Cutpick Energy Inc. Announces Review of Strategic Alternatives

CALGARY, ALBERTA--(Marketwire - Feb. 8, 2012) -

Cutpick Energy Inc. ("Cutpick" or the "Corporation") announces that its Board of Directors has determined to evaluate a range of strategic alternatives, including possible liquidity events, aimed at enhancing shareholder value. Cutpick has established a special committee of independent directors to oversee the strategic alternative review process and has engaged FirstEnergy Capital Corp. ("FirstEnergy") to advise with respect thereto.

Strategic alternatives may include, among other alternatives: a sale of the Corporation, either in one transaction or in a combination of transactions; a merger, recapitalization, arrangement, amalgamation or any combination thereof; or a sale of a material portion of the assets of the Corporation. The strategic alternative review process has not been initiated as a result of any particular offer and there are no assurances that a transaction will be undertaken.

The Corporation cautions that there are no guarantees that the strategic alternative review process will result in a transaction or, if a transaction is undertaken, as to its terms or timing. The Corporation has not set a definitive schedule to complete its evaluation and does not intend to disclose developments with respect to this process unless and until the evaluation has been completed or a definitive agreement has been reached.

Bob Chaisson, President and Chief Executive Officer of Cutpick, commented, "Cutpick has developed significant assets on the Viking light oil resource play in the Halkirk area of Alberta including a large inventory of horizontal drilling locations and a large undeveloped land base in the greater Halkirk area. On behalf of the Board and senior management, we have decided to consider the various strategic alternatives with a view to enhancing shareholder value given the substantial opportunities that exist in the Corporation."

In connection with the strategic alternative review process, FirstEnergy has prepared a detailed confidential information memorandum ("IM") which will include information relating to the Corporation and its properties, reserves, and opportunities. The IM will be available the week of February 13^th, 2012 to interested parties and copies can be downloaded by accessing the FirstEnergy website at: www.firstenergy.com/Cutpick.

Corporately, December 2011 production rates were 5,453 BOE/d weighted 62% to oil & NGL's with 25 horizontal oil wells scheduled to be placed on production in the first quarter of 2012. To date, Cutpick has drilled 94 Viking horizontal wells, with a 100% success rate, in the Viking fairway at Halkirk.

Cutpick is a private Calgary, Alberta based corporation engaged in the exploration, development and production of oil and natural gas.

Reader Advisories

Forward Looking Statements: This news release contains forward-looking statements relating to the Corporation, including with respect to the strategic alternative review process and potential transactions Cutpick may pursue. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.

These forward-looking statements are based on various assumptions including expectations regarding the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; the timing, location and extent of future operations; anticipated timing and results of capital expenditures; estimates of future production; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates; impact of increasing competition; ability to market oil and natural gas successfully; the ability of Cutpick to access capital; availability of potential transactions and interests from third parties in pursuing potential transactions with Cutpick. While Cutpick considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their nature, forward-looking statements involve numerous 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 commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; general economic conditions in Canada, the U.S. and globally; ability to access sufficient capital from internal and external sources; and that the exploration of strategic alternatives may not result in any agreement or transaction and, if completed, that any such agreement or transaction may not be successful or on attractive terms. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Cutpick believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Sales volumes are commonly expressed on a barrel of oil equivalent ("BOE") basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet ("MCF") to one barrel of oil. The intention is to sum oil, natural gas liquids and natural gas measurements units into one basis for improved analysis of results and comparisons to other industry participants. BOE's and Mcf equivalents may be misleading, particularly if used in isolation. A conversion ratio of six thousand cubic feet to one barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.