Pinecrest Energy Inc. announce its 2013 capital budget, waterflood scheme progress, an increase in its credit facility, hedging programs, and a management change.

2013 Capital Budget

The Board of Directors of Pinecrest has approved a 2013 capital budget of $136MM, focused on drilling, completion, equipping, tie-in and waterflooding the Slave Point light oil resource play in the Company's greater Red Earth core area.

The capital and operating assumptions used in the $136 million budget are as follows:

• 30-34 Slave Point wells, pipelines, facilities, land, waterflood and maintenance • Production exit rate: 6,000 boepd (>98% light oil) • Price Assumption: US $85WTI per bbl • Exchange Rate: 1.00 $USD/CDN • Average crude quality: 39°API • Royalty rate: ~ 8.6% • Operating and transportation costs: $14.00 per bbl

The budget is to be financed with a combination of cash flow and the Company's expanded credit facility, resulting in projected 2013 year end net debt of $136 million and a debt to forward cash flow ratio of approximately 1.0.

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