Traverse Energy Announces 2013 First Quarter Results

Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents
financial and operating results for the three months ended March 31, 2013. 




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                                                 Three Months Ended         
                                          March 31,    December    March 31,
Highlights (unaudited)                         2013    31, 2012         2012
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Financial ($ thousands, except per share amounts)                           
Petroleum and natural gas revenue       $     1,464 $     1,588  $       979
Royalty income                                1,297         964          849
Cash provided by operations                   2,160       1,815        1,054
Funds from operations (1)                     2,037       1,779        1,217
  Per share - basic and diluted                0.04        0.04         0.03
Net income (loss)                               521      (3,255)         357
  Per share - basic and diluted                0.01       (0.07)        0.01
Capital expenditures, net of                                                
 dispositions                                 2,761       2,158        2,483
Total assets                                 21,543      19,450       18,820
Working capital                               2,359       3,083        1,266
Common shares                                                               
  Outstanding (millions)                       47.1        47.1         42.2
  Weighted average (millions)                  47.1        44.9         42.2
Operations (Units as noted)                                                 
Production (BOE/d)                              566         545          329
  Natural gas (Mcf per day)                   1,409       1,362          697
  Oil and NGL (bbls per day)                    331         318          213
Average sales price                                                         
  Natural gas ($/Mcf)                          3.48        2.91         2.33
  Oil and NGL ($/bbl)                         77.72       72.90        86.88
Operating netback ($/BOE) (2)                                               
Petroleum and natural gas revenue             44.99       45.95        52.10
Royalties                                      3.48        2.95         3.72
Operating costs                                9.64       12.40        13.77
Transportation costs                           1.71        1.40         1.26
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Working interest netback                      30.16       29.20        33.35
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Royalty netback                               70.29       61.94        76.33
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Operating netback                             44.69       39.36        49.34
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(1) Funds from operations is calculated as cash provided by operating activities
before changes in non-cash working capital. Funds from operations does not have
a standardized measure prescribed by IFRS and therefore may not be comparable
with the calculation of similar measures for other companies. 


(2) Operating netback equals petroleum and natural gas revenue and royalty
income, less royalties, operating and transportation costs and is calculated on
a per unit basis. Working interest netback is calculated as petroleum and
natural gas revenue, less royalties, operating and transportation costs and is
calculated on a per unit basis. Royalty netback is royalty income and is
calculated on a per unit basis. Operating netback, working interest netback and
royalty netback do not have a standardized measure prescribed by IFRS and
therefore may not be comparable with the calculation of similar measures by
other companies.


Operations Review

In the first quarter of 2013 Traverse drilled 3 exploratory wells (100% working
interest). Two wells drilled in the Turin area resulted in 1 cased well awaiting
completion and 1 dry hole. One well drilled in the Coyote area resulted in a
potential oil well. Additional first quarter activities included a 2D seismic
survey in the Coyote area and workovers of existing wells in both the Turin and
Carbon areas.


In the Brazeau area of West Central Alberta, Traverse has a gross overriding
royalty interest in 10 sections of land (6,400 acres). In the first quarter of
2013 a total of 17 horizontal Cardium wells were on production. Net production
to the Company for the first quarter of 2013 averaged 184 BOE per day with an
oil and NGL component of 88%. An additional 4 wells were drilled by the industry
partner in the first quarter of 2013. 


At March 31, 2013 undeveloped land holdings totalled 138,800 gross (135,800 net)
acres. The Company plans an active drilling program for 2013 with a total of 10
wells planned on existing properties. The Board of Directors has approved a
total exploration and development program of $12.6 million for 2013.


Non-IFRS measures

Funds from operations

Funds from operations is a measure not defined in IFRS that is commonly used in
the oil and gas industry. Funds from operations is calculated as cash provided
by operating activities before non-cash working capital as detailed under the
heading "Cash and funds from operations and net income (loss)" within the
Company's management's discussion and analysis for the three months ended March
31, 2013. The Company believes that in addition to net income (loss), funds from
operations is a useful supplemental measure as it provides an indication of
Traverse's operating performance. Funds from operations should not be considered
as an alternative to or more meaningful than cash provided by operating
activities as determined in accordance with IFRS. Traverse's determination of
funds from operations may not be comparable to that reported by other companies.
Traverse also presents funds from operations per share whereby share amounts are
calculated using weighted average shares outstanding consistent with the
calculation of income per share.


Operating netback

Management uses certain industry benchmarks such as operating netback to analyze
financial and operating performance. This benchmark as presented does not have
any standardized meaning prescribed by IFRS and therefore may not be comparable
with the calculation of similar measures for other entities. Operating netback
reflects petroleum and natural gas revenue and royalty income, less royalties,
operating and transportation costs and is calculated on a per unit basis.
Working interest netback is calculated as petroleum and natural gas revenue,
less royalties, operating and transportation costs and is calculated on a per
unit basis. Royalty netback is royalty income and is calculated on a per unit
basis. The calculation of Traverse's netbacks is detailed under the heading
"Operating netback" within the Company's management's discussion and analysis
for the three months ended March 31, 2013.


BOE equivalent

Unless otherwise stated, the volume conversion of natural gas to barrel of oil
equivalent (BOE) is presented on the basis of 6 thousand cubic feet of natural
gas being equal to 1 barrel of oil. This conversion ratio is based upon an
energy equivalent conversion method primarily applicable at the burner tip and
does not represent value equivalence at the wellhead. BOE figures may be
misleading, particularly if used in isolation.


Forward-looking information

This news release contains forward-looking information which is not comprised of
historical fact. Forward-looking information involves risks, uncertainties and
other factors that could cause actual events, results, performance, prospects
and opportunities to differ materially from those expressed or implied by such
forward-looking information. Forward-looking information in this news release
includes the Company's statements with respect to the number of wells to be
drilled in 2013. This forward looking information is subject to a variety of
substantial known and unknown risks and uncertainties and other factors that
could cause actual events or outcomes to differ materially from those
anticipated or implied by such forward looking information. The Company's Annual
Information Form filed on April 17, 2013 with securities regulatory authorities
(accessible through the SEDAR website www.sedar.com) describes the risks,
material assumptions and other factors that could influence actual results and
which are incorporated herein by reference.


Although the Company believes that the material assumptions and factors used in
preparing the forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information, which only applies as
of the date of this news release, and no assurance can be given that such events
will occur. The Company disclaims any intention or obligation to update or
review any forward-looking information, whether as a result of new information,
future events or otherwise, other than as required by law.


Further details on the Company including the 2012 year end audited financial
statements, the related management's discussion and analysis and Annual
Information Form are available on the Company's website (www.traverseenergy.com)
and SEDAR.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Traverse Energy Ltd.
Laurie Smith
President and CEO
[phone]
www.traverseenergy.com