Crew Energy Inc. ("Crew" or the "Company") (TSX:CR) of Calgary, Alberta is
pleased to announce the successful completion of an acquisition of certain
strategic Montney liquids rich natural gas properties in northeast British
Columbia for approximately $105 million. The acquired assets include 75 net
sections of land that are either contiguous with existing Crew land or increase
Crew's working interest in joint interest lands. An updated map of the Company's
Montney acreage is posted on the Company's website at www.crewenergy.com.


In a separate transaction, Crew has entered into an agreement to sell certain
petroleum and natural gas assets (75% natural gas) focused primarily in the Deep
Basin of Alberta in exchange for approximately $222 million in cash before
closing adjustments plus approximately 400 bbls per day of heavy oil production.
Upon completion of the disposition, Crew plans to expand its previously
announced 2014 exploration and development capital program by $39 million to
$285 million to accelerate the Company's Montney development.


Northeast British Columbia Acquisition

In two transactions completed in late March 2014 Crew purchased approximately 75
sections of highly prospective Montney rights in the Septimus and Groundbirch
areas of operation in northeast British Columbia for approximately $105 million.
Pursuant to these transactions, the Company acquired:




--  Current production of 1,400 boe per day (98% natural gas) based on field
    estimates; 
--  Total proved reserves of 4.7 million boe (94% natural gas) (1); 
--  Total proved plus probable reserves of 8.5 million boe (93% natural gas)
    (1); 
--  Significant resource to be evaluated in the near term; and 
--  48,100 net acres (75 net sections) of highly prospective Montney lands. 



(1) Reflects Company internally estimated "gross" reserves, prepared by a
qualified reserves evaluator effective December 31, 2013 in accordance with the
definitions and provisions contained in the COGE Handbook.


The majority of the existing reserve estimates and production are from the
Halfway and Belloy formations with only four Montney locations included in the
reserve assessment. Crew also acquired underutilized strategic infrastructure
consisting of 130 kilometers of pipelines and over 6,200 hp of field
compression. All of the acquired lands are in what Crew has identified as the
"wet" gas hydrocarbon window. Crew now owns 544 (452 net) Montney sections in
northeast British Columbia of which an estimated 138 net sections are located in
the Montney "oil" window, 238 net sections are located in the Montney "wet" gas
window and 76 net sections are located in the Montney "dry" gas window.


The strategic importance of aggregating this large contiguous block of land is
expected to result in optimal operating efficiencies through:




--  Consolidating working interest in 54 sections to 100% which were
    previously 50%; 
--  Ability to drill longer horizontal wells at preferred orientations; 
--  Economies of scale from optimized pad drilling; 
--  Control of timing and pace of development; and 
--  Additional infrastructure access and ownership. 



Alberta Gas Disposition

Crew has entered into an agreement to dispose of certain petroleum and natural
gas assets focused in the Deep Basin area of Alberta. Total consideration to be
received for the disposition consists of $222 million in cash, before customary
closing adjustments, plus approximately 400 bbls per day of heavy oil production
which is located in Crew's Lloydminster operating area. The disposition is
scheduled to close on or about May 30, 2014 with an effective date of April 1,
2014, subject to satisfaction of customary industry closing conditions. 


The assets to be sold consist of:



--  Current production of 7,000 boe per day (75% natural gas) based on field
    estimates; 
--  Total proved reserves of 34.1 million boe (71% natural gas) (1); 
--  Total proved plus probable reserves of 60.4 million boe (71% natural
    gas) (1); and 
--  254,000 net acres of land. 



(1) Reflects "gross" reserves assigned by the Company's independent reserves
evaluator, Sproule Associates Limited, effective December 31, 2013 in accordance
with the definitions and provisions contained in the COGE Handbook.


The heavy oil assets to be acquired by Crew as consideration consist of:



--  Expected production at closing of 400 boe per day (99% oil) based on
    field estimates; 
--  Total proved reserves of 0.6 million boe (99% oil) (1); 
--  Total proved plus probable reserves of 0.8 million boe (99% oil) (1);
    and 
--  2,750 net acres of land. 



(1) Reflects "gross" reserves assigned by the purchasers independent reserves
evaluator, Sproule Associates Limited, extracted from their report effective
December 31, 2013 prepared in accordance with the definitions and provisions
contained in the COGE Handbook.


Inclusive of all of these transactions, Crew expects to have the following
pro-forma operational and financial attributes:




----------------------------------------------------------------------------
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Post-Transactions Corporate Summary                            Pro-forma (1)
----------------------------------------------------------------------------
Production metrics (boe per day):                                           
  At closing (2)                                                      23,800
  Forecasted average 2014                                    25,500 - 26,500
  Forecasted exit 2014                                       26,000 - 27,000
  Forecasted exit 2015 (4)                                   38,000 - 40,000
Financial metrics                                                           
  Estimated 2014 funds from operations ($ mm)                            200
  Estimated net debt at closing ($ mm)                                   280
Reserves and Land                                                           
  Estimated proved reserves (mmboe) (3)                                 87.2
  Estimated proved plus probable reserves (mmboe) (3)                  146.2
  Montney lands (sections)                                     544 (452 net)
  Total Company acreage (net)                                        831,000
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  Pro-forma assuming transactions completed on dates specified. 
2.  Based on field estimates. 
3.  Based upon the reserve report prepared by the Company's independent
    reserves evaluator, Sproule Associates Limited, effective December 31,
    2013 in respect of the Company's oil and gas interests owned as at such
    date, and after removing the reserves assigned to the Company's Alberta
    Gas assets which are subject to the disposition, and adding the
    internally estimated reserves attributed to the Company's northeast
    British Columbia acquisitions completed in late March, 2014. Reflects
    "gross" reserves as such term is defined in the COGE Handbook. 
4.  Reflects target production based on internal long range planning which
    are subject to change as more definitive capital plans and budgets are
    prepared in respect of 2015.  



Strategic Rationale

Regarding the acquired Montney lands, Crew's CEO, Dale Shwed was quoted as
saying; "The acquired assets fit like integral pieces of a puzzle and are
contiguous to, or have joint interest, with Crew's existing land base.
Operationally, the acquired assets are a great strategic fit that provide the
economies of scale and logistics that are complementary to Crew's existing
operations and future development plans." The acquisition of the joint interest
lands (approximately 54 gross sections) will allow Crew to control the timing
and pace of development of a significant land block at Groundbirch which is
supported by underutilized pipeline infrastructure and field compression. With
75 net sections acquired and a development strategy that includes 8 to 12 wells
per section, this acquisition adds over 600 net drilling locations to our
Montney inventory which now stands at over 2,100 estimated locations. More
importantly, with Montney type curve wells in the Septimus area recently
exhibiting a net present value of $8.2 million per well, the successful
development of only 1.5 net sections of the acquired lands (based on 12.8
development wells) would payout this entire acquisition. 


The disposition of the Alberta gas assets will provide the Company with a
non-dilutive clear line of sight to funding the acceleration of our five year
Montney growth plan. We will be able to focus our resources in a play which, in
2013, achieved a recycle ratio of 3.1x versus our corporate average of 2.3x.
With the disposition of a significant portion (31%) of our proved plus probable
reserves, including future development costs of $394 million, the Company is
well positioned to replace these reserves with the continued development of the
Montney where, prior to these British Columbia acquisitions, only 0.5 TCFE
(12.2%) has been booked out of a previously announced best estimate contingent
resource of 4.1 TCFE. Production rates and expected ultimate recoveries ("EURs")
have continued to improve with the latest subset of wells producing at 6 to 8
mmcf per day with associated liquids of 30 bbls per mmcf (60% condensate). EURs
have steadily improved since 2011 (2.8 bcf/well) to 2012 (3.2 bcf/well) to 2013
(4.3 bcf/well) and are expected to continue to improve over time as Crew
continues to better understand the Montney reservoir and how to apply new
technologies related to drilling and completion practices. 


Operations Update

Crew drilled 21 (19.0 net) wells in the first quarter. The Company drilled five
(5.0 net) Montney wet gas wells, nine (7.6 net) heavy oil wells at Lloydminster,
six (6.0 net) oil wells at Princess and one (0.4 net) oil well at Pine Creek.
Crew currently has two rigs operating in northeast British Columbia drilling a
two well pad at Groundbirch and a six well pad at Septimus. Crew's results at
Septimus continued to be strong with two wells coming on production at the end
of the quarter at 6 to 8 mmcf per day. Crew re-tested the fourth quarter 2013,
1-24 oil well at Tower for 11 days with an average flow rate of 720 boe per day
(540 bbl per day of oil) validating light oil production 11 kilometers northwest
of the Company's existing Montney oil production. This well is expected to be
tied-in during the third quarter. Current production based on field estimates is
30,400 boe per day which is inclusive of the 1,400 boe per day acquisition which
closed in late March. Production in the first quarter is expected to average
approximately 28,000 boe per day as the majority of first quarter drilled wells
came on production late in March. Extreme weather conditions experienced in
western Canada in the first quarter caused operational delays and outages and
there were an abnormally high number of wells which were required to be shut-in
due to offsetting drilling operations in the Company's Lloydminster operations.
In addition, the compressor at Crew's Sierra property in northeastern British
Columbia (approximately 350 boe per day) experienced a fire late in 2013 and the
Company elected to accept an insurance settlement rather than replacing the
equipment and restoring production levels. 


After spring break-up subsides, Crew's plans include the following:



--  Complete two Groundbirch wells; 
--  Complete a six well pad at Septimus; 
--  Spud a five well pad at Septimus; 
--  Spud a six well pad at Tower; 
--  Resume drilling operations at Lloydminster and Princess; and 
--  Begin construction of the Tower oil facility and the new Septimus gas
    facility.



Expanded Capital Program

After the closing of the Alberta Gas disposition, Crew plans to expand its
exploration and development capital program by $39 million to $285 million. The
expanded program will be entirely focused on Montney development with the
drilling well count increasing by 50% to 30 wells from the previously budgeted
20 wells to supply production volumes to the new 60 mmcf per day plant at
Septimus expected to be onstream early in the third quarter of 2015. Capital
expenditures for Lloydminster (25 wells and $36 million capital) and Princess
(16 wells and $39 million capital) remain as previously forecasted.


Advisors

Cormark Securities Inc. has acted as financial advisor to Crew on the
transactions, TD Securities Inc. acted as strategic advisor on the transactions
and Macquarie Capital Markets Canada Ltd. and GMP Securities LP have acted as
strategic advisors to Crew with respect to the Montney acquistions.


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" "forecast" and similar expressions are
intended to identify forward-looking information or statements. In particular,
but without limiting the foregoing, this news release contains forward-looking
information and statements pertaining to the following: various matters related
to the proposed transactions disclosed herein including completion of the
proposed Alberta Gas asset disposition (and related heavy oil acquisition) and
acquisition and the timing thereof, satisfaction of closing conditions thereto,
the amount of and use of proceeds, the effect of the transaction on continuing
operations and the benefits anticipated to be derived therefrom,
post-transaction strategy, plans, opportunities and operations; Crew's plans to
expand its 2014 capital program and budget on a post-transaction basis; the
anticipated potential of Crew's asset base; the volume and product mix of Crew's
oil and gas production; production estimates including 2014 forecast average and
exit productions and 2015 estimated exit target; estimated 2014 funds from
operations; projected debt levels including forecast 2014 net debt on a
post-transaction basis; future oil and natural gas prices and Crew's commodity
risk management programs; future liquidity and financial capacity; future
results from operations and operating metrics; anticipated reductions in
operating costs; future costs, expenses and royalty rates; future interest
costs; the exchange rate between the $US and $Cdn; future development,
exploration, acquisition and development activities and related capital
expenditures and the timing thereof; the number of wells to be drilled,
completed and tied-in and the timing thereof; the amount and timing of capital
projects; the total future capital associated with development of reserves and
resources; and methods of funding our capital program, including possible
non-core asset divestitures and asset swaps. 


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: that all conditions to closing of the Gas
disposition are satisfied or waived; 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. There are a number of assumptions associated with the potential of
resource volumes including the quality of the Montney reservoir, future drilling
programs and the funding thereof, continued performance from existing wells and
performance of new wells, the growth of infrastructure, well density per
section, and recovery factors and discovery and development necessarily involves
known and unknown risks and uncertainties, including those identified in this
press release. Included herein is an estimate of Crew's year end net debt based
on assumptions as to cash flow, capital spending in 2014 and the other
assumptions utilized in arriving at Crew's 2014 capital budget on a
post-transaction basis. To the extent such estimate constitutes a financial
outlook, it is included herein to provide readers with an understanding of
estimated capital expenditures and the effect thereof on debt levels and readers
are cautioned that the information may not be appropriate for other purposes.


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 statements, 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; the potential for variation in the quality of the Montney
formation; 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.


Reserves

The recovery and reserves estimates contained herein are estimates only and
there is no guarantee that the estimated reserves will be recovered. In relation
to the disclosure of estimates for individual properties, such estimates may not
reflect the same confidence level as estimates of reserves and future net
revenue for all properties, due to the effects of aggregation. 


Resource Estimates

This news release contains references to estimates of oil and gas classified as
Contingent Resources in the Montney region in northeastern British Columbia
which are not, and should not be confused with, oil and gas reserves. Such
estimates are based upon independent resource evaluations effective as at April
30, 2013 and May 31, 2013, respectively, prepared in accordance with the
Canadian Oil and Gas Evaluation Handbook. Such estimates are subject to a number
of cautionary statements, assumptions, risks, positive and negative factors
relevant to the estimates and contingencies, the details of which were set forth
in Crew's previously disseminated press release dated July 9, 2013. Accordingly,
readers are referred to and encouraged to review the sections entitled "Montney
Resource Evaluation", "Definitions of Oil and Gas Resources and Reserves" and
"Information Regarding Disclosure on Oil and Gas Reserves, Resources and
Operational Information" in the July 9, 2013 press release for applicable
definitions, cautionary language, explanations and discussion of resources
estimated herein, all of which is incorporated herein by reference.


Test Results and Initial Production Rates

A pressure transient analysis or well-test interpretation has not been carried
out and thus certain of the test results provided herein should be considered to
be preliminary until such analysis or interpretation has been completed. Test
results and initial production rates disclosed herein may not necessarily be
indicative of long term performance or of ultimate recovery.


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. Given that the value ratio
based on the current price of crude oil as compared to natural gas is
significantly different than the energy equivalency of 6:1, utilizing a 6:1
conversion basis may be misleading as an indication of value. 


Crew is an oil and gas exploration 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
dale.shwed@crewenergy.com


Crew Energy Inc.
John Leach
Senior Vice President and C.F.O.
(403) 231-8859
john.leach@crewenergy.com


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