Chelsea Oil and Gas Ltd. announced the 2013 year-end reserves and an operational update. Probable reserves of 1.113 million boe, Probable plus possible reserves of 6.351 million boe. Net present value of Chelsea's probable oil reserves of USD 5.1 million, and probable plus possible oil reserves of USD 13.9 million (discounted at 10%, before income taxes).

Net present value of Chelsea's probable natural gas and NGL reserves of AUD 19.9 million, and probable plus possible natural gas and NGL reserves of AUD 107.1 million. Arthur Creek unconventional prospective resources best estimate of 688.5 mmboe net to Chelsea. The oil reserves of the Company's PL 18 and PL 280 concessions in Australia were evaluated by Sproule International Ltd. ("Sproule"), and the natural gas and natural gas liquids reserves of the company's PL 40 concession were evaluated by Chapman Engineering Ltd. ("Chapman"), both in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51- 101") effective December 31, 2013.

Chelsea's annual information form for the year ended December 31, 2013 (the "AIF") contains the Company's reserves data and other oil and natural gas information as mandated by NI 51-101.