Shoreline Energy Announces Termination of Proposed Equity Offering, Record Oil Production, Production Commencement From Its Pouce Coupe Area New Pool Discovery Well, and Reaffirms Dividend Covera

CALGARY, ALBERTA--(Marketwire - Feb. 17, 2012) -

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Shoreline Energy Corporation ("Shoreline" or the "Corporation") (TSX:SEQ) announces that its previously announced public offering of common shares (the "Offering") has been terminated by Shoreline and the Lead Agent in connection with the Offering, on mutually agreeable terms. The Corporation's intention to pursue the Offering was made on the heels of tremendous drilling success in the fourth quarter of 2011 and January 2012. These drilling activities increased oil and NGL production by nearly 400% since IPO, or approximately 375 barrels per day.

Shoreline reaffirms the stability of its $0.20 quarterly dividend, and estimates that only 67% of its' fiscal 2012 cash flow is required to fund its dividend.

The Corporation also announces that as part of its ongoing capital program, that it has brought on stream oil production of over 100 barrels per day from its previously announced oil discovery well in the Pouce Coupe area of northwest Alberta. Initial production from this well exceeded the company's expectation by 300%. Shoreline is currently in the process of licencing a follow up development well located within 700 meters of the discovery well. In addition to the added production, Shoreline's field operations are focused on bringing on stream another 170 barrels of oil per day which is currently "behind pipe".

Through a combination of successful well workovers, drilling of new wells, and through acquisitions, the Corporation has grown production from 750 BOED to over 1,600 BOED from May to December 2011, and is forecasting that its Q1 2012 exit production will exceed 1,900 BOED.

The Corporation continues to be in a strong financial position and has not changed its previously announced capital program for Q1 2012 which included the intent to drill 5 wells, two of these wells are drilled (one tested, one being completed). To date the Q1 2012 capital program has yielded results that have exceeded the Corporation's expectations. Since inception Shoreline has added significant light oil production with excellent capital efficiency and at an estimated on stream cost of $10,000 per BOED.

Given this success, Shoreline's intention with the Offering was to accelerate its stated goal of reaching a balanced oil and gas production mix. This was to be accomplished through the drilling of an additional 5 oil wells and through upgrading existing facilities to remove production restrictions on existing wells. The accelerated projects were forecast to increase production by an incremental 500 barrels per day. Following the termination of the Offering, these same projects will now be drilled using internal cash flow over a longer period of time, increasing long term dividend coverage.

As a result of Shoreline's operational successes the Company continues to maintain a strong balance sheet with demonstrated financial flexibility during. As of February 15^th, 2012 the Company's debt facility was drawn to $9 million on its existing $17 million limit. This debt facility is currently scheduled for review on May 31, 2012. The Company has hedged approximately 25% of its projected 2012 oil production at an average price exceeding C$100 barrel.

Investor Information

Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are currently listed on the TSX under the trading symbol "SEQ." Additional information regarding Shoreline is available under the Corporation's profile at www.sedar.com or at the Corporation's website, www.shorelineenergy.ca.

Forward Looking and Cautionary Statements

This news release contains forward-looking statements relating to the Corporation's plans and other aspects of the Corporation's anticipated future operations, strategies, financial and operating results and business opportunities, including the successful marketing and closing of the Offering. These forward-looking statements may include opinions, assumptions, estimates, management's assessment of value, reserves, future plans and operations.

Forward-looking statements typically use words such as "will," "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "should," "plan," and similar expressions suggesting future outcomes, and include statements that actions, events or conditions "may," "would," "could," or "will" be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Corporation's ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. All dollar figures shown are unaudited and are estimates only.

Forward-looking statements are subject to a wide range of 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 commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.

Note Regarding BOEs

The term barrel of oil equivalent ("BOE") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 MCF : 1 BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.