Gear Energy Ltd. Announces 42 Per Cent Increase in Year-End Reserve Value and 249 Per Cent Replacement of 2013 Production

Gear Energy Ltd. ("Gear" or the "Company") (TSX:GXE) is pleased to present the
results and analysis of its 2013 year-end independent reserve report.


HIGHLIGHTS



--  Achieved finding, development and acquisition ("FD&A") costs of $17.84
    per proved plus probable ("P+P") boe, including changes in future
    development costs ("FDC"), which resulted in a Company recycle ratio of
    1.8 times. FD&A costs decreased by 26 per cent from 2012. FDC costs
    increased marginally on a P+P basis as the undeveloped oil wellcount
    year over year increased from 75 to 91 booked locations. 

--  Increased the net present value discounted at 10 per cent ("NPV10") of
    proved plus probable reserves by 42 per cent to $274 million and proved
    reserves by 43 per cent to $182 million. On a per debt adjusted share
    basis, the increases were 31 per cent and 34 per cent, respectively. 

--  Added 3,706 mboe of P+P reserves and replaced the equivalent of 249 per
    cent of 2013 total production. Gear drilled a total of 47 gross (42 net)
    wells at a 98 per cent success rate including successfully drilling
    three future development areas.

--  Increased proved plus probable reserve volumes by 17 per cent to 15,655
    mboe (84 per cent oil and NGLs) and proved reserves by 23 per cent to
    8,941 mboe (87 per cent oil and NGLs). On a per debt adjusted share
    basis, the increases were 8 per cent and 14 per cent, respectively. The
    reserve value increase was greater than the reserves volume increase due
    to higher liquids weighting. In addition, despite lower benchmark price
    forecasts, Gear's netback has improved due to new well royalty
    incentives, access to stronger oil markets through rail-based marketing
    strategies, and a continuous focus on both capital efficiencies and
    operating costs.

--  Increased Company P+P net asset value by 27 per cent from $3.34 per
    share in 2012 to $4.23 per share in 2013.

--  Maintained a steady reserve life index ("RLI") at 8.1 years compared to
    8.0 years in 2012 using proved plus probable reserves. 



RESERVES SUMMARY

Year-end 2013 reserves were evaluated by independent reserves evaluator GLJ
Petroleum Consultants ("GLJ") in accordance with the definitions, standards and
procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE
Handbook") and National Instrument 51-101 Standards of Disclosure for Oil and
Gas Activities ("NI 51-101"). A reserves committee, comprised of independent
board members, reviews the qualifications and appointment of the independent
reserves evaluator and reviews the procedures for providing information to the
evaluators. The reserves evaluation was based on GLJ forecast pricing and
foreign exchange rates at January 1, 2014. Reserves included herein are stated
on a company interest basis (working interest before deduction of royalties
including any royalty interests) unless noted otherwise. Additional reserves
information required under NI 51-101 will be included in Gear's Annual
Information Form to be filed on SEDAR on or before March 31, 2014.


The following tables outline Gear's reserves as at December 31, 2013. No
provision for interest, debt service charges and general and administrative
expenses have been made and it should not be assumed that the NPV estimated by
GLJ represents the fair market value of the reserves.


Reserves summary at Dec 31, 2013 using GLJ January 1, 2014 forecast prices and costs



----------------------------------------------------------------------------
                                             Natural                 Liquids
                   Heavy Oil       NGL's         Gas  Equivalent       ratio
Company Interest     (mbbls)     (mbbls)      (mmcf)     (mboes)         (%)
----------------------------------------------------------------------------
Proved Developed                                                            
 Producing             5,375          10       1,579       5,649          95
Proved Non-                                                                 
 Producing &                                                                
 Undeveloped           2,307          61       5,543       3,291          72
----------------------------------------------------------------------------
Total Proved           7,682          71       7,122       8,941          87
Total Probable         5,160         161       8,359       6,715          79
----------------------------------------------------------------------------
Total Proved                                                                
 plus Probable        12,843         233      15,481      15,655          84
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Net present value of future revenues before income taxes under forecast prices
and costs




----------------------------------------------------------------------------
Company                                                                     
 Interest       Undiscounted  Discounted  Discounted  Discounted  Discounted
($ thousands)                       @ 5%       @ 10%       @ 15%       @ 20%
----------------------------------------------------------------------------
Proved                                                                      
 Developed                                                                  
 Producing           186,007     163,185     145,450     131,459     120,200
Proved Non-                                                                 
 Producing &                                                                
 Undeveloped          60,416      46,544      36,281      28,549      22,592
----------------------------------------------------------------------------
Total Proved         246,422     209,728     181,732     160,008     142,792
Total Probable       173,129     123,887      92,310      71,010      56,006
----------------------------------------------------------------------------
Total Proved                                                                
 plus Probable       419,551     333,615     274,041     231,017     198,798
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Future development costs ("FDC") under forecasted prices and costs



----------------------------------------------------
($ thousands)             Proved  Probable     Total
----------------------------------------------------
2014                      39,761     8,795    48,556
2015                      14,245    39,840    54,085
2016                         156     8,157     8,313
Subsequent years             406       187       592
----------------------------------------------------
Undiscounted total        54,567    56,979   111,546
Discounted at 10%         50,533    49,391    99,924
----------------------------------------------------
----------------------------------------------------



Efficiency Ratios

The following table highlights annual capital efficiency through finding and
development ("F&D") and finding, development and acquisition per boe metric as
well as a recycle ratio metric. Gear has steadily improved its F&D, FD&A, and
recycle ratio metrics for the last three years.




----------------------------------------------------------------------------
                                      2013                    2012          
                                              Proved                  Proved
                                                plus                    plus
                                  Proved    Probable      Proved    Probable
----------------------------------------------------------------------------
Reserves additions (mboes)         3,157       3,706       1,725       3,498
Total capital spending ($                                                   
 thousands)                       53,466      53,466      45,505      45,505
Total net dispositions ($                                                   
 thousands)                         (92)        (92)       1,750       1,750
Change in FDC ($ thousands)       18,889      12,633       2,486      37,381
                                                                            
F&D costs before FDC per boe       16.97       14.45       27.50       14.62
F&D costs with FDC per boe         22.95       17.86       28.97       24.75
FD&A costs before FDC per                                                   
 boe                               16.94       14.43       27.39       13.51
FD&A costs with FDC per boe        22.92       17.84       28.84       24.23
                                                                            
Recycle ratio (F&D with FDC)         1.4         1.8         1.0         1.2
Recycle ratio (FD&A with                                                    
 FDC)                                1.4         1.8         1.0         1.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Reserves life Index



----------------------------------------------------------------------------
Company Interest using GLJ production rates (years)     2013    2012    2011
----------------------------------------------------------------------------
Total Proved                                             5.1     5.4     5.1
Total Proved plus Probable                               8.1     8.0     7.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Net Asset Value ("NAV") at December 31,



--------------------------------------------------------------------------- 
($ millions, except per share amounts)             2013      2012      2011 
--------------------------------------------------------------------------- 
Value of Company interest Proved plus Probable                              
 Reserves discounted at 10% (Before Tax)          274.0     193.1     165.3 
Undeveloped Lands                                   7.5      12.1       9.8 
Seismic                                            12.4      11.9       9.2 
Deferred tax asset                                 12.6      13.4      14.3 
Risk management contracts                          (2.1)     (0.1)     (1.5)
Net debt                                          (67.1)    (47.9)    (33.8)
Decommissioning liability                          (9.1)     (2.4)     (4.5)
--------------------------------------------------------------------------- 
NAV                                               228.2     180.1     158.8 
Shares outstanding (millions)                      54.0      53.9      52.7 
NAV per share                                      4.23      3.34      3.01 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 



ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain
forward-looking information and statements within the meaning of applicable
securities laws. The use of any of the words "expect", "continue", "estimate",
"may", "will", "should", "believe", "plans", "cautions" and similar expressions
are intended to identify forward-looking information or statements. In
particular, but without limiting the forgoing, this press release contains
statements concerning Gear's netback improvements as a result of its focus on
capital efficiencies and operating costs and the expected filing date of Gear's
annual information form for the year ended December 31, 2013.


Forward-looking statements or information are based on a number of material
factors, expectations or assumptions of Gear which have been used to develop
such statements and information but which may prove to be incorrect. Although
Gear believes that the expectations reflected in these forward-looking
statements are reasonable, undue reliance should not be placed on them because
Gear can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. In particular, in addition
to other factors and assumptions which may be identified herein, no assurances
can be given respecting: whether Gear's exploration and development activities
will be successful or that material volumes of petroleum and natural gas
reserves will be encountered, or if encountered can be produced on a commercial
basis; that additional drilling operations will be successful such that further
development activities is warranted; that Gear's efforts to raise additional
capital will be successful; that Gear will continue to conduct its operations in
a manner consistent with past operations; results from drilling and development
activities will be consistent with past operations; the accuracy of the
estimates of Gear's reserve volumes; the general stability of the economic and
political environment in which Gear operates; drilling results; field production
rates and decline rates; the general continuance of current industry conditions;
the timing and cost of pipeline, storage and facility construction and expansion
and the ability of Gear to secure adequate product transportation; future
commodity prices and heavy oil differentials; currency, exchange and interest
rates; regulatory framework regarding royalties, taxes and environmental matters
in the jurisdictions in which Gear operates; and the ability of Gear to
successfully market its oil and natural gas products. 


Further, events or circumstances may cause actual results to differ materially
from those predicted as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the control of Gear,
including, without limitation: changes in commodity prices and heavy oil
differentials; changes in the demand for or supply of Gear'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 Gear or by third party operators of Gear's properties,
increased debt levels or debt service requirements; inaccurate estimation of
Gear's oil and gas reserve and resource volumes; limited, unfavourable 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 Gear's public disclosure documents. Additional information
regarding some of these risk factors may be found under "Risk Factors" in Gear's
(final) long form prospectus dated November 13, 2013 and will be included in
Gear's annual information form for the year ended December 31, 2013. The reader
is cautioned not to place undue reliance on this forward-looking information.
The forward-looking statements contained in this press release are made as of
the date hereof and Gear undertakes no obligations to update publicly or revise
any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.


ADVISORY ON USE OF "BOEs": "BOEs" may be misleading, particularly if used in
isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to
one barrel of oil equivalent (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. Given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly different
from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.


OIL AND GAS ADVISORY: The reserves information contained in this press release
has been prepared in accordance with NI 51-101. Complete NI 51- 101 reserves
disclosure will be included in Gear's annual information form for the year ended
December 31, 2013as required under NI 51-101, which is expected to be filed on
or before March 31, 2014. Listed below are cautionary statements applicable to
our reserves information that are specifically required by NI 51-101: 




--  Individual properties may not reflect the same confidence level as
    estimates of reserves for all properties due to the effects of
    aggregation. 
--  With respect to finding and development costs, the aggregate of the
    exploration and development costs incurred in the most recent financial
    year and the change during that year in estimated future development
    costs generally will not reflect total finding and development costs
    related to reserve additions for that year. 
--  This press release contains estimates of the net present value of Gear's
    future net revenue from the Company's reserves. Such amounts do not
    represent the fair market value of the Company's reserves. 
--  Reserves included herein are stated on a company interest basis (before
    royalty burdens and including royalty interests) unless noted otherwise
    as well as on a gross and net basis as defined in NI 51-101. "Company
    interest" is not a term defined by NI 51-101 and as such the estimates
    of Company interest reserves herein may not be comparable to estimates
    of "gross" reserves prepared in accordance with NI 51-101 or to other
    issuers' estimates of company interest reserves.



SELECTED DEFINITIONS: The following terms used in this press release have the
meanings set forth below:


"boe" means barrel of oil equivalent of natural gas and crude oil on the basis
of 1 boe for six thousand cubic feet of natural gas (this conversion factor is
and industry accepted norm and is not based on either energy content or current
prices)


"Mbbl" means thousand barrels

"Mboe" means 1,000 barrels of oil equivalent

"Mmcf" means one million cubic feet

"NGL" means natural gas liquids

FOR FURTHER INFORMATION PLEASE CONTACT: 
Gear Energy Ltd.
Ingram B. Gillmore
President and Chief Executive Officer
[phone]