Mr. Tim Granger reports

LONE PINE RESOURCES ANNOUNCES FIRST QUARTER 2013 RESULTS

Lone Pine Resources Inc. today released financial and operational results for the first quarter of 2013.

Selected highlights for the first quarter of 2013 include:

• Average net sales volumes of 49.4 million cubic feet equivalent per day with oil and natural gas liquids weighting of 35 per cent;
• Oil and NGL net sales volumes of 2,845 barrels per day;
• Adjusted earnings before interest, taxes, depreciation and amortization of $11.3-million;
• Invested $31.8-million in the quarter, which included drilling eight gross (6.8 net) wells, completing nine gross (7.3 net) wells and bringing on stream nine gross (7.3 net) wells;
• Completed the Herronton non-core asset disposition for gross proceeds of $13.7-million;
• Completed the semi-annual redetermination of the borrowing base under the company's credit facility, including an amendment of the total debt to EBITDA financial covenant.

Tim Granger, president and chief executive officer of Lone Pine, stated: "The first quarter of 2013 saw Lone Pine execute on a reduced capital program as we continued to monitor liquidity and focus our efforts on the strategic initiatives that remain in front of the company. In the field, it was a successful quarter as we brought wells on stream on time and on budget and have made great strides on cost containment and advancing operational improvements, including significant cost savings on a four-well-pad operation that reduced drilling and completion costs by up to 15 per cent.

"Strategically, we completed the disposition of our third non-core asset at attractive metrics and in April reached an agreement with our lending syndicate for a revised borrowing base and expanded financial covenant. Both of these accomplishments furthered our objectives of continuing to reduce the company's indebtedness and secure liquidity for future growth. We are continuing to progress other opportunities identified through our core asset review process and remain firmly committed to creating long-term value for our stockholders."

The company has filed its quarterly report on Form 10-Q for the three months ended March 31, 2013, with the United States Securities and Exchange Commission and on SEDAR in Canada. Selected financial and operational information is outlined herein and should be read in conjunction with the quarterly report on Form 10-Q, which is available for review at EDGAR, at SEDAR and on the company's website.

Financial and operational results

Financial results

Lone Pine reported adjusted earnings before interest, taxes, depreciation and amortization for the first quarter of 2013 of $11.3-million and adjusted discretionary cash flow of $2.6-million. Lone Pine reported an adjusted net loss in the first quarter of 2013 of $19-million or 22 cents per diluted share. Financial results for the first quarter of 2013 were negatively affected by the disposition of $96-million of non-core assets that occurred in the fourth quarter of 2012 and the first quarter of 2013. In addition, the company incurred $2.4-million ($1.8-million net of capitalized portion) of one-time costs in the first quarter of 2013 relating to the severance of former executive officers.

Average daily sales volumes

Lone Pine's average daily net sales volumes for the first quarter of 2013 were 49.4 million cubic feet equivalent per day, which was a decrease of 30 per cent from the fourth quarter of 2012. Lone Pine's average daily oil and NGL net sales volumes for the first quarter of 2013 were 2,845 barrels per day, which was 14 per cent lower than the fourth quarter of 2012. Lone Pine's natural gas sales volumes in the first quarter of 2013 were 32.3 million cubic feet per day, which was 36 per cent lower than the third quarter of 2012. Lone Pine's net sales volumes in the first quarter of 2013 were negatively impacted by the disposition of approximately 20 million cubic feet equivalent per day of natural-gas-weighted properties in the previous quarter combined with natural production declines following consecutive quarters of reduced capital expenditure programs.

Revenue and expenses

The average realized natural gas price (before hedges) for the first quarter of 2013 decreased 8 per cent to $2.60 per million British thermal unit compared with $2.82 per million British thermal unit in the fourth quarter of 2012. The average realized natural gas price was negatively affected in the first quarter of 2013 due a greater proportion of the company's natural gas sales being linked to a legacy corporate marketing contract, which increases the corporate price differential. The average realized oil price (before hedges) for the first quarter of 2013 of $84.00 per barrel increased 6 per cent from $79.56 per barrel in the fourth quarter of 2012. Realized oil prices in the first quarter of 2013 benefited from a rising West Texas Intermediate price in the quarter, although that increase was offset by an increase to the WTI to Edmonton par differential, which averaged $6.66 per barrel in the quarter compared with $1.07 per barrel in the fourth quarter of 2012.

Lone Pine realized natural gas hedging gains of $200,000 (six cents per thousand cubic feet) and oil hedging gains of $900,000 ($3.57 per barrel) for total realized hedging gains of $1.1-million (24 cents per thousand cubic feet equivalent) in the first quarter of 2013.

Lone Pine's total production expense per unit for the first quarter of 2013 increased 25 per cent to $2.89 per thousand cubic feet equivalent compared with $2.32 per thousand cubic feet equivalent in the fourth quarter of 2012. The production expense per unit increased in the first quarter of 2013 due to the disposition of lower-operating-cost natural gas properties in the previous quarter. Lone Pine's general and administrative expense totalled $7.3-million or $1.64 per thousand cubic feet equivalent in the first quarter of 2013 compared with $4.7-million or 72 cents per thousand cubic feet equivalent in the previous quarter. Lone Pine's general and administrative expenses included $1.8-million (net of capitalized portion) of one-time severance-related expenses. Lone Pine's depreciation, depletion and amortization expense per unit for the first quarter of 2013 was $4.29 per thousand cubic feet equivalent compared with $4.26 per thousand cubic feet equivalent in the previous quarter.

Capital expenditures

Capital expenditures for the first quarter of 2013 were $31.8-million, of which $29.2-million was spent on drilling and completion costs and $2.6-million was capitalized overhead.

Long-Term debt

Outstanding indebtedness at March 31, 2013, consisted of $152-million outstanding on the company's bank credit facility and $198-million (U.S.) of senior notes. Effective April 15, 2013, the company's credit facility was amended to decrease the available borrowing base to $185-million along with increasing the company's total debt to EBITDA financial covenant to 4.5 to 1.0 for any quarterly period ending on or before June 30, 2013. The next scheduled redetermination of the borrowing base is expected to occur on or about Nov. 1, 2013.

Financial and operational highlights

The table highlights certain financial and operational highlights for the three months ended March 31, 2013, and Dec. 31, 2012.

                                HIGHLIGHTS
            (in thousands of dollars, unless otherwise noted)                                        									

                                                       Three months ended
                                                  March 31,      Dec. 31,
                                                       2013          2012
Financial
Revenue                                             $28,846       $36,766
Adjusted EBITDA                                      11,300        25,372
Adjusted discretionary cash flow                      2,626        16,035
Per share                                              0.03          0.19
Adjusted net income                                 (19,045)      (12,851)
Per share                                             (0.22)        (0.15)
Capital expenditures                                 31,825        14,891
Long-term debt                                      353,097       346,985
Operational
Average daily working interest sales volumes
Oil (bbl/d)                                           3,100         3,467
NGL (bbl/d)                                              78           261
Natural gas (MMcf/d)                                   37.8          51.6
Total (MMcfe/d)                                        56.9          74.0
Total equivalent (MMcfe)                              5,121         6,805
Oil and NGL                                             34%           30%
Average daily net sales volumes
Oil (bbl/d)                                           2,789         3,120
NGL (bbl/d)                                              56           185
Natural gas (MMcf/d)                                   32.3          50.7
Total (MMcfe/d)                                        49.4          70.6
Total equivalent (MMcfe)                              4,443         6,491
Oil and NGL                                             35%           28%
($/bbl)                                               84.00         79.56
NGL ($/bbl)                                           38.20         44.94
Natural gas ($/MMBtu)                                  2.60          2.82
Average realized prices before hedges ($/Mcfe)         6.49          5.66
Realized hedging gains ($/Mcfe)                        0.24          1.17
Average realized prices including hedges
($/Mcfe)                                               6.73          6.83
Total production expense ($/Mcfe)                      2.89          2.32
Depreciation, depletion and amortization
($/Mcfe)                                               4.29          4.26

Operational update

Evi

Net sales volumes from Evi decreased 3 per cent in the first quarter of 2013 to 2,652 barrels of oil equivalent per day (2,930 barrels of oil equivalent per day working interest) compared with 2,730 barrels of oil equivalent per day (2,995 barrels of oil equivalent per day working interest) in the fourth quarter of 2012. In the first quarter of 2013, Lone Pine drilled eight gross (6.8 net) wells, completed nine gross (7.3 net) wells and brought on stream nine gross (7.3 net) wells at Evi. Lone Pine drilled six net operated wells that were brought on stream in the quarter, although five of the wells were not brought on stream until late March, so the production impact was not reflected in the quarter.

Deep basin

Net sales volumes from the Deep basin averaged 25.7 million cubic feet equivalent per day in the first quarter of 2013 compared with 42.5 million cubic feet equivalent per day in the fourth quarter of 2012 as sales volumes declined due to the disposition of certain natural-gas-weighted non-core assets in the fourth quarter of 2012 and the first quarter of 2013.

Interim 2013 guidance update

Lone Pine has reiterated its previously provided guidance for the first half of 2013. Lone Pine continues to expect net sales volumes of 45 million cubic feet per day equivalent to 47 million cubic feet per day equivalent (52 million cubic feet per day equivalent to 54 million cubic feet per day equivalent working interest) with capital expenditures of approximately $35-million.

Lone Pine expects to provide second-half and full-year 2013 guidance upon conclusion of its previously announced, continuing core asset strategy review.

Conference call

A conference call to discuss the first quarter of 2013 results is scheduled for Friday, May 10, 2013, at 10 a.m. MT. To participate, please dial 866-318-8616 (toll-free from North America) or 617-399-5135 and request the Lone Pine teleconference (ID No. 44284279) or listen to the webcast on Lone Pine's website. A replay will be available through June 10, 2013, by dialling 888-286-8010 or 617-801-6888 and entering passcode 80212384.

Annual meeting of stockholders

Lone Pine will hold its 2013 annual meeting of stockholders on Wednesday, May 15, 2013, at 9:30 a.m. MT at the Metropolitan Conference Centre, 333 -- 4th Ave. Southwest, Calgary, Alta.

We seek Safe Harbor.