CALGARY, ALBERTA--(Marketwired - Aug. 24, 2015) - GRANITE OIL CORP. ("Granite" or the "Company") (TSX:GXO)(OTCQX:GXOCF) is pleased to announce results from its latest, 100% working interest, horizontal Bakken oil well 102/01-24-003-17W4/00. The well was drilled in the core of the area under the Company's gas injection enhanced oil recovery (EOR) scheme.

The well produced an average of approximately 1,200 Bbl/d of 31° API oil and 600 mscf/d of solution gas over the course of a four day production test and was flowing at approximately 1,150 Bbl/d of 31° API oil and 800 mscf/d of solution gas at a flowing wellhead pressure of 420 psi, while restricted with a five-eighth (5/8) inch choke, at the conclusion of the test.

The well has a total lateral length of 1,250 metres and was completed with 15, eight ton fracs using nitrified water, at an all-in cost of $2.1 million dollars. The total well cost is 25% lower than the original $2.8 million included in the Company's initial guidance for 2015. Granite anticipates that its well costs will continue to decrease over the remainder of the year.

The well will be placed on production in the coming days at a restricted rate in keeping with Granite's focus on managing pool declines.

The high oil deliverability combined with the low gas to oil ratio of the well is a clear demonstration of the effectiveness and efficiency of the Company's gas injection EOR scheme. The Company is currently re-injecting 100% of its tied-in Bakken solution gas into its Alberta Bakken property under this EOR scheme through six horizontal gas injection wells.

Reader Advisory

Forward-Looking Statements. Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or Granite's future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Granite believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this press release contains forward-looking statements pertaining to the following: the effectiveness of the EOR scheme, oil and natural gas production levels, capital expenditure programs, the quantity of reserves, treatment under governmental regulatory regimes, expectations regarding Granite's ability to raise capital and to continually add to reserves through acquisitions and development and projections of market costs.

With respect to forward-looking statements contained in this press release related to Granite's business and operations, Granite has made assumptions regarding, among other things: the legislative and regulatory environments of the jurisdictions where Granite carries on business or has operations, the impact of increasing competition, and Granite's ability to obtain additional financing on satisfactory terms.

Granite's actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors that may include, but are not limited to: volatility in the market prices for oil and natural gas; uncertainties associated with estimating reserves; uncertainties associated with Granite's ability to obtain additional financing on satisfactory terms; geological, technical, drilling and processing problems; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel.

This forward-looking information represents Granite's views as of the date of this document and such information should not be relied upon as representing its views as of any date subsequent to the date of this document. Granite has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate, as results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Test Rates. Test rates are not necessarily indicative of long-term performance or of ultimate recovery. Neither a pressure transient analysis nor a well-test interpretation has been carried out and the data should be considered to be preliminary until such analysis or interpretation has been done.

Contact Information:

Granite Oil Corp.
Michael Kabanuk
President & CEO
(403) 984-6335

Granite Oil Corp.
Jonathan Fleming
(403) 984-6328