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Shoreline Energy Corp. Announces Year Over Year Reserve Growth as Well as Financial and Operating Results for the Quarter and Year-Ended December 31, 2013

CALGARY, ALBERTA -- (Marketwired) -- 04/01/14 -- Shoreline Energy Corp. (TSX: SEQ) ("Shoreline" or the "Corporation") is pleased to report its 2013 year end oil and gas reserves, as well as 2013 year-end financial and operating results. A complete copy of the Company's annual information form, financial statements, along with management's discussion and analysis may be obtained at www.sedar.com or on the Company's website at www.shorelineenergy.ca.

Fourth Quarter 2013 Financial and Operating Highlights

--  Petroleum and natural gas sales increased 49% year-over-year to $28.5
    million in 2013 compared to $19.1 million in 2012.
--  Funds from operations increased 15% to $6.0 million in 2013 compared to
    $5.2 million last year.
--  Shoreline paid its common shareholders $1,998,844 in dividends in 2013.
--  Sales volumes for the fourth quarter of 2013 averaged 1,695 barrels of
    oil equivalent per day (boe/d), an increase of 16% from the fourth
    quarter of 2012.
--  Average production for 2013 was 1,997 boe/d, an increase of 24% from
    1,614 boe/d in 2012.
--  Shoreline exited the year with production of 1,816 boe/d.

Reserve Highlights

--  Total Proved plus probable (2P) reserve value of $102 Million, or $5.23
    per share (non-diluted, net of current indebtedness)
--  2P reserves increased by 9.2% to 7.96 million boe (36% oil and NGLs) as
    at December 31, 2013 from 7.28 million boe (35% oil and NGLs) as at
    December 31, 2012.
--  Total Proved (1P) Reserves in Colorado increased by 947% to 576,000 boe
    from 55,000 boe at year end 2012
--  Management believes that the year-end evaluation could represent less
    than 15% of the ultimate potential from the Company's current Montney
    and Niobrara/Codell land holdings.
--  Achieved finding, development and acquisition costs ("FD&A") of $19.91
    per boe on proved plus probable reserves additions and $26.22 per boe on
    total proved reserves additions, including future development capital
--  2P Reserve additions replaced 201% of 2013 production and reserve
--  Closed on three divestitures which reduced overall corporate
    indebtedness by an estimated $18.7 million dollars

Corporate Highlights


--  New Montney pool discovery in 2013 with 2 wells brought on-stream. A
    third Montney well (100% Shoreline) in the Peace River Arch is "behind
    pipe" with initial rates forecast to be between 150 and 250 boe per day
--  Expanded Montney drilling inventory to between 22 and 30 lower risk
    development horizontal wells immediately offsetting its previous
    discoveries, all at 100% working interest and operated by the Company
--  On November 14, 2013 Shoreline acquired 27,171 net acres of land and
    interests in 77 gross (25.2 net) wells within Shorelines Montney fairway
    in the Peace River Arch area of Alberta. Included in the acquisition was
    the purchase of a gross overriding royalty in its core Valhalla Montney
    project, which significantly increases the rates of return from future

United States

--  Acquired working interest position on the prolific Wattenberg
    Niobrara/Codell light oil play in Colorado adding an additional 1,020
    net acres to the existing land base and an interest in 8 horizontal
    wells and over 95 vertical wells
--  45 (0.17 net) royalty wells drilled on Company lands in Colorado with an
    average 0.4% interest per well during the year. Royalty revenue has
    grown to approximately $120,000 per month from $30,000 per month when
    the properties were acquired
--  Area operators continue to aggressively develop the Niobrara and Codell
    horizons in Wattenberg, with an estimated 20 to 25 rigs now working, and
    between $3 and $5 Billion of potential investment in 2014. As such
    Shoreline's monthly revenues are forecast to continue to grow in
    conjunction with field development.

Financial Tables

                           Three months ended
                                 December 31,      Year ended December 31,
                       2013      2012  Change       2013      2012  Change
(in thousand
 dollars except as
Revenue, before
 royalties and
 instruments          5,492     5,656      (3%)   28,533    19,095      49%
Funds from
 operations (1)         433     2,046     (79%)    6,024     5,223      15%
  Basic & diluted
   ($/ common
   share)              0.05      0.36     (86%)     0.74      0.92     (20%)
Net (loss)           (3,567)   (1,017)    251%    (6,717)   (3,341)    101%
  Basic & diluted
   ($/common share)
   (2)                (0.42)    (0.18)    133%     (0.80)    (0.59)     36%

 acquisitions)          339    12,121     (97%)    5,998    23,656     (75%)
Acquisitions          1,994    15,779     -87%    25,569    15,779      62%
Dispositions              -         -      NA    -18,697         -      NA

Total assets(3)     116,083   111,934       4%   116,083   111,934       4%
Bank debt            19,856    20,684      (4%)   19,856    20,684      (4%)
Working capital
 (deficiency)       (40,052)  (31,611)     27%   (40,052)  (31,611)     27%
 equity              32,462    31,969       2%    32,462    31,969       2%

Weighted average
 common shares
Basic & diluted       9,037     5,656      60%     8,144     5,656      44%

                           Three months ended
                                 December 31,      Year ended December 31,
                       2013      2012  Change       2013      2012  Change
Oil & NGLs (bbls/d)     432       501     (14%)      597       430      39%
Gas (mcf/d)           7,583     5,747      32%     8,402     7,103      18%
Total (boe/d) (4)     1,695     1,459      16%     1,997     1,614      24%

Average realized
Oil & NGLs ($/bbl)    70.36     76.95      (9%)    82.65     78.71      (5%)
Gas ($/mcf)            3.57      3.56       0%      3.25      2.36      38%

Operating netbacks
  Petroleum and
   natural gas
   sales              35.22     42.14     (16%)    39.15     32.41      21%
  Realized gain on
   instrument          0.90      0.95      (5%)     0.52      0.79     (34%)
  Royalties           (2.60)    (3.12)    (17%)    (4.81)    (2.26)    113%
   expenses          (11.97)   (11.95)      0%    (12.84)   (13.28)     (3%)
   expenses           (1.43)    (1.77)    (19%)    (1.22)    (1.35)    (10%)
Operating netback     20.12     26.25     (23%)    20.80     16.31      28%

Drilling activity
Gross wells               8         4     100%        12         9      33%
Net interest wells     0.26      3.10     (92%)     1.46      6.80     (79%)
(1) See "Non-GAAP Terms".
(2) The effect of outstanding options and warrants on loss per share for the
    three month periods and years ended December 31, 2013 and 2012 is anti-
(3) Restated at December 31, 2012. See note 29 to the December 31, 2013
    financial statements
(4) Boe means barrels of oil equivalent. Boe may be misleading, particularly
    is used in isolation. A boe conversion rate of 1 boe: 6 mcf is based on
    an energy equivalency conversion method primarily applicable at the
    burner tip and does not represent a value equivalency at the wellhead

Reserves Information

Shoreline Energy Corp. ("Shoreline" or the "Company") (TSX: SEQ) is pleased to report its 2013 year end oil and gas reserves. At December 31, 2013 Shoreline has increased its proved plus probable reserves to 8.0 million barrels of oil equivalent (boe) an increase of 9.2% over the prior year and with an associated net present value of CDN$102 million dollars (discounted at 10%).

Shoreline's reserve additions were a result of acquisitions of additional assets and low risk infill drilling activity on all of the lands it holds in the prolific Wattenberg Niobrara/Codell light oil play in Colorado 1P increased by 947% and 2P reserves increased by 475% over year end 2012 levels. The Company also brought on stream two of its three 100% owned and operated Montney discovery wells in Alberta, converting previous proved developed non producing reserves to proved developed producing.

The overall increase in the Company's reserves was achieved despite the Company's 2013 asset divestitures, which were undertaken in order to reduce overall indebtedness, and a lack of available drilling capital in the latter half of 2013. Shoreline replaced 201% of its production and divestitures with 2013 finding, development, and acquisition costs (including future development costs) of $19.91 per boe on a 2P basis.

Shoreline's Canadian petroleum and natural gas reserves as at December 31, 2013 were evaluated by the Company's independent reserve engineering firms, GLJ Petroleum Consultants ("GLJ"), with the Company's holdings in Colorado evaluated by DeGolyer and MacNaughton ("D&M"). The evaluations were conducted pursuant to National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves definitions. Additional reserve information as required under NI 51-101 is included in the Company's Annual Information Form which will be filed on SEDAR on March 31, 2014. Financial information presented above is based on audited financial statements for the year ended December 31, 2013.

The Company's reserves are located in two main areas, the Peace River Arch (PRA) area of northwest Alberta, and in the Wattenberg of the DJ Basin of northern Colorado. The Company's PRA assets produce light oil, natural gas and natural gas liquids from a variety of producing horizons and comprise 75% of the current 2P reserve volumes. Shoreline closed several acquisitions in Wattenberg in 2012 and 2013 and holds non-operated working interest and royalty interests in this world class light oil project, which are being aggressively developed through horizontal drilling and multiple stage fracture stimulation.

The following table represents the Company's reserves effective as at December 31, 2013 as evaluated by GLJ and D&M conducted pursuant to NI 51-101 and COGEH reserves definitions.


                  Light and Medium Crude Oil             Crude Oil
                       Gross(1)         Net(2)      Gross (1)         Net(2)
                          Mbbl)         (Mbbl)         (Mbbl)         (Mbbl)
 Producing                  681            650              0             25
Developed Non-
 producing                  122            105              0              0
Undeveloped                 205            204              0              0
Total Proved              1,007            959              0             25
Total Probable            1,316          1,093              0              8
Total Proved +
 Probable                 2,325          2,052              0             34

                     Natural Gas
                 (Excluding Natural      Natural Gas          Total Oil
                    Gas Liquids)           Liquids           Equivalent
                  Gross(1)    Net(2)  Gross(1)    Net(2)  Gross(1)    Net(2)
                    (MMcf)    (MMcf)    (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)
 Producing          13,251    12,643       145       154     3,035     2,937
Developed Non-
 producing             799       716         6         4       262       229
Undeveloped          4,118     3,641        85        63       976       874
Total Proved        18,169    17,000       238       222     4,272     4,041
Total Probable      12,478    10,614       286       218     3,682     3,088
Total Proved +
 Probable           30,647    27,615       523       441     7,956     7,129
(1) Gross refers to Company's working interest excluding royalty interests
    and before royalty charges
(2) Net refers to the Companies working interest and royalty interests after
    royalties charges
(3) Canada - GLJ Report
(4) United States -D&M Report
(5) Tables may not add due to rounding

The following table summarizes the Net Present Value of the Company's share of oil and natural gas reserves effective as at December 31, 2013.

                                                             Unit Value(4)
                                                           Before Income Tax
                Net Present Value of Future Net Revenue    Discounted at 10%
               Before Income Taxes Discounted at (%/year)      per year
                0 (M$)   5 (M$)  10 (M$)  15 (M$)  20 (M$)    $/Boe   $/Mcfe
 Producing      80,701   61,906   51,041   43,843   38,672   $17.38    $2.90
 producing       6,117    4,894    4,085    3,502    3,062   $17.83    $2.97
Undeveloped     25,399   15,284   10,212    7,196    5,203   $11.69    $1.95
Total Proved   112,217   82,084   65,338   54,541   46,937   $16.17    $2.70
 Probable      106,712   58,131   36,733   25,209   18,205   $11.89    $1.98
Total Proved
 + Probable    218,929  140,214  102,071   79,751   64,872   $14.32    $2.39
(1) Canada - GLJ Report
(2) United States -D&M Report
(3) All values are in Canadian dollars
(4) Unit values are calculated by dividing net present value at 10% by
    Company Net volumes
(5) Tables may not add due to rounding

About Shoreline Energy Corp.

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.. Shoreline has 9,040,522 Common Shares outstanding and convertible debentures in the aggregate principal amount of $17,000,000 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 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. 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.

Non-GAAP Financial Measures

This press release contains references to measures used in the oil and natural gas industry such as "netback" and "net debt". These measures do not have any standardized meanings within International Financial Reporting Standards ("IFRS") and, therefore, reported amounts may not be comparable to similarly titled measures reported by other companies. These measures have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding Shoreline's liquidity and its ability to generate funds to finance its operations.

Netback, as used in this press release, denotes net earnings plus non-cash items, including future income taxes expense (less any recovery), depletion, depreciation and accretion expense and non-cash stock-based compensation expense.

Shoreline uses net debt as a measure to assess its financial position. Net debt includes current liabilities (including Shoreline's credit facility and excluding the current portion of decommissioning obligations) less current assets (excluding property, plant and equipment, held for sale and risk management contracts).

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. 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.

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