Crew Energy Announces Strong 2016 Montney Reserves Growth With Continued Capital Efficiency Improvements

Feb 9, 2017

CALGARY, ALBERTA--(Marketwired - Feb. 9, 2017) - Crew Energy Inc. (TSX:CR) of Calgary, Alberta ("Crew" or the "Company") is pleased to announce the results of our independent corporate reserves evaluation prepared by Sproule Associates Ltd. ("Sproule") with an effective date of December 31, 2016 (the "Sproule Report"). The following highlights, reserves summary and strong capital efficiency metrics are directly attributable to Crew's successful 2016 Montney drilling program.


  • Strong capital efficiencies and recycle ratios were achieved resulting in finding, development and acquisition ("FD&A") costs and finding and development ("F&D") costs, including changes in future development capital ("FDC"), as follows:
    • Total proved plus probable ("2P") FD&A costs were $5.57 per boe with a recycle ratio of 3.1 times and F&D costs were $5.65 per boe with a recycle ratio of 3.0 times;
    • Total proved ("1P") FD&A costs of $6.19 per boe, leading to a recycle ratio of 2.8 times and F&D costs of $6.30 per boe, with a recycle ratio of 2.7 times;

  • Proved developed producing ("PDP") F&D costs (including FDC) were $9.35 per boe in 2016 with a recycle ratio of 1.8 times, compared to $12.87 per boe in 2015, and $22.43 per boe in 2014, a reduction of 27% and 58%, respectively. PDP FD&A costs were $8.68 per boe, leading to a recycle ratio of 2.0 times;

  • Three year average F&D costs, including FDC, continued to decline reflecting improved capital efficiencies and the ongoing transformation to a lower-cost, high-netback, Montney-focused producer. Crew's three year average 1P and 2P F&D costs per boe were $9.15 and $7.39 in 2016, a reduction of 17% and 12%, respectively, compared to 2015 and were 37% and 25% lower, respectively, relative to 2014;

  • Reserves increased meaningfully across all categories with significant reserves replacement net of annual production of 8,361 mboe:
    • PDP reserves increased 11% to 46.0 mmboe, replacing 154% of produced reserves;
    • 1P reserves increased 26% to 153.2 mmboe, replacing 482% of produced reserves;
    • 2P reserves increased 24% to 323.9 mmboe, replacing 857% of produced reserves;

  • Reserves per share improved across each reserves category, increasing 19% on 2P, 21% on 1P and 7% on PDP;

  • The net present value discounted at 10% (before tax) ("NPV10 BT") of 1P reserves increased by 20% to $1,011 million, and 2P reserves increased by 21% to $2,012 million relative to December 31, 2015; and

  • Longer term development was supported with a 32% increase in 2P booked undeveloped future Montney drilling locations in the Sproule report to a total of 356 potential drilling locations.

To view the graphs associated with this release, please visit the following link:

The continuing strength in reserves additions and metrics highlighted above reflect the high-quality nature of Crew's Montney assets and demonstrate our ability to effectively deploy capital and generate value through ongoing weak and volatile commodity prices.

During 2016 Crew's primary focus was on development of our liquids-rich West Septimus area, resulting in 1P and 2P reserves increasing 66% to 81.0 mmboe and 53% to 154.8 mmboe, respectively compared to year end 2015. A further highlight for West Septimus was the delineation of the ultra-liquids rich portion of the reservoir where area well control and the performance of our first two wells resulted in 41 locations booked in the 2P undeveloped reserves category. Based on the estimated ultimate recovery ("EUR") assignment by Sproule of 3.7 bcf of natural gas, 239 mbbls of condensate and a 2016 capital cost of $4.3 million per well, wells in this ultra liquids-rich area are capable of generating rates of return in excess of 150% utilizing Sproule's December 31, 2016 price deck. These strong economics are further supported by an operating netback from our first well of approximately $29.00 per boe realized over the last four months of 2016. Our internal analysis supports up to 165 potential drilling opportunities within this ultra liquids-rich window subject to further delineation of the local reservoir quality and productivity.

At Septimus, Crew has maintained the 5.6 bcf average 2P EUR per well for booked undeveloped locations consistent with 2015, a 100% increase over the original 2.8 bcf average 2P EUR per well assigned by Crew's independent reserve evaluator at year end 2010. In 2016 Crew began exploiting a new Upper Montney stratigraphic interval located within the lower portion of the "B" unit at Septimus with the drilling of two wells. Both wells had strong initial production results and have been assigned an average 2P EUR of 6.7 bcf per well in the Sproule Report. With continued exploitation of this interval and the Company's ongoing focus on technology enhancements and implementation, we expect continued strong well performance from our legacy Septimus asset.

Continuing strong performance of Crew's original Lower Montney well at Septimus resulted in a 17% increase in the 2P EUR reserve assignment to 5.6 bcf for this well, further demonstrating the significant potential of this largely unbooked resource. The Company will continue to pursue an optimal completion design for the Lower Montney as we further delineate this interval across our land base.

Crew's 2016 reserves evaluation reflects a successful drilling program highlighted by a growing potential drilling inventory with 171 proved undeveloped Montney locations and 356 2P undeveloped Montney locations assigned in the Sproule report, representing an increase of 41% and 32%, respectively, over 2015. The land represented by this significant inventory is only approximately 14% of Crew's total Montney land holdings, providing for multi-decades of potential development. Crew has established a three year growth plan which targets strong production increases over the next 36 months to an estimated 60,000 boe per day through the end of 2019, which based on current EUR per well assignments, could potentially be achieved through developing the currently booked 1P undeveloped reserves. Crew's $200 million 2017 capital budget is planned to be allocated approximately 90% to Montney drilling and completions activities and associated infrastructure expansion, which is anticipated to result in Montney production growth of more than 40% while exiting the year at greater than 30,000 boe per day.


The detailed reserves data set forth below are based upon an independent reserves assessment and evaluation prepared by Sproule with an effective date of December 31, 2016. The following presentation summarizes the Company's crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for the Company's reserves using forecast prices and costs based on the Sproule Report. The Sproule Report has been prepared in accordance with definitions, standards, and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI-51-101"). The reserves evaluation was based on Sproule forecast escalated pricing and foreign exchange rates at December 31, 2016 as outlined in the table herein entitled "Price Forecast".

All evaluations and summaries of future net revenue are stated prior to provision for interest, debt service charges or general administrative expenses and after deduction of royalties, operating costs, estimated well abandonment and reclamation costs and estimated future capital expenditures. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein. Reserves included herein are stated on a company gross basis (working interest before deduction of royalties without including any royalty interests) unless noted otherwise. In addition to the detailed information disclosed in this news release, more detailed information will be included in the Company's Annual Information Form (the "AIF") which will be filed on the Company's profile at on or before March 31, 2017.

See "Information Regarding Disclosure on Oil and Gas Reserves and Operational Information" for additional cautionary language, explanations and discussions and "Forward Looking Information and Statements" for a statement of principal assumptions and risks that may apply.

The preparation and audit of Crew's 2016 annual consolidated financial statements is not yet complete, and accordingly all financial amounts referred to in this news release are unaudited and represent management's estimates. Readers are advised that these financial estimates may be subject to change.

Reserves Snapshot by Category:
Reserves Added(1) (mmboe) 12.9 40.3 71.7
Total Reserves (mmboe) 46.0 153.2 323.9
Reserves Replacement 154% 482% 857%
NPV10 BT ($mm) $459 $1,011 $2,012
FD&A Cost per boe(2)(5) $8.68 $6.19 $5.57
Recycle Ratio(3)(5) 2.0x 2.8x 3.1x
F&D Cost per boe (2)(5) $9.35 $6.30 $5.65
Recycle Ratio(3)(5) 1.8x 2.7x 3.0x
Reserves per Share Growth(4)(5) 7% 21% 19%
(1) Net of 8.4 mmboe of production
(2) Including changes in FDC
(3) Based on a Q4 2016 estimated netback of $17.03 per boe (unaudited)
(4) 2016 over 2015, based on 146.8 million shares outstanding and 141.1 million at December 31, 2016 and 2015, respectively.
(5) "Reserves Replacement", "FD&A Cost", "F&D Cost" and "Recycle Ratio" do not have standardized meanings. See "Information Regarding Disclosure on Oil and Gas Reserves and Operational Information" in this news release.
Corporate Reserves(1,2):
Light and Medium Crude Oil Heavy Crude Oil Natural Gas
Conventional Natural Gas(3) Barrels of
oil equivalent(4)
(mbbl) (mbbl) (mbbl) (mmcf) (mboe)
Producing 340 1,551 7,493 219,507 45,968
Non-producing 2 1,734 220 8,623 3,394
Undeveloped 1,033 1,783 21,965 474,387 103,845
Total proved 1,376 5,067 29,678 702,517 153,207
Probable 11,165 4,877 29,012 754,096 170,736
Total proved plus probable 12,540 9,944 58,690 1,456,613 323,943
(1) Reserves have been presented on a "gross" basis which is defined as Crew's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of the Company.
(2) Based on Sproule's December 31, 2016 escalated price forecast.
(3) Reflects 100% Conventional Natural Gas by product type.
(4) Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.
(5) Columns may not add due to rounding.

Reserves Values(1)(2)

The estimated before tax net present value ("NPV") of future net revenues associated with Crew's reserves effective December 31, 2016 and based on the Sproule Report and the published Sproule (December 31, 2016) future price forecast are summarized in the following table:

(M$) 0% 5% 10% 15% 20%
Producing 723,194 560,512 458,759 390,694 342,416
Non-producing 62,979 51,947 43,980 37,996 33,343
Undeveloped 1,586,537 856,305 508,251 319,915 207,761
Total proved 2,372,711 1,468,763 1,010,990 748,605 583,520
Probable 3,293,846 1,693,971 1,001,497 644,400 437,775
Total proved plus probable 5,666,557 3,162,734 2,012,487 1,393,005 1,021,295
(1) The estimated future net revenues are stated prior to provision for interest, debt service charges, general administrative expenses, the impact of hedging activities, and after deduction of royalties, operating costs, certain estimated well abandonment and reclamation costs and estimated future capital expenditures.
(2) The after-tax present values of future net revenue attributed to Crew's reserves will be included in the Company's 2016 Annual Information Form to be filed on or before March 31, 2017.
(3) Columns may not add due to rounding.

Price Forecast

The Sproule December 31, 2016 price forecast is summarized as follows:

Year Exchange Rate WTI @ Cushing Canadian Light Sweet Western Canada Select Natural gas AECO-C spot Westcoast Station 2
($US/$Cdn) (US$/bbl) (C$/bbl) (C$/bbl) (C$/mmbtu) (C$/mmbtu)
2017 0.780 55.00 65.58 53.12 3.44 3.04
2018 0.820 65.00 74.51 61.85 3.27 2.87
2019 0.850 70.00 78.24 64.94 3.22 2.82
2020 0.850 71.40 80.64 66.93 3.91 3.51
2021 0.850 72.83 82.25 68.27 4.00 3.60
2022 0.850 74.28 83.90 69.64 4.10 3.70
2023 0.850 75.77 85.58 71.03 4.19 3.79
2024 0.850 77.29 87.29 72.45 4.29 3.89
2025 0.850 78.83 89.03 73.90 4.40 4.00
2026 0.850 80.41 90.81 75.38 4.50 4.10
2027 0.850 82.02 92.63 76.88 4.61 4.21
2028 + 2.0%/yr 2.0%/yr 2.0%/yr 2.0%/yr 2.0%/yr
(1) Inflation is accounted for at 2.0% per year.

Reserves Reconciliation

The following summary reconciliation of Crew's gross reserves compares changes in the Company's reserves as at December 31, 2016 to the reserves as at December 31, 2015 based on the Sproule (December 31, 2016) future price forecast.

TOTAL PROVED Light & Medium Crude Oil (mbbl) Heavy
Crude Oil
Natural Gas Liquids
Conventional Natural Gas (mmcf) Oil Equivalent (mboe)
Opening Balance 1,824 5,663 20,685 558,596 121,271
Extensions & Improved Recovery(1) 327 41 46 1,779 711
Infill Drilling 0 5 9,662 151,601 34,934
Technical Revisions 1,085 583 1,067 37,769 9,030
Discoveries 0 0 0 0 0
Acquisitions 4 0 11 7,981 1,345
Dispositions 0 0 0 0 0
Economic Factors (1,741) (325) (567) (18,535) (5,722)
Production (123) (900) (1,226) (36,674) (8,361)
Closing Balance 1,376 5,068 29,678 702,517 153,207
PROVED PLUS PROBABLE Light & Medium Crude Oil (mbbl) Heavy
Crude Oil
Natural Gas Liquids
Conventional Natural Gas (mmcf) Oil Equivalent (mboe)
Opening Balance 9,585 10,710 43,203 1,182,791 260,629
Extensions & Improved Recovery(1) 4,148 214 615 23,564 8,904
Infill Drilling 0 6 17,087 271,030 62,265
Technical Revisions (902) 110 (463) 21,450 2,320
Discoveries 0 0 0 0 0
Acquisitions 5 0 14 10,000 1,685
Dispositions 0 0 0 0 0
Economic Factors (173) (196) (539) (15,548) (3,499)
Production (123) (900) (1,226) (36,674) (8,361)
Closing Balance 12,540 9,944 58,690 1,456,612 323,943
(1) Increases to Extensions and Improved Recovery are the result of step-out locations drilled by Crew. Reserves additions for improved recovery and extensions are combined and reported as "Extensions and Improved Recovery".
(2) Columns may not add due to rounding.

Capital Program Efficiency

In 2016, Crew achieved strong success in our drilling program, and continued to benefit from improvements in completions technologies aided by strong reservoir performance. Crew's exploration and development capital expenditures in 2016 are estimated at $108.2 million.

The following table provides an overview of Crew's ability to invest capital efficiently, and generate positive returns from our assets for the years ended December 31, 2016 and 2015, along with three year averages:

2016 2015 Three Year
1P 2P 1P 2P 1P 2P
Exploration and Development expenditures(1) ($ thousands) 108,202 108,202 209,546 209,546 601,720 601,720
Acquisitions/(Dispositions)(1) ($ thousands) 3,974 3,974 (48,568) (48,568) (274,270) (274,270)
Change in future development capital(1) ($ thousands)
- Exploration and Development 137,187 286,983 (139,172) 24,200 343,584 1,071,536
- Acquisitions/Dispositions - - (1,434) (3,759) (302,157) (463,729)
Reserves additions with revisions and economic factors (mboe)
- Exploration and Development 38,952 69,989 21,890 47,968 103,315 226,316
- Acquisitions/Dispositions 1,345 1,685 (395) (1,007) (41,369) (75,713)
40,297 71,674 21,495 46,961 61,946 150,603
Finding & Development Costs(2)(6)($ per boe)
- with revisions and economic factors 6.30 5.65 3.22 4.87 9.15 7.39
Finding, Development & Acquisition Costs(2)(6) ($ per boe)
- with revisions and economic factors 6.19 5.57 0.95 3.86 5.95 6.21
Recycle Ratio(3)(6)(F&D) 2.7 3.0 4.3 2.8
Reserves Replacement(4)(6) 482% 857% 318% 694%
Reserve Life Index based on annualized 2016 fourth quarter production (years)(5)(6) 18.8 39.7 16.1 34.5
(1) The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development capital generally will not reflect total finding and development costs related to reserve additions for that year.
(2) The calculation of F&D and FD&A costs incorporates the change in FDC required to bring proved undeveloped and developed reserves into production. In all cases, the F&D or FD&A number is calculated by dividing the identified capital expenditures by the applicable reserves additions after changes in FDC costs.
(3) Recycle ratio is defined as operating netback per boe divided by F&D costs on a per boe basis. Operating netback is calculated as revenue (including realized hedging gains and losses) minus royalties, operating expenses, and transportation expenses. Crew's operating netback in fourth quarter 2016, used in the above calculations, averaged $17.03 per boe (unaudited).
(4) Reserves replacement ratio is calculated as total reserve additions (including acquisitions net of dispositions) divided by annual production. Crew's 2016 annual production averaged 22,844 boe per day.
(5) Reserve life index ("RLI") is calculated as Company gross reserves divided by average fourth quarter production of 22,380 boe per day annualized.
(6) "Reserves Replacement", "FD&A Cost", "F&D Cost", "Recycle Ratio" and "Reserve Life Index" do not have standardized meanings. See "Information Regarding Disclosure on Oil and Gas Reserves and Operational Information" in this news release

Future Development Capital

The following table provides a summary of the estimated FDC required to bring Crew's undeveloped reserves to production.

Total Total Proved
Future Development Capital ($millions)(1) Proved plus Probable
2017 156 196
2018 131 230
2019 71 295
2020 50 201
2021 99 309
Remainder 221 373
Total FDC undiscounted 728 1,603
Total FDC discounted at 10% 541 1,167
1. FDC as per Sproule independent reserve evaluation effective December 31, 2016 based on Sproule forecast pricing.

Cautionary Statements

Unaudited financial information

Certain financial and operating information included in this press release for the quarter and year ended December 31, 2016, including finding and development costs and netbacks are based on estimated unaudited financial results for the quarter and year then ended, and are subject to the same limitations as discussed under Forward Looking Information set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2016 and changes could be material.

Information Regarding Disclosure on Oil and Gas Reserves and Operational Information

Our oil and gas reserves statement for the year ended December 31, 2016, which will include complete disclosure of our oil and gas reserves and other oil and gas information in accordance with NI 51-101, will be contained within our Annual Information Form which will be available on our SEDAR profile at The recovery and reserve estimates contained herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In relation to the disclosure of estimates for individual properties, such estimates may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. The Company's belief that it will establish additional reserves over time with conversion of probable undeveloped reserves into proved reserves is a forward-looking statement and is based on certain assumptions and is subject to certain risks, as discussed below under the heading "Forward-Looking Information and Statements".

This press release contains metrics commonly used in the oil and natural gas industry, such as "recycle ratio", "finding and development costs", "finding and development recycle ratio", "finding, development and acquisition costs", "operating netbacks", "reserves replacement", and "reserve life index". The term "EUR" is the estimated raw quantity of gas or oil that is potentially recoverable or has already been recovered from a well. These terms do not have standardized meanings or standardized methods of calculation and therefore may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Such metrics have been included herein to provide readers with additional information to evaluate the Company's performance, however such metrics should not be unduly relied upon.

Both F&D and FD&A costs take into account reserves revisions during the year on a per boe basis. The aggregate of the costs incurred in the financial year and changes during that year in estimated FDC may not reflect total F&D costs related to reserves additions for that year. Finding and development costs both including and excluding acquisitions and dispositions have been presented in this press release because acquisitions and dispositions can have a significant impact on our ongoing reserves replacement costs and excluding these amounts could result in an inaccurate portrayal of our cost structure. Management uses oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare Crew's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.

Forward-looking information and statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: the recognition of significant additional reserves under the heading "Reserves", the volumes and estimated value of Crew's oil and gas reserves; the potential opportunity for expanded drilling in the Lower Montney; the life of Crew's reserves; the volume and product mix of Crew's oil and gas production; future oil and natural gas prices and Crew's commodity risk management program; future results from operations and operating metrics including potential rates of return, potential for lower costs and efficiencies going forward, future development, exploration, acquisition and disposition activities (including drilling, completion and infrastructure plans and associated timing and costs), and Crew's 2017 capital budget and production estimates including 2017 year end exit rate and three year production targets. .

In this press release, reference is made to the Company's long range potential Montney growth scenario. Such information reflects internal projections used by management for the purposes of making capital investment decisions and for internal long range planning and budget preparation. This information is based upon a variety of assumptions that may prove to be incorrect and, accordingly, long range targets are not intended to reflect estimates or forecasts of metrics that may actually be achieved. Accordingly, undue reliance should not be placed on the same.

The recovery and reserve estimates of Crew's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Crew will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities consistent with past operations; the quality of the reservoirs in which Crew operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Crew's reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Crew's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Crew operates; and the ability of Crew to successfully market its oil and natural gas products.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Crew's products, the early stage of development of some of the evaluated areas and zones; the potential for variation in the quality of the Montney formation; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents, (including, without limitation, those risks identified in this news release and Crew's Annual Information Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE equivalent

Barrel of oil equivalents or BOEs 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 ration based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 ratio may be misleading as an indication of value.

Test Results and Initial Production Rates

A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Test results and initial production rates disclosed herein may not necessarily be indicative of long term performance or of ultimate recovery.

Crew Energy Inc. is a dynamic, growth-oriented exploration and production company, focused on increasing long-term production, reserves and cash flow per share through the development of our world-class Montney resource. Crew is based in Calgary, Alberta and our shares are traded on The Toronto Stock Exchange under the trading symbol "CR".