Kelt Exploration Ltd. has closed its previously announced acquisition of assets at Fireweed, adjacent to the Company's core producing area at Inga, in northeastern British Columbia, for cash consideration of $15.5 million, before closing adjustments. The acquisition has an effective date of April 1, 2013. The Company's available bank credit line has now been increased to $56.0 million.

Summary of Assets Acquired

Current net production is estimated to be approximately 600 BOE per day - 79% natural gas and 21% natural gas liquids. Net operating income for the first six months of 2013 was approximately $1.9 million. Petroleum and natural gas reserves to be acquired were evaluated by an independent third party effective December 31, 2012. Proved developed producing reserves were 1.23 million BOE, with no associated future development costs; An operated compression and dehydration facility with approximately 16 mmcf per day of gross natural gas capacity and 25 kilometres of pipeline that adds to the Company's infrastructure in the area; and The Fireweed assets are a complementary fit with a contiguous land position adjacent to Kelt's Inga exploration and development core area, including 11,227 net acres (15.8 net sections) of land (6,299 net acres with Doig mineral rights and 7,097 net acres with Montney mineral rights).

Tags: Kelt Exploration Ltd.