Pine Cliff Energy Ltd. Announces First Quarter 2014 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 first 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 ended March 31, 2014 (the "Q1-2014
Report").


The year 2014 is off to an excellent start for Pine Cliff and its shareholders.
In the first quarter, we were rewarded with record cash flow from our portfolio
of high quality, low decline assets that we had assembled over the last two
years. We were also fortunate enough to see these achievements reflected in an
increase in our share price.


Highlights during the first quarter are as follows:



--  Achieved record quarterly funds flow from operations of $10.1 million
    (fourth quarter of 2013 - $5.6 million), mainly a result of higher
    natural gas prices; 
--  Realized quarterly earnings of $3.0 million (fourth quarter of 2013 -
    earnings of $3.7 million); and 
--  Attained average daily sales volumes of 6,276 barrel of oil equivalent
    ("boe") per day as compared to 6,443 boe per day in the fourth quarter
    of 2013.



The first quarter of 2014 was characterized by increased, albeit extremely
volatile, natural gas pricing. Pine Cliff's realized price on our sales during
this period was $5.17 per mcf, an increase of 57% over the same period of 2013,
and the highest pricing we have received since the revitalization of our
business strategy. As we had no commodity hedges in place, we were fortunate to
be able to realize on the full increase in prices that the cold winter
delivered. Pine Cliff's high natural gas weighting (over 95%), low corporate
overhead, low operating expenses and low capital expenditure budget gives our
company a high leverage to any movement in natural gas pricing and therefore
this quarter's increase in pricing had a significant impact on our funds flow
from operatio ns. For example, using our first quarter 2014 volumes annualized
for twelve months, a Cdn $0.10 per mcf increase in AECO pricing would improve
annual funds flow from operations by approximately $1.4 million.


Pine Cliff's production during the first quarter of 2014 was 6,276 boe per day,
a decrease of 3% from the fourth quarter of 2 013. The decrease in production is
due in part to the extreme cold weather that prompted the increase in natural
gas pricing causing a number of shallow gas wells to be shut-in during the
quarter as a result of freeze offs. Additionally, Pine Cliff estimates that
approximately 200 boe per day of its production was deferred to future periods
as a result of unplanned maintenance at a third party gas processing facility.


Pine Cliff's balance sheet strengthened further in the first three months of
2014 and we exited the quarter with no debt and positive working capital of
$23.5 million. Given that Pine Cliff's 2014 budgeted capital expenditures of
$13.6 million are anticipated to be well within funds flow from operations, Pine
Cliff's balance sheet will continue to strengthen throughout 2014, giving us
more capital to execute on accretive acquisitions. The acquisition and
divestiture market continues to be active in 2014 and our team is very busy
evaluating and pursuing assets and companies that we think would be positive
value additions to our portfolio. We remain optimistic that we will continue to
grow through acquisitions, but we can assure our shareholders that we will
remain disciplined in our attempts to do so. During the last two years, we have
seen a strong "buyer's market" and Pine Cliff has taken advantage of this
market, and will continue to do so, however, Pine Cliff's continued focus is to
seek transactions that will increase shareholder value on a per share basis.




Financial and Operating Results                                             
                                                 Three months ended March 31
($000s, unless otherwise indicated)                      2014       2013 (1)
----------------------------------------------------------------------------
Oil and gas sales                                      18,376          5,458
Cash flow from operating activities                    10,039          3,101
Funds flow from operations (2)                         10,089          2,401
  Basic per share ($/share)                              0.05           0.02
  Diluted per share ($/share)                            0.05           0.02
Earnings                                                2,969          8,271
  Basic per share ($/share)                              0.01           0.05
  Diluted per share ($/share)                            0.01           0.05
Capital expenditures                                    1,120          2,315
Bank debt                                                   -             65
Working capital                                        23,512            588
Production (boe/d)                                      6,276          2,536
Percent oil and liquids (%)                                 4             10
Commodity sales price ($/boe)                           32.53          23.92
Operating netback ($/boe) (3)                           19.82          10.26



(1) The results for the three month period ended March 31, 2013 include the
results of the Southern Assets Acquisition for the 40 day period of February 10
to March 31, 2013.


(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) 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 Q1-2014 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]
[phone] (FAX)


Pine Cliff Energy Ltd.
Robb D. Thompson
CFO and Corporate Secretary
[phone]
[phone] (FAX)
[e-mail]
www.pinecliffenergy.com