Mr. Matthew Brister reports

CHINOOK ENERGY INC. ANNOUNCES ITS THIRD QUARTER FINANCIAL AND OPERATIONAL RESULTS AND PROVIDES AN OPERATIONAL UPDATE, 2014 GUIDANCE AND MANAGEMENT CHANGES

Chinook Energy Inc. has released its third-quarter financial and operational results, and has provided an operational update, 2014 guidance and management changes.

Chinook has filed its unaudited consolidated financial statements for the three and nine months ended Sept. 30, 2013, and 2012, and related management's discussion and analysis on SEDAR and the company's website.

                          OPERATIONAL HIGHLIGHTS

                                   Three months ended     Nine months ended
                                             Sept. 30,             Sept. 30,
                                      2013       2012       2013       2012
Production                                                                 
Oil (bbl/d)                          3,456      3,516      3,439      3,510
Natural gas liquids (bbl/d)            753      1,141        877      1,155
Natural gas (mcf/d)                 35,820     43,839     35,998     46,215
Average daily production                                                   
(boe/d)                             10,180     11,964     10,316     12,367
Sales                                                                      
Oil (bbl/d)                          3,558      3,929      3,288      3,388
Natural gas liquids (bbl/d)            753      1,141        877      1,155
Natural gas (mcf/d)                 35,820     43,839     35,998     46,215
Average daily sales (boe/d)         10,282     12,377     10,165     12,245
Sales prices                                                               
Average oil price ($/bbl)         $ 104.46    $ 95.61    $ 99.57    $ 96.15
Average natural gas liquids                                                
price ($/bbl)                     $  62.36    $ 56.42    $ 58.61    $ 61.03
Average natural gas price                                                  
($/mcf)                           $   3.00    $  2.57    $  3.61    $  2.31
Corporate netbacks   
Average commodity pricing                                                  
($/boe)                           $  51.17    $ 44.67    $ 50.05    $ 41.07
Royalties ($/boe)                 $  (3.30)   $ (2.50)   $ (3.98)   $ (3.37)
Net production expenses ($/boe)   $ (19.28)   $(18.38)   $(17.73)   $(16.97)
Cash G&A ($/boe)                  $  (2.46)   $ (2.54)   $ (2.77)   $ (3.07)
                                  ---------   --------   --------   --------
Corporate netbacks ($/boe)        $  26.13    $ 21.25    $ 25.57    $ 17.66
Wells drilled (net)                                                        
Oil                                   3.86       1.11       9.24       5.13
Gas                                      -          -          -       1.00
Dry                                      -          -       0.86       0.96
                                  ---------   --------   --------   --------
Total wells drilled (net)             3.86       1.11      10.10       7.09

                                FINANCIAL HIGHLIGHTS
               (in thousands of dollars, except per share amounts) 

                                   Three months ended     Nine months ended
                                             Sept. 30,             Sept. 30,
                                      2013       2012       2013       2012
Petroleum and natural gas                                                    
revenues, net of royalties        $ 45,285   $ 48,012  $ 127,830  $ 126,500
                                  ---------  --------- ---------- ----------
Net income (loss)                 $  3,812   $(12,417) $  12,302  $ (54,320)
                                  =========  ========= ========== ==========
Per share -- basic and diluted                                            
($/share)                         $   0.02   $  (0.06) $    0.06  $   (0.25)

Highlights:

• Increased third-quarter production to 10,180 barrels of oil equivalent per day (42 per cent oil and natural gas liquids), from 9,916 barrels of oil equivalent per day in the second quarter 2013. Tunisia production averaged 1,813 barrels of oil equivalent per day and production from Canadian operations increased by four percent from the second quarter to 8,367 barrels of oil equivalent per day with a 15-per-cent increase in oil production to 1,853 barrels per day from 1,606 barrels per day;
• Sales volumes in the third quarter were 10,282 barrels of oil equivalent per day compared with 10,205 barrels of oil equivalent per day in second quarter 2013. Crude oil held in inventory at the end of the third quarter was approximately 46,000 barrels and was subsequently sold in October;
• Improved field operating netbacks by 20 per cent to $28.59 per barrel of oil equivalent and corporate netbacks by 23 per cent to $26.13 compared with third quarter 2012;
• Achieved record year-to-date cash flow of $66.8-million (31 cents per share) from $49.9-million (23 cents per share) in the same period of 2012, an increase of 34 per cent;
• Decreased net debt to $65.1-million or approximately 0.73 times annualized 2013 cash flow. Chinook has a $115-million Canadian credit facility and $46.5-million (U.S.) of availability on an international credit facility;
• Maintained a 100-per-cent-oil-focused capital program of $21-million with $10-million invested in Canada and $11-million in Tunisia. Chinook participated in one (0.86 net) well on its Tunisian BBT concession and three (three net) wells on its Albright and Beaverlodge properties increasing current net production threefold on these properties to over 1,000 barrels of oil equivalent per day (80 per cent oil);
• Identified and surveyed well locations to be drilled in the first quarter of 2014 on two new Montney resource opportunities at Gold Creek and Birley/Umbach with 85 gross (65 net) combined sections of offsetting lands.

Third-quarter operational review

Canada

Chinook drilled three (three net) wells on its Albright/Beaverlodge properties in the Grande Prairie area during the third quarter. All three wells were brought on production within six weeks of spud with initial 30-day rates averaging 220 barrels of oil equivalent per day (86 per cent oil) per well, exceeding the company's previous estimates of 100 barrels of oil equivalent per day at Albright and 140 barrels of oil equivalent per day at Beaverlodge. Net production has increased from 280 barrels of oil equivalent per day (55 per cent oil) to current production of slightly over 1,000 barrels of oil equivalent per day (80 per cent oil) since the asset was acquired in December, 2012. Chinook has identified 30 more firm locations on its current acreage at Albright and Beaverlodge and is commencing a six (five net) well program late in the fourth quarter 2013 and continuing through breakup in 2014.

On the southern portion of the company's Grande Prairie area, at Karr, Chinook has participated in the drilling of five (1.86 net) Dunvegan wells with results that continue to exceed its preliminary expectations with initial 30-day production rates ranging from 250 barrels of oil equivalent per day to 600 barrels of oil equivalent per day. A four (1.2 net) well drilling program was commenced late in the third quarter by the operator with the first two wells being drilled and cased and awaiting completion. Up to 23 additional locations have been identified at Karr with four (1.5 net) wells planned for 2014 along with the construction of a central battery and treating facility.

Through the use of new and ever-improving drilling and completion techniques, this multiyear inventory of Dunvegan locations in the company's Grande Prairie area continues to improve results and capital efficiencies and will continue to be the main focus of the company's Canadian operations in 2014.

At Gold Creek Chinook has over 50 gross (35 net) sections of Montney rights within the upper and middle Montney oil fairway and will operate the drilling of a horizontal Montney well in the first quarter of 2014. Recent industry activity has seen record-setting land sale prices with several operators licensing wells immediately offsetting the company's lands. To date, Chinook has surveyed five (3.75 net) locations. The estimated cost to drill and complete these wells is approximately $8.0-million to $9.5-million; however, recent results by other operators in the area have disclosed lower costs as would be expected by the optimization and design of various drilling and completion techniques in the early stages of area development. Industry activity remains robust in the Gold Creek area which will provide continued delineation of the resource across the company's acreage and would justify an expanded development program beyond the first quarter of 2014.

At Birley/Umbach Chinook has an interest in 35 (26 net) sections of Montney rights. Industry operators have announced encouraging results from nearby liquids-rich Montney natural gas activity in 2013. Chinook completed a vertical well in 2011 to delineate and establish this resource opportunity and will operate the drilling of one (0.75 net) horizontal Montney location in the first quarter of 2014. Gross costs to drill and complete a well are expected to be approximately $5.5-million.

Chinook's Canadian activity continues to increase its profitability with a year-to-date operating netback of $17.92 per barrel of oil equivalent, a 65-per-cent increase from $10.85 per barrel of oil equivalent in the same period of 2012. Chinook's focus on replacing its declining natural gas production with continued oil development supports a path toward continued improvement in its operating netbacks.

Tunisia

Production in Tunisia has averaged 1,978 barrels of oil equivalent per day through the third quarter of 2013 with full-year volumes reforecast to average 1,925 barrels of oil equivalent per day. Production volumes through the third quarter from Tunisia represent 19 per cent of total corporate production yet contribute 38 per cent of the company's $138.9-million in operating revenue. Delays in program execution in 2013 have resulted in a reduced capital program in 2013 which in turn has adversely affected the company's previous Tunisian production and cash flow forecasts but will not adversely affect the company's corporate guidance as these are offset with improved results from Chinook's Canadian business. Chinook's main producing asset at Bir Ben Tartar generates phenomenal operating netbacks of approximately $75.94 per barrel of oil equivalent making it the most valuable and strategic asset in its portfolio. Capital activity in the third quarter included the drilling and completion of one (0.86 net) well at TT20 and the completion of one (0.86 net) well at TT21. The TT20 well was completed and subsequently suspended pending the installation of a jet pump in order to conduct a longer-term test.

During the third quarter there was little change, for better or worse, in the stability, security or business climate in Tunisia. There continues to be a dialogue about transitioning to an interim government that would govern until elections can be held in 2014, but initial steps on the road map continue to be postponed and debated. A slow deterioration in the effectiveness and efficiency of the bureaucracy, and a deteriorating fiscal situation in the country are likely to continue at least until a new government is able to set a course and provide enough stability to attract new capital for the numerous good opportunities existing in many parts of the economy, including oil and gas.

In the immediate area of the company's field operations tensions have been lessening and Chinook has had no interruptions due to social unrest or demonstrations. Early in the third quarter, Chinook was informed by the Agence Nationale de Protection de l'Environnement, the regulatory agency responsible for granting environmental approvals for the company's operations, that it had initiated a change to the approval process for future operations. In response to that, Chinook has resubmitted its application early in the fourth quarter for its 2013/2014 program. Chinook expects to hear about approvals for its program in the next four weeks and will recommence the drilling program as soon as possible after that. This delay will cause at least one planned 2013 vertical well to be shifted into early 2014 and Chinook now expects to drill five wells in 2013 and five wells in 2014 at BBT. The efforts of the company's staff to build and maintain effective community engagement have been key to the increased stability in the company's operating region, and Chinook remains confident that its full 2014 drilling and facility construction program will proceed once all approvals are in place. In the event Chinook experiences delays in its Tunisia program, the company's inventory of drill-ready development opportunities in Canada allows the company to shift capital in 2014 to Canada which should serve to smooth out future forecast variances.

Outlook

Chinook's corporate guidance for the balance of 2013 remains on track, despite the downward reforecasted Tunisian annual production volumes as these decreases have been offset by the company's Canadian segment's growth and improved results.

                              2013 GUIDANCE               
                        ($ millions, except boe/d)      

                               Consolidated  International       Canada

Production (boe/d)             9,350-10,000    2,000-2,250  7,350-7,750
Cash flow                           $85-$90        $45-$48      $40-$42
Capital expenditures               $95-$100        $51-$53      $44-$47
Net debt                            $60-$65             $-      $60-$65
Credit facilities                      $115   $46.5 (U.S.)         $115

Chinook's board of directors has approved an initial capital budget for 2014 of $85-million, of which $49-million is allocated to Canada and $36-million to Tunisia. Chinook's management is currently finalizing a detailed review on the timing of 2014 capital spending plans and anticipates releasing its 2014 guidance by mid-December.

Chinook's focus for 2014 will be on increasing its oil weighting in Western Canada. Chinook's Canadian capital program will be directed almost exclusively toward oil opportunities along with continued non-core asset rationalization and a focus on improving capital and operating efficiencies. In Tunisia, Chinook will continue to appraise and develop its BBT concession along with pursuing various strategic initiatives intended to improve a low market valuation relative to its Canadian peers which can be attributed to the hybrid nature of its asset base. The strength of its the company's balance sheet will enable it to pursue additional acquisition opportunities in its core area of Grande Prairie in what is continuing to be an exciting and opportunistic asset market.

Management changes

Effective Dec. 31, 2013, Walter Vrataric will assume the role of chief executive officer in addition to his current role of president. Matthew Brister will continue as chairman of the board of directors. Grant Wierzba will retire from his role of vice-president, operations, but continue as a director. Tim Halpen (chief operating officer Canada), Roy Smitshoek (chief operating officer international) and Ryan White (vice-president, drilling and completions) will assume aspects of Mr. Wierzba's role. Mr. Brister and Mr. Wierzba will continue to provide support to its company, in particular with its Tunisian operations. These changes are the final steps in a senior management succession that began in 2012 and ensures that the company's Canadian and Tunisian operations continue to be properly managed.

We seek Safe Harbor.