Marquee Energy Ltd. provided operations update of Michichi and Lloydminster properties. Production at Michichi has increased to approximately 4,000boe/d. The company has achieved 100% drilling success year-to-date, with 11 completed oil wells and a 12(th) well now underway. The first four wells drilled by Marquee since break-up were completed and placed on production into its new oil battery at 4-9-32-17W4M during August 2014. Currently, three of the four wells are on production at a combined rate of 645boe/d (65% oil), an average of 215boe/d per well after more than 30 days. The fourth well is awaiting additional completion operations. The next two wells (the 8th and 9th for 2014), were completed in September 2014 and are now tied-in to the company's owned and operated infrastructure. Additionally, the completion operations for wells 10 and 11 are currently underway, with a plan for both of these wells to be tied into the new oil battery by early November 2014. In addition, the company is currently evaluating the possibility that Michichi will support downspacing from four to six wells per section. A new 67 square mile 3D seismic survey is also underway to evaluate further extensions to the company's focus area. Production at Lloydminster has increased to approximately 700boe/d. Marquee drilled one vertical well and one short leg horizontal well at Lloydminster in August of 2014. Both wells are now on production with results exceeding the company's type curve expectations for this area. The vertical well drilled by the company in August served to positively delineate its exploration discovery, made in September 2013, at 9-3-48-1W4M. The horizontal well drilled by Marquee was its first at Lloydminster, and offsets other successful competitor horizontal oil wells. Marquee has identified at least 30 similar low-risk, high-productivity drilling opportunities out of a total drilling inventory of 50 locations on the property.

The company revised production and earnings guidance for 2014. For the year, the company expects exit production of 5,600 boe/d to 5,800 boe/d.

For the year, the company expects capital budget (net of dispositions) of $46 million cash flow of $38 million.