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Spyglass Resources Corp. Announces June 2013 Monthly Cash Dividend, Updates Drilling Activity and Provides Risk Management Update

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CALGARY, ALBERTA -- (Marketwired) -- 06/17/13 -- Spyglass Resources Corp. ("Spyglass", or the "Company") (TSX: SGL) announces that the board of directors (the "Board") has approved the June 2013 monthly cash dividend of $0.0225 per share payable on July 15, 2013 to shareholders of record on June 27, 2013. The ex-dividend date will be June 25, 2013.

The dividend policy of Spyglass is at the discretion of the Board and will be reviewed monthly in the context of a number of factors including current and forecast commodity prices, foreign exchange rates, an active commodity price risk management program, the status of current operations and future investment opportunities. Spyglass dividends paid on common shares will be designated as "eligible dividends" for Canadian income tax purposes.

Spyglass Commences 2013 Drilling Program

Spyglass' 2013 capital budget is approximately $72 million, including the $12 million spent in the first quarter of 2013. The capital program will be focused on low risk, light oil development opportunities intended to offset the Company's natural production declines (estimated at 20 percent) and to sustain the monthly cash dividend to shareholders. The program includes drilling 21 (18 net) development wells in addition to a low cost workover and optimization program.

The 2013 program is expected to employ three drilling rigs, with the first rig having recently commenced the drilling program in the Matziwin area of southern Alberta, targeting the Pekisko and Glauconite formations with horizontal wells. Once conditions in the field allow for rigs to be mobilized, Spyglass plans to deploy a second drilling rig in the Halkirk-Provost area of central Alberta to execute the Viking light oil drilling program. A third drilling rig (expected to commence drilling in the third quarter) is planned for Northern Alberta where Spyglass is planning a Cadomin gas well at Noel in northeast BC.

Risk Management Update

Spyglass uses a commodity price risk management program to mitigate the impact of crude oil and natural gas price volatility on cash flow which is intended to support the Spyglass dividend and capital program. Spyglass actively hedges production on a rolling basis 12 to 18 months forward using a combination of fixed price and participating products.

For June to December 2013, Spyglass has approximately 46% of its estimated crude oil production hedged at an average fixed price of WTI C$94.00/bbl (including both Canadian and US dollar denominated contracts and excluding call options) and approximately 49% of its estimated natural gas production hedged at an average fixed price of $3.49/Mcf. Spyglass has protected an additional 11% of its estimated June to December 2013 natural gas production by purchasing put options with an average floor price of $3.12/Mcf.

For calendar 2014, Spyglass has hedged approximately 29% of its estimated crude oil production at an average fixed price of WTI C$93.47/bbl and approximately 35% of its estimated natural gas production at an average fixed price of $3.75/Mcf.

For further detail on our risk management program and a list of financial derivative contracts as of June 17, 2013, please refer to the hedging section on www.spyglassresources.com.

Reader Advisory and Note Regarding Forward Looking Information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected results of the Arrangement; the Company's petroleum and natural gas production and reserves; drilling opportunities; management team; business strategy; future development and growth opportunities; prospects; asset base; anticipated benefits from the Arrangement; value and debt levels; and capital programs. The forward-looking statements and information are based on certain key expectations and assumptions made by the management, including expectations and assumptions concerning prevailing commodity prices and exchange rates, applicable royalty rates and tax laws; future well production rates and reserve volumes; the timing of receipt of regulatory approvals; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services. Although management believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking information is provided for the purpose of providing information about the current expectations and plans of management relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could 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 reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations, marketing and transportation, loss of markets, environmental risks, competition, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, ability to access sufficient capital from internal and external sources, failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. There are risks also inherent in the nature of the Arrangement, including failure to realize anticipated synergies or cost savings; risks regarding the integration of the three entities and incorrect assessments of the values of each entity. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements and information contained in this news release are made as of the date hereof and no undertaking is given 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 law.

Barrel of oil equivalents or 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. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any State in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state.



Contacts:
Spyglass Resources Corp.
Tom Buchanan
CEO
403.930.3524
ir@spyglassresources.com

Spyglass Resources Corp.
Dan O'Byrne
President
403.930.3524
ir@spyglassresources.com

Spyglass Resources Corp.
Dallas McConnell
VP Corporate Development & Investor Relations
403.930.3524
ir@spyglassresources.com
www.spyglassresources.com



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