Hyperion Exporation Corp. Announces Significant Reserve Growth in 2012, Operations Update for Niton/McLeod, and Fourth Quarte...

Hyperion Exploration Corp. ("Hyperion" or the "Company") (TSX VENTURE:HYX) is
pleased to announce significant 2012 year end reserve growth, an operations
update highlighting success at the Niton/McLeod light oil Cardium play, and
highlights of operating results for the quarter and year ended December 31,
2012. 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. Hyperion's reserves were
evaluated by McDaniel & Associates Consultants Ltd. ("McDaniel") effective
December 31, 2012, in accordance with National Instrument 51- 101 ("NI 51-101")
- Standards for Disclosure for Oil and Gas Activities of the Canadian Securities
Administrators (the "McDaniel Report"). All of the Company reserves were
evaluated in the McDaniel Report. 




2012 Year End Reserve Highlights:                                           

--  Increased Total Proved ("TP") plus Probable Reserves ("P+P") by 48% to
    8,167.5 Mboe (57% liquids) and Total Proved ("TP") Reserves by 51% to
    4,918.5 Mboe (56% liquids) ; 
--  Increased P+P Reserves per basic share by 48%; 
--  Increased P+P, Before Tax Net Present Value, discounted at 10% ("BT
    NPV10%") by 29% to $ 97.9 million; 
--  Increased P+P, BT NPV10% value per share basic by 29% to $1.81; 
--  Achieved P+P finding, development and acquisition cost (FD&A) of
    $19.30/boe, including changes in future development capital; 
--  Achieved P+P finding and development cost (F&D) of $20.04/boe, including
    changes in future development capital; 
--  Achieved a P+P Recycle Ratio of 2.0 based on FD&A of $19.30/boe and a
    Q4, 2012 field netback of $39.17/boe; 
--  Increased Reserve Life Index (RLI) to 9.0 years (TP) and 14.9 years
    (P+P) based on Q4 2012 production of 1,505 boe/day compared to 6.7 years
    (TP) and 11.4 years (P+P) in 2011; 
--  Reserve additions in 2012, replaced 604% of production; 
--  Successful initial drilling results and associated booking of future
    locations on Hyperion's Niton - McLeod Cardium light oil play have
    attributed 2,456 Mboe (81% liquids) or 65% of the 3,799 Mboe, P+P,
    reserves additions in 2012. The drilled and booked locations (16.3 net)
    at Niton - McLeod represent approximately 9.4% of the original inventory
    of 172 net locations, with 156 net un-booked locations remaining; and 
--  100% of reserves evaluated by McDaniel per NI 51-101 standards. 

Summary of Company Reserves as at December 31, 2012(1),(2),(3),(4),(5)      
                                                                            
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Reserve Category                     (Gross)                                
                     ----------------------------------------               
                                                             Before Tax Net 
                                                              Present Value 
                     Light Oil     NGL's       Gas     Boe's  Discounted at 
                         (Mbbl)    (Mbbl)    (MMcf)    (Mboe)    10% ($000s)
----------------------------------------------------------------------------
Proved                                                                      
----------------------------------------------------------------------------
 Developed Producing   1,144.2     462.8    8664.4   3,051.1      $55,662.4 
----------------------------------------------------------------------------
 Non-Producing            32.8       2.4      42.2      42.2         $990.8 
----------------------------------------------------------------------------
 Undeveloped             875.7     215.7    4402.7   1,825.2       $9,651.8 
----------------------------------------------------------------------------
Total Proved           2,052.7     681.0  13,109.3   4,918.5      $66,305.1 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Probable                                                                    
----------------------------------------------------------------------------
 Developed Producing     372.2     190.2   3,334.3   1.118.1      $11,793.0 
----------------------------------------------------------------------------
 Non-Producing            11.5       1.3      22.3      16.5         $187.7 
----------------------------------------------------------------------------
 Undeveloped           1,150.5     207.9   4,536.2   2,114.4      $19,662.7 
----------------------------------------------------------------------------
Total Probable         1,534.2     399.3   7,892.9   3,249.1      $31,643.3 
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Total Proved &                                                              
 Probable              3,586.9   1,080.3  21,002.2   8,167.5      $97,948.4 
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2012 Reserve Addition Metrics, Including Change in Future Development       
Capital(3)                                                                  
                                                                            
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Category                                           Finding &                
                                                 Development                
                                                       Cost,                
                                                   including                
                                                   change in                
                       Finding, Development &         Future         Future 
                  Acquisition Cost, including    Development    Development 
                 change in Future Development        Capital        Capital 
                                      Capital         ($/boe)       ($000's)
                ------------------------------                              
                Including Land Excluding Land                               
                  Acquisitions   Acquisitions                               
                        ($/boe)        ($/boe)                              
----------------------------------------------------------------------------
Total Proved            $24.03         $22.19         $24.86        $39,287 
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Total Proved &                                                              
 Probable               $19.30         $18.03         $20.04        $65,227 
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Notes:                                                                      
(1) The tables above are a summary of the oil, NGL and natural gas reserves 
    of the Company and the net present value of future net revenue          
    attributable to such reserves as evaluated in the McDaniel Report, based
    on forecast price and cost assumptions. The tables summarize the        
    information from the McDaniel Report, and may differ slightly than the  
    original report due to rounding.                                        
(2) Gross reserves means the total working interest (operating or non-      
    operating) share of remaining recoverable reserves owned by Hyperion    
    before deductions of royalties payable to others and without including  
    any royalty interests owned by Hyperion.                                
(3) Based on McDaniel December 31, 2012 escalated price forecast, as        
    applicable.                                                             
(4) The net present value of future net revenue attributable to the         
    Company's reserves is stated without provision for interest costs and   
    general and administrative costs, but after providing for estimated     
    royalties, production costs, development costs, other income, future    
    capital expenditures, and well abandonment costs for only those wells   
    assigned reserves by McDaniel, as applicable.                           
(5) Commodity pricing was prepared by McDaniel and was used, subject to     
    quality and transportation adjustments, in the evaluation of Hyperion's 
    reserves effective as at December 31, 2012.                             



The Company will file its Annual Information Form, which will include Hyperion's
reserves data and other oil and gas information for the year ended December 31,
2012 as mandated by NI 51-101, on or before April 22, 2013.


Operations Update

In 2012 Hyperion announced a new undeveloped land acquisition and farm-in in the
Niton/McLeod area of west central Alberta for the development of a new,
internally sourced, Cardium light oil development. Hyperion has access to 34,000
net acres of undeveloped land on this trend with up to 156 net un-booked
horizontal drilling locations identified.


Hyperion has significantly de-risked the Niton/McLeod development with 5 gross
(4.89 net) Cardium light oil wells drilled and now on production. Based on
modelling nearby vertical Cardium production, Hyperion developed a horizontal
Cardium oil well production performance type curve that exhibits an IP30 rate of
160 boe/day (92% light oil) and reserves of 145 mboe (83% light oil). 


Hyperion is very encouraged by its Cardium horizontal well performance to date
and the Company continues to improve on capital efficiency. The first Cardium
horizontal oil well drilled by Hyperion in the Niton/McLeod area, utilized
intermediate casing, which is considered the lowest risk drilling procedure for
evaluating a new area. Hyperion was satisfied through the drilling of the first
well that the Cardium formation drills in the area as expected. This gave
confidence in switching to a mono bore drilling procedure which has
significantly reduced drilling times and associated well costs. Hyperion's
capital cost for its first horizontal Cardium well in the area was $3.85 million
compared to one of the last wells drilled, at $3.25 million. The mono bore
drilling procedure, increased use of pad drilling and other efficiencies
realized on completion/tie ins are expected to save up to $750 thousand of
capital per well, reducing capital costs to $3.10 million per well. In addition,
the Company expects additional costs savings to be realized under a continuous
drilling operation through minimized mobilization costs.


Hyperion has also become more capital efficient with completion techniques and
will make further refinements on future wells. The Company has learned that
equipping wells with artificial lift as quickly as possible after a brief flow
back period can save significantly on testing and evaluation costs. Reduced flow
back and testing means Hyperion must rely on the bottom hole pump to unload
completion fluid. Despite extended clean up times and the potential for reduced
IP30 rates as a result of this technique, the Company has demonstrated a
shallower production decline over the first 60 days, allowing the well to
achieve the same cumulative oil production as the type curve for this period.


The performance of Hyperion's drilling program in the Niton/McLeod area to date
is as follows:


Hyperion 02-02-56-14W5M

Hyperion's first Cardium horizontal light oil well drilled at Niton/McLeod was
spud on September 9, 2012 and placed on production October 24, 2012. The
horizontal well was completed with a 20 stage slick water based fracture
completion. The well was flow tested for an extended five day period for
clean-up of frac water and to initiate oil production. This well achieved an
IP30 (average production during the first 30 days of production) of 190 boe/day
(86% oil). During the fifth month of production, the well continues to meet type
curve production performance with a production rate of 64 boe/day(80% oil).


Hyperion 03-19-55-13W5M

The 03-19 well was spud on November 20, 2012 and placed on production December
30, 2012. The horizontal well was completed with a 19 stage slick water based
fracture completion. Based on experience from flow testing on the first well, we
determined that an extended flow test requiring testers on site with associated
capital cost was not required and limited the clean-up period to 3 days. A
shortened flow back period reduced the IP30 for 3-19 to 153 boe/day (90% oil),
but also flattened the decline curve. During the third month of production the
well is performing above the type curve at 107 boe/day (85% oil).


Hyperion 15-11-56-14W5M

The 15-11 well was spud on December 20, 2012 and placed on production January
31, 2013. The horizontal well was completed with a 19 stage slick water based
fracture completion. The well had a very limited flow test / clean up period of
two days prior to being shut-in to install production equipment. The well
achieved an IP30 of 130 boe/day (90% oil), which is below type curve, but is
meeting type curve performance expectations for month two at 107 boe/day (86%
oil).


Hyperion 09-21-55-13W5M

The 09-21 well was spud on January 4, 2013 and placed on production February 8,
2013. As a result of difficulties during the drilling operation the effective
horizontal length was shorter than planned, resulting in the well being
completed with 16 stage slick water based fracture completion vs. the planned 20
stage completion. The number of fracture stages is directly proportional to the
expected productivity and as a result the well achieved an IP30 of 101 boe/day
(85% oil). Since the start of month two to approximately three weeks into the
month the well has experienced a flat production profile of approximately 64
boe/day (86% oil). 


In Summary, Hyperion is pleased with the progress achieved at Niton/McLeod in
terms of well productivity, capital efficiency and reserve recognition. This
asset base contains all attributes for top tier growth including a low risk,
repeatable, drilling profile, and strong internal rate of return. Hyperion
currently holds 37,440 gross (34,000net) acres of Cardium rights in the
Niton/McLeod area, including the previously announced farm in, with an average
working interest of approximately 90%. Total Petroleum Initially In Place
("TPIIP") effective as of April 18, 2013, is internally estimated to be up to
171 MMbbls (net) of light oil with a primary recovery factor of 11.7%. The
Niton/McLeod area is characterized by up to 191 gross (172 net) Cardium
horizontal drilling locations with recycle ratios of greater than 2.0. At year
end 2012, approximately 9.4% of these locations have been drilled or booked with
approximately 174 gross (156) net locations remaining as un-booked. These
estimates are subject to change with varying economic conditions and future
drilling results.


Q4 2012 Financial Highlights

The following represents the highlights of Hyperion's fourth quarter and year
ended 2012 operations:




--  Average production in Q4 2012 of 1,505 boe/day (62% light oil and NGLs),
    a 14% increase compared to the Q4 2011 production average of 1,323
    boe/day (61% light oil and NGLs); 
--  Average annual production in 2012 of 1,442 boe/day (64% light oil and
    NGLs), a 46% increase compared to 2011 production average of 989 boe/day
    (53% light oil and NGLs); 
--  Record quarterly funds flow in Q4 2012 of $4.3 million or $0.08/share, a
    8% year over year increase; 
--  2012 annual funds flow of $15.3 million or $0.29/share, a 61% year over
    year increase; 
--  In 2012 enhanced Niton/McLeod undeveloped land position via farm-in
    providing access to a combined total of approximately 34,000 net acres
    of Cardium rights and future growth potential with an un-booked drilling
    inventory of 174 gross (156 net) light oil locations; 
--  Continued to achieve operating efficiencies with field netbacks of
    $39.17 per boe in Q4 2012 and $36.10 for the 2012 fiscal year; 
--  Reduced operating costs in Q4 2012 to $10.38/boe, a decrease of 16% year
    over year; 
--  In Q4 2012, Hyperion expended total capital, including land acquisitions
    and work overs of $5.9 million; 
--  In Q4 2012, Hyperion drilled 2 gross (2.0 net) Cardium horizontal oil
    wells and completed/tied in 2 gross (1.89 net) Cardium light oils well
    in the Niton/McLeod area; 
--  In 2012, Hyperion expended total capital, including land acquisitions
    and work overs of $43.4 million; 
--  In 2012, Hyperion drilled 12 gross (9.38) and completed 11 gross (8.38
    net) Cardium light oil wells in the Garrington, Pembina, Buck Lake, and
    Niton/McLeod areas and drilled/completed 1 gross (1.0 net) Glauconite
    light oil well in the Garrington area. 

Financial Highlights                                                        

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                          3 Months Ended December          12 Months Ended  
                                               31              December 31  
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                             2012    2011  Change     2012    2011  Change  
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Financial ($000's except                                                    
 per share amounts)                                                         
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Oil sales (net of                                                           
 financial contract                                                         
 settlements)               5,938   6,130      (3%) 23,432  14,521      61% 
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NGL sales                     896     677      32%   2,812   2,300      22% 
----------------------------------------------------------------------------
Natural gas sales           1,106     995      11%   2,970   3,957     (25%)
----------------------------------------------------------------------------
Total Oil, NGL, & Natural                                                   
 gas                        7,940   7,802       2%  29,214  20,778      41% 
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Funds inflow (outflow)                                                      
 from operations            4,313   4,000       8%  15,255   9,453      61% 
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Per common share basic &                                                    
 FD ($)                      0.08    0.07      14%    0.28    0.20      40% 
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Net earnings (loss)       (13,348)   (593)     nm  (11,945) (4,173)     nm  
----------------------------------------------------------------------------
Per common share basic &                                                    
 FD ($)                     (0.25)  (0.01)     nm    (0.22)  (0.09)     Nm  
----------------------------------------------------------------------------
Capital expenditures                                                        
 including deposits(1)      5,929   9,018     (34%) 43,386  52,720     (18%)
----------------------------------------------------------------------------
Working capital (deficit)                                                   
 exit                     (33,871) (5,732)    485% (33,871) (5,732)    485% 
----------------------------------------------------------------------------
Unused credit facilities   21,192  22,000      (4%) 21,192  22,000      (4%)
----------------------------------------------------------------------------
Production                                                                  
----------------------------------------------------------------------------
Oil (bbls/day)                738     687       7%     761     427      78% 
----------------------------------------------------------------------------
NGL (bbls/day)                195     115      70%     156      98      59% 
----------------------------------------------------------------------------
Natural gas (mcf/day)       3,430   3,123      10%   3,147   2,785      13% 
----------------------------------------------------------------------------
Total (boe/day ) (6:1)      1,505   1,323      14%   1,442     989      46% 
----------------------------------------------------------------------------
Per 1 million common share                                                  
 basic & FD (boe/day )(2)  27.773  24.396      14%  26.610  20.951      27% 
----------------------------------------------------------------------------
Average realized price                                                      
 ($'s - production                                                          
 weighted)                                                                  
----------------------------------------------------------------------------
Oil ($/bbl)                 82.26      97     (15%)  83.45   93.20     (10%)
----------------------------------------------------------------------------
NGL ($/bbl)                 49.98   64.25     (22%)  49.97   64.29     (22%)
----------------------------------------------------------------------------
Natural gas ($/mcf)          3.51    3.46       1%    2.58    3.89     (34%)
----------------------------------------------------------------------------
Average ($/boe)             54.81   64.14     (15%)  55.02   57.56      (4%)
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Netback ($'s/boe)                                                           
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Oil, natural gas and NGL                                                    
 sales                      54.81   64.14     (15%)  55.02   57.56      (4%)
----------------------------------------------------------------------------
Royalties                    4.32   11.67     (63%)   6.70    9.97     (33%)
----------------------------------------------------------------------------
Operating and                                                               
 transportation expenses    11.32   14.41     (21%)  12.22   13.08      (7%)
----------------------------------------------------------------------------
Operating netback           39.17   38.06       3%   36.10   34.51       5% 
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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  47,205      15% 
----------------------------------------------------------------------------
(1) Net of Paradise disposition with net proceeds of $3,718                 
(2) Weighted average basic and fully diluted common share count used in     
    calculation. Figures not adjusted for debt or working capital positions.
(3) Basic and fully diluted common shares outstanding are considered        
    equivalent prior to Q3 2012 as all dilutive instruments are considered  
    anti-dilutive under IFRS.                                               



Hyperion is a publically traded, junior light oil and gas company resulting from
the recapitalization of Triple 8 Energy Ltd. in July 2010. Hyperion's business
strategy is to grow through acquisitions which lead to lower risk, scalable and
repeatable, light oil, development drilling projects. Currently Hyperion has
54,190,359 common shares outstanding. 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.



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