Shoreline Energy Corp.
TSX : SEQ

Shoreline Energy Corp.

April 18, 2012 19:16 ET

Shoreline Energy Corp. Announces Increase in Borrowing Base, Expanded Capital Program, 2012 Production Guidance, and Updated Corporate Presentation

CALGARY, ALBERTA--(Marketwire - April 18, 2012) - Shoreline Energy Corp. (the "Company" or "Shoreline") (TSX:SEQ) is pleased to provide the following business updates related to its growth strategy:

Executive summary

  • Q1 2012 exit rate production increased 15.2% to 1,855 Boe/d from 1,600 Boe/d in Q4 2011
  • Shoreline's lender ATB Financial has reviewed the Company's existing lending facility and as a result, the revolving operating demand loan was increased from $17 million to $20 million effective Q2 and will increase to $22 million in Q4
  • Projected $17.6 million capital expenditures program for 2012
  • Annual General Meeting being held June 14, 2012 at 2:30 pm MST in Calgary

Production Update

Shoreline exited the first quarter of 2012 at a daily production rate of 1855 Boe/d. Behind pipe volumes awaiting tie in of 178 Boe/d (71% oil).

2012 Capital Expenditure Program

Based on recent drilling success in the Pouce Coupe and Progress area, the Company is pleased to announce its expanded 2012 capital expenditure program.

Shoreline plans to spend up to $17.6 million in 2012 to increase production to an estimated 2012 exit production rate of 2180 Boe/d, getting to a 40% oil and NGL weighting.

Q2 through Q4 2012 Projects: drill 6 to 7 oil wells from the following inventory

Progress Area Charlie Lake Horizontal Development Wells
6 horizontal light oil wells (average working interest 45%)
4 wells located within same section as Q1 2012 horizontal drill (300 barrels oil per day)
2 wells one mile away from Q1 2012 successful drilling
Net Risked Production per well: 100 to 130 BOED
Net Risked Capital: $685,000 to $900,000 per well
Peace River Arch Montney Drilling Program
4 horizontal light oil wells (average working interest 75%)
Analog wells initial rate between 150 and 400 barrels per day of light oil
Net Risked Production per well: 100 to 130 BOED
Net Risked Capital: $1.35 million per well
Pouce Coupe Oil Delineation Program
Drill vertical oil well (0.83 net), $1.0 million net risked capital
Third well following two successful wells drilled in Q4 2011, and Q1 2012
Analog wells between 30 and 75 barrels oil per day of light oil

Bank Line Increase

Shoreline recently increased its credit facilities with ATB Financial from $17 million to $20 million in Q2 stepping up to $22 million in Q4. Current indebtedness at March 31, 2012 was $9.4 million.

Annual General Meeting

Shoreline's Annual General Meeting is being held June 14, 2012 at 2:30 pm (MST) in the Viking Room of the Calgary Petroleum Club, 319 Fifth Avenue SW, Calgary, Alberta.

Updated Corporate Presentation

A new corporate presentation is accessible on Shoreline's website at www.shorelineenergy.ca.

Investor Information

Currently, Shoreline has outstanding 5,640,180 Common Shares, 5,090,782 Common Share purchase warrants and 383,045 options to acquire Common Shares.

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, including a new corporate presentation, is available under the Corporation's profile at www.sedar.com or at the Corporation's website, www.shorelineenergy.ca.

Forward-Looking Statements

Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may," "should," "anticipate," "expects," "seeks" and similar expressions and in particular include those statements relating to the use of proceeds for the Offering and the closing date of the Offering. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with the receipt of all regulatory approvals for the Offering; oil and gas production; marketing and transportation; loss of markets; volatility of commodity prices; currency and interest rate fluctuations; imprecision of reserve estimates; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions or dispositions; inability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. In particular, drilling plans, on-production dates and production continuity are particularly subject to uncertainties and uncontrollable events such as surface access, rig availability, equipment availability, weather conditions, changes in geological interpretation, and other factors. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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