Pine Cliff Energy Announces Second Quarter 2011 Results

CALGARY, ALBERTA--(Marketwire - Aug. 18, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Pine Cliff Energy Ltd. (TSX VENTURE:PNE) (Pine Cliff or the Company) is pleased to announce its operating and financial results for the second quarter ended June 30, 2011. The related unaudited condensed consolidated financial statements and notes, as well as management's discussion and analysis, are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on Pine Cliff's website at www.pinecliffenergy.com

Highlights

As at and for the periods ended			Three months ended						Six months Ended
			June 30, 2011			June 30, 2010 Restated (1) (3	)		June 30, 2011			June 30, 2010 Restated (1) (3	)
TOTAL OPERATIONS ($)
Revenue – Oil and Gas sales			236,229			548,391			481,747			759,188
Cash Flow from Operations			68,707			229,181			216,827			180,440
	Per share Basic and Diluted		0.00			0.00			0.00			0.00
Net Loss			(53,732	)		(177,782	)		(86,176	)		(366,276	)
	Per share Basic and Diluted		(0.00	)		(0.00	)		(0.00	)		(0.01	)
Capital Expenditures			2,942			165,734			9,097			1,178,911
Total Assets									2,622,350			2,910,378
Working Capital (Deficiency)									510,444			(387,016	)
Shareholders' Equity									2,459,057			2,796,462
CONTINUING OPERATIONS ($)
Cash Flow from Operations			68,707			311,063			216,827			330,663
	Per share Basic and Diluted		0.00			0.00			0.00			0.00
Net Loss			(53,732	)		(39,367	)		(86,176	)		(61,396	)
	Per share Basic and Diluted		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital Expenditures			2,942			108,979			9,097			1,098,129
TOTAL OPERATIONS
Crude Oil and NGLs – Barrels per day			1			4			1			3
	– Average price ($ per barrel)		81.55			79.57			82.63			80.21
Natural Gas – MCF per day			614			1,387			636			914
	– average price ($ per MCF)		4.12			4.13			4.07			4.31
Total Barrels of Oil Equivalent Per Day (BOE) (2)			103			235			107			155

⁽¹⁾ The comparative highlights have been restated with the adoption of International Financial Reporting Standards.

⁽²⁾ Barrels of oil equivalent (BOE) is calculated using a conversion ratio of 6 MCF to 1 barrel of oil. The conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and as such may be misleading if used in isolation.

⁽³⁾ During the second quarter of 2010, Pine Cliff committed to a plan to dispose of its South American operations to allow the Company to focus its continuing operations on the development of Canadian oil and natural gas properties. The South American Operations were sold effective September 24, 2010. Accordingly, the South American Operations have been reclassified as discontinued operations in the Consolidated Financial Statements. This is further discussed in the MD&A section entitled "Operating results from discontinued operations."

Financial Highlights

• As previously announced, senior management and the Board of Directors are redirecting Pine Cliff's corporate strategy and are now focusing on Canadian properties to provide new opportunities to increase shareholder value.

• A significant step to realizing this strategy was the disposition of its South American Operations in the third quarter of 2010 which significantly reduced future operating and capital costs. The Company received shares in a public company from the disposition, which as of June 30, 2011 were valued at $322,904. The Company now has modest positive cash flow from continuing operations as well as a positive working capital position.

• As of June 30, 2011, Pine Cliff had working capital of $510,444. Pine Cliff is actively assessing available acquisition opportunities and believes that with the sustained low natural gas price environment, there may be increased opportunities for either corporate or property acquisitions in the near term.

Operational Highlights

• The Company's present production all comes from non-operated properties in the Sundance area in northwest Alberta. There are additional drilling opportunities on Company lands in this area, however, Pine Cliff presently does not have a large enough land position to make it a significant core area. During the second quarter, four wells (0.6 net, 15 percent working interest in each well) were licensed in the area. Pine Cliff is currently evaluating whether it will actively participate in any of these wells.

Outlook

• The key focus for Pine Cliff will be to substantially increase the Company's asset base. Pine Cliff is presently reviewing various options and upon completion of this review, will implement new objectives and plans for the Company. It is projected that this review will be completed by the end of the third quarter 2011.

Cautionary Statement

This summarized news release should not be considered a suitable source of information for readers who are unfamiliar with Pine Cliff and should not be considered in any way as a substitute for reading the full report.

For the full report, please go to www.pinecliffenergy.com

FORWARD-LOOKING INFORMATION

Certain statements contained in this press release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this press release includes, but is not limited to: expected cash provided by continuing operations; future capital expenditures, including the amount and nature thereof; oil and natural gas prices and demand; expansion and other development trends of the oil and natural gas industry; business strategy and outlook; expansion and growth of our business and operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit risks; and other such matters.

All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: the risks of foreign operations; foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control. The foregoing factors are not exhaustive.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived therefrom. Except as required by law, Pine Cliff disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The forward-looking information contained herein is expressly qualified by this cautionary statement.