Marquee Energy Ltd. Announces Michichi Contingent Resource Assessment

CALGARY, AB--(Marketwired - October 16, 2015) - Marquee Energy Ltd. ("Marquee" or the "Company") (TSX VENTURE: MQL) is pleased to announce the results of an independent contingent resources evaluation performed by Sproule Associates Limited ("Sproule") with an effective date of August 31, 2015.

The resource evaluation was prepared in accordance with the Canadian Oil and Gas Evaluation Handbook ("COGEH") and includes the lands held by Marquee as of August 31, 2015 in the Michichi area of Alberta that have development potential for the presence of hydrocarbons within the Detrital and Banff zones (the "Sproule Resource Assessment").

All resource data disclosed herein is as set forth in the Sproule Resource Assessment and reflects only Marquee's working interest share of such resources for the acreage covered by the Sproule Resource Assessment ("Study Area"). The Study Area is limited to the Company's land holdings in the Michichi area of Alberta from Townships 29 to 33 and Ranges 14 to 19W4M. The Company's average working interest in lands containing oil in the Banff and Detrital Formations in the Study Area is approximately 84%.

Sproule is an independent qualified reserves evaluator and also estimated Marquee's proved plus probable reserves in a report with an effective date of December 31, 2014 (the "Sproule Reserves Report"). The estimates in the Sproule Reserves Report do not include Marquee's acquisitions, dispositions, production, and capital program for 2015. The Sproule Resource Assessment represents contingent resource volumes in excess of the booked reserves estimated in the Sproule Reserves Report.

Highlights

The highlights of the Sproule Resource Assessment include:

• The contingent resource estimates contained in the Sproule Resource Assessment demonstrate that targets in the Detrital and Banff zones in the Study Area have significant value and future development potential over and above the current proved plus probable reserves that have been assigned to those lands in the Sproule Reserves Report.
• Discovered Petroleum Initially in Place ("DPIIP") of 357.5 million barrels of oil equivalent ("boe") including 13.2 million barrels of risked best estimate contingent oil resources.
• Best estimate of risked contingent natural gas resource of 41 Bcf (6.8 million boe) and 669,000 barrels of contingent natural gas liquids resource.
• Marquee's contingent resources have been classified as "development pending", the highest project maturity sub-class for contingent resources.
• The Sproule Resource Assessment identifies 219 net prospective drilling locations associated with the contingent resources, and including undeveloped acreage to which proved and probable reserves have been attributed in the Sproule Reserves Report, Marquee estimates that it has more than 300 potential drilling locations at Michichi.

“Our strategy of early entry, land acquisition and infrastructure control, coupled with an extensive geoscience and engineering focus, has now been validated with the recognition of the significant light oil resource potential at Michichi,” commented Richard Thompson, President & CEO of Marquee Energy.

Resource Information

The following table summarizes the results of the Sproule Resource Assessment of Marquee's Michichi assets as of August 31, 2015.

Contingencies

Contingencies associated with contingent resource volumes include only commercial factors; there are no technical contingencies. Specific to this project, the key non-technical contingencies are the following:

• Productivity of reservoir in areas with no tests or production;
• Corporate commitment to develop these assets in a timely fashion;
• Access to infrastructure required to deliver increasing volumes to market;
• Topographical/surface restrictions limiting access;
• Economic conditions, including prices, capital costs, and operating costs.

Risk

Contingent resource volumes and Net Present Values have been risked with a chance of development based on the likelihood that the contingencies identified in the previous section will be resolved. A risk factor of 10% was applied.

Resource Classification and Categorization

The resources were classified in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH) that are consistent with NI 51-101 and used by Sproule.

Petroleum Initially in Place on Company-interest lands were classified as discovered accumulations based on geologic interpretation using existing well data.

The reported DPIIP presented in the Sproule Resource Assessment is a best estimate using deterministic methods. The DPIIP includes lands which have reserves assigned in the Sproule Reserves Report.

Contingent volumes in the Sproule Resource Assessment have been sub classified as development pending, based on historic activity levels and the Company's commitment to developing this project.

Significant positive factors relevant to the estimates include:

• Significant well control and offsetting production
• Repeated commercial success of horizontal wells across a greater areal extent of the
• Company's holdings
• Production data verifying the sustainability of economic production rates from Banff
• and Detrital horizontal wells
• Corporate commitment to develop the asset over a reasonable time frame
• Facilities access enabling full development of the Banff and Detrital on Company interest lands

Significant negative factors include:

• Distance from existing economic production
• Potential for certain areas to not be economic with current OPEX, CAPEX and product pricing
• Requirement for access to the substantial amount of capital which would be required to develop the resource
• Potential for low commodity prices which could impact the economics of development

Field Development

The development of contingent resources for the Michichi area consists of drilling 28 wells in 2019, 32 wells in 2020, 30 wells in 2021, 32 wells per year from 2022 through 2026, and seven wells in 2027. The contingent oil resource schedule has been timed to begin in 2019, when the reserve inventory has been exhausted. The wells will be developed using horizontal multi-stage frac technology, and will be drilled on 160 acre spacing.

Hydrocarbons produced in this area are expected to be processed by third party facilities and/or existing facilities operated by the Company. As such, facility capital costs have not been estimated in the Sproule Resource Assessment. Third party and existing facilities are expected to have the capacity to accommodate the forecasted contingent resources.

CLICK HERE for more information on Contingent Resources and Resources Other Than Reserves ("ROTR").

Corporate Update

In recognition of the challenging cash flow environment, Marquee continues to follow a cost reduction strategy in all areas of the Company's activities including capital expenditures, operating costs and G&A expenditures which recently included: work force reductions in the field and head office; salary freezes and benefit reductions for all staff, a reduction of bank standby fees and suspension of corporate sponsored functions. These measures, coupled with the reductions in capital spending, reductions from its field suppliers and consultants and rationalization and optimization of field operations, will assist Marquee in navigating through this challenging commodity price environment.

Upcoming Conferences

Marquee will present at FirstEnergy's Energy Growth Conference on November 17, 2015 at the Ritz Carlton Hotel in Toronto. Additional details on Richard Thompson's presenting time and webcast registration information will be available on Marquee's website as it becomes available www.marquee-energy.com.

ABOUT MARQUEE

Marquee Energy Ltd. is a Calgary based, junior energy company focused on high rate of return oil development and production. Marquee is committed to growing the company through exploitation of existing opportunities and continued consolidation within its core area at Michichi. The Company's shares are traded on the Toronto Stock Exchange under the trading symbol "MQL.V" and on the OTCQX marketplace under the symbol "MQLXF". An updated presentation and additional information about Marquee may be found on its website www.marquee-energy.com and in its continuous disclosure documents filed with Canadian securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

FORWARD-LOOKING STATEMENTS OR INFORMATION

Certain statements included or incorporated by reference in this news release may constitute forward-looking statements under applicable securities legislation. Such forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information in this news release may include, but are not limited to: the number and quality of future potential drilling and development opportunities; anticipated capital budgets and expenditures; petroleum and natural gas sales; and the size and extent of the Michichi oil fairway.

In addition, statements relating to "reserves" and "resources other than reserves" are by their nature forward-looking information, as they involve an implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future. The reserves and resources estimates provided herein are estimates only and there is no guarantee that the estimated reserves or resources will be recovered. The estimated future net revenue from the production of the disclosed oil and natural gas reserves and resources does not represent the fair market value of these reserves and resources.

Such forward-looking statements or information are based on a number of assumptions all or any of which may prove to be incorrect. In addition to any other assumptions identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain equipment, services and supplies in a timely manner to carry out its activities; the ability of the Company to market crude oil, natural gas liquids and natural gas successfully to current and new customers; the ability to secure adequate product transportation; the timely receipt of required regulatory approvals; the ability of the Company to obtain financing on acceptable terms; interest rates; regulatory framework regarding taxes, royalties and environmental matters; future crude oil, natural gas liquids and natural gas prices; the ability to successfully integrate acquisitions into Marquee's business and management's expectations relating to the timing and results of development activities.

Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking information. These risks and uncertainties include, but are not limited to the Company's ability to economically produce oil and gas from the lands to which contingent resources have been attributed and other material risk factors affecting the Company and its business contained in Marquee's Annual Information Form, which is available under Marquee's issuer profile on SEDAR at www.sedar.com.

The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward -looking information contained in this press release is expressly qualified by this cautionary statement.

DRILLING LOCATIONS

This press release discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the Company's most recent independent reserves report prepared by Sproule as at December 31, 2014 and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are estimates based on the Company's most recent independent contingent resource report prepared by Sproule as at August 31, 2015. Unbooked locations do not have attributed reserves. Of the 300 (net) Michichi drilling locations identified herein, 47 are proved locations, 34 are probable locations and the remaining 219 are unbooked locations. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves or production. The drilling locations on which the Company will actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves or production.

ADDITIONAL ADVISORIES

Boes are presented on the basis of one Boe for six Mcf of natural gas. Disclosure provided herein in respect of Boe 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 from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.