Cumberland Oil & Gas Ltd. Announces Filing of March 31, 2012 Interim Financial Statements and MD&A

Cumberland Oil & Gas Ltd. (TSX VENTURE:COG) ("Cumberland" or the "Company") has
filed its unaudited interim financial statements and related Management's
Discussion and Analysis ("MD&A") for the three months ended March 31, 2012 (the
"Quarter"). Copies of these documents may be obtained under Cumberland's SEDAR
profile via the SEDAR website at www.sedar.com or through the Company's website
at www.cumberlandltd.com 


Highlights



--  Averaged 92 boe per day of production, a 33% increase from the same
    period in 2011. 
--  Valhalla Doe Creek "M" Pool responding to water-flood, with average
    daily oil production for the Quarter of 51 bbls per day, a 122% increase
    from the same period in 2011. 
--  Upper Montney horizontal well at West Nig licensed and drilling rig
    contracted for summer 2012 drill. 
--  Positive working capital of $0.61 million at March 31, 2012. 
--  Initiated a process to identify strategic alternatives to enhance
    shareholder value. 

                                                      Three months ended    
                                                           March 31         
Financial                                               2012           2011 
----------------------------------------------------------------------------
                                                                            
Oil and gas sales                                    469,172        285,334 
Funds used in operations (1)                         (62,404)      (169,124)
 Per basic and diluted share                           (0.00)         (0.00)
Cash from operating activites                          6,629       (282,996)
 Per basic and diluted share                            0.00          (0.01)
Net loss                                            (171,041)      (253,141)
 Per basic and diluted share                           (0.00)         (0.01)
Capital expenditures, net                             21,354         41,125 
Working capital (2)                                  615,415      1,416,436 
Weighted average shares                                                     
 Basic and diluted                                35,684,319     35,684,319 



Notes:



1.  Funds used in operations is calculated as cash used in operating
    activities and adding changes in non-cash working capital, if any. Funds
    used in operations per share is calculated using the basic and diluted
    weighted-average number of shares for the period. Funds used in
    operations and funds used in operations per share are used to analyze
    Cumberland's operating performance. Funds used in operations and funds
    used in operations per share do not have standardized measures
    prescribed by Canadian Generally Accepted Accounting Principles ("GAAP")
    and therefore may not be comparable with calculations of similar
    measures for other companies. 
    
2.  Working capital includes current assets and current liabilities. 

                                                      Three months ended    
                                                           March 31         
Operations                                               2012           2011
----------------------------------------------------------------------------
                                                                            
Average Daily Production                                                    
 Crude oil (bbl/d)                                         51             23
 Natural gas (mcf/d)                                      247            275
 Oil equivalent (boe/d @ 6:1)                              92             69
                                                                            
Average Realized Prices                                                     
 Crude oil ($/bbl)                                      91.35          91.55
 Natural gas ($/mcf)                                     2.15           3.74
 Oil equivalent ($/boe)                                 56.19          45.83
                                                                            
Netback                                                                     
 Operating netback ($/boe) (1)                          17.21          10.49



Note:



1.  Operating netback equals oil and gas sales less royalties, operating
    expenses and transportation costs, calculated on a boe basis. Operating
    netback does not have a standardized measure prescribed by GAAP and
    therefore may not be comparable with the calculation of similar measures
    for other companies. 



NE British Columbia Montney Update

In December 2011, Cumberland reported that it had entered into a farm-out and
joint venture agreement covering its 1,128 hectares at West Nig, British
Columbia. The proposed earning well, HZ W NIG b-97-K/94-A-13 (the "Earning
Well") has been licensed and plans are underway to commence operations in late
June 2012, weather permitting. A drilling rig has been secured and will be
available in that time frame.


The proposed well site will be constructed to allow for upwards of eight
horizontal wells from this central location. Four of these potential wells would
traverse Cumberland lands. The Earning Well plans to target the Triassic Upper
Montney at a true vertical depth of approximately 1,760 metres and the
horizontal well trajectory will be approximately 2,200 metres in length. This
length will accommodate numerous fracturing stages which should adequately
evaluate the potential from this zone. Drilling operations are expected to take
upwards of three weeks with plans to conduct the completion and production
testing immediately thereafter.


The Upper Montney in this area is believed to be over-pressured with very
attractive liquids content. Both the Upper and Lower Montney zones have now been
successfully completed by other operators in this area with very encouraging
results. Due to the high liquids content in this specific area, this project
remains economically viable at current natural gas prices. 


READER ADVISORIES 

Forward-Looking Statements 

This news release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect', "anticipate", "continue", "estimate", "may", "will", "should",
"believe", "intends" and similar expressions are intended to identify
forward-looking information or statements. In particular, but without limiting
the foregoing, this news release contains forward-looking information and
statements pertaining to the following: the volumes and estimated value of
Cumberland's oil and gas reserves; anticipated production volumes from the
Valhalla Doe Creek "M" pool (the "Pool") with continued water-flood activities;
the drilling of a horizontal well at West Nig during the year; including plans
to commence drilling operations on the Earning Well, the anticipated timing of
the commencement of drilling operations on the Earning Well, the depth and
trajectory of the Earning Well, the total estimated time to drill, complete and
production test the Earning Well, the belief of the presence of liquids rich
natural gas in the Upper Montney formation and the anticipated economics of the
area due to the anticipated presence of liquids rich natural gas in the area;
anticipated operational activities; the sources of funding for certain of the
Company's future operations; the volume and product mix of Cumberland's
production; future oil and natural gas prices; future liquidity and financial
capacity; the total future capital associated with development of reserves and
resources; future operating costs, royalty rates and exchange rates.


Forward-looking statements or information are based on a number of material
factors, expectations or assumptions of Cumberland which have been used to
develop such statements and information but which may prove to be incorrect.
Although Cumberland believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue reliance should
not be placed on forward-looking statements because Cumberland can give no
assurance that such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified herein, assumptions have been
made regarding, among other things: results from drilling and development
activities consistent with past operations and offsetting wells; the effect of
water-flood activities at the Pool; continued and timely development of
infrastructure in areas of new production; joint venture partner activities,
including fulfilling its commitment to drill the Earning Well; availability of
debt and equity financing and cash flow to fund Cumberland's current and future
plans and expenditures; the impact of increasing competition; stability of the
economic and political environment in which Cumberland operates; timely receipt
of any required regulatory approvals; ability of Cumberland to obtain qualified
staff, equipment and services in a timely and cost efficient manner; drilling
results; ability of the operator of the projects in which Cumberland has an
interest in to operate the field in a safe, efficient and effective manner;
ability of Cumberland to obtain financing on acceptable terms; the potential
effects of Cumberland's strategic alternatives process on its current plans and
operations; field production and decline rates; ability to replace and expand
oil and gas reserves through acquisition, development and exploration; timing
and cost of pipeline, storage and facility construction and expansion and the
ability of Cumberland to secure product transportation; future commodity prices;
currency, exchange and interest rates; regulatory framework regarding royalties,
taxes, and environmental matters in the jurisdictions in which Cumberland
operates; and the ability of Cumberland to successfully market its oil and
natural gas products.


The forward-looking information and statements included in this news release are
not guarantees of future performance and should not be unduly relied upon. Such
information and statements, including the assumptions made in respect thereof,
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such
forward-looking information or statements including, without limitation; changes
in commodity prices; changes in the demand for or supply of Cumberland's
products; unanticipated operating results or production declines; changes in tax
or environmental laws, royalty rates or other regulatory matters; changes in
development plans of Cumberland or by third party operators of Cumberland's
properties, default of third parties of contractual commitments; inaccurate
estimation of Cumberland's oil and gas reserve and resource volumes; limited or
a lack of access to capital markets; increased costs; inadequate insurance
coverage; impact of competitors and certain other risks detailed from
time-to-time in Cumberland's public disclosure documents (including, without
limitation, those risks identified in this news release and Cumberland's Annual
Information Form).


The forward-looking information and statements contained in this news release
speak only as of the date of this news release and Cumberland does not assume
any obligation to publicly update or revise any of the included forward-looking
statements or information, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities laws.


BOE Equivalent

Boe's may be misleading, particularly if used in isolation. A boe conversion 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 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 ratio of 6:1 may be a misleading indication of
value.