SOURCE: Marquee Energy Ltd.

Marquee Energy Ltd.

May 04, 2016 18:00 ET

Marquee Energy Ltd. Announces Sale of Non-Core Shallow Gas Asset

CALGARY, AB--(Marketwired - May 04, 2016) - Marquee Energy Ltd. ("Marquee" or the "Company") (TSX VENTURE: MQL) announces that it has entered into a purchase and sale agreement for the sale of a non-core, shallow gas asset for total cash consideration of $4.5 million, prior to customary closing adjustments (the "Transaction"). The Transaction is expected to close on or about May 31, 2016, subject to applicable regulatory approvals.

The asset includes approximately 500 gross / 396 net wells and averaged approximately 5,700 mcf/d in Q1 2016. The Company expects the disposition to have a positive impact on operating costs, general and administration expenses and the Company's asset retirement obligations, while having minimal impact on cashflow. In the short term, the gross proceeds from the sale of the assets will be used to reduce the Company's current debt and improve financial flexibility. The disposition is consistent with Marquee's strategy to divest of the Company's non-core assets to further focus the Company on its Detrital/Banff oil play at Michichi.

ABOUT MARQUEE

Marquee Energy Ltd. is a Calgary based, junior energy company focused on high rate of return oil development and production. Marquee is committed to growing the company through exploitation of existing opportunities and continued consolidation and development within its core area at Michichi. The Company's shares are traded on the TSX Venture Exchange under the trading symbol "MQL" and on the OTCQX marketplace under the symbol "MQLXF". Current information about Marquee may be found on its website www.marquee-energy.com and in its continuous disclosure documents filed with Canadian securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

FORWARD-LOOKING STATEMENTS OR INFORMATION

Certain statements included or incorporated by reference in this news release may constitute forward-looking statements under applicable securities legislation. Such forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information in this news release may include, but are not limited to: the closing of the Transaction and the anticipated timing thereof and the anticipated use of proceeds from the Transaction.

Such forward-looking statements or information are based on a number of assumptions all or any of which may prove to be incorrect. In addition to any other assumptions identified in this document, assumptions have been made regarding, among other things: the ability of the Company to meet the conditions to closing of the Transaction; the timely receipt of required regulatory approvals; interest rates; regulatory framework regarding taxes, royalties and environmental matters; future crude oil, natural gas liquids and natural gas prices and management's expectations relating to the timing and results of development activities.

Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking information. Material risk factors affecting the Company and its business are contained in Marquee's Annual Information Form, which is available under Marquee's issuer profile on SEDAR at www.sedar.com.

The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

ADDITIONAL ADVISORIES

Boes are presented on the basis of one boe for six Mcf of natural gas. Disclosure provided herein in respect of boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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