Spartan Exploration Ltd. Reports Significant 2010 Reserves Growth and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Feb. 3, 2011) - Spartan Exploration Ltd. ("Spartan" or the "Company") (TSX:SPE), is pleased to announce substantial increases to reserves, production and net asset value as a result of a successful drilling program in 2010 as well as an operational update relating to fourth quarter 2010 and year to date activities.

2010 YEAR END RESERVE HIGHLIGHTS

• Total Proved plus Probable ("P+P") reserves of 10.32 million boe (85% liquids);

• Net present value before tax 10% (PVBT10) of P+P reserves of $202.3 million;

• Achieved finding and development costs (including revisions) of $17.25 on a P+P basis and $23.86 on a Proved basis (including future development capital of $102.6 million); and

• Based upon an estimated 2010 average corporate netback of $44.75 per boe, Spartan achieved a recycle ratio of 2.5 times (based on P+P reserves).

* Calculation of finding and development costs is based on estimates of capital spent in the field during the year ended December 31, 2010 and is unaudited and therefore subject to change.

The Sproule Associates Limited ("Sproule") independent assessment of the Company's reserves dated December 31, 2010 is summarized as follows (using forecast prices and costs):

Summary of Oil and Gas Reserves (1), (2), (3), (4)
		Oil	Natural Gas(associated & non-associated)	Natural Gas Liquids	Barrels of Oil Equivalent
		Gross	Gross	Gross	Gross
		(mbbl)	(mmcf)	(mbbl)	(mboe)
Proved
	Developed Producing	2,254.9	2,795	170.9	2,891.5
	Developed Non-Producing	200.0	256	15.4	258.0
	Undeveloped	2,060.7	2,087	127.6	2,536.1
Total Proved		4,515.6	5,138	313.9	5,685.6
Probable		3,652.1	4,333	261.1	4,635.4
Total Proved plus Probable		8,167.7	9,471	575.0	10,321.0

Summary of Net Present Value of Future Net Revenue($000s) (1), (2), (3), (4)
		Before Income Taxes Discounted at (%/year)
		@0.0%	@5.0%	@10.0%
Proved
	Developed Producing	159,969	122,400	101,584
	Developed Non-Producing	15,969	11,332	8,873
	Undeveloped	97,415	57,877	37,141
Total Proved		273,353	191,609	147,598
Probable		253,179	104,508	54,717
Total Proved plus Probable		526,532	296,117	202,315

1. The tables above are a summary of the oil, NGL and natural gas reserves of the Company and the net present value of future net revenue attributable to such reserves as evaluated in the Sproule Report based on forecast price and cost assumptions. The tables summarize the data contained in the Sproule Report and as a result may contain slightly different numbers than such report due to rounding. Also due to rounding, certain columns may not add exactly.

2. Gross reserves means the total working interest (operating or non-operating) share of remaining recoverable reserves owned by Spartan before deductions of royalties payable to others and without including any royalty interests owned by Spartan.

3. Based on Sproule's December 31, 2010 escalated price forecast.

4. The net present value of future net revenue attributable to the Company's reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures, and well abandonment costs for only those wells assigned reserves by Sproule. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Company's reserves estimated by Sproule represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of the Company's oil, NGL and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein.

2010 FOURTH QUARTER OPERATIONAL HIGHLIGHTS

The Company has not released its 2010 audited financial results and accordingly the numbers included in the calculations below are currently estimates and unaudited.

• The Company's fourth quarter 2010 average production was 1,855 boe/d;

• December average production was 2,150 boe/d (85% liquids);

• Fourth quarter estimated cash flow was $8.86 million ($0.26 per basic share);

• Operating netback in the fourth quarter was $53.05 per boe and corporate netback was $52.14 per boe; and

• Spartan drilled 6 (5.8 net) Cardium horizontal wells in the Pembina area of central Alberta for a 100% success rate; for the year, Spartan drilled 18 (13.8 net) Cardium horizontal wells with a 100% success rate; the Company currently has 17 (12.8 net) wells on production in Pembina.

2011 OPERATIONAL UPDATE

Spartan has drilled 7 (3.5 net) Cardium horizontal wells to date in 2011 in the Pembina area. All of these wells are at various stages of completion and all are expected to be on production by early March. For the remainder of the year, Spartan expects to drill another 25 (15.6 net) Cardium horizontal wells in Pembina. As at December 31, 2010, Spartan had an inventory of 161 (94) net Cardium drilling locations.

In southwest Saskatchewan, Spartan drilled one vertical Shaunavon vertical well. The well did not encounter productive reservoir and was subsequently abandoned.

In southeast Saskatchewan at Torquay, Spartan expects to spud the first well in its Midale light oil project during the first quarter. Spartan has approximately 68 net sections of undeveloped land in southeast Saskatchewan that is prospective for Bakken and/or Mississippian light oil targets. Approximately 60% of this acreage is on the southern trend between Viewfield and the U.S. border, where significant industry activity is currently taking place.

CREDIT FACILITY UPDATE

Based upon the 2010 year end reserve report, the Company's bank has provided an indicative term sheet providing for an increase in the Company's line of credit to $55 million, subject to final due diligence approval by the bank.

READER ADVISORY

This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Spartan. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

In the interest of providing Spartan shareholders and potential investors with information regarding the Company, including management's assessment of Spartan's future plans and operation, certain statements throughout this press release constitute forward looking statements. All forward-looking statements are based on the Company's beliefs and assumptions based on information available at the time the assumption was made. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward looking statements. By its nature, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. Spartan believes the expectations reflected in those forward looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward looking statements contained throughout this press release should not be unduly relied upon. These statements speak only as of the date specified in the statements.

In particular, this press release may contain forward looking statements pertaining to the following:

• the performance characteristics of the Company's oil and natural gas properties;
• oil and natural gas production levels;
• capital expenditure programs;
• the quantity of the Company's oil and natural gas reserves and anticipated future cash flows from such reserves;
• projections of commodity prices and costs;
• supply and demand for oil and natural gas;
• expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; and
• treatment under governmental regulatory regimes.

The material assumptions in making these forward-looking statements include certain assumptions disclosed in the Company's most recent management's discussion and analysis included in the material available on this press release.

The Company's actual results could differ materially from those anticipated in the forward looking statements contained throughout this press release as a result of the material risk factors set forth below, and elsewhere in this press release:

• volatility in market prices for oil and natural gas;
• liabilities inherent in oil and natural gas operations;
• uncertainties associated with estimating oil and natural gas reserves;
• competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel;
• incorrect assessments of the value of acquisitions and exploration and development programs;
• geological, technical, drilling and processing problems;
• fluctuations in foreign exchange or interest rates and stock market volatility;
• failure to realize the anticipated benefits of acquisitions;
• general business and market conditions; and
• changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry.

These factors should not be construed as exhaustive. Unless required by law, Spartan does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.