reserves increased by 20% to 1.70 Tcfe (282.6 mmboe).
        Natural gas liquids 2P reserves increased 393% to 13.0 mmbbls.
      o Proven reserves increased by 17% to 1.03 Tcfe (172.3 mmboe) and now
        represents 61% of total Glacier 2P reserves
      o Proven developed producing reserves increased by 18% to 0.21 Tcfe
        (34.8 mmboe)
      o The recycle ratio associated with our Glacier 2P F&D cost based on
        Advantage's Q4 2013 estimated operating netback at Glacier is
        indicated in the following table:
                                       Q4 2013 Glacier
    Revenue            ($/mcfe) (1)              $3.25
    Royalties            ($/mcfe)                $0.15
    Operating Cost  ($/mcfe)                     $0.27
    Glacier Operating netback ($/mcfe)           $2.83
                                                      
    2P Recycle Ratio for 2013                     2.1x
    2P Recycle Ratio for last 3 years             2.7x
             Glacier's Q4 2013 realized natural gas price is $3.25/mcfe
    (1)      which includes adjustments for transportation costs and heat
             value.
              
        --  The total number of future well locations booked and the
            estimated ultimate recoverable ("EUR") gas per well assigned by
            Sproule in their 2013 Glacier reserve report are illustrated in
            the following table:
                        
                   Sproule              Sproule
            # of Gross Horizontal       Average
                Wells Booked           EUR/well
                                     Undeveloped
           Developed   Undeveloped   (bcf/well)
    Upper       83           169           5.4
    Middle      12           57          3.7(1)
    Lower       22           72            5.1
    Total      117           298             
    (1)      Sproule booked natural gas liquids at an average propane plus
             liquids yield of 39 bbls/mmcf raw for the Middle Montney.  As
             a result the average reserves/well for a Middle Montney
             undeveloped location is 4.2 bcfe.
              
        --  A total of 415 developed and undeveloped locations are booked
            in Sproule's 2013 Glacier reserve report which is an increase
            of 55 locations compared to Sproule's 2012 Glacier reserve
            report.  The additional locations resulted from recognition of
            wells that were drilled during 2013 and undeveloped locations
            which were primarily assigned in the Middle Montney on lands
            offsetting new wells. 
        --  The average 2P EUR assignments per well were increased from 4.7
            bcf/well to 5.4 bcf/well for future undeveloped Upper Montney
            locations and from 5.0 bcf/well to 5.1 bcf/well for future
            undeveloped Lower Montney locations. The Middle Montney future
            undeveloped locations were assigned an average 2P EUR of 3.7
            bcf/well, which was unchanged, compared to 2012.  This was due
            to the relatively short amount of production history from the
            existing six Middle Montney wells and only three new Middle
            Montney wells drilled in 2013.
        --  Technical revisions accounted for 25% of the 2P reserve
            additions in 2013.  These revisions, which did not require any
            increase to FDC, can be attributed to improved well test
            results and solid production performance from wells in which
            modified completion techniques were applied in 2012 and 2013.
        --  Advantage estimates a total well inventory of 1,416 locations
            at Glacier based on our current drilling pattern of four wells
            per section in each of the five Montney development layers. 
            Based on the Sproule 2013 Glacier reserve report which has 415
            locations booked, over 1,000 locations remained unbooked. 
        --  Glacier's proven reserve life index is 26.2 years and its 2P
            reserve life index is 43 years based on its average fourth
            quarter 2013 production rate of 108.1 mmcfe/d.
        --  Sproule's 2P Glacier forecast of operating income for the five
            year period of 2014 to 2018 is $1.51 billion which exceeds
            Sproule's scheduled capital expenditures by $0.74 billion.    
        --  The 2P Net Present Value determined by Sproule increased by 49%
            to $2.1 billion as at December 31, 2013 (10% discount factor on
            a pre-tax basis).

Glacier Production Reaches 135 mmcfe/d Phase VI Target Ahead of Schedule with 
Capital Spending Below Budget
        --  Strong well results from our current drilling program and solid
            long term production from existing wells contributed to
            achieving Advantage's Phase VI Glacier production target of 135
            mmcfe/d in early March 2014 which is approximately one month
            ahead of our Phase VI Budget schedule.
        --  We anticipate Q1 2014 Glacier production will average between
            122 mmcfe/d to 126 mmcfe/d as a result of the higher current
            production rate in March.  Minor plant outages were required
            during Q1 2014 to accommodate construction work and integration
            of new well facility pads.    
        --  Nine new wells from Advantage's Glacier Phase VI program have
            been brought on production to initially ramp production to 135
            mmcfe/d.  The remaining 13 new wells from our Phase VI program
            are expected to provide sufficient production inventory to
            maintain production at 135 mmcfe/d through to the end of 2014.
            To date, all planned 22 wells in our Phase VI program have been
            rig released.  New well completions and tie-ins of Phase VI
            wells will continue through Q2 2014.
        --  As a direct comparison to our original Glacier Phase VI capital
            budget, we now forecast total Phase VI program expenditures to
            be approximately $151 million which is lower than our budget by
            approximately $13 million.  The reduced capital spending
            resulted from lower than budgeted well costs due to
            efficiencies attained through improved drilling times and more
            streamlined well completion procedures.
        --  The reduced capital spending amount of approximately $13
            million was redirected to purchase 43.25 net sections of
            additional Montney lands in Q3 2013 for $6.8 million and to
            accelerate our Glacier Phase VII program with plans to drill
            four new wells in March 2014.  We will continue with Phase VII
            drilling through spring break-up and are scheduling new Phase
            VII wells to be brought on production in early 2015 leading to
            attainment of our Phase VII production target of 183 mmcfe/d in
            Q2 2015.

Strong Reserve Replacement Efficiencies & Production Performance Reinforces 
Advantage's Glacier Three Year Development Plan
        --  Sproule's December 31, 2013 Glacier reserves report provides
            additional confirmation on the quality of Advantage's Montney
            asset through the achievement of strong reserve replacement
            efficiencies.
        --  Glacier's three year 2P F&D cost of $1.06/mcfe combined with a
            three year recycle ratio of 2.7 provides a solid foundation and
            track record in support of Advantage's recently announced
            Glacier three year development plan (see Advantage press
            release dated February 4, 2014).
        --  Advantage's Glacier three year development plan is expected to
            increase production per share by 100% and increase cash flow
            per share by 190% with an average total debt to forward cash
            flow ratio of approximately 1.5 at an average natural gas price
            of Cdn $3.75/GJ.  Our financial strategy includes natural gas
            commodity hedges on 44% of forecasted production at an average
            price of Cdn $3.84/mcf to Q1 2016 and a strengthened balance
            sheet to complement our development plan.
        --  Achievement of Advantage's Glacier Phase VI production target
            ahead of schedule with lower than budgeted capital expenditures
            demonstrates our strong operational expertise and execution
            skills which underpin our three year development plan.
        --  Drilling rigs have been secured to initiate our three year
            development plan which will begin with our Glacier Phase VII
            program during Q2 2014.
        --  The Glacier Phase VII Capital and Operating Budget was approved
            by our Board of Directors on February 4, 2014 with the
            following guidance:
    Approved Phase VII Budget                             12 Months ending
    & Guidance                                            March 31, 2015
    Average Production            (mmcfe/d)               134 to 139
      includes NGLs of 900 to                              
      1,100 bbls/day
    End of Phase VII              (mmcfe/d)               183
    Production Rate    
    Royalty Rate                  (%)                     5% to 6%
    Operating Costs                ($/mcfe)               $0.25 to $0.30
    Capital Expenditures          ($ million)             $260 to $270
    Wells Drilled (net)           Dry gas                  20
                                  Liquids rich gas        13
                                  Total                    33

Glacier Reserve Summary

Advantage engaged our independent qualified reserves evaluator Sproule to 
evaluate the reserves at Glacier in accordance with NI 51-101 and the COGE 
Handbook.  The following tables incorporate only the reserves assigned to the 
Company's property at Glacier, Alberta.

Reserves and production information included herein is stated on a Gross 
(before royalty)Working Interest basis unless noted otherwise. This summary 
contains several cautionary statements that are specifically required by NI 
51-101. In addition to the detailed information disclosed in this press 
release, more detailed information on a net interest basis (after royalty 
burdens and including royalty interests) and on a gross interest basis (before 
royalty burdens and excluding royalty interests) will be included in 
Advantage's Annual Information Form ("AIF") and will be available at 
www.advantageog.com and www.sedar.com in the coming weeks.

Glacier Gross (before royalties) Working Interest Reserves

Summary as at December 31, 2013
                                     Natural                               
                                 Gas Liquids     Natural Gas     Equivalent
                                      (mbbl)          (mmcf)         (mboe)
    Proved                                                                 
    Developed Producing                  731         204,220         34,767
    Developed Non-producing              243          27,648          4,851
    Undeveloped                        6,084         759,424        132,655
    Total Proved                       7,058         991,292        172,273
    Probable                           5,945         626,360        110,338
    Total Proved +                    13,003       1,617,652        282,611
    Probable  

Glacier Present Value of Future Net Revenue using Sproule price and cost 
forecasts ((1)(2))

($000)
                                      Before Income Taxes Discounted at
                                       0%            10%            15%
    Proved                                                               
    Developed Producing            $802,614       $466,482       $394,415
    Developed Non-producing         117,124         68,895         57,977
    Undeveloped                   2,585,106        682,770        391,751
                                                                
    Total Proved                  3,504,844      1,218,146        844,143
    Probable                      3,136,407        889,960        590,598
    Total Proved + Probable      $6,641,251     $2,108,106     $1,434,741
    (1) Advantage's crude oil, natural gas and natural gas liquid reserves
        were evaluated using Sproule's product price forecast effective
        December 31, 2013 prior to the provision for income taxes,
        interests, debt services charges and general and administrative
        expenses. It should not be assumed that the discounted future net
        revenue estimated by Sproule represents the fair market value of
        the reserves.
    (2) Assumes that development of Glacier will occur, without regard to
        the likely availability to the Corporation of funding required for
        that development.

Sproule Price Forecasts

The present value of future net revenue at December 31, 2013 was based upon 
natural gas and natural gas liquids pricing assumptions prepared by Sproule 
effective December 31, 2013. These forecasts are adjusted for reserve quality, 
transportation charges and the provision of any applicable sales contracts. 
The price assumptions used over the next seven years are summarized in the 
table below:
                   Alberta       Henry Hub       Edmonton       Edmonton       Edmonton       Exchange
                    AECO-C
               Natural Gas     Natural Gas        Propane         Butane       Pentanes           Rate
                                                                                   Plus
    Year      ($Cdn/mmbtu)     ($US/mmbtu)     ($Cdn/bbl)     ($Cdn/bbl)     ($Cdn/bbl)     ($US/$Cdn)
    2014              4.00            4.17          45.78          69.05         103.50           0.94
    2015              3.99            4.15          44.14          66.57          99.78           0.94
    2016              4.00            4.17          44.30          66.81         100.14           0.94
    2017              4.93            5.04          50.22          75.74         113.53           0.94
    2018              5.01            5.12          50.98          76.88         115.24           0.94
    2019              5.09            5.19          51.74          78.03         116.97           0.94
    2020              5.18            5.27          52.52          79.20         118.72           0.94

Glacier Gross (before royalties) Working Interest Reserves Reconciliation:
                                 Natural Gas       Natural            Oil
                                     Liquids           Gas     Equivalent
    Proved                            (mbbl)        (mmcf)         (mboe)
    Opening balance Dec. 31,           1,776       876,281        147,823
    2012   
                                                                
    Extensions                         2,927        96,420         18,997
    Improved recovery                      -             -              -
    Infill Drilling                        -             -              -
    Discoveries                            -             -              -
    Economic factors                       -          (22)            (4)
    Technical revisions                2,385        56,738         11,842
    Acquisitions                           -             -              -
    Dispositions                           -             -              -
    Production                          (30)      (38,125)        (6,384)
                                                                
    Closing balance at Dec.            7,058       991,292        172,273
    31, 2013  
                                                                
                                                                         
                                 Natural Gas       Natural            Oil
                                    Liquids            Gas     Equivalent
    Proved + Probable                (mbbl)         (mmcf)         (mboe)
    Opening balance Dec. 31,           2,637     1,396,971        235,466
    2012   
                                                                
    Extensions                         6,598       200,043         39,939
    Improved recovery                      -             -              -
    Infill Drilling                        -             -              -
    Discoveries                            -             -              -
    Economic factors                       -           (9)            (2)
    Technical revisions                3,798        58,772         13,594
    Acquisitions                           -             -              -
    Dispositions                           -             -              -
    Production                          (30)      (38,125)        (6,384)
                                                                
    Closing balance at Dec.           13,003     1,617,652        282,612
    31, 2013 

Glacier Finding, Development & Acquisitions Costs ("FD&A") ((1)(2)(3)) 
2013 FD&A Costs - Gross (before royalties) Working Interest Reserves excluding 
Future Development Capital
                                        Proved        Proved + Probable
    Capital expenditures ($000)          $155,369              $155,369
    Acquisitions net of dispositions            -                     -
    ($000)  
    Total capital ($000)                $155,369               $155,369
    Total mboe, end of year               172,273               282,611
    Total mboe, beginning of year         147,823               235,466
    Production, mboe                        6,384                 6,384
    Reserve additions, mboe                30,835                53,530
    2013 FD&A costs ($/boe)                 $5.04                 $2.88
    2012 FD&A costs ($/boe)                 $3.27                 $2.08
    Three year average FD&A costs           $4.86                 $3.42
    ($/boe)  
    2013 F&D costs ($/boe)                  $5.04                 $2.88
    2012 F&D costs ($/boe)                  $3.27                 $2.08
    Three year average F&D costs            $4.86                 $3.42
    ($/boe)  
                                                       

NI 51-101
2013 FD&A Costs - Gross (before royalties) Working Interest Reserves including 
Future Development Capital
                                          Proved       Proved + Probable
    Capital expenditures ($000)           $155,369              $155,369
    Acquisitions net of dispositions             -                     -
    ($000) 
    Net change in Future Development       152,889               272,189
    Capital ($000) 
    Total capital ($000)                  $308,258              $427,558
    Reserve additions, mboe                 30,835                53,530
    2013 FD&A costs ($/boe)                 $10.00                 $7.99
    2012 FD&A costs ($/boe)                  $6.88                 $4.41
    Three year average FD&A costs            $8.58                 $6.36
    ($/boe)  
    2013 F&D costs ($/boe)                  $10.00                 $7.99
    2012 F&D costs ($/boe)                   $6.88                 $4.41
    Three year average F&D costs             $8.58                 $6.36
    ($/boe)  
    (1) Under NI 51-101, the methodology to be used to calculate F&D costs
        includes incorporating changes in FDC required to bring the proved
        undeveloped and probable reserves to production. For continuity,
        Advantage has presented herein FD&A costs calculated both excluding
        and including FDC. Advantage has also presented both F&D (excluding
        the effects of acquisitions) and FD&A (including the effects of
        acquisitions) for continuity; however, Advantage's F&D and FD&A
        costs in the last three years are the same.
    (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 reserves additions for
        that year. Changes in forecast FDC occur annually as a result of
        development activities, acquisition and disposition activities and
        capital cost estimates that reflect Sproule's best estimate of what
        it will cost to bring the proved undeveloped and probable reserves
        on production.
    (3) In all cases, the FD&A number is calculated by dividing the
        identified capital expenditures by the applicable reserve
        additions.  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 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.
         

Reserve Definitions

Reserves are estimated remaining quantities of oil and natural gas and related 
substances anticipated to be recoverable from known accumulations, as of a 
given date, based on the analysis of drilling, geological, geophysical and 
engineering data; the use of established technology; and specified economic 
conditions, which are generally accepted as being reasonable.  Reserves are 
classified according to the degree of certainty associated with the estimates 
as follows:

Proved Reserves are those reserves that can be estimated with a high degree of 
certainty to be recoverable. It is likely that the actual remaining quantities 
recovered will exceed the estimated proved reserves.

Probable Reserves are those additional reserves that are less certain to be 
recovered than proved reserves. It is equally likely that the actual remaining 
quantities recovered will be greater or less than the sum of the estimated 
proved plus probable reserves.

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", "expect", "may", "will", "project", "predict", "potential", 
"targeting", "intend", "could", "might", "should", "believe", "would" and 
similar expressions and include statements relating to, among other things, 
expected number of future drilling locations; expectations as to reserves 
life; expected Q1 2014 Glacier production; expectations as to the number of 
wells in Advantage's Phase VI required to provide sufficient production 
inventory to maintain production at 135 mmcfe/d through to the end of 2014; 
the expectation that new well completions and tie-ins of Phase VI wells will 
continue through Q2 2014; forecast total capital expenditures for the Glacier 
Phase VI; number of wells expected to be spud in March 2014 and that Advantage 
will continue drilling through spring break-up; anticipation that some of our 
new Phase VII wells will be brought on production in early 2015; expected 
timing of achieving Advantage's Phase VII production target; expectation of 
increases in production resulting from Advantage's Glacier three year 
development plan; expected increases to cash flow per share; expectations of 
future debt to cash flow ratios; expected timing for commencement of Glacier 
Phase VII program; and details of Advantage's Glacier Phase VII capital and 
operating budget including expectations of average production rates, end of 
Phase VII production rate, royalty rates, operating costs, capital 
expenditures and number of wells drilled. 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, including 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; and ability to 
access sufficient capital from internal and external sources. 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.

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 Corporation discloses several financial measures that do not have any 
standardized meaning prescribed under International Financial Reporting 
Standards ("IFRS"). These financial measures include operating netbacks and 
debt to cash flow ratio. Management believes that these financial measures are 
useful supplemental information to analyze operating performance and provide 
an indication of the results generated by the Corporation's principal business 
activities. Investors should be cautioned that these measures should not be 
construed as an alternative to net income or other measures of financial 
performance as determined in accordance with IFRS. Advantage's method of 
calculating these measures may differ from other companies, and accordingly, 
they may not be comparable to similar measures used by other companies. Please 
see the Corporation's most recent Management's Discussion and Analysis, which 
is available at www.sedar.com and www.advantageog.com for additional 
information about these financial measures, including a reconciliation of 
funds from operations to cash provided by operating activities.

Where any disclosure of reserves data is made in this press release that does 
not reflect all reserves of Advantage, the reader should note that the 
estimates of reserves and future net revenue for individual properties or 
groups of properties 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 following abbreviations used in this press release have the meanings set 
forth below:
    bbls      barrels
    mbbls     thousand barrels
    mmbbls    million barrels
    boe       barrels of oil equivalent of natural gas, on the basis of 1
              barrel of oil or NGLs for 6 thousand cubic feet of natural
              gas
    mboe      thousand barrels of oil equivalent
    mmboe     million barrels of oil equivalent
    mcf       thousand cubic feet
    mmcf      million cubic feet
    bcf       Billion cubic feet
    tcf       trillion cubic feet
    mcfe      thousand cubic feet equivalent on the basis of 6 thousand
              cubic feet of natural gas for 1 barrel of oil or NGLs
    mmcfe/d   million cubic feet equivalent per day
    tcfe      trillion cubic feet equivalent



SOURCE  Advantage Oil & Gas Ltd. 
Investor Relations Toll free: 1-866-393-0393 
Advantage Oil & Gas Ltd. 300, 440 -2nd Avenue SW Calgary, Alberta T2P 5E9 
Phone: (403) 718-8000 Fax: (403) 718-8332 Web 
Site:www.advantageog.com E-mail:ir@advantageog.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/March2014/11/c4433.html 
CO: Advantage Oil & Gas Ltd.
ST: Alberta
NI: OIL ERN  
-0- Mar/11/2014 13:36 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.