Hyperion Exploration Corp. Announces Renewal of Bank Facilities, Operations Update, and 2013 Guidance

Hyperion Exploration Corp. ("Hyperion" or the "Company") (TSX VENTURE:HYX)
announces the renewal of its banking facilities, operations update and 2013
guidance.


RENEWAL OF BANK FACILITIES

As a result of the scheduled lending review with its credit provider, the
lending limits of its existing banking facilities have been revised to $46.0
million from $50.0 million. The Company's revolving operating facility has been
revised to a borrowing limit of $36.0 million from $40.0 million. The
acquisition/development facility remains at a borrowing limit of $10.0 million.


The revised facilities focuses Hyperion's 2013 drilling program to certain
non-operated partner wells and the necessary farm-in earning wells in the
Niton/McLeod area. 


OPERATIONS UPDATE

Hyperion plans to spud its next Cardium, light oil horizontal well, in late July
2013. This well will be the third earning well on the previously announced 8,000
acre farmin in the Niton/McLeod area and is expected to evaluate the
productivity of some of the thickest net pay seen by the Company in the area.


In the second quarter, Hyperion's technical team's efforts were focused on
reducing well costs through more efficient drilling, completion, and tie-in
methods. Hyperion expects to reduce future capital costs per well by up to 10%
from prior results. The first well on a new 4 well drilling pad is expected to
cost $3.3 million versus $3.7 million as on previous wells. The first well
carries the cost of the lease road, multi-well pad and solution gas sales
pipeline.


Based on initial success achieved by industry with drilling extended reach
Cardium horizontal wells, Hyperion believes the use of extended reach horizontal
wells at Niton/McLeod has the potential to be a game changer for improving
capital efficiency and project economics. Hyperion's current total well length
of approximately 3,000m (with 1,300m of horizontal pay) would initially be
increased to approximately 4,000m (with 2,300 of horizontal pay) with the
opportunity for longer wells based on success. Hyperion's analysis of actual
performance of similar long reach wells indicates a significant enhancement in
production, reserves and capital efficiency. A long reach horizontal well in
Hyperion's tier one acreage at Niton/McLeod is expected to have a type curve
with an IP30 of 220 boe/d (90 % light oil/NGL), reserves of 220 mboe (83 % light
oil/NGL). The short horizontal wells have an IP30 of 160 boe/d (90 % light
oil/NGL), reserves of 148 mboe (83 % light oil/NGL). On stream capital cost for
the long reach horizontal on a full development basis are expected to average
$3.8 million versus the comparable short horizontal well at $2.7 million.


The Company currently has an inventory in Niton/McLeod of up to 167 gross (151
net, unbooked) short horizontal locations. Management estimates that long reach
horizontal drilling techniques could be applied to 45% of this existing
Niton/McLeod inventory.


Hyperion's inactivity in the field late in the first quarter and in the second
quarter was a result of several factors. Hyperion executed the drilling of four
Cardium horizontal light oil drills in its new area of Niton/McLeod between
October 2012 and January 2013. The Company felt that it was critical to
establish the productivity profile for these wells before committing to a
subsequent drill program. Furthermore, challenging capital markets specific to
junior oil and gas in Canada required Hyperion to be financially prudent with
its use of debt. Finally, as a result of Hyperion's ongoing objective to be a
leader in capital efficiency, Hyperion specifically limited its operations
during spring break up and into June to maintain base production levels. Despite
these efforts, Hyperion's second quarter production was negatively impacted by
approximately 75 boe/d. This was directly the result of limited access to
producing wells attributable to wet roads and third party facility
maintenance/downtime. 


2013 GUIDANCE

Hyperion's Board of Directors has approved the fiscal 2013 capital budget which
is designed to continue delineation efforts within the emerging Niton/McLeod
Cardium light oil play. Highlights are as follows:




--  $9.5 million in capital spending; 
--  Average production guidance in 2013 of 1,100 to 1,200 boe/day; 
--  Production comprised of greater than 60% light oil/NGLs; 
--  Exit 2013 production of 1,000 to 1,050 boe/day greater than 58% light
    oil/NGLs; 
--  Operating costs of $12.50/boe including transportation; and 
--  Funding of 2013 capital expenditures through a combination of cash flow
    and bank debt. 



Using 2013 Oil/NGLs pricing at of US$88.00 WTI, C$83.00 Edmonton Light, 1.00
CAD/USD exchange rate, $3.00/mcf AECO natural gas price


Hyperion's board of directors and management team believes that the Company's
shares trade at a significant discount to the value of its underlying assets, in
particular given its high netback, low-decline production base at Pembina,
Garrington, and Chip Lake and significant prospective Cardium horizontal oil
drilling inventory of 167 net locations (151 unbooked) at Niton/McLeod. The
Hyperion management team and board of directors continues to be disappointed
with where the Company's shares trade in this challenging environment and, as a
result, has formed a Special Committee of independent directors to identify,
consider and evaluate all options to enhance value and liquidity for its
shareholders. Management and the board of directors are committed to acting in
the best interests of the Company and its shareholders and believe that the long
term strategy of the Company will continue to provide value to shareholders. The
independent directors appointed to the Special Committee have extensive public
company, transactional and special committee expertise.


About Hyperion

Hyperion is a publicly traded, junior light oil and gas company with a strategy
of growing through acquisitions which lead to lower risk, scalable and
repeatable development drilling projects. Hyperion's core Alberta operations are
in the Niton/McLeod, Garrington, North Pembina, Buck Lake, and Chip Lake areas.
The common shares of the Company trade on the TSX Venture Exchange under the
trading symbol "HYX".


Forward Looking and Cautionary Statements

This press release contains certain forward-looking statements (forecasts) under
applicable securities laws relating to future events or future performance.
Forward-looking statements are necessarily based upon assumptions and judgements
with respect to the future including, but not limited to, the outlook for
commodity markets and capital markets, the performance of producing wells and
reservoirs, well development and operating performance, general economic and
business conditions, weather, the regulatory and legal environment and other
risks associated with oil and gas operations. In some cases, forward-looking
statements can be identified by terminology such as "may", "will", "should",
"expect", "projects", "plans", "anticipates" and similar expressions. These
statements represent management's expectations or beliefs concerning, among
other things, future operating results and various components thereof affecting
the economic performance of Hyperion. Undue reliance should not be placed on
these forward-looking statements which are based upon management's assumptions
and are subject to known and unknown risks and uncertainties, including the
business risks discussed above, which may cause actual performance and financial
results in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking statements.
Accordingly, readers are cautioned that events or circumstances could cause
results to differ materially from those predicted. 


In particular, this press release may contain forward looking statements
pertaining to the following:




--  the performance characteristics of the Corporation's oil and natural gas
    properties; 
--  oil and natural gas production levels; 
--  capital expenditure programs; 
--  the quantity of the Corporation's oil and natural gas reserves and
    anticipated future cash flows from such reserves; 
--  projections of commodity prices and costs; 
--  supply and demand for oil and natural gas; 
--  expectations regarding the ability to raise capital and to continually
    add to reserves through acquisitions and development; and 
--  treatment under governmental regulatory regimes. 



The Corporation's actual results could differ materially from those anticipated
in the forward looking statements contained throughout this press release as a
result of the material risk factors set forth below, and elsewhere in this press
release:




--  volatility in market prices for oil and natural gas; 
--  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 and exploration and
    development programs; 
--  geological, technical, drilling and processing problems; 
--  fluctuations in foreign exchange or interest rates and stock market
    volatility; 
--  failure to realize the anticipated benefits of acquisitions; 
--  general business and market conditions; and 
--  changes in income tax laws or changes in tax laws and incentive programs
    relating to the oil and gas industry. 



These factors should not be construed as exhaustive. Unless required by law,
Hyperion does not undertake any obligation to publicly update or revise any
forward looking statements, whether as a result of new information, future
events or otherwise.


Barrels of oil equivalent (boe) may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural
gas to one barrel (bbl) of oil is based on an energy conversion method primarily
applicable at the burner tip and is not intended to represent a value
equivalency at the wellhead. All boe conversions in this press release are
derived by converting natural gas to oil in the ratio of six thousand cubic feet
of natural gas to one barrel of oil. Certain financial amounts are presented on
a per boe basis, such measurements may not be consistent with those used by
other companies.


Estimated values contained in this press release do not represent fair market
value. 


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


FOR FURTHER INFORMATION PLEASE CONTACT: 
Hyperion Exploration Corp.
Trevor Spagrud
President and CEO
[phone]
[e-mail]


Hyperion Exploration Corp.
Doug Bailey
CFO
[phone]
[e-mail]


Hyperion Exploration Corp.
Suite 2010, Calgary Place II
355 - 4th Avenue SW
Calgary, Alberta
T2P 0J1