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  PR Newswire  CALGARY, March 11, 2014  (TSX: AAV, NYSE: AAV)  CALGARY, March 11, 2014 /PRNewswire/ - 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 change             $1.33/mcfe or            $1.06/mcfe or in FDC                                    $7.99/boe                  $6.36/boe  (1) Sproule Associates Ltd. ("Sproule") was engaged as an independent          qualified reserve evaluator to evaluate Glacier's year-end reserves          as of December 31, 2013 ("Sproule 2013 Glacier reserve report") in          accordance with National Instrument 51-101 ("NI 51-101") and the          Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). Reserves          are stated on a gross (before royalties) working interest basis          before unless otherwise indicated. (2) Only 12 of our 22 wells in our current Phase VI Glacier drilling          program had well test data available for Sproule to utilize in their          December 31, 2013 reserve report. The remaining wells were or will          be tested after December 31, 2013.             *Sproule's 2013 Glacier reserve report demonstrates the continued and     efficient conversion of identified natural gas and liquids resources at     Glacier into 2P reserves. In comparison to the Sproule 2012 Glacier     reserve report, the increase in reserves are indicated below by category:         *Glacier's 2P reserves increased by 20% to 1.70 Tcfe (282.6 mmboe).          Natural gas liquids 2P reserves increased 393% to 13.0 mmbbls.        *Proven reserves increased by 17% to 1.03 Tcfe (172.3 mmboe) and now          represents 61% of total Glacier 2P reserves        *Proven developed producing reserves increased by 18% to 0.21 Tcfe          (34.8 mmboe)        *The recycle ratio associated with our Glacier 2P F&D cost based on          Advantage's Q4 2013 estimated operating netback at Glacier is          indicated in the following table:                                    Q4 2013 Glacier Revenue ($/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  (1) Glacier's Q4 2013 realized natural gas price is $3.25/mcfe 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 $3.84/mcf to Q1 2016 and a strengthened balance     sheet to complement our development plan.   *Achievement of Advantage's Glacier Phase VI production target ahead of     schedule with lower than budgeted capital expenditures demonstrates our     strong operational expertise and execution skills which underpin our three     year development plan.   *Drilling rigs have been secured to initiate our three year development     plan which will begin with our Glacier Phase VII program during Q2 2014.   *The Glacier Phase VII Capital and Operating Budget was approved by our     Board of Directors on February 4, 2014 with the following guidance:  Approved Phase VII Budget &                              12 Months ending Guidance                                                March 31, 2015 Average Production             (mmcfe/d)          134 to 139      includes NGLs of 900 to                                   1,100 bbls/day End of Phase VII Production Rate    (mmcfe/d)          183  Royalty Rate                   (%)               5% to 6% Operating Costs                 ($/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 + Probable        13,003     1,617,652      282,611  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, 2012           1,776     876,281      147,823                                                             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. 31,               7,058     991,292      172,273 2013                                                                                                                                                                     Natural Gas    Natural          Oil                                       Liquids         Gas   Equivalent Proved + Probable                     (mbbl)      (mmcf)      (mboe) Opening balance Dec. 31, 2012           2,637   1,396,971      235,466                                                             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. 31, 2013       13,003   1,617,652      282,612  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             $2.08 Three year average FD&A costs ($/boe)        $4.86             $3.42 2013 F&D costs ($/boe)                       $5.04             $2.88 2012 F&D costs ($/boe)                       $3.27             $2.08 Three year average F&D costs ($/boe)         $4.86             $3.42                                                        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 Capital       152,889             272,189 ($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             $4.41 Three year average FD&A costs ($/boe)          $8.58             $6.36 2013 F&D costs ($/boe)                        $10.00             $7.99 2012 F&D costs ($/boe)                         $6.88             $4.41 Three year average F&D costs ($/boe)           $8.58             $6.36  ^(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.  Contact:  Investor Relations Toll free: 1-866-393-0393  Advantage Oil & Gas Ltd. 300, 440 -2^nd Avenue SW Calgary, Alberta T2P 5E9 Phone: (403) 718-8000 Fax: (403) 718-8332 Web Site:www.advantageog.com E-mail:ir@advantageog.com  
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