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Solid Drilling Results at Glacier Leads to Record Reserve Additions and Production Gains

March 8, 2010

(TSX: AAV, NYSE: AAV)

CALGARY, March 8 /PRNewswire-FirstCall/ – Advantage Oil and Gas Ltd. (“Advantage” or “the Company”) is pleased to announce its year end reserves as of December 31, 2009. Sproule Associates Ltd. (“Sproule”) was engaged as an independent qualified reserve evaluator to evaluate Advantage’s year-end reserves in accordance with National Instrument 51-101 and the COGE handbook (the “Sproule Report”). Year end financial and operating information will be released on or about March 16, 2010 and accordingly, all references to year end 2009 financial and operating data are estimates and are unaudited.

    Highlights

    -   Replaced 698% of 2009 annual production at an all-in FD&A cost of
        $10.14/boe.
    -   Capital development program added 95.9 mmboe at a F&D cost of
        $9.82/boe.
    -   Current production capability including new well tests at Glacier
        exceeds 90 mmcfd.
    -   Glacier development on-track to reach production target of 50 mmcfd
        in second quarter of 2010.
    -   Advantage's Net Asset Value ("NAV") per share increased 7.4% in 2009
        to $15.07/share at a 10% discount factor, before tax.

    Reserves Continuity Schedule - Working Interest Reserves

    -   The following table summarizes the changes in Advantage's proven and
        probable ("P+P") reserves for the year ended December 31, 2009 and
        the costs associated with these changes:

                                              Change
                                            In Future
                                           Development
                                             Capital
                      Total      Capital      Net of
                       P+P       Expend-     Alberta
                     Working     itures/    Drilling                  Total
                    Interest   Disposition    Incen-      Total      Capital
                    Reserves    Proceeds     tives(1)    Capital     per boe

                      (mboe)     ($ 000)     ($ 000)     ($ 000)     ($/boe)

    Reserves
     December 31,
     2008            173,418
                   ----------

    Development
     program          95,880    $170,868    $770,346    $941,214       $9.82

    Dispositions     (27,205)  $(245,150)          -   $(245,150)     $(9.01)
                   ----------  ----------  ----------  ----------  ----------

    Reserve
     additions        68,675    $(74,282)   $770,346    $696,064      $10.14
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------

    Production        (9,829)
                   ----------

    Reserves
     December 31,
     2009            232,264
                   ----------
                   ----------
    (1) The Sproule Report includes Alberta Deep Royalty Incentives of
        $117.4 million and Alberta Drilling Incentives of $21.9 million (the
        "Alberta Drilling Incentives")

    -   Overall the Company replaced 698% of 2009 production with the vast
        majority of reserve additions attributable to our Montney resource
        drilling and development program at Glacier, Alberta.

    -   Net Corporate reserve additions amounted to 68.7 mmboe at an all-in
        cost of $10.14/boe.

    -   Our development program resulted in total additions of 95.9 mmboe at
        a cost of $9.82/boe including the change in Future Development
        Capital ("FDC") net of Alberta Drilling Incentives.

    -   These additions were partially offset by reserve dispositions which
        reduced reserves by 27.2 mmboe with net proceeds of $245.1 million or
        $9.01/boe.

    -   Advantage's December 31, 2009 Net Asset Value per share ("NAV") is
        $15.07/share at a 10% discount rate before tax calculated using the
        Sproule Report and price forecasts. Our NAV increased by 7.4% from
        2008 as the increase in reserves more than offset the significant
        decline in Sproule's natural gas price forecast.

    -   The one year recycle ratio is 2.6 times using the finding,
        development and acquisition ("FD&A") cost of $10.14/boe including the
        change in FDC and our 2009 operating netback of $26.36/boe.

    -   The proven and probable reserves life index ("RLI") increased by 86%
        from 2008 to 28.2 years using our estimated fourth quarter 2009
        average production rate. The RLI is anticipated to decline as
        production increases associated with our Phase II Glacier development
        program come on-stream during the second quarter of 2010.

    Glacier Montney Overview

    -   Advantage acquired its initial position at Glacier in 2007 as part of
        the Sound Energy Trust acquisition. At December 31, 2009, Advantage
        has invested approximately $234.2 million at Glacier for drilling,
        completions, facility construction and additional land acquisitions.
        The majority of these expenditures have been directed toward drilling
        and completion activities to evaluate the quality and extent of the
        Montney formation in our land block which consists of 84 gross (80
        net) sections at December 31, 2009. A total of 10 gross (9.3 net)
        vertical wells and 42 gross (34 net) horizontal wells have been
        drilled which have resulted in significant P+P reserve additions
        across our land block.

    -   Optimization of drilling and completion practices combined with
        improved geological knowledge at Glacier have significantly increased
        the horizontal well test rates and reduced costs to date as outlined
        in the following table:

           Upper Montney - Average Test Results and Cost Analysis

                                     First 12 Hz wells    Last 16 Hz wells(1)

    Test Rate (mmcfd)                       3.6                      6.5

    Flowing pressure (psi)                  704                    1,253

    Rate per frac (mmcfd per frac)(2)       465                      802

    Number of fracs per well                  8                       12

    Completion cost per frac
     ($ million)                          $0.43                    $0.25

    Drilling & completion cost
     per well ($million)                   $6.0                     $4.6

    (1) Number of fracs, completion cost per frac and drilling and completion
        cost per well based on Advantage's last 8 operated wells
    (2) Due to testing equipment constraints on high rate/high pressure
        wells, the rate per frac has been adjusted to a common flowing
        pressure of 435 psi for comparative purposes.

    -   Since October 2009, a total of 16 gross (12 net) horizontal wells
        have been drilled and production tested in the Upper Montney which
        have indicated test rates ranging from 3.1 to 10.6 mmcfd with
        stronger flowing pressures compared to prior wells which tested
        between 1.2 to 5.5 mmcfd. An additional 5 gross (5 net) have been
        drilled and will be completed and tested as ground conditions permit.

    -   We have increased the number of fracs per horizontal well and have
        optimized drilling and completion techniques to improve cost
        efficiencies. Additionally, our financial flexibility has allowed us
        to capitalize on the current lower cost environment.

    -   On the west side of our Glacier land block, a new Upper Montney
        horizontal well in February 2010 was tested at 10.4 mmcfd at 2,179
        psi flowing pressure which represents the best well we have tested to
        date. A second Upper Montney well on the same drilling pad, tested at
        10.6 mmcfd at a flowing pressure of 1,782 psi.

    Lower Montney

    -   Advantage has drilled and completed a total of 7 gross (4.4 net)
        Lower Montney horizontal wells since 2007. Test rates on these wells
        have averaged 2.2 mmcfd per well with the two most recent Advantage
        wells in January and March 2010 testing at 4.6 mmcfd at 917 psi and
        4.2 mmcfd at 495 psi.

    -   We are encouraged by the Lower Montney results to date but believe
        that as additional wells are drilled in the future, frac design
        optimization and improved technical knowledge on rock quality will
        improve results.

    -   The Lower Montney qualifies for the Alberta Deep Royalty Incentive
        which provides royalty credits of up to approximately $3.2 million
        per well and significantly enhances the drilling economics by
        offsetting a significant portion of the costs of a horizontal well.

    Glacier Reserves

    -   Advantage's extensive drilling and development program has resulted
        in a 284% increase in reserves assigned by Sproule in the Upper and
        Lower Montney at Glacier from 35.8 mmboe (0.21 Tcf) to 137.4 mmboe
        (0.82 Tcf) at December 31, 2009. The value assigned by Sproule
        increased by 290% from $0.3 billion as at December 31, 2009 to $1.17
        billion as at December 31, 2009 at a 10% discount factor before tax.

    -   Capital expenditures at Glacier amounted to $132.5 million in 2009
        which included the completion of Phase I of our development program
        in May 2009 resulting in the achievement of 25 mmcfd of production.
        Additional expenditures through the balance of 2009 included the
        commencement of our Phase II development program which included
        drilling 27 gross (19.4 net) horizontal wells and the expansion of
        gathering systems and facilities to increase production capacity to
        50 mmcfd by the second quarter of 2010.

    -   The following table provides a breakdown on the Montney assumptions
        related to the undeveloped reserves at Glacier included in the
        Sproule Report:

                   Montney Undeveloped P+P Reserves Summary

                                                   Upper     Lower
                                                 Montney   Montney     Total

    Number of future locations (gross/net)       181/170     62/53   243/223

    Working Interest reserves assigned (bcf)         634       135       769

    Future Development Capital including
     facilities ($million)                        $1,002      $305    $1,308

    Alberta Drilling Incentives ($million)        $(61.4)   $(76.6)    $(138)
                                                 --------  --------  --------

    Net capital cost ($million)                     $941      $229    $1,170
                                                 --------  --------  --------
                                                 --------  --------  --------

    Net capital cost/boe ($/boe)                   $8.90    $10.15     $9.12

    Net capital cost/well ($million)                $5.5      $4.3      $5.2

    Average reserves/net well (bcf)                  3.7       2.6       3.4

    Average Initial Production Rate/well
     (mmcf/d)                                        3.5       2.5       3.3

    -   Sproule's forecast includes gross capital of $1.3 billion ($1.17
        billion net capital including Alberta Drilling Incentives) for
        undeveloped reserves at Glacier which includes the drilling of 223
        net wells resulting in P+P reserves of 769.4 bcf at a cost of $9.12
        per boe.

    -   Sproule assigned 634.2 bcf of P+P reserves to the Upper Montney
        related to the drilling of 170 net locations at a net cost of $0.94
        billion or $8.90 per boe. In the Lower Montney, Sproule assigned P+P
        reserves of 135.2 bcf related to 53 net locations at a net cost of
        $0.23 billion or $10.15/boe. The net cost of a Lower Montney well of
        $4.3 million per well is approximately $1.2 million lower than the
        cost of an Upper Montney well as a significant portion of these wells
        qualify for the Alberta Deep Royalty Incentive.

    -   In the Upper Montney, Sproule assigned average reserves of 3.7 bcf
        per well and an initial average rate of 3.5 mmcf/d per well. To date
        Advantage has drilled and tested 28 wells in the Upper Montney with
        an average test rate of 5.1 mmcf/d per well.

    -   In the Lower Montney, Sproule assigned average reserves of 2.6 bcf
        per well and an initial average rate of 2.5 mmcf/d per well. To date
        Advantage has drilled and tested 7 wells in the Lower Montney with an
        average test rate of 2.2 mmcf/d per well with the two most recent
        Advantage wells in January and March 2010 testing at 4.6 mmcfd at 917
        psi and 4.2 mmcfd at 495 psi.

    -   Over the entire Glacier land block, Sproule's total P+P (developed
        and undeveloped) reserves were assigned at an average of 2.5
        horizontal wells per section in the Upper Montney and 0.8 horizontal
        wells per section in the Lower Montney.

    Production Capability Currently Exceeds 90 mmcfd net

    -   Since December 2009, four new Upper Montney horizontals have
        effectively pushed our existing facility capacity to the maximum
        inlet design rate of 25 mmcfd and have caused us to shut-in several
        Montney wells due to facility constraints. Combined with our joint
        interest wells, production has reached peak rates of approximately 30
        mmcfd.

    -   Construction of our new 50 mmcfd gas plant (100% Advantage W.I.),
        expanded gas gathering system, and tie-in to the TCPL mainline is
        nearing completion and commissioning of these facilities and new
        wells will accommodate increased production during the second quarter
        of 2010. Advantage's new gas plant is anticipated to reduce Glacier's
        total operating costs from $8.25/boe to approximately $2.75/boe due
        to the elimination of third party processing fees.

    -   Our current production capability including new wells tested to date
        in both the Upper and Lower Montney zones exceeds 90 mmcfd. An
        additional 5 gross (5 net) wells have been drilled and are waiting on
        completion and testing.

    -   Advantage has also signed an agreement with TCPL to initiate work on
        expanding the sales pipeline lateral to 100 mmcfd.

    Nikanassin Drilling Update

    -   Advantage has completed the drilling of our first Nikanassin
        horizontal well at Glacier with completion and testing of the well
        expected to occur in the first half of 2010. We anticipate several
        horizontal wells will be required to delineate the potential of the
        Nikanassin which will require optimization of horizontal drilling and
        completion techniques. We are encouraged with the future upside
        potential of this resource play due to the combination of existing
        Nikanassin production from several of our vertical wells on our land
        block and geological mapping that indicates the targeted pay interval
        reaches thicknesses of up to 50 meters.

    -   During the first quarter of 2010, we increased our Nikanassin land
        position by a 2.7 gross (2.7 net) sections from a swap transaction
        completed with a major producer. The additional sections increase
        Advantage's Nikanassin land holdings to 73 gross (68 net) sections of
        which the majority of Nikanassin rights lie directly within the
        Glacier Montney land block.

    Advantage is Well Positioned for Future Organic Growth

    -   The 2009 year-end Sproule proven and probable reserves forecast
        includes total future development capital of $1.57 billion of which
        $1.34 billion is allocated to Glacier. The development at Glacier
        includes increasing production to 150 mmcfd over three years
        including required facilities and infrastructure costs. The Sproule
        Report forecasts the following operating cash flow and capital
        expenditures for the next three years:

                                Operating      Total      Excess
                               Cash Flow(1)   Capital      Cash        AECO
           Year                 ($million)  ($million)  ($million)   Cdn$/mcf

    2010                           $284         $221        $63        5.35

    2011                           $392         $348        $44        6.19

    2012                           $495         $364       $131        6.40

    3 year total                 $1,171         $933       $238

    (1) Includes Alberta Drilling Incentives, prior to G&A and interest

    -   The projected operating cash flows in the Sproule Report exceed the
        required capital expenditures in each of the three years based on
        Sproule's December 2009 commodity price forecasts. Sproule's price
        forecasts are exclusive of any commodity price hedge positions.
        Advantage has hedged 55% of our net natural gas production at $7.46
        Cdn AECO per/mcf for 2010 which will enhance our ability to finance
        the expenditures included in the Sproule Report.

    -   The reserve potential at Glacier which is measured in "TCF's" of
        natural gas is economic at less than $5 Cdn per mcf. Advantage
        intends to utilize a disciplined financial approach to development in
        and effort to yield significant long term value growth for
        shareholders. Advantage estimates that fully developing the Montney
        resource potential at Glacier will require additional capital
        expenditures in excess of $2.5 billion over the life of the project
        which, if properly deployed, could result in significant reserve and
        production growth.

    Reserves

Advantage engaged our independent qualified reserves evaluator Sproule Associates Ltd. (“Sproule”) to update the reserves analysis for the Company in accordance with National Instrument 51-101 and the COGE Handbook.

Reserves included herein are stated on a Company Interest basis (before royalty burdens and including royalty interests receivable) unless noted otherwise. This report contains several cautionary statements that are specifically required by NI 51-101. In addition to the detailed information disclosed in this press release, more detailed information on a net interest basis (after royalty burdens and including royalty interests) and on a gross interest basis (before royalty burdens and excluding royalty interests) will be included in Advantage’s Annual Information Form (“AIF”) and will be available at www.advantageog.com and www.sedar.com in the coming weeks.

    Highlights - Company Interest Reserves (Working Interests plus Royalty
    Interests Receivable)

                                                        December    December
                                                        31, 2009    31, 2008
    -------------------------------------------------------------------------

    Proved plus probable reserves (mboe)                 233,292     174,767
    Present Value of reserves discounted at 10%,
     before tax P+P ($000)(1)                         $2,773,428  $2,663,437
    Net Asset Value per Unit discounted at 10%,
     before tax                                           $15.07      $14.03
    Reserve Life Index (proved plus probable
     - years)(2)                                            28.2        15.2
    Reserves per Share/Unit (proved plus probable)(3)       1.43        1.22
    Bank debt per boe of reserves(4)                       $1.06       $3.36
    Convertible debentures per boe of reserves(4)          $0.94       $1.25

    (1) Assumes that development of each property will occur, without regard
        to the likely availability to the Company of funding required for
        that development.
    (2) Based on Q4 average production and company interest reserves.
    (3) Based on 162.746 million Shares outstanding at December 31, 2009, and
        142.825 million Units outstanding as December 31, 2008.
    (4) BOE's may be misleading, particularly if used in isolation. In
        accordance with NI 51-101, a BOE conversion ratio for natural gas of
        6 Mcf: 1 bbl has been used which is based on an energy equivalency
        conversion method primarily applicable at the burner tip and does not
        represent a value equivalency at the wellhead.

    Company Interest Reserves (Working Interests plus Royalty Interests
    Receivable)

    Summary as at December 31, 2009

                                             Natural
                     Light &       Heavy       Gas       Natural      Oil
                    Medium Oil      Oil      Liquids       Gas     Equivalent
                      (mbbl)      (mbbl)      (mbbl)     (mmcf)      (mboe)
    -------------------------------------------------------------------------
    Proved
    Developed
     Producing        12,424       2,162       4,655     196,359      51,968
    Developed
     Non-producing       871         163          46      15,258       3,623
    Undeveloped        2,622         191         606     297,603      53,019
    Total Proved      15,917       2,516       5,307     509,220     108,611
    -------------------------------------------------------------------------
    Probable          13,637       3,394       2,495     630,930     124,681
    Total Proved
     + Probable       29,554       5,910       7,802   1,140,150     233,292
    -------------------------------------------------------------------------

    Gross Working Interest Reserves (Working Interest only)

    Summary as at December 31, 2009

                                             Natural
                     Light &       Heavy       Gas       Natural      Oil
                    Medium Oil      Oil      Liquids       Gas     Equivalent
                      (mbbl)      (mbbl)      (mbbl)     (mmcf)      (mboe)
    -------------------------------------------------------------------------
    Proved
    Developed
     Producing        12,120       2,121       4,614     194,485      51,269
    Developed
     Non-producing       867         160          46      15,123       3,593
    Undeveloped        2,615         185         606     297,598      53,005
    Total Proved      15,602       2,466       5,266     507,206     107,868
    -------------------------------------------------------------------------
    Probable          13,524       3,370       2,483     630,116     124,396
    Total Proved
     + Probable       29,126       5,836       7,749   1,137,322     232,264
    -------------------------------------------------------------------------

    Present Value of Future Net Revenue using Sproule price and cost
    forecasts(1)(2)
    ($000)
                                                        Before
                                                     Income Taxes
                                                    Discounted at
                                             0%          10%          15%
    -------------------------------------------------------------------------
    Proved
    Developed Producing                 $1,733,335    $ 950,359    $ 792,595
    Developed Non-producing                107,413       64,138       53,072
    Undeveloped                          1,217,821      329,653      172,860

    Total Proved                         3,058,569    1,344,150    1,018,527

    -------------------------------------------------------------------------
    Probable                             4,676,528    1,429,277      945,718
    Total Proved + Probable             $7,735,097   $2,773,428   $1,964,245
    -------------------------------------------------------------------------
    (1) Advantage's crude oil, natural gas and natural gas liquid reserves
        were evaluated using Sproule's product price forecast effective
        December 31, 2009 prior to the provision for income taxes, interests,
        debt services charges and general and administrative expenses. It
        should not be assumed that the discounted future revenue estimated by
        Sproule represents the fair market value of the reserves.
    (2) Assumes that development of each property will occur, without regard
        to the likely availability to the Company of funding required for
        that development.

    Sproule Price Forecasts

The present value of future net revenue at December 31, 2009 was based upon crude oil and natural gas pricing assumptions prepared by Sproule effective December 31, 2009. These forecasts are adjusted for reserve quality, transportation charges and the provision of any applicable sales contracts. The price assumptions used over the next seven years are summarized in the table below:

                                 Edmonton     Alberta
                       WTI        Light       AECO-C     Henry Hub  Exchange
                    Crude Oil   Crude Oil  Natural Gas  Natural Gas   Rate
    Year            ($US/bbl)  ($Cdn/bbl) ($Cdn/mmbtu) ($US/mmbtu) ($US/$Cdn)
    -------------------------------------------------------------------------
    2010               79.17       84.25        5.36        5.70        0.92
    2011               84.46       89.99        6.21        6.48        0.92
    2012               86.89       92.61        6.44        6.70        0.92
    2013               90.20       96.19        7.23        7.43        0.92
    2014               92.01       98.13        7.98        8.12        0.92
    2015               93.85      100.11        8.16        8.28        0.92
    2016               95.72      102.13        8.34        8.45        0.92

The Sproule price forecast does not include the impact of Advantage’s commodity price hedging program. We currently have 55% of our net natural gas production hedged at an average price of $7.46 Cdn/mcf for 2010 and 27% hedged for 2011 at an average price of $6.30 Cdn/mcf. Crude oil hedges include 33% of our net crude oil production hedged at an average floor price of $67.83 Cdn/bbl for 2010.

    Net Asset Value using Sproule price and cost forecasts (Before Income
    Taxes)

The following net asset value (“NAV”) table shows what is normally referred to as a “produce-out” NAV calculation under which the current value of the Company’s reserves would be produced at forecast future prices and costs. The value is a snapshot in time and is based on various assumptions including commodity prices and foreign exchange rates that vary over time.

    ($000, except per
     Unit/Share amounts)                      0%          10%          15%
    -------------------------------------------------------------------------
    Net asset value per Unit(1)
     - December 31, 2008                $    40.23   $    14.03   $     9.16
    -------------------------------------------------------------------------

    Present value proved and probable
     reserves                           $7,735,097   $2,773,428   $1,964,245

    Undeveloped acreage and seismic(2)     177,124      177,124      177,124

    Working capital (deficit) and
     other                                 (32,336)     (32,336)     (32,336)

    Convertible debentures                (218,471)    (218,471)    (218,471)

    Bank debt                             (247,784)    (247,784)    (247,784)

    Net asset value
     - December 31, 2009                $7,413,630   $2,451,961   $1,642,778

    -------------------------------------------------------------------------
    Net asset value per Share(1)
     - December 31, 2009                $    45.55   $    15.07   $    10.09
    -------------------------------------------------------------------------
    (1) Based on 162.746 million Shares outstanding at December 31, 2009, and
        142.825 million Units outstanding at December 31, 2008.
    (2) Internal estimate

    Gross Working Interest Reserves Reconciliation

                                             Natural
                     Light &       Heavy       Gas       Natural      Oil
                    Medium Oil      Oil      Liquids       Gas     Equivalent
    Proved            (mbbl)      (mbbl)      (mbbl)     (mmcf)      (mboe)
    -------------------------------------------------------------------------
    Opening balance
     Dec. 31, 2008    23,544       2,845       6,795     409,087     101,366
    Extensions           200          15          32      98,159      16,607
    Improved
     recovery              0           0           0           0           0
    Infill Drilling       50          29           0     107,947      18,070
    Discoveries            0           0           0           0           0
    Economic
     factors              87          33         (59)     (7,979)     (1,269)
    Technical
     revisions        (2,025)        (63)        328      18,392       1,305
    Acquisitions           0           0           0           0           0
    Dispositions      (3,991)        (19)       (997)    (80,248)    (18,382)
    Production        (2,263)       (374)       (833)    (38,152)     (9,829)
    -------------------------------------------------------------------------

    Closing
     balance at
     Dec. 31, 2009    15,602       2,466       5,266     507,206     107,868
    -------------------------------------------------------------------------

                                             Natural
                     Light &       Heavy       Gas       Natural      Oil
    Proved +        Medium Oil      Oil      Liquids       Gas     Equivalent
    Probable          (mbbl)      (mbbl)      (mbbl)     (mmcf)      (mboe)
    -------------------------------------------------------------------------
    Opening balance
      Dec. 31, 2008   39,473       6,542      10,765     699,824     173,418
    Extensions           231          23          33     432,402      72,354
    Improved
     recovery              0           0           0           0           0
    Infill Drilling       74          45           0     166,927      27,940
    Discoveries            0           0           0           0           0
    Economic
     factors             124          44         (57)     (8,540)     (1,312)
    Technical
     revisions        (2,851)       (415)     (1,672)      5,018       (3102)
    Acquisitions           0           0           0           0           0
    Dispositions      (5,663)        (29)     (1,487)   (120,157)    (27,205)
    Production        (2,263)       (374)       (833)    (38,152)     (9,829)
    -------------------------------------------------------------------------

    Closing
     balance at
     Dec. 31, 2009    29,125       5,836       7,749   1,137,322     232,264
    -------------------------------------------------------------------------

    Finding, Development & Acquisitions Costs ("FD&A")(1)(2)(3)

    FD&A Costs - Gross Working Interest Reserves excluding Future Development
    Capital

                                                                    Proved +
                                                         Proved     Probable
    -------------------------------------------------------------------------
    Capital expenditures ($000)                       $  170,868  $  170,868
    Acquisitions net of dispositions ($000)             (245,150)   (245,150)
    -------------------------------------------------------------------------
    Total capital ($000)                              $  (74,282) $  (74,282)
    -------------------------------------------------------------------------

    Total mboe, end of period                            107,868     232,264
    Total mboe, beginning of period                      101,366     173,418
    Production, mboe                                       9,829       9,829
    -------------------------------------------------------------------------
    Reserve additions, mboe                               16,331      68,675
    -------------------------------------------------------------------------

    FD&A costs ($/boe)                                $    (4.55) $    (1.08)

    Three year average FD&A Costs ($/boe)             $    13.09  $     5.66

    F&D costs ($/boe)                                 $    10.46  $     2.49

    Three year average F&D costs ($/boe)              $     4.16  $     9.91

    NI 51-101

    FD&A Costs - Gross Working Interest Reserves including Future Development
    Capital

                                                                    Proved +
                                                          Proved    Probable
    -------------------------------------------------------------------------
    Capital expenditures ($000)                       $  170,868  $  170,868
    Alberta Deep Royalty Incentives                      (26,900)   (117,400)
    Alberta Drilling Incentives                          (16,537)    (21,887)
    Acquisitions net of dispositions ($000)             (245,150)   (245,150)
    Net change in Future Development Capital ($000)      485,109     909,633
    -------------------------------------------------------------------------
    Total capital ($000)                              $  367,390  $  696,064
    -------------------------------------------------------------------------
    Reserve additions, mboe                               16,331      68,675
    -------------------------------------------------------------------------

    FD&A costs ($/boe)                                $    22.50  $    10.14

    Three year average FD&A Costs ($/boe)             $    23.27  $    13.34

    F&D costs ($/boe)                                 $    10.58  $     9.82

    Three year average F&D costs ($/boe)              $    21.13  $    12.21

    (1) Under NI 51-101, the methodology to be used to calculate FD&A costs
        includes incorporating changes in future development capital ("FDC")
        required to bring the proved undeveloped and probable reserves to
        production. For continuity, Advantage has presented herein FD&A costs
        calculated both excluding and including FDC.
    (2) 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 costs generally will not reflect total
        finding and development costs related to reserves additions for that
        year. Changes in forecast FDC occur annually as a result of
        development activities, acquisition and disposition activities and
        capital cost estimates that reflect Sproule's best estimate of what
        it will cost to bring the proved undeveloped and probable reserves on
        production.
    (3) In all cases, the FD&A number is calculated by dividing the
        identified capital expenditures by the applicable reserve additions.
        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.

    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 in the press release relating to, among other things, resource estimates, timing of drilling, completion and testing of certain wells, expected results of the use of horizontal well and multi-frac technology, expected economics of development with respect to the Nikanassin formation, expected production and operating costs with respect to our Glacier Phase II Development Program and guidance and hedging. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Advantage’s control, including: the impact of general economic conditions; 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; 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 and resources; 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 and income trusts; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. 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. Except as required by law, Advantage undertakes no obligation to publicly update or revise any forward-looking statements. For additional risk factors in respect of Advantage and its business, please refer to Advantage Energy Income Fund’s (as predecessor to Advantage) Annual Information Form dated March 18, 2009 which is available on SEDAR at www.sedar.com.

References in this press release to test production rates, initial productivity, initial production capability, initial flow rates and average flowing pressure are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Advantage.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel. Such conversion rate is based on an energy equivalency conversion method application at the burner tip and does not represent an economic value equivalency at the wellhead.

SOURCE Advantage Oil & Gas Ltd.


Source: newswire