Hyperion Exploration Corp. Announces Second Quarter June 30, 2013 Financial and Operating Results

Hyperion Exploration Corp. ("Hyperion" or the "Company") (TSX VENTURE:HYX)
announces operating results for the quarter ended June 30, 2013. Selected
financial and operational information is outlined below and should be read in
conjunction with Hyperion's unaudited financial statements and related
management discussion and analysis which will be available for review under
Hyperion's SEDAR profile at www.sedar.com. 


Q2 2013 Financial Highlights

The following represents the highlights of Hyperion's second quarter ended June
30, 2013:




--  Average production in Q2 2013 of 1,148 boe/day (55% light oil and NGLs),
    a 18% decrease compared to the Q2 2012 production average of 1,403
    boe/day (67% light oil and NGLs); 
--  Quarterly funds flow in Q2 2013 of $2.3 million or $0.04/share; 
--  Continued to achieve operating efficiencies with field netbacks of
    $32.49 per boe in Q2 2013; 
--  Field netbacks on recent Niton/McLeod horizontal wells were in the range
    of $55.20 to $60.67 per boe during the first six months of 2013; 
--  In Q2 2013, Hyperion expended total capital, including land acquisitions
    and work overs of $997; and 
--  As at June 30, 2013 total unused and available credit facilities of over
    $18.3 million.



Financial Highlights



----------------------------------------------------------------------------
                            3 Months Ended June 30   6 Months Ended June 30 
----------------------------------------------------------------------------
                              2013     2012 Change     2013     2012 Change 
----------------------------------------------------------------------------
Financial ($000's except per share amounts)                                 
----------------------------------------------------------------------------
Oil sales (net of                                                           
 financial contract                                                         
 settlements)                3,970    6,114    -35%   9,515   11,446    -17%
----------------------------------------------------------------------------
NGL sales                      616      512     20%   1,434    1,199     20%
----------------------------------------------------------------------------
Natural gas sales            1,072      514    109%   2,086    1,155     81%
----------------------------------------------------------------------------
Total Oil, NGL, & Natural                                                   
 gas                         5,658    7,140    -21%  13,035   13,800     -6%
----------------------------------------------------------------------------
Funds inflow (outflow)                                                      
 from operations             2,263    3,498    -35%   6,280    6,772     -7%
----------------------------------------------------------------------------
  Per common share basic &                                                  
   FD ($)                     0.04     0.06    -33%    0.12     0.12      0%
----------------------------------------------------------------------------
Net earnings (loss)            343    1,095    -69% (13,885)   1,268     nm 
----------------------------------------------------------------------------
  Per common share basic &                                                  
   FD ($)                     0.01     0.02     nm    (0.26)    0.02     nm 
----------------------------------------------------------------------------
Capital expenditures                                                        
 including deposits(1)         997    6,960     nm    5,071   33,811     nm 
----------------------------------------------------------------------------
Working capital (deficit)                                                   
 exit                      (32,662) (32,779)     0% (32,662) (32,779)     0%
----------------------------------------------------------------------------
Unused credit facilities    18,326   23,193    -21%  18,326   23,193    -21%
----------------------------------------------------------------------------
Production                                                                  
----------------------------------------------------------------------------
Oil (bbls per day)             480      820    -41%     601      748    -20%
----------------------------------------------------------------------------
NGL (bbls per day)             147      114     29%     159      119     34%
----------------------------------------------------------------------------
Natural gas (mcf per day)    3,124    2,812     11%   3,301    2,941     12%
----------------------------------------------------------------------------
Total (boe per day) (6:1)    1,148    1,403    -18%   1,310    1,357     -3%
----------------------------------------------------------------------------
  Per 1 million common                                                      
   share basic & FD (boe                                                    
   per day)(2)               21.18    25.89    -18%   24.17    25.04     -3%
----------------------------------------------------------------------------
Average realized price ($'s - production weighted)                          
----------------------------------------------------------------------------
Oil ($ per bbl)              90.37    82.54      9%   86.93    85.18      2%
----------------------------------------------------------------------------
NGL ($ per bbl)              46.03    49.46     -7%   49.77    55.35    -10%
----------------------------------------------------------------------------
Natural gas ($ per mcf)       3.77     2.01     88%    3.49     2.16     62%
----------------------------------------------------------------------------
Average ($ per boe)          53.97    56.30     -4%   54.71    56.49     -3%
----------------------------------------------------------------------------
Netback ($'s per boe)                                                       
----------------------------------------------------------------------------
Oil, natural gas and NGL                                                    
 sales                       53.97    56.30     -4%   54.71    56.49     -3%
----------------------------------------------------------------------------
Royalties                    (9.05)   (6.04)    50%   (6.58)   (8.58)   -23%
----------------------------------------------------------------------------
Operating and                                                               
 transportation expenses    (12.43)  (13.69)    -9%  (12.55)  (12.99)    -3%
----------------------------------------------------------------------------
Operating netback            32.49    36.57    -11%   35.58    34.92      2%
----------------------------------------------------------------------------
Common Shares (000's)                                                       
----------------------------------------------------------------------------
Basic and fully diluted                                                     
 common shares o/s, end of                                                  
 period(3)                  54,190   54,190      0%  54,190   54,190      0%
----------------------------------------------------------------------------
Weighted average basic and                                                  
 fully diluted common                                                       
 shares o/s(3)              54,190   54,190      0%  54,190   54,190      0%
----------------------------------------------------------------------------
(1) Net income includes non-cash asset impairment charges of $15,100 in Q1  
    2013                                                                    
(2) Weighted average basic and fully diluted common share count used in     
    calculation. Figures not adjusted for debt or working capital positions.



Operations Update

Hyperion was inactive drilling in the second quarter due to spring break up
conditions, which allowed the team to focus efforts on improvements in future
capital efficiency through refinements to drilling, completion and tie-in
methods. The first well on a new 4 well drilling pad is now expected to cost
$3.3 million versus $3.7 million on previous wells. The first well carries the
cost of the lease road, multi-well pad and solution gas sales pipeline. The
average cost of a well on a four well pad is expected to be approximately $2.8
million. 


Throughout the second quarter, Hyperion continued to monitor the production
performance of the five Cardium horizontal light oil wells drilled in its new
area of Niton/McLeod between March 2012 and January 2013. The productivity
profile of these wells further validates our initial assessment that the
Niton/McLeod asset holds visible horizontal development drilling repeatability
with strong economics.


Hyperion's second quarter production was negatively impacted by approximately 90
boe/day. This was directly the result of limited access to producing wells
attributable to wet roads and third party facility maintenance/downtime.
Hyperion continues to deal with an unusally wet summer and is still working to
get the Niton/McLeod 9-21 Cardium horizontal well back on production. This well
was shut in at spring break up due to wet conditions and a temporary access
road. The 9-21 well was producing approximately 60 boe/d of oil when it was shut
in. Hyperion is targeting the end of August to have this well producing with an
upgraded access road to allow for year round production capability. Hyperion is
also prepared to spud its next Cardium, light oil horizontal well in the area as
soon as conditions dry enough to facilitate a rig move. 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.


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.


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 the interest of providing Hyperion shareholders and potential investors with
information regarding the Corporation, including management's assessment of
Hyperion's future plans and operation, certain statements throughout this press
release constitute forward looking statements. All forward-looking statements
are based on the Corporation's beliefs and assumptions based on information
available at the time the assumption was made. The use of any of the words
"anticipate", "continue", "estimate", "expect", "may", "will", "project",
"should", "believe" and similar expressions are intended to identify forward
looking statements. By its nature, such forward-looking information involves
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 statements. Hyperion believes the expectations reflected in those
forward looking statements are reasonable but no assurance can be given that
these expectations will prove to be correct and such forward looking statements
contained throughout this press release should not be unduly relied upon. These
statements speak only as of the date specified in the statements. 


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 material assumptions in making these forward-looking statements include
certain assumptions disclosed in the Corporation's most recent management's
discussion and analysis included in the material available on this press
release.


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.


Total Petroleum Initially-in-Place ("TPIIP") - is defined in the Canadian Oil
and Gas Evaluation Handbook ("COGEH") as the quantity of petroleum that is
estimated to exist originally in naturally occurring accumulations. TPIIP
includes that quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations, prior to production, plus those estimated
quantities in accumulations yet to be discovered. There is no certainty that it
will be economically viable or technically feasible to produce any portion of
this TPIIP except for those portions identified as proved or probable reserves.


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]