Crocotta Energy Announces Strong Reserve Growth and Top Quartile Finding and Development Costs

CALGARY, ALBERTA--(Marketwire - March 14, 2013) - Crocotta Energy Inc. ("Crocotta") (TSX:CTA) is pleased to announce its 2012 year-end reserves as independently evaluated by GLJ Petroleum Consultants Ltd., in accordance with National Instrument 51-101 ("NI 51-101").

2012 Highlights

• Achieved all-in finding, development and acquisition costs ("FD&A") including changes in future development costs ("FDC") on a proved plus probable basis of $11.98 per boe
• Increased Net Asset Value per share by 13% to $3.91 per share
• Increased proved plus probable reserves by 29% to 38.1 million barrels of oil equivalent ("boe")
• Increased proved reserves by 27% to 22.2 million boe
• Increased reserves per share by 27%
• Reserve Replacement of 439% on a proved plus probable basis and 286% on a proved basis
• Recycle ratio of 1.8 times with 2012 average pricing (2.2 times using Q4/12 pricing)
• Reserve life index of 12.3 years on a proved plus probable basis (7.2 years proved) based on 2012 exit production of approximately 8,500 boepd
• All FDC booked can be funded within projected cash flow

Reserves Summary

Crocotta's December 31, 2012 reserves as prepared by the independent reserves evaluation firm GLJ Petroleum Consultants Ltd. ("GLJ") and based on the GLJ (2013-01) future price forecast are as follows:

	Light/Medium Oil				Heavy Oil				Natural Gas Liquids				Natural Gas				Barrels of Oil Equivalent
	Company Interest (Mbbl	)	Net (Mbbl	)	Company Interest (Mbbl	)	Net (Mbbl	)	Company Interest (Mbbl	)	Net (Mbbl	)	Company Interest (Mmcf	)	Net (Mmcf	)	Company Interest (Mboe	)	Net (Mboe	)
Proved
Producing	1,313		1,013		2		2		1,964		1,325		42,496		36,933		10,362		8,495
Developed Non-producing	17		14		50		45		249		206		2,142		1,802		673		566
Undeveloped	1,174		946		54		44		2,183		1,693		46,527		40,656		11,165		9,459
Total proved	2,503		1,973		106		91		4,397		3,224		91,166		79,391		22,200		18,520
Probable	934		674		56		48		3,117		2,289		71,008		61,077		15,942		13,190
Total proved & probable	3,437		2,647		162		139		7,514		5,512		162,173		140,469		38,142		31,710

Notes:
(1)	"Company Interest" reserves means Crocotta's working interest (operating and non-operating) share before deduction of royalties and including any royalty interest of Crocotta.
(2)	"Net" reserves means Crocotta's working interest (operated and non-operated) share after deduction of royalties, plus Crocotta's royalty interest in reserves.
(3)	Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.
(4)	Numbers may not add due to rounding.

Reserves Values

The estimated future net revenues before taxes associated with Crocotta's reserves effective December 31, 2012 and based on the GLJ (2013-01) future price forecast are summarized in the following table:

($000s)		0% DCF	5% DCF	10% DCF	15% DCF
Proved
	Producing	261,866	202,368	167,968	145,230
	Developed Non-producing	7,619	2,686	383	(880	)
	Undeveloped	214,679	137,141	94,601	68,180
Total proved		484,164	342,195	262,951	212,531
Probable		407,840	216,377	135,592	93,184
Total proved & probable		892,004	558,572	398,543	305,714

Price Forecast

The GLJ (2013-01) price forecast for the next 5 years is as follows:

Year	WTI @ Cushing ($US / Bbl	)	Edmonton Light ($Cdn / Bbl	)	Natural Gas at AECO ($Cdn / Mmbtu	)
2013	90.00		85.00		3.38
2014	92.50		91.50		3.83
2015	95.00		94.00		4.28
2016	97.50		96.50		4.72
2017	97.50		96.50		4.95

Net Asset Value

Crocotta's net asset value ("NAV") as at December 31, 2012 and based on the GLJ (2013-01) future price forecast is as follows:

($000s, except per share amounts)	Discounted @ 10	%
Pre-tax net present value of proved & probable reserves	398,543
Undeveloped land (Note 1)	30,770
Net Debt (2)	(80,112	)
Net asset value	349,201
Shares outstanding (basic)	89,261
Net asset value per share	$3.91

Notes:
(1)	Undeveloped land was estimated at $150 per acre
(2)	Net debt includes debt plus working capital deficiency

Finding and Development Costs

Crocotta's capital program for 2012 was focused on its core properties located at Edson in west-central Alberta and in northeast British Columbia. Capital Expenditures for the year were $104.0 million. Crocotta has presented Finding and Development Costs below both including and excluding dispositions. While NI 51-101 requires that the effects of acquisitions and dispositions be excluded, Crocotta has included these items because it believes that acquisitions and dispositions can have a significant impact on the Company's ongoing reserve replacement costs and that excluding these amounts could result in an inaccurate portrayal of Crocotta's cost structure.

			2012		2011				3 Year Average
($000's, except were noted)			Proved	Proved & Probable	Proved		Proved & Probable		Proved		Proved & Probable
Finding & Development Costs (excluding net acquisitions/dispositions)
	Exploration and Development Expenditures		98,548	98,548	93,082		93,082		217,659		217,659
	Change in FDC (1)		17,020	29,185	68,405		107,172		118,532		188,800
	Finding and Development Costs excluding Net Acquisitions/Dispositions
		- Including FDC	115,568	127,733	161,487		200,254		336,191		406,459
All-in Finding and Development Costs
	(including net acquisitions/dispositions)
	Exploration and Development Expenditures		98,548	98,548	93,082		93,082		217,659		217,659
	Net Acquisitions (Dispositions) (including related capital)		5,406	5,406	(12,848	)	(12,848	)	(55,387	)	(55,387	)
	Exploration and Development Expenditures including net acquisitions (dispositions)		103,954	103,954	80,234		80,234		162,272		162,272
	Change in FDC		17,020	29,185	68,405		107,172		118,532		188,800
All-in Finding and Development Costs - Including FDC			120,974	133,139	148,639		187,406		280,804		351,072
Reserve Additions (Mboe)
	Exploration and Development		6,564	10,307	9,918		16,587		20,964		33,968
	Net Acquisitions/Dispositions		665	807	(885	)	(1,804	)	(2,606	)	(3,368	)
	Total Reserve Additions		7,229	11,114	9,033		14,783		18,359		30,601
Finding and Development Costs excluding net acquisitions/dispositions ($/boe)
	Excluding FDC		15.01	9.56	9.39		5.61		10.38		6.41
	Including FDC		17.61	12.39	16.28		12.07		16.04		11.97
All-in Finding and Development Costs ($/boe)
	Excluding FDC		14.38	9.35	8.88		5.43		8.84		5.30
	Including FDC		16.73	11.98	16.46		12.68		15.30		11.47

(1)

Future development capital ("FDC") expenditures required to recover reserves estimated by GLJ. The aggregate of the exploration and development costs incurred in the most recent financial period and the change during that period in estimated future development costs generally may not reflect total finding and development costs related to reserve additions for that period.

Reserve Life Index

The Company's Reserve Life Index presented below is based on 2012 exit production of approximately 8,500 boepd.

Reserve Category	Reserve Life Index
Proved plus Probable Reserves	12.3
Proved	7.2

Forward-Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.

More particularly and without limitation, this document contains forward looking statements and information relating to the Company's oil, NGLs and natural gas production and reserves and reserves values, capital programs, and oil, NGLs, and natural gas commodity prices. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities and the availability and cost of labour and services.

Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

BOE Conversions

BOE's 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.