Traverse Energy Announces 2013 Year End Results

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




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                                     Three Months Ended                    
                                            December 31          Year Ended
                                             (unaudited)        December 31
Highlights                               2013      2012      2013      2012
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Financial ($ thousands, except per share amounts)                          
Petroleum and natural gas revenue     $ 3,341   $ 1,588  $ 10,796   $ 4,600
Royalty income                            714       964     3,877     3,322
Cash provided by operations             2,723     1,815    10,594     5,209
Funds from operations (1)               1,958     1,779     9,914     5,588
  Per share - basic and diluted          0.04      0.04      0.20      0.13
Net income (loss)                          27    (3,255)    3,245    (2,828)
  Per share - basic and diluted          0.00     (0.07)     0.07     (0.07)
Capital expenditures, net of                                               
 dispositions                           5,482     2,158    14,875     8,111
Total assets                           32,126    19,450    32,126    19,450
Working capital                         2,430     3,083     2,430     3,083
Common shares                                                              
  Outstanding (millions)                 53.5      47.1      53.5      47.1
  Weighted average (millions)            50.3      44.9      48.7      43.3
                                                                           
Operations (Units as noted)                                                
Production (BOE/d)                        787       545       680       405
  Natural gas (Mcf per day)             1,666     1,362     1,569       957
  Oil and NGL (bbls per day)              509       318       419       245
Average sales price                                                        
  Natural gas ($/Mcf)                    3.50      3.35      3.44      2.65
  Oil and NGL ($/bbl)                   75.16     72.90     83.11     77.90
                                                                           
Operating netback ($/BOE) (2)                                              
Petroleum and natural gas revenue       57.75     45.95     56.97     49.04
Realized gain on financial                                                 
 derivatives                             0.34      0.00      0.19      0.00
Royalties                                8.36      2.95      6.16      3.19
Operating and transportation costs      12.66     13.80     11.67     13.13
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Working interest netback                37.07     29.20     39.33     32.72
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Royalty netback                         49.22     61.94     65.95     61.07
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Operating netback                       39.51     39.36     45.64     43.13
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(1) Funds from operations is calculated as cash provided by operating      
    activities before changes in non-cash working capital and settlement of
    decommissioning obligations. 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, royalty    
    income and realized gain on financial derivatives, 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 and realized gain on financial derivatives 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.                                           



Reserves Highlights

Traverse has released the results of an independent reserves evaluation
effective December 31, 2013. The report was completed by Sproule Associates Ltd.
("Sproule") and was prepared in accordance with National Instrument 51-101.
Detailed reserves information is included in Traverse's Annual Information Form
for the year ended December 31, 2013 which is available for review on SEDAR at
www.sedar.com. The summary information that follows has been derived from that
evaluation.




--  Company interest proved plus probable reserves of 1,910.4 MBOE - 57%
    year over year growth 
--  Company interest proved reserves of 1,447.2 MBOE - a 67% increase year
    over year 
--  Company interest proved developed producing reserves represent 89% of
    total proved reserves 
--  Company interest proved reserves constitute 76% of total reserves



Summary of oil and gas reserves



                                                                        Oil
                                                                     Equiva-
                         Oil and NGL   Natural Gas  Oil Equivalent     lent
                        ---------------------------------------------------
                                                                    Company
                        Gross    Net  Gross    Net   Gross     Net interest
                           (1)    (2)    (1)    (2)     (1)     (2)      (3)
Reserve Category        (Mbbl) (Mbbl) (MMcf) (MMcf)  (MBOE)  (MBOE)   (MBOE)
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Proved Developed                                                           
 Producing              512.9  548.8  1,870  2,493   824.5   964.3  1,282.2
Proved Developed Non-                                                      
 producing               74.3   55.0    952    843   233.0   195.4     87.5
Proved Undeveloped        3.4   33.2     76    254    16.1    75.6     77.5
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Total Proved            590.5  637.0  2,898  3,589 1,073.5 1,235.3  1,447.2
Probable                168.9  187.0    904  1,254   319.6   396.0    462.8
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Total Proved plus                                                          
 Probable               759.4  824.1  3,802  4,844 1,393.1 1,631.3  1,910.4
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1. Gross reserves are Traverse's working interest share before deduction of
   royalties and without including any over-riding royalty interest of     
   Traverse.                                                               
2. Net reserves are Traverse's working interest share after deduction of   
   royalty obligations, plus Traverse's over-riding royalty interest in    
   reserves.                                                               
3. Company interest reserves are Traverse's working interest share before  
   deduction of royalties plus Traverse's over-riding royalty interest in  
   reserves.                                                               



Summary of net present value of future net revenue as of December 31, 2013



                                    Value Before Income Taxes Discounted at
                                                                (%/Year) (1)
                                    ---------------------------------------
                                                0            5           10
Reserve Category                              (M$)         (M$)         (M$)
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Proved Developed Producing                 47,665       38,577       33,014
Proved Developed Non-producing (2)          5,132        4,532        4,059
Proved Undeveloped (2)                      3,882        2,701        2,087
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Total Proved (2)                           56,680       45,809       39,160
Probable                                   20,275       12,376        8,734
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Total Proved plus Probable (2)             76,955       58,185       47,893
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1. Sproule forecast prices at December 31, 2013.                           
2. Includes future development capital of $1.5 million (undiscounted).     



Operations Review

In 2013 Traverse participated in the drilling of 9 net wells (100% working
interest) resulting in 6 oil wells and 3 dry holes. In the Coyote area of East
Central Alberta, Traverse drilled 7 wells resulting in 6 oil wells and 1 dry
hole which will be converted to a water disposal well. The first well drilled in
March was placed on production in June, 2013. The 6 additional wells were
drilled in the second half of the year, 3 wells were brought on stream by year
end and 2 wells were placed on production in the first quarter of 2014.
Additional activities at Coyote included land acquisition, 2 and 3D seismic
purchase and shooting and the construction of well site and initial production
facilities.


In the Turin area 2 net wells were drilled in March, 2013 on the east side of
the property resulting in 2 dry and abandoned wells. Production during the third
quarter at Turin was interrupted by a five-week shutdown of a third party owned
natural gas pipeline which transports Traverse's natural gas to market. During
the shutdown Traverse tested and confirmed the integrity of the pipeline.
Traverse subsequently purchased an interest in the pipeline, assumed
operatorship of the pipeline, and resumed production. In the Brazeau area of
west central Alberta, Traverse has a gross overriding royalty interest in 10
sections of land (6,400 acres). A total of 21 horizontal Cardium wells are
producing on the property. At December 31, 2013 Traverse's undeveloped
landholdings, all within Alberta, totalled 172,600 gross (168,000 net) acres
with an average working interest of 97%.


In the first quarter of 2014 the Company (100%) drilled 5 wells. Two wells were
drilled at Turin resulting in 1 gas well and 1 oil well. The wells at Turin are
in the process of being tied in and the Company is planning to install gas
compression at its Turin facility in the second quarter. This compression will
allow for additional natural gas production from several shut in gas wells and
increase the solution gas volumes produced with the oil production. In the
Coyote area Traverse drilled 2 wells and re-entered an existing wellbore. The
Company also drilled an initial well in the Michichi area on Company owned
lands. All of these wells are in various stages of evaluation with additional
production testing and tie ins planned beginning in the second quarter. The
Company is planning a battery expansion commencing in the second quarter to
accommodate additional oil and gas volumes in the area.


On February 28, 2014 Traverse received a notice from the Alberta Energy
Regulator ("AER") to partially suspend production at a producing oil battery in
the Coyote area of East Central Alberta ("Coyote Battery") until the Company is
able to conserve the solution gas which the Company had been flaring. The Coyote
Battery is currently composed of three producing oil wells. The partial
suspension commenced March 4, 2014. The Company is undertaking minor
modifications to the Coyote Battery as requested by the operator of a nearby gas
plant so that the plant can begin accepting Traverse's solution gas. Solution
gas deliveries to the plant were initially anticipated to begin in late March or
early April but are now anticipated to begin in May 2014 after the completion of
the Coyote Battery modifications and the approval of those modifications by the
gas plant operator. Until that time the Company continues to produce oil at the
Coyote Battery but solution gas being flared is reduced by 75% from previous
volumes. Traverse estimates that approximately 60 barrels of oil per day is
producing within the AER guidelines resulting in an estimated cutback in
production from the Coyote Battery of approximately 140 barrels of oil per day.


In March 2014 the Company completed a bought deal financing for gross proceeds
of $11.5 million. As a result, the Board of Directors approved an increase to
the exploration and development budget to $25 million. The program includes the
drilling of 15 wells on Company owned lands in the Coyote and Turin areas and on
other properties located in east central Alberta.


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 and settlement of
decommissioning obligations 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 year ended December 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, royalty income and realized gain on
financial derivatives 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 and realized gain on financial derivatives,
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 year ended December 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 volumes and estimated value of Traverse's oil and gas reserves,
plans to install gas compression at the Turin facility; additional production
testing and tie ins planned beginning in the second quarter; the planned battery
expansion at Coyote; timing for delivery of solution gas to a third party gas
plant from oil production at the Coyote battery; anticipated impact to
production as a result of partial suspension of production at the Coyote battery
pending commencement of deliveries of solution gas to the third party gas plant
and statements with respect to the drilling program for 2014. 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 15,
2014 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 2013 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.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accept
responsibility for the adequacy or accuracy of the content of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Traverse Energy Ltd.
Laurie Smith
President and CEO
403.264.9223
403.264.9558 (FAX)
www.traverseenergy.com