CR Crew Energy Inc

Crew Energy Inc. ("Crew" or the "Company") (TSX:CR) is pleased to announce its
Board of Directors has approved a 2013 capital budget of $219 million. The 2013
program is designed to focus on the Company's operating strategy to invest in
the highest rate of return projects while also further defining and capturing
hydrocarbon resource. Funding of this program will come from cash flow from
operations and bank debt. The 2013 program is expected to provide 15% liquids
growth spearheaded by the drilling of 101 (99.0 net) wells with 87% of the wells
targeting oil and 13% of the wells targeting liquids rich natural gas. 


In 2012, Crew achieved its target exit rate of 28,000 boe per day prior to the
closing of the Kobes disposition (sale of 625 boe per day) and is estimating
fourth quarter production based on preliminary field estimates of approximately
27,000 boe per day, an increase of approximately 3% over the prior quarter. With
the sale of 625 boe per day and the shut-in of 400 boe per day of natural gas
production that became uneconomic with the expiration of a transportation
contract late in 2012, Crew is currently producing approximately 27,000 boe per
day. In the fourth quarter, the Company drilled 24 gross wells including one
well at Kobes which was included in the fourth quarter disposition, one well
each at Septimus and the Deep Basin which were part of the accelerated 2013
program; 13 wells at Princess including a horizontal well that tested at a rate
of 800 boe per day based on 144 hours and eight heavy oil wells at Lloydminster
which included three successful horizontal wells at Wildmere that tested two
separate Mannville formations. We also initiated water injection on our eighth
waterflood at Princess as part of our long term enhanced recovery project and
completed a produced water disposal well at Septimus that will eliminate
approximately $1.0 million of water handling costs annually.


Production growth is forecasted to accelerate throughout 2013 with a target exit
rate of 29,000 to 30,000 boe per day and an annual average of 27,500 to 28,500
boe per day. This year's program will maintain a focus on secondary recovery
programs at Princess and Lloydminster with a forecasted four to six new projects
planned. These investments provide some of the highest rates of return in the
Company and are expected to measurably reduce corporate declines over time.
Capital will also be allocated to land retention and resource capture
initiatives at Septimus and in the greater Kakwa area of the Deep Basin.
Complementary asset acquisitions are continually being monitored and evaluated
but are presently not part of the exploration and development budget. 


Crew plans to invest in its four main operating areas; Lloydminster, Princess,
Septimus and the Deep Basin in 2013. The Company's ability to invest at
attractive economics in these areas has been enhanced by the Company's 2013
hedging program with 48% of forecasted natural gas production and 37% of
forecasted liquids production hedged at attractive prices.


At Lloydminster, Crew expects to drill 60 wells where the Company is following
up on a number of 2012 exploration and development successes on lands acquired
in 2011 and on recently purchased Crown land. Company owned processing
infrastructure provides excellent logistics and superior netbacks and the low
capital costs consistently generate exceptional returns even in the current wide
heavy oil differential environment. In addition to the drilling program, the
Company plans to recomplete 40 to 60 wells in the area in 2013.


At Princess, Crew will focus on the optimization of existing production,
implementation of three to five new waterfloods and the drilling of 21 wells.
Crew's existing waterfloods have been very successful in stemming declines in
pools where they have been implemented. Longer term, the Company is targeting
decline rates in the area to be reduced to the 20 to 25% range. Based on this
program, it is expected this area will generate significant positive free cash
flow in 2013.


In the greater Septimus area, Crew will drill 11 (9.0 net) wells with seven (7.0
net) wells targeting liquids rich natural gas and two (2.0 net) wells targeting
oil at Tower. Crew has reduced costs in this area by over 10% by optimizing
capital efficiencies through pad drilling and modified completion techniques
which have also resulted in improved individual well performance. The Company
has also invested in water source and disposal infrastructure in the area to
further reduce our cost structure, all of which has resulted in enhanced
economics with rates of return improving from 20% to approximately 40% despite
the current commodity price environment. Crew also plans to work with the owner
of the Crew operated Septimus gas plant to expand the facility from its current
capacity of 46 mmcf per day to 64 mmcf per day with construction expected to
commence in 2013. The planned increase in capacity will allow for increased
production from the area in 2014 and a corresponding decrease in per unit
operating costs of greater than 15% due to a further improvement in operating
efficiencies.


In the greater Kakwa area of the Deep Basin, Crew plans to drill seven (6.8 net)
wells targeting liquids rich natural gas. This area is characterized by lower
decline production and high liquids content in the 90 bbls per mmcf range of
which roughly a third is condensate driving favorable returns. Crew is
evaluating a more significant infrastructure expansion for the Kakwa area to
take advantage of proposed pipeline expansions and provide for future growth.




2013 CAPITAL EXPENDITURE BY TYPE                                            
----------------------------------------------------------------------------
                                                                            
                                                                  ($million)
Drilling and Completions                                              151.8 
Equip/Tie-in/Facilities                                                25.6 
Optimization                                                           18.3 
G & A/Environmental/other                                              12.8 
Land & Seismic                                                         10.5 
                                                                 -----------
Total Capital                                                         219.0 



Crew's budget and guidance are best estimates based on certain assumptions
including operating results and commodity prices and will be regularly monitored
by management. Additional information regarding our 2013 budget can be found
within the latest presentation on the Company's website at www.crewenergy.com.
Our primary goal is to proactively manage our capital program as it relates to
operational success and fluctuating commodity prices with a goal to maintain
financial flexibility and achieve our production goals.


CAUTIONARY STATEMENTS

Forward-looking information and statements

This news release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are intended to
identify forward-looking information or statements. In particular, but without
limiting the forgoing, this news release contains forward-looking information
and statements pertaining to the following: the Company's planned capital
expenditure program, drilling plans, estimated and expected production levels
and commodity mix; anticipated reductions in decline rates at Princess, future
commodity prices, the future differential between WTI prices and WCS prices,
future royalty rates, the future exchange rate for the Canadian dollar to the US
dollar, operating costs, transportation costs, general and administrative costs,
interest costs, the Company's cash flow from operations, future results from
operations; future development and exploration activities and related capital
expenditures and adequacy of anticipated methods of financing, the number of
wells to be drilled and completed and related production expectations; and the
amount and timing of capital projects.


Forward-looking statements or information are based on a number of material
factors, expectations or assumptions of Crew which have been used to develop
such statements and information but which may prove to be incorrect. Although
Crew believes that the expectations reflected in such forward-looking statements
or information are reasonable, undue reliance should not be placed on
forward-looking statements because Crew can give no assurance that such
expectations will prove to be correct. In addition to other factors and
assumptions which may be identified herein, assumptions have been made
regarding, among other things: the impact of increasing competition; the general
stability of the economic and political environment in which Crew operates; the
timely receipt of any required regulatory approvals; the ability of Crew to
obtain qualified staff, equipment and services in a timely and cost efficient
manner; drilling results; the ability of the operator of the projects in which
Crew has an interest in to operate the field in a safe, efficient and effective
manner; the ability of Crew to obtain financing on acceptable terms; field
production rates and decline rates; the ability to replace and expand oil and
natural gas reserves through acquisition, development and exploration; the
timing and cost of pipeline, storage and facility construction and expansion and
the ability of Crew to secure adequate product transportation; future commodity
prices; currency, exchange and interest rates; regulatory framework regarding
royalties, taxes and environmental matters in the jurisdictions in which Crew
operates; the ability of Crew to successfully market its oil and natural gas
products; ability to improve upon historical recovery factors. 


The forward-looking information and statements included in this news release are
not guarantees of future performance and should not be unduly relied upon. Such
information and statement, including the assumptions made in respect thereof,
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to defer materially from those anticipated in such
forward-looking information or statements including, without limitation: changes
in commodity prices; changes in the demand for or supply of Crew's products;
unanticipated operating results or production declines; changes in tax or
environmental laws, royalty rates or other regulatory matters; changes in
development plans of Crew or by third party operators of Crew's properties,
increased debt levels or debt service requirements; inaccurate estimation of
Crew's oil and gas reserve and resource volumes; limited, unfavourable or a lack
of access to capital markets; increased costs; a lack of adequate insurance
coverage; the impact of competitors; and certain other risks detailed from
time-to-time in Crew's public disclosure documents, (including, without
limitation, those risks identified in this news release and Crew's Annual
Information Form).


The forward-looking information and statements contained in this news release
speak only as of the date of this news release, and Crew does not assume any
obligation to publicly update or revise any of the included forward-looking
statements or information, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities laws.


BOE equivalent

Barrel of oil equivalents or BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.


Crew is a Calgary, Alberta based oil and gas exploration, development and
production company whose shares are traded on The Toronto Stock Exchange under
the trading symbol "CR".


FOR FURTHER INFORMATION PLEASE CONTACT: 
Crew Energy Inc.
Dale Shwed
President and C.E.O.
(403) 231-8850


Crew Energy Inc.
John Leach
Senior Vice President and C.F.O.
(403) 231-8859


Crew Energy Inc.
Rob Morgan
Senior Vice President and C.O.O
(403) 513-9628
www.crewenergy.com

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