Dr. William Roach reports

MARQUEE ENERGY LTD. ANNOUNCES THIRD QUARTER 2017 FINANCIAL AND OPERATING RESULTS AND PROVIDES OPERATIONAL AND CORPORATE UPDATE

Marquee Energy Ltd. has released its third quarter operational and financial results for the three and nine months ended Sept. 30, 2017. The company's financial statements and management's discussion and analysis for the three and nine months ended Sept. 30, 2017, are available on SEDAR and on Marquee's website.

Third quarter 2017 highlights:

• Drilled and completed two horizontal development wells and two horizontal exploration wells at Michichi. Over the last seven days, the two development wells have averaged 248 barrels of oil equivalent per day per well, approximately 30 per cent above Marquee's type well forecasts;
• Produced an average of 2,791 boe per day (44 per cent oil and liquids), an increase of 19 boe per day (1 per cent) over the third quarter of 2016.

Operational update

Marquee's field-estimated production averaged 3,050 boe per day (50 per cent oil and liquids) during the first 19 days of November. The four horizontal wells drilled in the third quarter of 2017 incorporated a monobore design to control costs, while completing the wells with a 47-per-cent increase to fracture density. Marquee was able to reduce the average days from spud to rig release to eight days from 14 days, and fractured each well in late September with approximately 460 tonnes of sand per well, an increase of 40 per cent over the previous design.

Marquee drilled two development wells on the southern portion of the defined Banff development fairway at Michichi. The two wells, brought on production in early October, have averaged 225 boe per day per well (151 barrels per day of oil and liquids, and 440,000 cubic feet per day of gas) over the last 30 days and 248 boe per day per well (165 bbl per day, and 500,000 cubic feet per day gas) over the last seven days. The recent production is approximately 30 per cent above Marquee's type well forecasts on a boe basis. With the increased fracture density and sand volumes, average drilling and completion costs for the two development wells were $1.6-million per well. Marquee is encouraged with these early production results in consideration of its modified drilling and completion design. The wells have recovered approximately 30 per cent of the total load fluid to date and continue to clean up.

Marquee's two exploratory wells were drilled on a prospective Banff trend west of the current Michichi development fairway to satisfy the company's 2017 flow-through share expenditure commitment. These wells continue to produce to test facilities, and the company continues to evaluate their potential.

Corporate update and outlook

During the third quarter of 2017, commodity prices faced downward pressure, resulting in the decision to scale back the company's second half of 2017 drilling program from six wells to four. With this reduced activity, the company is projecting to be at the lower end of the previously announced corporate exit rate of 3,000 to 3,300 boe per day. Along with this, the second half 2017 capital spending forecast has been reduced from $15-million to $11-million.

With the commodity price improvement in the latter half of October, 2017, the company has been actively layering in hedges to support its balance sheet and position itself to be active in the first quarter of 2018. The company's board of directors has approved a five-horizontal-well development drilling program at Michichi, with $9.7-million of capital committed for the first half of 2018. Drilling is expected to begin in December, 2017, to mitigate potential service equipment shortages.

                                FINANCIAL AND OPERATIONAL RESULTS
           (thousands of dollars, except per-share and per-barrel-of-oil-equivalent amounts)
  
                                                        Three months ended           Nine months ended
                                                             Sept. 30,                   Sept. 30,
                                                        2017          2016          2017          2016
Financial
Oil and natural gas sales (1)                         $6,569        $7,432       $22,980       $23,525
Funds flow from operations (2)                         1,495          (532)        4,982           821
Per share -- basic and diluted                          0.00          0.00          0.01          0.00
Per boe                                                 5.58         (1.99)         6.47          1.05
Net income (loss)                                     (2,937)       (5,247)       (8,555)      (12,122)
Per share -- basic and diluted                         (0.01)        (0.03)        (0.02)        (0.06)

Operational
Net wells drilled                                          4             -             7             -
Daily sales volumes
Oil (bbl/d)                                            1,069         1,240         1,082         1,320
Heavy oil (bbl/d)                                          -            10             -           225
NGLs (bbl/d)                                             154           148           149           147
Natural gas (Mcf/d)                                    9,408         8,241         9,216        11,861
Total (boe/d)                                          2,791         2,772         2,767         3,669
% oil and NGLs                                            44%           50%           44%           46%
Average realized prices
Light oil ($/bbl)                                      47.84         44.19         50.83         40.27
Heavy oil ($/bbl)                                          -         29.35             -         24.52
NGLs ($/bbl)                                           36.37         29.33         39.32         29.64
Natural gas ($/Mcf)                                     1.56          2.59          2.53          1.92
Netback
Revenue ($/boe)                                        25.58         29.14         30.42         23.40
Royalties ($/boe)                                      (1.25)        (1.51)        (1.90)        (2.05)
Operating and transportation costs ($/boe)            (15.78)       (16.84)       (16.44)       (15.77)
Operating netback prior to hedging (2)                  8.55         10.79         12.08          5.58
Realized hedging gain (loss) ($/boe)                    3.80         (1.17)         1.74          2.02
Operating netback ($/boe) (2)                          12.35          9.62         13.82          7.60
                                                     =======       =======       =======       ======= 
(1) Before royalties.                                  
(2) A non-international financial reporting standard measure. 

Changes to executive management team

The company also wishes to announce the following changes to Marquee's executive management team, effective today:

• Dr. William J.F. Roach has been appointed as the company's interim chief executive officer. Dr. Roach will maintain his roles as interim executive chairman of Marquee's board of directors and as a member of the company's reserves committee.
• Howard Bolinger has been promoted to executive vice-president, finance, and chief financial officer. Mr. Bolinger has also been appointed as the company's corporate secretary.
• Adam Jenkins has been promoted to vice-president, corporate development.
• Steve Bradford, vice-president, land, and corporate secretary, is no longer with Marquee.

Dr. Roach commented, "With the recent changes to Marquee's executive management team and with its current production portfolio, we are optimistic that we can deliver increased shareholder value over the next several quarters."

Corporate presentation

Marquee's updated corporate presentation will be available shortly at the Marquee website.

About Marquee Energy Ltd.

Marquee is a Calgary-based, junior energy company focused on light oil development and production in the Michichi area of eastern Alberta.

We seek Safe Harbor.