Earthstone Energy Provides Operations Update at Annual Shareholder Meeting

DENVER, CO--(Marketwire - Sep 27, 2012) - EARTHSTONE ENERGY, INC. ( NYSE MKT : ESTE ), at its Annual Shareholder Meeting, reported that since April 1st, the beginning of its fiscal year, it has participated in the drilling and/or completion of twenty-nine horizontal wells in the Williston Basin of North Dakota and Montana. The vast majority of these wells are in the Banks Field and are operated by Statoil, formerly Brigham Oil & Gas, L.P. The working interest in these wells range from 1.4% to 5.8% with an average of 4.2%. Earthstone further disclosed that it has a working interest in twenty-one 1280 acre spacing units in the Banks Field and expects each spacing unit to eventually be developed with four horizontal Bakken and two horizontal Three Forks wells; for a total of six wells per spacing unit.

"What a frenzy of drilling activity we have seen in the last six months," commented Ray Singleton, President of Earthstone. "This has certainly been a busy six months. It is exciting to believe that eventually we may have an interest in over 120 horizontal Bakken and Three Forks wells. Indeed, we expect this year's capital deployment to easily exceed last year's record level of expenditures. Certainly, the timing of drilling operations and capital deployment is at the discretion of the respective operators, and we are not in control of these activities nor of when production may commence. Despite this, we anticipate a positive impact on our production volumes and revenues. As we continue to execute on our growth plan, we have a high sense of confidence these investments will have a positive effect on Earthstone's share price and our shareholder's outlook."

ABOUT EARTHSTONE ENERGY:

Earthstone Energy, Inc. is a growth-oriented independent oil and gas exploration and production company with primary operations in the Williston Basin and south Texas. Earthstone is currently traded on NYSE MKT under the symbol ESTE. Information on Earthstone can be found at its web site: www.earthstoneenergy.com.

THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking, and therefore involve uncertainties or risks that could cause actual results to differ materially. Forward-looking statements can be identified by words such as "should," "may," "will," "anticipate," "expect," "estimate," "intend," "believe" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Earthstone intends, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements also include comments regarding assumptions regarding production rates and growth, operating costs, reduction of operation costs, commodity prices, industry outlook, future drilling activities, acquisitions and industry opportunities. Factors that could cause actual results to differ materially include availability of rigs and services, price volatility of oil and gas, estimated production rates and adjustments to ownership percentages in addition to economic and political events affecting supply and demand for oil and gas, loss of customers for oil and gas production and government regulations. These and other factors are discussed in more detail in Earthstone Energy's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for March 31, 2012 and Quarterly Reports on Form 10-Q for the three months ended June 30, 2012. The Company disclaims any obligation to update forward-looking statements.