Angle Energy Inc. Provides First Quarter Operational Update


CALGARY, ALBERTA--(Marketwire - March 21, 2012) - Angle Energy Inc. ("Angle" or the "Company") (TSX:NGL.TO - News) is pleased to provide an update of the first quarter operational activities accomplished to March 21, 2012, prior to Spring break up.


--  Drilled and rig released 14 gross ( 12.9 net) horizontal wells, and one

    gross (1 net) vertical well with a 100% success rate. Seven additional

    horizontal wells (6.2 net) are currently drilling, of which six gross

    (6.0 net) are operated. Angle will have 15 gross (14.0 net) horizontal

    wells awaiting completion in the second quarter, post Spring break up.

--  Light oil and condensate production has increased 23% from January 2012

    (approximately 2,950 barrels per day presently versus January field

    estimates of 2,400 barrels per day).

--  Field estimated production is currently at 16,400 boe/d with

    approximately 18% light oil and condensate, 25% NGLs, and 57% natural

    gas (due to temporarily lower ethane recovery from our raw gas stream -

    normal recoveries would equate to 27% NGLs and 54% natural gas). Current

    tested volumes not on stream now total approximately 1,600 boe/d.

    Pipeline construction is being completed in Edson, expected to bring on

    600 boe/d of tested production by early April. The remaining 1,000 boe/d

    of tested volumes is awaiting tie-in. 

--  At Harmattan, two additional (100% working interest) development wells

    in the Cardium light oil play have been completed and tested, with

    flowing rates per well at the end of one week tests of approximately 400

    bbls/d of light oil with minor solution gas. Five development wells have

    been drilled in this program to date in 2012, with four additional wells

    currently drilling. By May 2012, the Company expects to have drilled a

    total of 12 wells of the planned 17 well 2012 program with 9 wells to

    complete post Spring break up. 

--  At Ferrier/Strachan, Angle's seventh (0.4 net) and eighth (1 net)

    Cardium horizontal wells were drilled and tested, with final rates of

    800 boe/d (23% light oil, 15% condensate and NGLs, 62% gas) after 7 days

    of test and 900 boe/d (41% light oil, 12% condensate and NGLs, 47% gas)

    after 6 days of testing, respectively.

--  At Harmattan, Angle's most recent 100% working interest horizontal

    Mannville gas condensate well has tested at final rates of 2,000 boe/d

    (16% condensate, 42% NGLs, 42% gas) after a four day test. Current

    drilling inventory in this play is approximately 100 wells.


Harmattan Cardium

The Cardium light oil play in Harmattan is an exciting, 100% working interest, low risk, horizontally drilled development program which is expected to provide the majority of Angle's targeted light oil growth in 2012. Angle's activity on the play to date is the following: 4 wells completed using slick water fracs and placed on production (1 well in 2011 and 3 wells in 2012), 2 additional wells drilled and rig released and 4 additional wells currently drilling on pads.

The Company expects to have drilled a total of 12 wells out of the planned 17 well 2012 program by the end of Spring break up with 9 wells to complete at this time.

The most recent two slick water frac'd wells have tested the following:

--  14-35-31-3W5M - Flowing at final rates of approximately 450 bbl/d of

    light oil and 210 Mcf/d of solution gas (485 boe/d, 94% light oil) after

    8.4 days of testing. Cumulative oil production of 3,300 bbls of light

    oil during this test period. 


--  13-35-31-3W5M - Flowing at final rates of approximately 385 bbl/d of

    light oil and 200 Mcf/d of solution gas (420 boe/d, 93% light oil) after

    7.3 days of testing. Cumulative oil production of 3,100 bbls of light

    oil during this test period. 

The test results of these wells are comparable to the results already achieved at the first two wells Angle slick water frac'd at 02/02-03 and 03-03-32-3W5M. The 02/02-03 well has been producing for 4 months and is currently making 174 boe/d (91% light oil and 9% gas), with cumulative oil production to date of 30,000 barrels. The 03-03 well has been producing for 1.5 months and is currently making 370 boe/d (91% light oil and 9% gas), with cumulative oil production to date of 16,000 barrels.

Angle is currently using a budgeted type curve for the play, generated from industry results in slick water frac'd Cardium wells, of 269 boe/d (89% light oil and 11% gas) for the first 30 days of production, with expected rates after six months of production to be 155 boe/d (89% light oil and 11% gas). The 2012 development program plans for the drilling of minimum 17 gross wells in 2012, with a total drilling inventory in this play of approximately 120 wells.

Ferrier Cardium

At Ferrier/Strachan, Angle's seventh (0.4 net) and eighth (1 net) Cardium horizontal wells were drilled and tested, with final rates of 800 boe/d (23% light oil, 15% condensate and NGLs, 62% gas) after 7 days of testing and 900 boe/d (41% light oil, 12% condensate and NGLs, 47% gas) after 6 days of testing, respectively. The addition of these two wells currently add volumes of 200 boe/d due to facility limitations during Spring break-up. The 2012 development program calls for drilling up to 3 gross (2.4 net) wells, with a total drilling inventory of 30 wells.

Edson Cardium

Angle is currently participating in the drilling of one gross (0.2 net) non-operated well. Completion of this well is expected post Spring break-up.

The 2012 capital program includes the drilling of 2 gross (0.5 net) non-operated wells, and may expand upon evaluation of completion results. The Company expects the testing in 2012 to further define the 2013 drilling plans for the Cardium light oil play in this area.


Harmattan Mannville NGL/Oil

This gas condensate pool is unique in the Company's portfolio due to its high NGL content, which as a stable ratio to sales gas in the vertical wells is approximately 190 bbl/MMcf. The wells being drilled in the 2012 program are a combination of offsets to previously drilled vertical wells and step-out locations that will generate further low risk drilling inventory.

The most recent 100% working interest horizontal well, drilled in the Western portion of the Mannville gas condensate pool, has tested at final rates of 2,000 boe/d (16% condensate, 42% NGLs, 42% gas) after a four day test. Current drilling inventory in this play is approximately 100 wells.

Recent development wells completed in the pool have tested at prolific rates, and will be produced with down hole chokes in place when the production rates exceed 2,000 boe/d. Angle manages the production in this fashion to avoid frac sand flowback at high producing velocities.

An additional two horizontal wells have been drilled, with two wells drilling and planned to be rig released prior to the end of Spring break up. Angle expects to have four horizontal wells to complete in the play at this time. One of these wells is being drilled in the Eastern light oil window and will provide further delineation information for this production area.


Harmattan Viking Light Oil Program

At Harmattan, an 80% working interest horizontal well targeting the light oil-bearing Upper Viking has been successfully drilled and cased. The well is awaiting completion post Spring break up. The well is a joint venture initiative with a major E&P company in the Harmattan area.

Deep Basin Liquids-Rich Gas Program

Angle drilled and completed two Rock Creek horizontal wells (1.7 net) in the Edson area during the first quarter. The first well (70% working interest) was tested over a 6-day period at a final test rate of 950 boe per day (36 percent condensate and NGLs). This well has been on-stream for 30 days at restricted rates through a 3rd party gathering system at an average rate of 670 boe/d (32 percent condensate and NGLs). The second well (100% working interest) was tested over a 5 day period at a final test rate of 1250 boe/d (32 percent condensate and NGLs). The high free condensate yield for both wells is consistent with analogous Rock Creek production in the area.

Angle is currently constructing a pipeline to bring both wells into a 100% Angle owned and operated gas plant. Expected on-stream date is April 1, and will allow both wells to flow unconstrained. These wells are the only drills planned in the 2012 Deep Basin program due to low current gas prices. The full drilling inventory in the Rock Creek play is 140 locations.


Angle Energy Inc. is a Calgary based public oil and gas exploration and development company that was incorporated in 2004. Angle's goal is to grow our high quality, focused 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.

Future Outlook and Forward-Looking Information

Information set forth in this press release contains forward-looking statements and are made as of March 21, 2012 and based on assumptions as of that date. Forward looking statements include 2012 expectations of timing and amount of drilling, drilling inventory and locations, completions, infrastructure and timing and amount of production to come on stream, capital allocation, as well as asset mix. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Angle's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserves estimates, environmental risks, reservoir quality, inability to drill, complete, and tie-in wells on schedule due to land surface issues, the a lack of oilfield services being available on a cost efficient basis, mechanical failure, poor weather or inability to access infrastructure and facilities, unplanned processing issues, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources.

The drilling plans and expected costs and results of drilling and the reserve estimates are subject to all the aforementioned risks and uncertainties, as well as those risk factors identified by Angle's MD&A and Annual Information Form in the most recently completed financial year.

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, including the commodity price assumptions, 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 forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Angle will derive there from. Unless required by law, Angle disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward looking statements are expressly qualified by these cautionary statements.

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

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

Stuart Symon
Angle Energy Inc.
Chief Financial Officer
(403) 263-4534
(403) 263-4179 (FAX)

Suite 700, 324 Eighth Avenue SW
Angle Energy Inc.
Calgary, Alberta T2P 2Z2
(403) 263-4534
(403) 263-4179 (FAX)

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