Hyperion Exploration Corp. Provides Third Quarter Operations and Corporate Updates

Hyperion Exploration Corp. ("Hyperion" or the "Company") (TSX VENTURE:HYX)
provides a third quarter 2013 operations and corporate update.


OPERATIONS UPDATE

The 15-25 Cardium Hz well at Niton was drilled in August 2013 and placed on
production in late September. This was the third earning well drilled as part of
the 8,000 acre farm-in in the Niton/McLeod area. Hyperion has now fully earned
three of the four primary earning blocks under the farm-in agreement, with
capital plans in place to earn the remaining prospective lands. The 15-25 well
was drilled with a 1,300m horizontal section, completed with a 19 stage slick
water frac and placed on pump after 1 day of flow back. The well has produced
(on cleanup) an average of 100 boe/d (90% oil) over the last 7 days with frac
water cuts dropping to 30%. Management is optimistic that as more frac fluid is
recovered the oil rate will increase. To date approximately 24% of the frac
water used in the completion has been recovered, as compared to Hyperion's other
Niton/McLeod Cardium producers with average frac water recovery of 38% in the
first 30 days and 41% after 120 days on production. The Cardium formation at
Niton/McLeod does not produce formation water.


Costs to drill, complete, tie-in and equip were reduced from $3.7 million on the
first well in the Niton/McLeod area to $2.9 million for the 15-25 well (both of
which were the first wells on a four well pad). With a continued focus on
capital efficiency, Hyperion is currently preparing to drill an extended reach
horizontal well. 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. Based on actual offset performance, 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) and reserves of 220 mboe
(83% light oil/NGL). The short horizontal wells have a type curve IP30 of 160
boe/d (90% light oil/NGL) and reserves of 148 mboe (83% light oil/NGL).


Based on cost reductions achieved to-date, and using the infrastructure built
for the first well on a pad (road, lease and gas pipeline), on stream capital
cost for the long reach horizontal on a full development basis are expected to
average $3.4 million and $2.6 million for a short horizontal well.


The long horizontal wells are expected to yield a rate of return of greater than
85% with the short horizontals providing a rate of return of greater than 45%.


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.


CORPORATE UPDATE

The Special Committee of independent directors, formed in July of 2013,
continues to work with its financial advisor, National Bank Financial Inc., to
identify, consider and evaluate all options to enhance value and liquidity for
its shareholders.


As a result of continued capital efficiency enhancements at Niton/McLeod which
drive visible and repeatable economic growth, combined with strong underlying
base asset value, the Company believes the current share price levels do not
reflect Hyperion's fundamental value.


Hyperion continues to maintain an excellent portfolio of base producing assets
that deliver predictable performance. Hyperion has a current production profile
that continues to meet or exceed the proved plus probable producing forecast as
independently evaluated by McDaniel and Associates. The net present value of
this forecast, as at July 1, 2013 is $69.1 million. Looking ahead, Hyperion
expects to maintain production levels to achieve its stated yearly guidance of
1,100 and 1,200 boe/d.


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 Company's oil and natural gas
    properties;
--  oil and natural gas production levels;
--  capital expenditure programs;
--  the quantity of the Company'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 Company'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.


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]