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Press release from Marketwire

Shoreline Energy Corp. Announces Operational Update and Private Placement Financing

Tuesday, February 12, 2013

Shoreline Energy Corp. Announces Operational Update and Private Placement Financing18:45 EST Tuesday, February 12, 2013CALGARY, ALBERTA--(Marketwire - Feb. 12, 2013) -NOT FOR DISTRIBUTION IN THE UNITED STATESShoreline Energy Corp. (TSX:SEQ) ("Shoreline" or the "Company") is pleased to announce the following operational update and private placement financing.Operational UpdateShoreline began a significant capital expenditure program following closing of a convertible debenture capital raise, which closed August 28, 2012. Shoreline has now cased the final well in its Peace River Arch 2012 drilling program, having drilled 6 gross (4.6 net) horizontal wells and 1 vertical well with an achieved success rate of 86% resulting in over 800 Boepd (barrels oil equivalent per day) of new volumes to be tied in in the first quarter of 2013.As part of this program, Shoreline is pleased to announce new Montney pool discoveries which are 100% owned and operated by the Company. The Company's technical team believes that at present there are between 8 and 16 identified pool development locations on its 100% working interest lands. An additional 8 to 12 drilling locations are identified on lands which Shoreline will control following drilling of earning wells prior to spring break-up. The Company is in active negotiation with industry participants to increase its land holdings in the Peace River Arch, to further expand its inventory of potential drilling locations.Drilling Summary2 horizontal Charlie Lake oil wells, first well on production in excess of 200 bopd (barrels oil per day) since January 1, 2013, second well testing and awaiting tie in. 3 horizontal Montney oil wells, first well currently being tied in, 2nd well expected to begin tie in late February and third well scheduled to be tied in mid to late March. Shoreline anticipates the combined production from these 3 wells will exceed 600 boepd. 1 vertical Boundary Lake test well was cased for uphole gas and will be completed when gas prices improve. 1 horizontal Charlie Lake oil well will be abandoned as the permeability was too low for the well to produce economic oil.Current production is approximately 1500 boepd with oil and liquids comprising approximately 440 bopd based on field estimates. Shoreline intends to spud 3 horizontal Montney test wells in the first quarter 2013, licensing is now underway and the first location is scheduled to be spud mid February.Shoreline continues to hedge natural gas, with approximately 40% of today's production hedge at prices above current spot market prices. Shoreline is currently negotiating the sale of two non-core assets to provide additional capital for deployment in core operations.Private Placement Financing Shoreline has entered into an engagement with Macquarie Private Wealth Inc. (the "Agent") to act as agent with respect to the private placement, on a commercially reasonable efforts agency basis, of up 1,428,571 common shares ("Common Shares") of the Corporation at a subscription price of $3.50 per Common Share for gross proceeds of up to approximately $5 Million (the "Offering"). Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals as well the Agent and the Corporation entering into an agency agreement. In connection with the Offering, the Agent will receive a cash commission as well as warrants to purchase a number of Common Shares capital to 10% of the Common Shares sold under the Offering. The Offering is expected to close on or about February 22, 2013. Shoreline intends to use the net proceeds of the Offering for debt retirement, drilling of light oil wells in the Peace River Arch and for land acquisitions in the Wattenburg Basin. This press release is not an offer of securities for sale in the United States. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and accordingly may not be offered or sold in the United States unless registered under that Act or pursuant to an available exemption from the registration requirements thereof.About Shoreline Energy Investor Information Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil reserves and production on its current lands and pays a quarterly dividend. Shoreline has 6,207,960 Common Shares outstanding and 170,000 convertible debentures outstanding. The Common Shares are currently listed on the TSX under the trading symbol "SEQ" and the debentures under the trading symbol "SEQ.DB". Additional information regarding Shoreline is available under the Company's profile at www.sedar.com or at the Corporation's website, www.shorelineenergy.ca. Forward-Looking and Cautionary StatementsThis 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 (i) timing and completion of certain wells; (ii) future production; (iii) timing of spudding of certain wells; (iv) completion of certain asset acquisitions and divestitures; (v) 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.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 BOEsThe 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Shoreline Energy Corp.Mr. Trevor FolkChief Executive Officer(403) 398-4070tfolk@shorelineenergy.caShoreline Energy Corp.Mr. Kevin StromquistPresident & Chief Operating Officer(403) 398-4075kstromquist@shorelineenergy.cawww.shorelineenergy.caInvestor Relations: MZ Group North AmericaDerek Gradwell, Senior Vice PresidentNatural Resources949-259-4995dgradwell@mzgroup.uswww.mzgroup.usCalgary OfficeSuite 400, 209-8th Ave SWCalgary, Alberta, T2P 1B8(403) 767-9066