SYS-CON MEDIA Authors: Roberto Medrano, Dmitriy Stepanov, Gilad Parann-Nissany, Srinivasan Sundara Rajan, Sean Houghton

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Waldron Energy Corporation Announces First Quarter 2014 Results and Operations Update

CALGARY, ALBERTA -- (Marketwired) -- 05/15/14 -- Waldron Energy Corporation ("Waldron" or the "Corporation") (TSX:WDN) is pleased to announce its financial and operational results for the three months ended March 31, 2014. These reports are available for review at www.sedar.com and on the Corporation's website at www.waldronenergy.ca.

Q1 2014 Highlights


--  Funds from operations of $2.2 million ($0.04 per share or $0.16 per
    share annualized); 
--  Realized natural gas pricing of $6.04 per mcf, NGL pricing of $74.25 per
    bbl and light oil pricing of $95.57 per bbl contributed to an operating
    netback of $22.35 per boe ($26.15 per boe excluding the impact of the
    Corporation's hedging program); 
--  Average production of 1,687 boe per day (25% oil and liquids); 
--  The completion of a private placement at $0.45 per share for gross
    proceeds of $1.0 million; and 
--  Capital program of $4.7 million concentrating on the drilling and
    completion of a Crystal Glauconite horizontal well, which was brought on
    production subsequent to March 31, 2014, as well as certain re-entry
    projects. 

Q1 2014 Financial Highlights


----------------------------------------------------------------------------
                                                         Three months ended 
                                                                  March 31, 
                                                            2014       2013 
----------------------------------------------------------------------------
Financial (000's except for per share amounts)                              
Operating netback(1)                                   $   3,393  $   3,044 
  Per share basic & diluted(1)(3)                           0.06       0.08 
Petroleum and natural gas sales                            7,252  $   5,950 
Funds from operations(2)                                   2,235      2,021 
  Per share basic & diluted(2)(3)                           0.04       0.05 
Net loss                                                  (1,341)    (1,260)
  Per share basic & diluted(3)                             (0.02)     (0.03)
Net proceeds from the issuance of equity                     993          - 
Capital expenditures(4)                                    4,720        722 
----------------------------------------------------------------------------
Net debt(5)                                               30,640     34,690 
Property and equipment                                    78,049     82,929 
Exploration and evaluation assets                          9,508     10,610 
Shareholders' equity                                      46,025     47,367 
Number of shares outstanding at period end                57,267     40,035 
----------------------------------------------------------------------------

Notes:


(1)  Operating netback is a non-GAAP measure and the Corporation calculates 
     this measure as revenue, net of any realized gains or losses on        
     commodity price contracts, less royalties and operating and            
     transportation expenses.                                               
(2)  Funds from operations is a non-GAAP measure and the Corporation        
     calculates this measure as cash provided from operations before changes
     in non-cash working capital, decommissioning expenses and transaction  
     and other costs.                                                       
(3)  At March 31, 2014 there were 3,339,834 (2013 - 2,524,667) options and  
     7,182,560 (2013 - 7,182,560) warrants outstanding that were not        
     included in the calculation of weighted average shares outstanding as  
     the effect would be anti-dilutive.                                     
(4)  Capital expenditures include dispositions.                             
(5)  Net debt is a non-GAAP measure and the Corporation calculates this     
     measure as current assets less current liabilities, excluding commodity
     price contracts.                                                       

Q1 2014 Operational Highlights


----------------------------------------------------------------------------
                                                         Three months ended 
                                                                  March 31, 
                                                            2014       2013 
----------------------------------------------------------------------------
Average Production                                                          
  Natural Gas (mcf/d)                                      7,544      9,426 
  NGL (bbls/d)                                               287        392 
  Light crude oil (bbls/d)                                   143        156 
----------------------------------------------------------------------------
  BOE/day                                                  1,687      2,119 
----------------------------------------------------------------------------
Realized Pricing                                                            
  Natural Gas ($/Mcf)                                  $    6.04  $    3.49 
  Natural gas liquids ($/bbl)                              74.25      51.87 
  Light crude oil ($/bbl)                                  95.57      82.62 
----------------------------------------------------------------------------
  Average realized price ($/boe)                       $   47.76  $   31.20 
----------------------------------------------------------------------------
Netback per boe                                                             
  Sales price                                          $   47.76  $   31.20 
  Realized loss on commodity price contracts               (3.80)         - 
  Royalties                                                (4.77)     (2.12)
  Operating expenses                                      (14.71)    (11.24)
  Transportation expenses                                  (2.13)     (1.87)
----------------------------------------------------------------------------
  Operating netback                                    $   22.35  $   15.97 
----------------------------------------------------------------------------

For the three months ended March 31, 2014, the Corporation's operating netback increased by 44% compared to the preceding fourth quarter of 2013 and 40% compared to the three months ended March 31, 2013. The increase in operating netback is a result of an increase in realized commodity prices more than offsetting higher expenses per boe. Based on current commodity prices, Waldron expects its 2014 operating netback to approximate $22.00 - $25.00 per boe.

Operations Update

Late in the first quarter of 2014 and into April, the Corporation drilled, completed and brought on production a liquids-rich Glauconite horizontal well at Crystal 1-33-44-3W5. Initial production rates are approximately 100 - 125 boe per day, resulting in estimated Q2 2014 production of 1,700 boe per day, remaining flat compared to Q1 2014. Production continues to be impacted by a third party facility turnaround that has resulted in the shut-in of approximately 50 bbl per day of oil.

Waldron has licensed a liquids-rich natural gas Falher location at Ferrybank and plans to drill a high-impact horizontal well after break-up. This well will offset a recent third-party drill which averaged over 3 mmcf per day of natural gas plus liquids over its first four months of initial production. If successful, the Corporation has multiple follow-up horizontal locations on adjacent 100% Waldron owned lands. The Corporation currently has no reserves booked to this opportunity.

2014 Hedging Update

Early in the first quarter of 2014, the Corporation entered into the following commodity price contracts:


----------------------------------------------------------------------------
                               Type of     Quantity           Contract price
Period             Commodity  Contract   Contracted                   ($CDN)
----------------------------------------------------------------------------
Jan 1, 2014 -                                                               
 Dec 31, 2014      Crude Oil      Swap    175 bbl/d  Edmonton Par $90.15/bbl
Jan 1, 2014 -                                                               
 Dec 31, 2014    Natural gas      Swap  2,600 mcf/d           AECO $4.15/mcf
----------------------------------------------------------------------------

Conversion factor: 1 Mcf = 1.116 GJ

Bank Update

During the first quarter 2014, the Corporation completed a $6 million secured subordinated debenture financing that carries an interest rate of 9.5% per annum. The debenture has a maturity date of February 28, 2015 and may be extended for up to six months subject to a borrowing base review and full compliance with all financial covenants. The debenture is to be repaid in full upon maturity. In accordance with the terms of the subordinated debenture, the Corporation's senior lender revised its borrowing base to $27 million, resulting in combined credit facilities of the Corporation of $33 million.

Private Placement

On January 15, 2014, Waldron closed a private placement for 2,222,223 common shares of Waldron at $0.45 per share for gross proceeds of $1.0 million. Combined with the private placements completed during the fourth quarter of 2013, the Corporation has raised a total of $7.8 million in gross proceeds at $0.45 per share since November 2013.

Net Asset Value

The following table summarizes the Corporation's net asset value, excluding the value of undeveloped lands and certain seismic data:


----------------------------------------------------------------------------
Net Asset Value                                                             
----------------------------------------------------------------------------
(000's)                                                                     
Proved plus Probable NI 51-101 discounted at 10% at December 31,            
 2013                                                             $  86,035 
Net Debt at March 31, 2014                                          (30,640)
----------------------------------------------------------------------------
Net Asset Value                                                   $  55,395 
Basic Common Shares Outstanding at March 31, 2014                    57,267 
----------------------------------------------------------------------------
Net Asset Value - Basic (per share)                               $    0.97 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Investor Information

Waldron is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are currently listed on the Toronto Stock Exchange under the trading symbol "WDN." Additional information regarding Waldron is available under the Corporation's profile at www.sedar.com or at the Corporation's website, www.waldronenergy.ca.

Forward-Looking and Cautionary Statements

This news release contains forward-looking statements relating to the Corporation's plans and other aspects of the Corporation's anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management's assessment of value, reserves, future plans and operations.

Forward-looking statements typically use words such as "will," "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "should," "plan," and similar expressions suggesting future outcomes, and include statements that actions, events or conditions "may," "would," "could," or "will" be taken or occur in the future. Specifically, this press release contains forward-looking statements relating to the results and timing of operations; whether or not recent industry results are favorable; whether or not additional reserves are recognized; whether or not the Corporation achieves guidance; the character and nature of the Corporation's asset base; whether or not the asset base is prospective; and number of horizontal drilling locations and opportunities and number of follow-up opportunities. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; assumptions with regards to hedging activities; the Corporation's ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; general economic conditions; delays resulting from or inability to obtain required regulatory approvals; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Waldron believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Waldron does not undertake any obligation to publicly update or revise any forward-looking statements.

Note Regarding Non-GAAP Measures

Funds from operations, operating netback and net debt are not recognized measures under IFRS as issued by the International Accounting Standards Board ("IASB"). Management believes that in addition to cash flow from operations and net earnings, funds from operations and operating netback are useful supplemental measures as they demonstrate the Corporation's ability to generate the cash necessary to fund future growth through capital investment or repay debt if incurred in future periods. The Company uses net debt (bank debt plus negative working capital or less positive working capital, both excluding bank debt) as an alternative measure of outstanding debt and is used as a measure to assess the Company's financial position. Investors are cautioned, however, that these measures should not be construed as an alternative to cash flow from operating activities or net earnings determined in accordance with IFRS as an indication of the Corporation's performance or financial position. The Corporation's method of calculating these measures may differ from other entities and, accordingly, they may not be comparable to measures used by other entities. For these purposes, the Corporation defines funds from operations as cash flow from operations before changes in non-cash operating working capital, transaction and other costs and decommissioning expenditures and defines operating netback as revenue, net of any realized gains or losses on commodity price contracts, less royalties, operating and transportation expenses. Net debt is defined as current assets less current liabilities, excluding commodity price contracts.

Note Regarding BOEs

The term barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.

Contacts:
Waldron Energy Corporation
Ernie Sapieha
President & CEO
[email protected]

Waldron Energy Corporation
Jeff Kearl
VP Finance & CFO
[email protected]

Waldron Energy Corporation
Murray Stodalka
Chief Operating Officer
[email protected]
www.waldronenergy.ca

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