Orion Oil & Gas Corporation has declared the results of its 2010 year-end oil and gas reserves evaluation conducted by GLJ Petroleum Consultants (GLJ) and Sproule Associates Limited (Sproule) as at December 31, 2010.

Highlights for year-end 2010 compared to year-end 2009 include:

• Proved reserves of 16.3 million ("MM") boe, an increase of 32% • Proved plus Probable ("2P") reserves of 24.8 MMboe, an increase of 34% • Oil and liquids account for 48% of 2P reserves • Net Present Value of 2P reserves (discounted at 10% before tax) increased 32% ($106 MM), to $439 MM • 2P reserve life index of approximately 12.6 years based on estimated fourth quarter 2010 production • 2P Reserve Replacement Ratio of approximately 490%

Gary Guidry, President and Chief Executive Officer of Orion, said, "Our strategy to increase production and cash flow with an aggressive capital program during 2010 has been successfully executed. We increased 2P reserves by 34% and added over $100 million in Net Present Value (2P reserves discounted at 10% before tax). Orion is now positioned to generate significant free cash flow over the next 4 to 5 years which we will invest in value growth opportunities."

Tags: Orion Oil & Gas Corporation