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November 18, 2014

Laricina Energy Ltd. Updates Reserves and Resource Estimates and Economic Evaluation for Saleski (Grosmont Formation) and Germain (Grand Rapids Formation) Assets


Laricina Energy Ltd. (“Laricina” or the “Company”) today announced that independent qualified reserves evaluator GLJ Petroleum Consultants Ltd. (“GLJ”) has updated its reserves and resource assessment and economic evaluation of Laricina’s assets at Saleski (Grosmont Formation) and at Germain (Grand Rapids Formation) as of September 30, 2014, prepared using GLJ’s October 1, 2014 price forecast.

Laricina’s working interest proved plus probable reserves were 487 million barrels of bitumen for the Saleski Grosmont and Germain Grand Rapids assets, a less than one percent decrease from December 31, 2013. The before tax ten percent present value of these reserves is $220 million as compared to $305 million, a decrease of 28 percent from December 31, 2013 and is primarily a result of changes in assumptions for future capital and operating costs.

Laricina’s contingent resources (best estimate) associated with its working interest in its Saleski Grosmont and Germain Grand Rapids assets were relatively unchanged totalling 2,425 million barrels, an increase of less than one percent from December 31, 2013. The before tax ten percent present value of these resources is $6,246 million as compared to $6,667 million, approximately a 6 percent decrease from December 31, 2013, again primarily a result of changes in assumptions for future capital and operating costs.

The Saleski pilot has been producing since April 2011 and is the first thermal horizontal well development in the Grosmont carbonate formation in the west Athabasca oil sands, and has produced in excess of 480,000 gross barrels of bitumen up to October 31, 2014. Based on the success of the pilot, Laricina has demonstrated bitumen recovery from the Grosmont carbonate reservoir can be commercially developed and it plans to move forward with Saleski Phase 1, a 10,700 gross barrel-per-day project, subject to financing. GLJ has assigned 98 million barrels of proved plus probable reserves and an additional 1,492 million barrels of contingent resources (best estimate) to Laricina’s Grosmont carbonate assets at Saleski, compared to 100 million barrels and 1,494 million barrels, respectively at December 31, 2013. Saleski is 60 percent owned and operated by Laricina and the reserves and resource evaluation represent the Company’s net interest.

The Germain Commercial Demonstration Project (“CDP”) began operations in 2013 and is testing the first commercial application of solvent-cyclic steam-assisted gravity drainage in the Grand Rapids Formation. Laricina expects regulatory approval for future phases at Germain in early 2015. GLJ has assigned 389 million of proved plus probable reserves and 933 million barrels of contingent resources (best estimate) to the Company’s Germain Grand Rapids asset, compared to 389 million barrels and 918 million barrels, respectively at December 31, 2013. Germain is 100 percent owned and operated by Laricina.

The interim evaluation did not include the remainder of Laricina’s properties which will be updated at year end 2014.

“In support of our financing alternatives efforts, the updated reserves and resource evaluation reinforces Laricina’s progress in defining the commercial development of the Grosmont and Grand Rapids formations,” said Glen Schmidt, Laricina’s President and Chief Executive Officer. “With relatively little change in the valuation of our Saleski Grosmont and Germain Grand Rapids assets the updated evaluation demonstrates strength and consistency in our business. It also confirms the long-term value of bitumen and heavy oil assets as the price of Western Canadian Select (western Canada’s heavy crude oil pricing benchmark) has held strong, even in light of recent weakening of world pricing for light oil.”

About Laricina Energy Ltd.
Laricina is a non-public, Calgary based, responsible energy company that will contribute supply to the growing demand for crude oil through in situ oil sands development.

Laricina’s goal is to create value by developing Canada’s oil sands using innovative in situ technologies. The Company has a diverse portfolio of oil sands assets at varied stages of development, and experienced people with the requisite technical expertise. Our current focus is on the Company’s two core producing projects – Saleski and Germain. Laricina’s asset base, holds 0.5 billion barrels of probable reserves, 3.9 billion barrels of contingent resources (best estimate) and 0.3 billion barrels of prospective resources (best estimate) as determined by Laricina’s independent reservoir engineers as at September 30, 2014 for Germain Grand Rapids and Saleski Grosmont, and as at December 31, 2013 for all other properties. These assets include oil sands resources in the familiar McMurray Formation, and the developing Grand Rapids, and Grosmont and Winterburn carbonate plays, all of which offer significant production potential.

This information release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law including but not limited to final regulatory approval from the Alberta Energy Regulator and Alberta Environment. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “estimate”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on Laricina’s experience and current beliefs as well as assumptions made by, and information currently available to, Laricina, and are subject to a variety of risks and uncertainties including, but not limited to, those associated with resource definition, unanticipated costs and expenses, regulatory approvals, fluctuating oil and gas prices, and the ability to access sufficient capital to finance future acquisitions and development. Laricina’s resources at Saleski and Burnt Lakes are contained in the Grosmont Formation, and a portion of Germain’s resources are contained in the Winterburn Formation, each a carbonate reservoir. Some of the Company’s contingent resources in the carbonates that are analogous to the Saleski pilot are based on established technologies that have been demonstrated to be commercially viable specifically for the subject reservoirs, and some are based on technology under development that require further development and piloting to confirm the commercial viability of applying these technologies to carbonate reservoirs. Resource volumes based on technology under development have a higher risk than volumes based on established technology. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this information release are not exhaustive and readers are not to place undue reliance on forward-looking statements. Laricina disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this message, except as required under applicable securities legislation. The forward-looking statements are expressly qualified by these cautionary statements.

For further information please visit www.laricinaenergy.com or contact:
Heidi Christensen Brown
Team Lead, Investor Relations & Communications
403.817.0555
Laricina Energy Ltd.
East Tower, 5th Ave Place
800, 425 1st Street SW
Calgary, AB. T2P 3L8

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