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Last updated on April 19, 2014 at 13:20 EDT

Advantage Announces Increase in Credit Facilities Borrowing Base to $300 Million

October 24, 2013

(TSX: AAV, NYSE: AAV)

CALGARY, Oct. 24, 2013 /PRNewswire/ – Advantage Oil & Gas Ltd. (“Advantage” or the “Corporation“) announced today that its lenders have completed their regular
semi-annual review of the credit facility borrowing base. Advantage’s
borrowing base will increase from $230 million to $300 million and
continue to provide significant financial flexibility in support of
future capital program requirements and general corporate purposes. The
increase resulted from recognition of Advantage’s strong third quarter
2013 average production at Glacier estimated at 110 mmcfe/d, increased
proven developed producing reserves and strong natural gas commodity
hedge positions. Advantage’s bank indebtedness was approximately $140
million as of September 30, 2013.

Our current Phase VI capital development program at Glacier is targeted
to increase production to 135 mmcfe/d by Q2 2014. Advantage’s next
regular annual review of its credit facility borrowing base is
scheduled for June 2014.

Advisory

The information in this press release contains certain forward-looking
statements, including within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These statements relate to
future events or our future intentions or performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as “seek”, “anticipate”, “plan”,
“continue”, “estimate”, “demonstrate”, “expect”, “may”, “will”,
“project”, “predict”, “potential”, “targeting”, “intend”, “could”,
“might”, “should”, “believe”, “would” and similar expressions and
include statements relating to, among other things, the targeted
production levels going forward; the increased borrowing base under the
Corporation’s Credit Facility; the Corporation’s expectation that the
increased borrowing base will provide
significant financial flexibility in support of Advantage’s future
capital program requirements and general corporate purposes; the
estimated bank indebtedness of Advantage as of September 30, 2013; the
anticipated timing of the next annual review of the credit facility
borrowing base; and the Corporation’s plans to work on a Phase VII
capital development program and the expected increase to production
therefrom and the timing thereof. Advantage’s actual decisions,
activities, results, performance or achievement could differ materially
from those expressed in, or implied by, such forward-looking statements
and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur
or, if any of them do, what benefits that Advantage will derive from
them.

These forward-looking statements involve substantial known and unknown
risks and uncertainties, certain of which are beyond Advantage’s
control, including, but not limited to: the impact of general economic
and industry conditions; changes in laws and regulations including the
adoption of new environmental laws and regulations and changes in how
they are interpreted and enforced; fluctuations in commodity prices and
foreign exchange and interest rates; stock market volatility and market
valuations; 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; changes in income tax laws or changes in tax
laws and incentive programs relating to the oil and gas industry;
environmental risks; geological, technical, drilling and processing
problems and other difficulties in producing petroleum reserves;
unexpected drilling results; changes or fluctuations in production
levels; failure to achieve anticipated production levels; delays in
anticipated timing of drilling and completion of wells; obtaining
required approvals of regulatory authorities; and the other risks
considered under “Risk Factors” in Advantage’s Annual Information Form
dated March 26, 2013, which is available at www.sedar.com and www.advantageog.com.

With respect to forward-looking statements contained in this press
release, Advantage has made assumptions regarding: current commodity
prices and royalty regimes; availability of skilled labour; timing and
amount of capital expenditures; future exchange rates; the price of oil
and natural gas; the impact of increasing competition; conditions in
general economic and financial markets; availability of drilling and
related equipment; effects of regulation by governmental agencies;
royalty rates; future operating costs; that the Corporation will have
sufficient cash flow, debt or equity sources or other financial
resources required to fund its capital and operating expenditures and
requirements as needed; that the Corporation’s conduct and results of
operations will be consistent with its expectations; that the
Corporation will have the ability to develop the Corporation’s
properties in the manner currently contemplated; current or, where
applicable, proposed assumed industry conditions, laws and regulations
will continue in effect or as anticipated; and the estimates of the
Corporation’s production and reserves volumes and the assumptions
related thereto (including commodity prices and development costs) are
accurate in all material respects.

These forward-looking statements are made as of the date of this press
release and the Corporation disclaims any intent or obligation to
update publicly any forward-looking statements, whether as a result of
new information, future events or results or otherwise, other than as
required by applicable securities laws.

SOURCE Advantage Oil & Gas Ltd.


Source: PR Newswire