Mapan Energy Ltd. Announces 2014 Year-End Reserves, Operations Update and Executive Appointment

CALGARY, ALBERTA--(Marketwired - Jan 28, 2015) - Mapan Energy Ltd. ("Mapan" or the "Company") (TSX VENTURE:MPG) is pleased to announce its 2014 year-end reserves. Mapan's independent reserve report (the "GLJ report") was prepared by GLJ Petroleum Consultants ("GLJ") in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") with an effective date of December 31, 2014.

Highlights

• The Company's Proved Reserves increased from the March 31, 2014 report by 19% from 12.58 million (MM) Barrels of Oil Equivalent (BOE) ⁽¹⁾ to 15 MM BOE at year end December 31, 2014.
• Proved plus Probable Reserves increased by 27% from 15.16 MM BOE to 19.18 MM BOE.
• Proved Producing Reserves are 12.64 MM BOE. Proved Producing reserves represent 84% of all Proved Reserves and 66% of all Proved plus Probable Reserves.
• Technical Revisions increased Proved Reserves by 2.42 MM BOE. The majority of the upward technical revisions are due to improved performance of the producing wells.
• The Net Present Value of future net revenue attributable to the reserves (before tax) discounted at 10% is $117.6 MM for the Proved Reserves and $144.5 MM for the Proved plus Probable Reserves.
• The undiscounted, total future development capital for the Proved plus Probable Reserves is $34.0MM.
• The Company's Proved and Proved plus Probable Reserves are comprised of 94% natural gas and 6% oil and natural gas liquids.
  ⁽¹⁾ Based on the independent reserve report (the "March Report") prepared by GLJ effective March 31, 2014 in respect of the reserves acquired by the Company on the acquisition (the "Acquisition") of certain oil and natural gas properties on July 31, 2014 (the "Acquired Assets"). Unlike the GLJ Report, the reserves in the March Report do not include relatively minor reserves attributable to the properties that were held by the Company prior to the Acquisition.

Operations

On January 20, 2015, shut-in production from Mapan's properties in the Deep Basin North, processed at the Elmworth Gas Plant, came back on line as Trans Canada Pipeline lifted production restrictions on its natural gas transmission pipeline ("NGTL") system at Elmworth and put back into service a 30 inch pipeline in this area. Company production of approximately 9mmcf/d (1,500 BOE/D) had been shut in for 137 days due to this outage on NGTL. Mapan's current production is approximately 6,100 BOE/D. Approximately 600 to 700 BOE/D remains shut-in due to current, ongoing inspections, repairs and outages on the NGTL system well downstream of Mapan's producing properties. These new production restrictions on the NGTL system are expected to last several weeks.

Reserves

Summary of Oil and Gas Reserves

Summary of Net Present Value of Future Net Revenue

Reconciliation of Gross Reserves (before Royalties) by Principal Product Type

Pricing

GLJ employed the following pricing, exchange rate and inflation rate assumptions as of December 31, 2014 in the GLJ Report in estimating the net present value of the future net revenue attributable to the reserves. Actual wellhead prices received by the Company may vary due to transportation charges and product quality adjustments:

Corporate Presentation

Mapan has updated its corporate presentation to reflect the 2014 year-end reserves which can be found on its website at www.mapanenergy.com.

Executive Appointment

Mapan is pleased to announce the appointment of Colin Taylor to the position of Vice President Land. Mr. Taylor has over ten years of industry experience and will be a key addition to the Mapan team.

ADVISORY: This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the timing that production may be shut-in, the reserves attributable to the Company's assets and the estimate of the net present value of the future net revenues attributable thereto. Although Mapan believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Mapan cannot give assurances that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Risks include risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets and other economic and industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling services, incorrect assessment of value of acquisitions and failure to realize the benefits therefrom, delays resulting from or inability to obtain required regulatory approvals, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources and economic or industry condition changes. Actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Mapan will derive therefrom. Additional information on these and other factors that could affect Mapan are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this press release are made as of the date hereof and Mapan 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.

Barrels of Oil Equivalent: Disclosure provided herein in respect of barrels of oil equivalent (BOE) 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. Given that the value ratio based on the current price of crude oil as compared to natural gas 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.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.