Gear Energy Ltd. Announces $70 Million Capital Budget for 2014

CALGARY, ALBERTA--(Marketwired - Nov. 14, 2013) - Gear Energy Ltd. ("Gear" or the "Company") is pleased to announce the following:

2014 Capital and Operating Budget

The Board of Directors has approved a $70 million capital expenditure budget for 2014. The budget targets expenditures balanced between low risk, high rate of return development drilling and advancement of efforts to expand and de-risk other potential new core heavy oil assets.

With current price forecasts, the budget is estimated to provide value creation including both production and cash flow growth on a per debt adjusted share basis and will be funded entirely through a combination of cash flow and debt. Approximately 60 per cent of capital will target predictable, production growth from primarily horizontal oil drilling within Gear's three core areas across east central Alberta and west central Saskatchewan. An additional 20 per cent of the budget is directed towards inventory expansion through a combination of land acquisitions, seismic, and drilling of several new plays. The remaining capital will support continued investment in enhanced oil recovery, recompletions, gas gathering systems, and a variety of field based operating cost improvement projects.

The budget includes anticipated improvements in the cash flow generating capabilities of the Company through a combination of a higher liquid weighting, lower royalties, lower operating costs and lower interest and general and administrative costs per boe. Gear plans to drill 55 net oil locations during the year which will assist in increasing the targeted production liquid weighting from 93 percent to 98 per cent. Corporate royalties are expected to decrease from 23 per cent in 2013 to approximately 17 to 18 per cent in 2014, as a result of increased production weighting on crown lands offering low initial royalties and horizontal drilling incentives. The budgeted operating costs are predicted to decline slightly and range between $17.00 to $18.00 per boe.

Gear is predicting realized heavy oil prices to remain relatively unchanged for 2014 despite the recurring volatility and current weakness being experienced due to North American infrastructure interruptions. As has been the case throughout the last two years, Gear will continue to employ a nimble and opportunistic marketing strategy in an effort to maximize realized prices and attempt to minimize any pricing volatility. One of the key pillars in this strategy continues to be an aggressive rail shipping program. Currently, approximately 50 per cent of Gear volumes are being delivered by rail and will continue to be an integral part of the Gear marketing strategy into 2014. As a result of ongoing infrastructure development in the North American pipeline and refining sectors, Gear remains bullish on the outlook for heavy oil prices.

Current 2014 guidance is as follows:

Annual Production	5,000 - 5,200 Boe/d
Royalties	17 - 18%
Operating Costs	$17.00 - $18.00/Boe
G&A Costs	$3.40 - $3.60/Boe
Interest Costs	$1.15 - $1.25/Boe
Capital	$70 million

The Gear team is excited about the strength of our 2014 opportunities and look forward to building upon the strong foundation of value by generating continued debt adjusted per share growth.

Gear Energy Ltd. is Canadian energy company focused on the exploration and development of heavy oil weighted production primarily in east central Alberta and west central Saskatchewan. For recent corporate and investor information please access www.SEDAR.com or www.gearenergy.com.

Ingram B. Gillmore

Gear Energy Ltd.

President and Chief Executive Officer

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward looking information includes, among other things, 2014 annual production, 2014 capital expenditure budget, 2014 heavy oil prices, 2014 royalty rate, 2014 operating costs, 2014 general and administrative costs, and 2014 interest. The words "future", "may", "could", "targeted", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target", "potential" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licenses and leases in the conduct of its business, reliance on third parties, reliance on key personnel, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, competition, environmental matters, and insurance or lack thereof.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

When used in this news release, Boe means a barrel of oil equivalent on the basis of 1 Boe to 6 thousand cubic feet of natural gas. Boe/d means a barrel of oil equivalent per day. Boe's may be misleading, particularly if used in isolation. A Boe conversion ratio of 1 Boe for 6 thousand cubic feet of natural gas 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 of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Any references in this news release to initial production rates and/or 30 day production rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.

The forward-looking information and statements contained in this news release speak only as of the date of this news release. The Company does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date.