Angle Boasts 100% Drilling Success for 1Q

Angle Energy provided a first quarter update.

Angle Energy has achieved 100% drilling success in its first quarter activities, with important developments in each of the four operating areas. The first quarter program was designed to test a variety of play types. Capital expenditures by area and play type will be further defined for the full 2010 operational year based upon these results, with a forward focus on three light oil targets on Company owned lands. Angle drilled and rig released a total of 10 gross wells (8.2 net) in the quarter, with 8 (6.2 net) of these wells horizontally drilled.

2010 Operational Outlook and Project Positions

In each of Angle's core areas, important developments have been achieved. The Company is successfully transitioning to horizontal drilling, with a true "resource play" focus. Most importantly, Angle has been flexible in a weak gas commodity price environment by providing strong exposure for its investors to three different light oil plays on Company owned lands, maintaining corporate operating costs of less than $6.00/boe (2010 guidance), and preserving balance sheet flexibility with low debt. The 2010 capital budget is dedicated 50% to oil drilling, with gas drilling scheduled on commitment wells and locations required for land tenure. Currently, Angle has in excess of 150 potential locations on three major light oil plays in the Cardium, Viking, and Wabamun. Angle's goal in 2010 is to increase light oil production to achieve a producing mixture by 2011 of 50% gas and 50% light oil and natural gas liquids. Currently the Company produces approximately 60% gas and 40% light oil and natural gas liquids.

The Company has revised the 2010 budget and is forecasting commodity prices at $4.50/Mcf for AECO gas and $80.00/bbl for Edmonton light oil (assuming a $US/Canadian parity exchange rate). Capital expenditures for the year have been slightly increased and are anticipated to be $178 MM, including the purchase of Stonefire Energy ($76.5 MM) in January. The operational capital budget is $113 MM ($100.5 MM net of $12.5 MM in drilling credits). Production in Q1 is expected to range from 8,000 to 8,100 boe/d from field estimates and actuals, with current production at 8,400 boe/d and an additional 1,400 boe/d to tie-in from wells that have been tested. The average production guidance for the year remains at 9,300 to 9,500 boe/d, due to on-stream timing for new well production and the Strachan Plant turnaround scheduled to occur in Ferrier in Q2. As a result of the successful drilling activities in Q1, Angle is increasing its exit guidance from over 10,000 boe/d in Q4 2010 to over 11,000 boe/d by year end. With the expenditures as outlined, Angle anticipates exiting 2010 with net debt of less than $70 MM, representing a 0.9 debt to trailing cash flow ratio for 2010.