Hyperion Exploration Corp. Announces 2013 Year End Reserves, and Development Update for the Niton/McLeod Cardium Light Oil Play

Hyperion Exploration Corp. ("Hyperion" or the "Company") (TSX VENTURE:HYX)
announces its 2013 year end reserves and a development update for its
Niton/McLeod Cardium light oil play. Certain financial estimates have been made
herein to facilitate the disclosure of the Company's 2013 capital program and
reserves. Readers are advised that these financial estimates are subject to the
disclosure to be contained in the audited financial statements of Hyperion for
the year ended December 31, 2013 and management's discussion and analysis
related thereto and Hyperion's Annual Information Form for the year ended
December 31, 2013.


Hyperion's reserves were evaluated by McDaniel & Associates Consultants Ltd.
("McDaniel") effective December 31, 2013, 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. 


2013 Year End Reserve Highlights:



--  Increased P+P Net Asset Value ("NAV") by 4% to $1.53 per basic and fully
    diluted share - see table below for full calculation;

--  On the basis of Proved plus Probable Developed Producing reserves
    ("P+PDP") achieved a NAV of $0.95 per basic and fully diluted share -
    see table below for full calculation;

--  Invested $8.2 million to complete and tie-in one 1 gross (1 net) short
    reach horizontal ("SRH") well with a lateral length up to 1.0 mile
    (convert from undeveloped to producing reserve status) and drill,
    complete and tie-in 2 gross (2 net) SRH wells, not previously booked in
    the reserve report;

--  Actual well cost was less than the capital estimated in the McDaniel
    year end 2012 reserve report. This resulted in a $10.965 million
    reduction of Company wide future development capital ("FDC"). This
    represents a reduction in FDC for future wells at Niton/McLeod of
    approximately 20%;

--  Increased Total Proved plus Probable ("P+P") reserves Before Tax Net
    Present Value, discounted at 10% ("BT NPV10%") by 4% to $101.9 million;

--  Modest drilling activity in 2013 was offset by a shallowing base decline
    (mainly from maturing SRH wells drilled in 2012) resulting in relatively
    minor changes in overall corporate reserves: P+P reserves decreased by
    5.3% to 7,734.1 Mboe (54% liquids) and Total Proved ("TP") reserves
    decreased by 4.7% to 4,688.8 Mboe (53% liquids);

--  Achieved TP finding, development and acquisition cost ("FD&A") of
    $8.71/boe and TP finding and development cost ("F&D") of $11.96/boe
    including changes in FDC;

--  Due to the reduction in P+P FDC ($10.965 million), coupled with 2013
    investment capital of ($8.2 million), total capital was less than zero
    for the year. As a result, the calculation of P+P FD&A and F&D is not
    relevant;

--  Achieved a TP Recycle Ratio of 4.0 based on FD&A of $8.71/boe, a TP
    Recycle Ratio of 2.9 based on F&D of $11.96/boe and a 2013 field netback
    of $34.96/boe;

--  Achieved a P+P F&D of $28.60/boe for the two wells drilled in 2013 (not
    booked in the 2012 reserve report). These wells were drilled to
    delineate the edge of the Niton/McLeod Cardium play;

--  Based on industry results, management believes the application of
    extended reach horizontal ("ERH") wells with lateral lengths 1.5 mile's
    and greater has the potential to improve results and overall economics;

--  Reserve Life Index (RLI) of 10.9 years (TP) and 18.0 years (P+P) based
    on 2013 production of 1,175 boe/day;

--  The Company has proven up the Cardium light oil opportunity drilling SRH
    wells. The Company plans on drilling the next wells at Niton/McLeod as
    ERH's, at locations offsetting its best wells to date; and

--  Based on lands currently captured and the implementation of ERH wells,
    the Company has an unbooked inventory of 51.6 ERH and 31.0 SRH wells at
    Niton/McLeod.



Summary of Company Reserves as at December 31, 2013(1),(2),(3),(4),(5)



----------------------------------------------------------------------------
                                                              Before Tax Net
                                                               Present Value
                                                               Discounted at
Reserve Category                         (Gross)                 10% ($000s)
                          ------------------------------------              
                          Light Oil    NGL's      Gas    Boe's              
                             (Mbbl)   (Mbbl)   (MMcf)   (Mboe)              
----------------------------------------------------------------------------
Proved                                                                      
----------------------------------------------------------------------------
 Developed Producing        1,085.6    509.9  8,731.5  3,050.8 $    59,386.1
----------------------------------------------------------------------------
 Non-Producing                  2.3      0.3      4.3      3.3 $        88.3
----------------------------------------------------------------------------
 Undeveloped                  643.0    226.2  4,593.1  1,634.7 $    10,462.3
----------------------------------------------------------------------------
Total Proved                1,730.9    736.5 13,328.9  4,688.8 $    69,936.8
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Probable                                                                    
----------------------------------------------------------------------------
 Developed Producing          361.9    175.9  2,872.5  1,016.6 $    10,990.7
----------------------------------------------------------------------------
 Non-Producing                  0.8      0.1      1.8      1.2 $        31.1
----------------------------------------------------------------------------
 Undeveloped                  974.9    222.4  4,981.0  2,027.5 $    20,894.0
----------------------------------------------------------------------------
Total Probable              1,337.6    398.5  7,855.3  3,045.2 $    31,915.9
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Total Proved & Probable     3,068.5  1,134.9 21,184.2  7,734.1 $   101,852.7
----------------------------------------------------------------------------



2013 Reserve Addition Metrics, Including Change in Future Development Capital



----------------------------------------------------------------------------
                                        Finding,                            
                                   Development &     Finding &              
                                     Acquisition   Development              
                                           Cost,         Cost,              
                                       including     including              
                                       change in     change in              
                                          Future        Future              
                                     Development   Development        Future
Category                                 Capital       Capital   Development
                                            FD&A           F&D       Capital
                                         ($/boe)       ($/boe)     ($000's) 
----------------------------------------------------------------------------
Total Proved                               $8.71        $11.96       $32,841
----------------------------------------------------------------------------
Total Proved & Probable                        -             -       $54,261
----------------------------------------------------------------------------



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, 2013 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, 2013.


Future Development Capital Reconciliation



----------------------------------------------------------------------------
                              2012 to 2013                                  
                                FDC Change                                  
                                    $000's                          Comments
----------------------------------------------------------------------------
Niton -                            -$5,963 Reduced forecast capital based on
 McLeod                                       actual field results for wells
                                                             drilled in 2013
----------------------------------------------------------------------------
Garringt                           -$1,316 Reduced forecast capital based on
 on                                         offset results for wells drilled
                                                                     in 2013
----------------------------------------------------------------------------
Buck                                 -$701 Reduced forecast capital based on
 Lake                                       offset results for wells drilled
                                                                     in 2013
----------------------------------------------------------------------------
Pembina                            -$1,475        Capital removed as working
                                                 interest converted to gross
                                                          overriding royalty
----------------------------------------------------------------------------
McLeod                             -$1,510  Capital spent in 2013 to convert
 15-25                                              undeveloped to developed
 well                                                        production well
----------------------------------------------------------------------------
Total                             -$10,965                                  
 Change                                                                     
 in FDC                                                                     
----------------------------------------------------------------------------



The Company will file its Annual Information Form (which will include the
Company reserves data and other oil and gas information for the year ended
December 31, 2013) as mandated by NI 51-101 along with audited financial
statements and related management discussion and analysis on or before April 30,
2013.


Niton / McLeod Go Forward Development

The Niton/McLeod Cardium light oil play has been the focus of the Company's
capital activities for the past two years. Given the complex geological
environment, there was limited industry understanding of the Cardium opportunity
in this area until Hyperion drilled the first successful Hz well in early 2012.
Since then the Company has drilled a total of six wells, delineating the play
over a distance of approximately 23 kilometers (14 miles).


The initial concept was to use SRH wells with a lateral length of 1.0 mile
completed with multi stage fracs to optimize production and yield competitive
economic returns. Results from the initial six wells have demonstrated initial
production rates that have varied well to well, though the reserve assignment
per well has been similar. Hyperion is very encouraged by the results achieved
thus far and is now focused on improving initial production rates.


Given the Cardium is a low permeability reservoir, industry has evolved to
drilling ERH wells with a lateral length of 1.5 miles or greater to improve
initial production rates, improve capital efficiencies and accelerate capital
payouts. Hyperion's significant contiguous land position at Niton/McLeod (29,030
net acres) lends itself to development using ERH wells. The Company plans to use
ERH on upcoming wells that offset its best performing SRH wells to date. 


Based on industry results, drilling an ERH well has the potential to more than
double initial production compared to a SRH well. The evolution to ERH wells in
the Cardium at Niton/McLeod is expected to improve capital efficiency in excess
of 20% and accelerate capital payouts to less than 1.5 years.


Based on lands currently captured, and with the successful implementation of an
ERH development program, the Company has an unbooked inventory of 51.6 ERH and
31.0 SHR wells at Niton/McLeod. All wells at Niton/McLeod included in the
reserves evaluated in the McDaniel Report were based upon SRH wells. Going
forward the Company plans to convert wells currently booked as SRH to ERH where
it has sufficient contiguous lands.


Subsequent Event

On January 31, 2013, Hyperion sold its Chip lake asset of 100 boe/d (70% gas,
12% NGL and 18% oil) for total consideration of $3.4 million cash, net of
adjustments. The following reserves were attributed to Chip Lake in the McDaniel
Report:




--  Total Proved Reserves of 210.9 mboe (65% gas); and 
--  Total Proved plus Probable Reserves of 285.1 mboe (65% gas).



No Proven Undeveloped or Proved plus Probable Undeveloped locations were
assigned to Chip Lake.


Net Asset Value Calculation - Year End 2013(1),(2),(3),(4),(50,(6),(7),(8)



----------------------------------------------------------------------------
                                  Before Sale of Chip    After Sale of Chip 
                                                 Lake                  Lake 
                                --------------------------------------------
                                              $/Basic               $/Basic 
                                     $,000 & FD Share      $,000 & FD Share 
----------------------------------------------------------------------------
Total Proven+Probable (P+P)                                                 
 Value - (BT NPV10%)             $ 101,853  $    1.88  $  96,693  $    1.78 
----------------------------------------------------------------------------
Land Value                       $  11,572  $    0.21  $   9,012  $    0.17 
----------------------------------------------------------------------------
Seismic & Tax Pools              $   1,268  $    0.02  $   1,237  $    0.02 
----------------------------------------------------------------------------
Year End 2013 Net Debt           $ (31,892) $   (0.59) $ (28,792) $   (0.53)
----------------------------------------------------------------------------
Net Asset Value (P+P)            $  82,801  $    1.53  $  78,150  $    1.44 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Proven+Probable Developed                                                   
 Producing (P+PDP) Value - (BT                                              
 NPV10%)                         $  70,377  $    1.30  $  65,217  $    1.20 
----------------------------------------------------------------------------
Net Asset Value (P+PDP)          $  51,325  $    0.95  $  46,674  $    0.86 
----------------------------------------------------------------------------



(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, 2013 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, 2013.


(6) The land value is a summary of the Seaton-Jordan 31, 2012 Report,
mechanically adjusted to December 31, 2013.


(7) Seismic and Tax Pools are internal Company estimates.

(8) Net debt is at December 31, 2013.

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. 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. 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 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.


Estimated values contained in this press release do not represent fair market value.

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.
Suite 2010, Calgary Place II
355 - 4th Avenue SW
Calgary, Alberta