Pine Cliff Energy Ltd. Announces Third Quarter 2013 Results

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES.


Pine Cliff Energy Ltd. ("Pine Cliff" or the "Company") (TSX VENTURE:PNE) is
pleased to announce its third quarter financial and operating results. Selected
highlights are shown below and should be read in conjunction with the Company's
interim condensed consolidated financial statements and the related management's
discussion and analysis for the three months and nine months ended September 30,
2013 (the "Q3-2013 Report").


Highlights

In the third quarter of 2013, Pine Cliff: 



--  Closed two significant acquisitions. The first acquisition was an
    additional interest in the Monogram unit on July 24, 2013 which added
    approximately 1,600 boe/d of production (the "Monogram Asset
    Acquisition"). The second included the purchase of additional interests
    in, and more importantly the assumption of operatorship of, our Southern
    Alberta and Southern Saskatchewan assets (the "Additional Interests
    Acquisition") on August 30, 2013. This acquisition added approximately
    850 boe/d of production; 
--  Achieved record oil and gas sales volumes of 5,784 boe/d, a 546%
    increase over the same period in 2012, mainly as a result of our
    acquisitions; and 
--  Generated quarterly funds flow from operations of $3.0 million, an
    increase of 582% when compared to the third quarter of 2012, despite
    having extremely low natural gas prices. 



Business Strategy and Environment

Natural gas prices have shown limited recovery in 2013 and demonstrated
increased volatility in the third quarter as AECO prices averaged $2.43 per mcf
as compared to $3.52 per mcf in the second quarter of 2013. Prices have
increased to an average price of $3.25 per mcf in October but remain volatile.
This depressed pricing environment continues to favour our strategy of making
counter-cyclical, gas weighted acquisitions as we continue to believe that there
are greater returns available in purchasing existing production than drilling at
this time. 


Subsequent to quarter end, we completed a common share issuance for gross
proceeds of $20.0 million which eliminated Pine Cliff's bank debt and increased
the Company's financial flexibility for further acquisitions. It remains a
"buyer's market" for natural gas assets and with our increased size, strong
balance sheet and access to capital we have a competitive advantage over many of
the other prospective bidders. We remain active in assessing available private
and public sales processes and as always, we will maintain our discipline in
seeking opportunities which will create value with strong per share growth. 


Although in the short-term we believe that natural gas prices will continue to
fluctuate, we remain convinced that over time we will see an increasing recovery
in pricing. Key indicators supporting this outlook include: strong forecasted
natural gas demand growth in U.S. power generation and industrial sectors;
increasing exports of U.S. gas to Mexico; increased usage by Alberta oil sands
producers; conversion to natural gas from coal; and overseas natural gas markets
that are contending with both insufficient LNG supply and increasing demand
growth. As a result, we anticipate natural gas prices will eventually increase
as demand is placed on U.S. and Canadian producers to bring more supply to
market while maintaining appropriate storage levels. 


Building a Strong Asset Base Leveraged to Natural Gas Price Recovery

Over the past two years, we have pursued a counter-cyclical strategy of
acquiring properties that are characterized by low decline rates (our current
corporate decline rate is approximately 15%) and low cost production while
maintaining a low corporate overhead to provide Pine Cliff with strong funds
flow leverage to any natural gas price recovery. Using our third quarter 2013
volumes annualized for twelve months, a $0.10 increase per mcf in AECO pricing
would improve annual funds flow from operations by $1.1 million. With this type
of leverage, even a limited natural gas price recovery can significantly improve
financial results and shareholder value. 


Pine Cliff is currently producing approximately 6,200 boe/d (week ended November
2, 2013) with approximately 500 boe/d of production being deferred as a result
of dew point issues and maintains its 2013 average daily production guidance at
4,350 to 4,850 boe/d. Capital expenditures during the first nine months of 2013
were $7.1 million. We remain focused on maintaining our strong financial
position and plan to fully fund the 2013 capital expenditure budget of $10.8
million from funds flow from operations. Our drilling program in 2013 has been
limited to a few strategic targets resulting in increased production and an
improved understanding of our asset base. The majority of our drilling locations
will be inventoried until natural gas prices recover at which time we intend to
initiate a more substantive drill program, providing additional upside for
shareholders. 




Financial and Operating Results                                             
($000s, unless otherwise        Three months ended      Nine months ended   
 indicated)                        September 30           September 30      
                                    2013        2012     2013(1)    2012(1) 
----------------------------------------------------------------------------
Oil and gas sales                  9,719       2,197      24,261      5,228 
Cash flow from operating                                                    
 activities                        2,579         246       9,431      1,113 
Funds flow from operations                                                  
 (2)                               3,014         442       9,136        927 
 Basic per share ($/share)          0.02        0.01        0.06       0.02 
 Diluted per share ($/share)        0.02        0.01        0.05       0.02 
Earnings                            (709)       (472)      7,379       (209)
 Basic per share ($/share)         (0.00)      (0.01)       0.04      (0.00)
 Diluted per share ($/share)       (0.00)      (0.01)       0.04      (0.00)
Capital expenditures               3,076          14       7,131        630 
Net debt (3)                      21,423      19,161      21,423     19,161 
Production (boe/d)                 5,784         895       4,229        757 
Percent oil and liquids (%)            4          21           6         22 
Commodity sales price ($/boe)      18.26       26.69       21.01      25.22 
Operating netback ($/boe) (4)       7.32       13.36        9.04      12.64 
----------------------------------------------------------------------------
(1) The results for the nine months ended September 30, 2013 include the    
results of the Skope Acquisition for the 223 day period of February 19, 2013
to September 30, 2013, the results of the Monogram Asset Acquisition for the
68 day period of July 24 to September 30, 2013, and the August 30, 2013     
Additional Interests Acquisition for the 31 day period of August 30 to      
September 30, 2013, averaged over 273 days. The results for the nine months 
ended September 30, 2012 include the results of the Carrot Creek Assets for 
the period of March 1, 2012 to September 30, 2012, averaged over 274 days.  
(2) Funds flow from operations is a non-IFRS measure that represents the    
total of funds provided by operating activities, before adjusting for       
changes in non-cash working capital and changes in interest payable.        
(3) Net debt is a non-IFRS measure calculated as bank debt, related party   
note payable and trade and other payables less trade and other receivables, 
and cash.                                                                   
(4) Operating netback is a non-IFRS measure calculated as the Company's oil 
and gas sales, less royalties and operating expenses, averaged over the boe 
production of the Company.                                                  



About Pine Cliff

Further information relating to Pine Cliff, including the Q3-2013 Report, may be
found on www.sedar.com as well as on Pine Cliff's website at
www.pinecliffenergy.com.


Cautionary Statements

Certain statements contained in this release include statements which contain
words such as "anticipate", "could", "should", "expect", "seek", "may",
"intend", "likely", "will", "believe" and similar expressions, statements
relating to matters that are not historical facts, and such statements of our
beliefs, intentions and expectations about development, results and events which
will or may occur in the future, constitute "forward-looking information" within
the meaning of applicable Canadian securities legislation and are based on
certain assumptions and analysis made by us derived from our experience and
perceptions. Forward-looking information in this release includes, but is not
limited to: expected production levels; future capital expenditures, including
the amount and nature thereof; oil and natural gas prices and demand; expansion
and other development trends of the oil and natural gas industry; business
strategy and outlook; expansion and growth of our business and operations;
maintenance of existing customer, supplier and partner relationships; supply
channels; accounting policies; credit risks; and other such matters.


All such forward-looking information is based on certain assumptions and
analyses made by us in light of our experience and perception of historical
trends, current conditions and expected future developments, as well as other
factors we believe are appropriate in the circumstances. The risks,
uncertainties, and assumptions are difficult to predict and may affect
operations, and may include, without limitation: foreign exchange fluctuations;
equipment and labour shortages and inflationary costs; general economic
conditions; industry conditions; changes in applicable environmental, taxation
and other laws and regulations as well as how such laws and regulations are
interpreted and enforced; the ability of oil and natural gas companies to raise
capital; the effect of weather conditions on operations and facilities; the
existence of operating risks; volatility of oil and natural gas prices; oil and
gas product supply and demand; risks inherent in the ability to generate
sufficient cash flow from operations to meet current and future obligations;
increased competition; stock market volatility; opportunities available to or
pursued by us; and other factors, many of which are beyond our control. The
foregoing factors are not exhaustive.


Actual results, performance or achievements could differ materially from those
expressed in, or implied by, this forward-looking information and, accordingly,
no assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of them do, what
benefits will be derived there from. Except as required by law, Pine Cliff
disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise.



The forward-looking information contained in this release is expressly qualified
by this cautionary statement.


This news release contains the term boe which has been calculated on the basis
of six thousand cubic feet ("mcf") of gas to one barrel of oil. This conversion
ratio is based on energy equivalence primarily at the burner tip and does not
represent a value equivalency at the wellhead. The term boe may be misleading,
particularly if used in isolation.


This summarized news release should not be considered a suitable source of
information for readers who are unfamiliar with Pine Cliff and should not be
considered in any way as a substitute for reading the full report. 


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


FOR FURTHER INFORMATION PLEASE CONTACT: 
Pine Cliff Energy Ltd.
Philip B. Hodge
President and CEO
[phone]


Pine Cliff Energy Ltd.
Robb D. Thompson
CFO and Corporate Secretary
[phone]


Pine Cliff Energy Ltd.
Kirsten Lankester
Manager, Investor Relations
[phone]
[phone] (FAX)
[e-mail]
www.pinecliffenergy.com