Palliser Oil & Gas Corporation announced unaudited financial and operating results for the three months ended March 31, 2013. Palliser Oil & Gas Corporation announced unaudited earnings and production results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported oil and natural gas sales of CAD 1,682,000 compared to CAD 2,701,000 a year ago. Loss and comprehensive loss was CAD 4,486,000 or CAD 0.07 per basic and diluted share compared to income and comprehensive income of CAD 600,000 or CAD 0.01 per basic and diluted share a year ago. Funds flow from operating activities was CAD 1,682,000 or CAD 0.03 per basic and diluted share compared to CAD 2,701,000 or CAD 0.05 per basic and diluted share a year ago. Capital expenditures were CAD 8,724,000 compared to CAD 9,106,000 a year ago. The company achieved production of 2,215 boe/d. Production increased 23% compared to the prior year. These lower production volumes, combined with unusually harsh winter operating conditions, resulted in production, operating and transportation expenses of CAD 29.90 per barrel in the first quarter of 2013, which represents a 13% increase from the same quarter in 2012. The company's net debt at quarter end was CAD 41.7 million. The company believes the company is on track to achieve its 2013 production guidance of 2,700 - 2,800 boe/d. With production, operating and transportation costs expected to return to approximately CAD 23/boe, the company remains on track to be a sustainable low operating cost heavy oil producer. Funds flow from operating activities in the second quarter continues to increase favorably due to improved current heavy oil pricing, growing production and the return to lower production, operating, and transportation expenses. The company believes this keeps on track to achieve 2013 budget: funds flow from operating activities of approximately CAD 20 million, operating netbacks of CAD 26/boe, and year-end net debt of CAD 39 million. The company's original CAD 24 million capital budget for 2013 assumed CAD 93.00 WTI per barrel and CAD 63.00 WCS per barrel pricing.

Palliser Oil & Gas Corporation announced unaudited earnings and production results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported oil and natural gas sales of $13,373,000 compared to $11,499,000 a year ago. Loss and comprehensive loss was $513,000 or $0.01 per basic and diluted share compared to $2,421,000 or $0.05 per basic and diluted share a year ago. Funds flow from operating activities was $5,405,000 or $0.09 per basic and diluted share compared to $2,014,000 or $0.05 per basic and diluted share a year ago. Capital expenditures were $7,975,000 compared to $12,888,000 a year ago. For the year, the company reported oil and natural gas sales of $47,547,000 compared to $33,781,000 a year ago. Funds flow from operating activities was $16,873,000 or $0.31 per basic and diluted share compared to $4,424,000 or $0.11 per basic and diluted share a year ago. Income and comprehensive income was $1,538,000 or $0.03 per basic and diluted share compared to loss and comprehensive loss of $4,905,000 or $0.12 per basic and diluted share a year ago. Capital expenditures were $36,446,000 compared to $41,560,000 a year ago. At December 31, 2012, net debt totalled $37,345,000 compared to $20,864,000 a year ago. Net asset value was $1.66 per share compared with $1.19 a year ago. For the quarter, the company reported average production of 2,498 boe/d compared to 1,657 boe/d for the same period a year ago. For the year, the company reported average production of 2,124 boe/d compared to 1,377 boe/d for the same period a year ago. First quarter 2013 production is below budget and is estimated to average approximately 2,200 boe/d. Along with normal production declines through the quarter, production was impacted by offset drilling in one of Palliser's core areas, which necessitated the temporary shut in of approximately 300 bbl/d of production. The wells were shut in early February and were brought back on production late in the first quarter. Lower production volumes for the first quarter of 2013, combined with unusually harsh winter operating conditions, will result in higher than budgeted first quarter operating costs, forecast to be approximately $29/boe. Production from the wells continues to ramp up in the second quarter with current corporate production estimated to be approximately 2,400 boe/d. The company had an active drilling and reactivation program in the first quarter of 2013 totaling 11 wells, all at 100% working interest. This program resulted in 10 heavy oil wells and one salt water disposal well, for a 100% success rate. Despite this high quarterly operating cost number, the company is expecting operating costs in the second quarter of 2013 to return to approximately $23/boe and the company remains on track to continue to be a sustainable low operating cost producer. These wells were all brought on production late in the quarter, and as such, had no impact on first quarter production. With production additions from these new wells expected to build through the second quarter, the company remains on track to achieve 2013 average production guidance of 2,700 to 2,800 boe/d. The first quarter 2013 also saw significant increased heavy oil differentials, resulting in lower net wellhead pricing. Lower production volumes, combined with these wide heavy oil differentials, will result in lower than budgeted funds flow in the first quarter. The second quarter is progressing favorably, with improved current heavy oil pricing, growing production, and return to lower operating expenses. The company believed that this keeps them on track to achieve 2013 budget: funds flow from operating activities of approximately $20 million, operating netbacks of $26/boe, and year-end net debt of $39 million. In light of the wider heavy oil differential at the start of 2013, the Board of Directors previously approved a 2013 capital budget of $24 million, assuming $93.00 WTI per barrel and $63.00 WCS per barrel pricing. The internally driven capital program is to be funded by cash flow and credit facilities. As previously noted, the heavy oil differential has narrowed significantly, and WCS pricing for the second quarter is forecast to be materially higher than the budgeted $63.00 WCS per barrel. If heavy oil differentials continue to remain favourable, the Company is poised to prudently expand its capital program.

Palliser Oil & Gas Corporation intends to pursue acquisitions. The company is working to expand its prospect inventory through organic growth as well as the acquisition market. It has successfully closed three strategic property acquisitions during the first quarter of 2013 and expects to continue to pursue additional acquisitions that align with the company's strategy.