Angle Energy Inc. Provides Third Quarter Operational Update

CALGARY, Sept. 23, 2013 - Angle Energy Inc. (TSX:NGL) ("Angle" or the "Company") today provided an update on its third quarter operations to September 23, 2013. Angle continues to execute its Cardium development drilling program in Harmattan and Ferrier, and has successfully applied slick-water fracturing technology on a well in its Harmattan Mannville pool.


HIGHLIGHTS

- Corporate production for the third quarter is estimated to be 10,100 to 10,200 boe/d (32% light crude oil and condensate, 26% NGLs, and 42% natural gas). Light crude oil and condensate weighting is up from 29% of corporate production in the first quarter of 2013, and reflects Angle's pursuit of more profitable barrels. The third quarter of 2013 was impacted by a planned outage at the Harmattan AltaGas processing plant in early September, which reduced quarterly production by approximately 160 boe/d. Current production exceeds 11,000 boe/d (33% light crude oil and condensate, 25% NGLs, and 42% natural gas).

- Fourth quarter production is forecast to be 10,700 to 11,000 boe/d (32% light crude oil and condensate, 24% NGLs, and 44% natural gas), which is expected to result in a full-year production average consistent with Angle's production guidance provided on August 8, 2013.

- At Harmattan, Cardium production as at September 23, 2013 is approximately 2,200 boe/d (88% light crude oil and NGLs), with an estimated operating netback of $50/boe. Angle's 100% owned, 4,000 bbl/d Harmattan battery, commissioned in April 2013, has improved operating netbacks. Based on initial results for the third quarter 2013, Harmattan operating costs have been reduced by almost 30% to between $5.70 and $6.00/boe, before transportation costs.

- At Ferrier/Strachan, one of Angle's recent 100% working interest slick-water fractured Cardium wells has shown one of the best results to date for the Company in the area. Production rates after two weeks are approximately 1,285 boe/d (62% light crude oil and NGLs) and the well has cumulatively produced 10,000 bbls of light crude oil in this two week period. Additionally, a 15% reduction in the well cost to $3.4 million has been realized.

- At Harmattan, Angle drilled, completed and tested a Mannville horizontal well with a 20 stage hybrid slick-water fracture system. The well, on the eastern edge of the pool, has been on natural flow for over two weeks at approximately 590 boe/d (71% light crude oil and NGLs). The all-in cost for this well was $3.5 million, a reduction of $200,000, as compared to offset wells completed with a gelled oil fracture system.

- It is expected that during the third quarter, Angle will have drilled and rig released 14 (12.3 net) horizontal wells, 12 (10.3 net) of which targeted light crude oil in the Cardium.

- At Ferrier, Angle has completed construction of a new sales pipeline connection in the Strachan field which has improved gas handling capacity by 60% and alleviated an outtake bottleneck in the area.


Harmattan Cardium

At Harmattan, six (6.0 net) Cardium wells were drilled, with three (3.0 net) wells completed and tested, bringing current total production in this play to approximately 2,200 boe/d (88% oil and NGLs). Completions are scheduled for two (2.0 net) additional wells late in the third quarter, with the wells expected to be placed on production in October. The third well has a mechanical issue with the liner system and the Company is assessing what course of remedial action to undertake.

Operating costs have been reduced between 25% to 30% from April 2013 to approximately $5.70 to $6.00/boe. Average Harmattan Cardium operating costs of $8.07/boe were realized from January to April 2013, prior to Angle's 100% owned, 4,000 barrel per day battery being commissioned. In addition to the positive impact on operating cost structure, recent well site equipping costs will be reduced by approximately $165,000 to $175,000 per well.

The Company is benefiting from its multi-well pad drilling strategy with well costs being reduced from approximately $3.2 million to approximately $3.0 million on a recent Harmattan Cardium well. Angle expects capital efficiencies to continue to improve as it fully executes on its multi-well pad drilling program.


Ferrier Cardium

At Ferrier/Strachan, five (3.3 net) Cardium horizontal wells were drilled, and one (1.0 net) well is currently drilling and is expected to be rig released prior to the end of the third quarter. Of the five drilled wells, four (3.0 net) have been completed and tested of which three (2.0 net) wells are on production, and one (1.0 net) is awaiting tie-in. An additional non-operated well (0.3 net) was recently rig released and is awaiting completion.

In 2013, Angle has been drilling step-out wells from the western edge of the Ferrier Cardium pool. In the third quarter, the Company tested a new completion method using an 18-20 stage slick-water fracture technique, compared to prior completions which used a 10 stage gelled oil system. The Company has realized an approximately 55% increase in IP 90 production rate using the new completion technique. A recent 100% working interest well has shown one of the best results to date for the Company in this area, with an initial production rate after two weeks of approximately 1,285 boe/d (62% light crude oil and NGLs) and has produced 10,000 bbls of light crude oil cumulatively during this period.

The Company completed and brought online a key pipeline expansion project in the Ferrier area in September, alleviating the outtake bottleneck at the 100% owned 9-26-38-8W5M compressor station. This has improved gas handling capacity by 60% from approximately 10 mmcf/d to approximately 16 mmcf/d.

As in Harmattan, Angle will benefit from superior cost structures due to owned infrastructure and multi-well pad drilling. Recent all-in well cost has been realized at $3.4 million for this well, a reduction of 15% from the budgeted cost per well of $4.0 million.


Harmattan Mannville

At Harmattan, one (100% working interest) Mannville horizontal well was drilled and completed on the eastern edge of the pool, using a 20 stage hybrid slick-water fracture system. This test represents Angle's first result with a full lateral completed using this system. Past completions in the horizontal drilling program in the pool had utilized a 10 stage gelled oil fracture system.

The well has been flowing for approximately two weeks at 220 bbls/d of light crude oil and 1.5 mmcf/d of liquids-rich raw gas, for a total estimated sales volume of approximately 590 boe/d (71% light crude oil and NGLs). The all-in-well cost realized was $3.5 million, as compared to the prior budgeted cost using the gelled oil fracture system of $3.7 million.


Emerging Plays

During the third quarter of 2013, Angle added to its significant land position in the Davey area bringing the total inventory to over 50 net sections of 100% working interest, Crown acreage in the emerging Mannville light crude oil play.

A second well (100% working interest) was drilled and completed in the third quarter in Davey, a three mile step out from the initial discovery well. The well was drilled to preserve land tenure, and to test reservoir quality in the northern area of the play. The well has been placed on pump and continues to clean up post the slick-water fracture completion. Test results are expected to be included in Angle's third quarter press release.

The discovery well continues to show stable rates and is producing on pump at approximately 175 boe/d with approximately 64% light crude oil and condensate volumes.

An additional one to two (100% working interest) well(s) are planned to be drilled and completed during the fourth quarter in the Davey area.


STRATEGIC ALTERNATIVES REVIEW

As previously announced on July 3, 2013, the Angle Board of Directors and Management determined that a broad public review of strategic alternatives provided the best opportunity to maximize value for Angle shareholders. The process is ongoing and the Company and its financial advisors, FirstEnergy Capital Corp. and Cormark Securities Inc., are actively engaged. There can be no assurance that a transaction will be undertaken. Angle does not intend to make any announcements regarding the process unless and until the Board of Directors has approved a specific transaction or course of action or otherwise determines that disclosure is necessary.

Angle is scheduled to release its Q3 2013 financial and operating results in early November 2013.


ABOUT ANGLE

Angle Energy Inc. is a public, Calgary-based oil and gas exploration and development company incorporated in 2004. Angle's objective is to build shareholder value through the profitable growth of its high quality asset base through a combination of drilling and strategic acquisitions. Angle's proven and dedicated team of industry specialists are focused on identifying and developing high quality assets in the Western Canadian Sedimentary Basin, with an emphasis in west central Alberta. Common shares of Angle are listed for trading on the Toronto Stock Exchange under the symbol "NGL".


Basis of Presentation

Production information is commonly reported in units of barrel of oil equivalent ("boe"). For purposes of computing such units, natural gas is converted to equivalent barrels of crude oil using a conversion factor of six thousand cubic feet of gas to one barrel of oil. This conversion ratio of 6:1 is based on an energy equivalent conversion for the individual products, primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Such disclosure of boes may be misleading, particularly if used in isolation. Operating netback equals oil and natural gas revenues including realized gains and losses on derivative instruments less royalties, operating costs and transportation costs calculated on a per-boe basis. Operating netback is not a recognized measure under IFRS and therefore may not be comparable with the calculations of similar measures presented by other companies.


Forward-Looking Information

Information set forth in this press release contains estimates and forward-looking statements and are made as of September 23, 2013, including production levels and product mix, impact of operating expenses and estimated cash flows on forecast net debt levels, identification of new projects and drilling results. These forward-looking statements are based on assumptions as of that date and the reader should refer to the forward-looking statements section disclosed in June 30, 2013 Management Discussion and Analysis and the most recent Annual Information Form as filed on SEDAR. By their nature, estimates and forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Angle's control, including the impact of reservoir quality, decline rates, volatility of commodity prices, drilling techniques, costs of third party services, general economic conditions, industry conditions, environmental risks, competition and interest from other industry participants, the lack of availability of qualified personnel or management, ability to access sufficient capital, the outcome of the previously announced strategic alternative process, including the failure to realize the benefits from or failure to complete a transaction pursuant to the strategic alternatives process and the ability to identify and consummate business opportunities.

New factors emerge from time to time, and it is not possible for Management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent upon other factors, and the Company's course of action would depend upon its assessment of the future considering all information then available.

Readers are cautioned that the assumptions and factors discussed in this press release are not exhaustive and that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise, and as such, undue reliance should not be placed on forward-looking statements. Angle's actual results, performance or achievement could differ materially from those expressed in, or implied by, these estimates and forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the estimates and forward-looking statements will transpire or occur, or if any of them do so, what benefits that Angle or its shareholders will derive therefrom. Unless required by law, Angle disclaims any intention or obligation to update or revise any estimates and forward-looking statements, whether as a result of new information, future events or otherwise. The estimates and forward looking statements are expressly qualified by these cautionary statements.



Contact

Angle Energy Inc.
Heather Christie-Burns, President and Chief Operating Officer
(403) 263-4534
(403) 263-4179 (FAX)

Angle Energy Inc.
Gregg Fischbuch, Chief Executive Officer
(403) 263-4534
(403) 263-4179 (FAX)

Angle Energy Inc.
Ken Hillier, Chief Financial Officer
(403) 263-4534
(403) 263-4179 (FAX)

Angle Energy Inc.
Suite 700, 324 Eighth Avenue SW
Calgary, Alberta T2P 2Z2
www.angleenergy.com