Boulder Energy Ltd. Provides Credit Facility Update and Outlook for 2016

CALGARY, ALBERTA--(Marketwired - Dec. 17, 2015) - BOULDER ENERGY LTD. ("Boulder" or the "Company") (TSX:BXO)(OTCQX:BLLDF) is pleased to provide an update on its confirmed syndicated credit facility as well as announce its planned 2016 capital program designed to take a conservative approach to the balance sheet, improve financial flexibility and maintain the prudent development of its high quality Brazeau Belly River project to preserve asset value.

CREDIT FACILITY UPDATE

The Company has received confirmation from its banking syndicate regarding the semi-annual review of its committed term syndicated facility (the "Credit Facility"). The Company's total Credit Facility has been confirmed in the aggregate amount of $160 million, which is a decrease of 9% from the previous amount of $175 million established in May 2015. The Credit Facility is available on an extendible revolving term basis and consists of a $140 million revolving syndicated facility and a $20 million operating facility. Current availability under the Credit Facility is $140 million, with an additional $20 million available up to the total Credit Facility commitment of $160 million subject to approval of the lending syndicate. There are no financial covenants under the Credit Facility and the Company remains in compliance with all of the non-financial covenants.

OPERATIONAL UPDATE AND 2016 OUTLOOK

Further to the November 10, 2015 press release update, commodity prices have continued to deteriorate in the fourth quarter and the outlook for commodity pricing in 2016 for both crude oil and natural gas has declined.

Given the continued uncertainty in energy commodity prices, Boulder has chosen to adopt a conservative approach to the balance sheet with a view to preserving the value of the asset and production and in the interim focus on repayment of debt to improve financial flexibility. As a result, the Company is planning for a disciplined 2016 budget and hedging program, with capital spending of $26 to $28 million (80% on drilling and completions) as compared to currently expected cash flows of approximately $38 million based on a reduced crude oil price outlook. With this prudent approach to the balance sheet the Company retains the option to increase its capital program and production forecasts should commodity prices improve.

As highlighted in the November 10, 2015 press release, with the reduced spending outlook into 2016 the Company remains focused on achieving several core objectives:

• Mitigate corporate declines and maintain production at current levels with a reduced capital program;
• Streamline operations to maximize operating netbacks;
• Continue to build and develop the gas re-injection enhanced oil recovery (EOR) scheme;
• Pay down debt and maintain balance sheet flexibility; and
• Remain diligent and focused on field optimization and financial discipline.

The following table summarizes the Company's 2016 outlook based on an average 2016 crude oil WTI price forecast of US$45/bbl.

Operating Category	2016 Guidance
Annual average production (1)	5,500 boe/d with 74% oil and liquids (80% oil and liquids in the Brazeau Belly River)
Cash flow from operations	$38 million
Total capital expenditures	$26 - $28 million (80% drilling and completions)
Wells drilled	6 - 7 net wells
Royalties as % of revenue	23%
Operating netbacks	$23.00/boe
Cash flow netbacks	$18.00/boe
Ending 2016 net debt	$131 million ($24,000 per flowing boe)

(1)

Sales volumes do not include the following productive capabilities: (i) 500 boe/d of natural gas being injected as part of an enhanced oil recovery (EOR) scheme; (ii) 250 boe/d of liquids from a temporary reduction in yields (now 25 bbl/mm compared to 55 bbl/mm); and (iii) 390 boe/d of production from the conversion of producing wells to gas injection wells.

HEDGING UPDATE

To ensure adequate cash flow for its capital budget requirements in the face of expected near term price volatility, Boulder has entered into cashless collars for the 2016 calendar year for 33% of its non-royalty oil production at an average range of US$40 x US$56.15. The Company will continue to add to this position by hedging up to 80% of expected non-royalty oil volumes for the first half of 2016 using costless collars. As oil production accounts for 86% of the Company's revenue, this strategy is intended to protect the Company's capital plans and balance sheet should oil prices persist at levels under US$40.

OUTLOOK

Boulder management remains positive about the continued development and prospects for its asset base in 2016. Over the past four years, Boulder has assembled and de-risked a property that is difficult to replicate in the Western Canadian Sedimentary Basin. Boulder's Brazeau Belly River property consists of approximately 100,000 acres of multi-zone potential on a focused land base, high quality light oil and a network of owned and operated infrastructure, which results in an asset that has significant value in any oil price environment.

The Company currently has 5,500 boe/day of stabilized high-working interest production that contributes significant cash flow under current commodity prices and provides for long term value realization through its large inventory of high impact exploration and delineation wells. Boulder's EOR initiative now under operation may provide a positive step change in proposed recovery factors over the coming year, creating additional value. The Company would like to thank shareholders for their continued loyalty and patience as Boulder manages its way through this industry downturn and is committed to maximizing the value of every Boulder share.

Reader Advisory

Forward-Looking Statements. Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or Boulder's future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Boulder believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this press release contains forward-looking statements, pertaining to the following: Boulder's maintenance capital requirements for 2016; Boulder 2016 capital budget and specific uses, including its drilling program; Boulder's expectations regarding its 2016 full year average working interest oil and gas production levels, cash flow from operations, netbacks and ending net debt; Boulder's expectation to operate within its cash flow and maintain current production levels; and Boulder's expectation to increase capital spending in 2016 should commodity prices improve.

With respect to forward-looking statements contained in this press release related to Boulder's business and operations, Boulder has made assumptions regarding, among other things: future oil, natural gas liquid and natural gas prices; future production levels; Boulder's 2016 capital budget, which is subject to change in light of ongoing results, prevailing economic circumstances, commodity prices and industry conditions and regulations; estimates of anticipated future production, which is based on the proposed drilling program with a success rate that, in turn, is based upon historical drilling success and an evaluation of the particular wells to be drilled; and projected operating costs, which are based on historical information and anticipated changes in the cost of equipment and services.

Boulder's actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors that may include, but are not limited to: volatility in the market prices for oil and natural gas; uncertainties associated with estimating reserves; fluctuations in currency exchange and interest rates; new regulations and legislation that apply to Boulder and its operations; timing, results and costs of drilling and production activities; availability of financing and capital; geological, technical, drilling and processing problems; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations. Additional risks and uncertainties affecting Boulder are contained in the management information circular of DeeThree Exploration dated effective April 9, 2015, available on Boulder's website at www.boulderenergy.ca and on SEDAR at www.sedar.com under the heading "Risk Factors" in Appendix "E".

This forward-looking information represents Boulder's views as of the date of this document and such information should not be relied upon as representing its views as of any date subsequent to the date of this document. Boulder has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. In addition, new factors emerge from time to time, and it is not possible for management to predict all of these factors or to assess, in advance, the impact of each such factor on Boulder'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. There can be no assurance that forward-looking information will prove to be accurate, as results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. . Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Non-GAAP Measurements. This news release contains the term "cash flow from operations", which should not be considered an alternative to or more meaningful than cash flow from (used in) operating activities as determined in accordance with IFRS. This term does not have any standardized meaning under IFRS. Boulder's determination of cash flow from operations may not be comparable to that reported by other companies. Management uses cash flow from operations to analyze operating performance and leverage, and considers funds from operations to be a key measure as it demonstrates the Company's ability to generate cash necessary to fund future capital investments and to repay debt, if applicable. Cash flow from operations is calculated using cash flow from operating activities as presented in the statement of cash flows, before changes in non-cash working capital.

The Company considers corporate netbacks to be a key measure as they demonstrate Boulder's profitability relative to current commodity prices. Corporate netbacks are comprised of operating and cash flow netbacks. Operating netback is calculated as the average sales price of the Company's commodities, less royalties, operating costs and transportation expenses. Cash flow netback starts with the operating netback and further deducts general and administrative costs, finance expense and unrealized gains on financial instruments, and then adds any finance income and realized gains on financial instruments, if applicable. No IFRS measure is reasonably comparable to netbacks.

Net debt, which represent current assets less current liabilities, excluding current derivative financial instruments, is used to assess efficiency, liquidity and the Company's general financial strength. No IFRS measure is reasonably comparable to net debt.

BOE Presentation. References herein to "boe" mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.