RedWater Reports Strong Financial Results on Higher Production

RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) is pleased to report record
financial and operating results for the three and six month periods ended June
30, 2013. RedWater's interim condensed financial statements and related
management's discussion and analysis for the three and six months ended June 30,
2013 have been filed and are available on the SEDAR website at www.sedar.com and
may also be obtained on RedWater's website at www.redwaterenergy.com.


Highlights



--  Increased average production to 208 boepd, an increase of 41% over the
    fourth quarter of 2012 
--  Improved average oil production to 112 bbls/d, an increase of 8% over
    the fourth quarter of 2012 
--  Netbacks increased to $20.79 per boe vs. $15.68 in the fourth quarter of
    2012 
--  Completed strategic acquisition of producing properties in the Redwater
    and Westlock regions. 
    --  53 barrels of oil per day and 250 mcf per day of natural gas (42
        boepd) for a total of 95 boepd 
    --  In process of recompleting shut-in gas wells 

                           Three Months Ended         Six Months Ended      
                                 June 30,                  June 30,         
                                2013         2012         2013         2012 
                        --------------------------------------------------- 
Operations                                                                  
Production                                                                  
 Oil (bbls/d)                    112           74          112           69 
 Natural Gas (Mcf/d)             577           91          540          160 
                        --------------------------------------------------- 
 BOEPD                           208           89          202           96 
                                                                            
Average Selling Price                                                       
 Oil ($/bbls)                 $81.04       $67.61       $76.27       $71.40 
 Natural Gas ($/Mcf)            3.34         1.40         3.23         2.08 
                        --------------------------------------------------- 
 BOE ($/BOE)                  $52.86       $57.65       $50.91       $55.10 
                                                                            
Operating Netback                                                           
 ($/BOE)                      $20.79       $14.12       $19.94       $11.64 
                                                                            
                           Three Months Ended         Six Months Ended      
                                 June 30,                  June 30,         
                                2013         2012         2013         2012 
                        --------------------------------------------------- 
Financial                                                                   
                                                                            
Petroleum and Natural                                                       
 Gas Revenues, net of                                                       
 royalties                   906,984      432,700    1,705,700      872,411 
                                                                            
Fund Flow from                                                              
 Operations                   63,356     (112,233)      22,346     (255,060)
 Per Share, Basic &                                                         
  Diluted                       0.00        (0.00)        0.00        (0.01)
                                                                            
Income (loss)               (150,351)    (209,639)    (579,518)    (465,071)
 Per Share, Basic &                                                         
  Diluted                      (0.00)       (0.01)       (0.02)       (0.01)
                                                                            
Capital Expenditures        (131,660)     422,294    3,008,788    1,162,355 
Total Assets              18,656,333   12,421,900   18,656,333   12,421,900 
Shareholders' Equity       7,116,341    7,645,438    7,116,341    7,645,438 
                                                                            
Common Shares                                                               
 Outstanding                                                                
Basic                     34,840,152   32,640,152   34,840,152   32,640,152 
Diluted                   34,840,152   32,640,152   34,840,152   32,640,152 
                                                                            
Share Trading                                                               
 High                           0.12         0.26         0.19         0.32 
 Low                            0.09         0.18         0.09         0.18 
 Close                          0.10         0.18         0.10         0.18 
Trading Volume               918,900      596,540    3,780,357    1,531,358 



Operational Review 

RedWater continues to focus on re-activating shut-in oil and gas wells,
primarily those with low capital requirements and short payback periods.
Improving oil and gas prices has created an opportunity to re-activate recently
acquired Norris assets and previously shut in gas wells. We intend to focus on
our internal opportunities for the near-term and will continue to review
external opportunities as we concentrate on maximizing cash flow. 


Total corporate production in July 2013, was approximately 250 barrels of oil
equivalent per day. 


Business of RedWater Energy Corp.

RedWater Energy Corp. is an emerging oil and gas exploration and development
company. RedWater is engaged in the acquisition, enhancement and exploration of
conventional oil and gas projects in Western Canada with a focus on developing
high working interest light oil opportunities. RedWater's core properties are
located in Redwater, Norris, Westlock, Fairydell-Bon Accord and Panny areas of
Alberta. www.redwaterenergy.com.


Cautionary Statements

Forward-looking information and statements

This news release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are intended to
identify forward-looking information or statements. In particular, but without
limiting the forgoing, this news release contains forward-looking information
and statements pertaining to the following; the timing for completion and
equipping of wells; the volume and product mix of RedWater's oil and gas
production and its ability to develop RedWater's oil resource properties, the
use of the RedWater's cash flow from operations and expanded credit facilities;
the number of wells to be drilled and potential development drilling and number
of potential oil development locations. 


In addition, forward-looking statements or information are based on a number of
material factors, expectations or assumptions of RedWater which have been used
to develop such statements and information but which may prove to be incorrect.
Although RedWater believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue reliance should
not be placed on forward-looking statements because RedWater can give no
assurance that such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified herein, assumptions have been
made regarding, among other things: results from drilling and development
activities consistent with past operations; the continued and timely development
of infrastructure in areas of new production; continued availability of debt and
equity financing and cash flow to fund RedWater's current and future plans and
expenditures; the impact of increasing competition; the general stability of the
economic and political environment in which RedWater operates; the timely
receipt of any required regulatory approvals; the ability of RedWater to obtain
qualified staff, equipment and services in a timely and cost efficient manner;
drilling results; the ability of the operator of the projects in which RedWater
has an interest in to operate the field in a safe, efficient and effective
manner; the ability of RedWater to obtain financing on acceptable terms; field
production rates and decline rates; the ability to replace and expand oil and
natural gas reserves through acquisition, development and exploration; the
timing and cost of pipeline, storage and facility construction and expansion and
the ability of RedWater to secure adequate product transportation; future
commodity prices; currency, exchange and interest rates; regulatory framework
regarding royalties, taxes and environmental matters in the jurisdictions in
which RedWater operates; the ability of RedWater to successfully market its oil
and natural gas products that all necessary regulatory approvals will be
obtained as and when required, that there will be no material adverse change in
RedWater's affairs or laws, rules or regulations relating to RedWater, its
securities or business, there will be no regulatory proceedings involving
RedWater or any of its directors or officers, or any cease trade or other order
prohibiting or restricting trading in RedWater's securities, no major national
or international event will have occurred that has or would reasonably be
expected to have a material adverse effect on financial markets or the business,
operations or affairs of RedWater. 


The forward-looking information and statements included in this news release are
not guarantees of future performance and should not be unduly relied upon. Such
information and statement, including the assumptions made in respect thereof,
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to defer materially from those anticipated in such
forward-looking information or statements including, without limitation: changes
in commodity prices; changes in the demand for or supply of RedWater's products;
unanticipated operating results or production declines; changes in tax or
environmental laws, royalty rates or other regulatory matters; changes in
development plans of RedWater or by third party operators of RedWater's
properties, increased debt levels or debt service requirements; inaccurate
estimation of RedWater's oil and gas reserve and resource volumes; limited,
unfavorable or a lack of access to capital markets; increased costs; a lack of
adequate insurance coverage; the impact of competitors; and certain other risks
detailed from time-to-time in RedWater's public disclosure documents,
(including, without limitation, those risks identified in this news release and
RedWater's public company documents filed on SEDAR).


The forward-looking information and statements contained in this news release
speak only as of the date of this news release, and RedWater does not assume any
obligation to publicly update or revise any of the included forward-looking
statements or information, whether as a result of new information, future events
or otherwise, except as may be expressly required by applicable securities laws.



Funds flow from operations are not measures that have any standardized meaning
prescribed by IFRS or Canadian GAAP and accordingly are referred to as non -
GAAP measures. Therefore, these measures may not be comparable to similar
measures presented by other issuers. These measures have been described and
presented here and in our MD&A in order to provide shareholders and potential
investors with additional information regarding Redwater's liquidity and its
ability to generate funds to finance its operations. Management utilizes "Funds
flow from operations" as a key measure to assess the ability of RedWater to
finance operating activities and capital activities. All references to funds
flow from operations throughout this report are calculated based on cash flows
from operating activities before changes in non-cash working capital. Cash flows
from operating activities are the closest comparable figure which is calculated
in accordance with IFRS and Canadian GAAP.


BOE Equivalent 

Barrel of oil equivalents or BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 mcf:1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.


FOR FURTHER INFORMATION PLEASE CONTACT: 
RedWater Energy Corp.
Gary Waters
President & CEO
[phone]
[e-mail]
www.redwaterenergy.com