Santonia Energy Inc. provides the following update.

The Company achieved its published exit production target of 5,000 boe/d in November with the month of November's production averaging in excess of 5,000 boe/d. The increase in production from the October 1, 2012 level of 4,500 boe/d, post the closing of asset sales associated with the Strategic Review Process, is a result of additional volumes from the Company's Cardium resource development brought on production in early November. Based on field estimates, fourth quarter volumes were 4,920 boe/d (30% oil and NGL's) compared to the Company's original guidance of 4,750 boe/d (25% oil and NGL's).

Santonia has also focused on increasing its liquids production. Based on fourth quarter 2012 field estimates, liquids production was 1,460 bbls/d, an increase of 20% from its liquids level on October 1, 2012. Fourth quarter liquids volumes were comprised of 983 bbls/d of condensate and light oil and 477 bbls/d of natural gas liquids.

Current production is between 4,500 and 4,600 boe/d. Production volumes have tracked forecasted declines from November of 2012 (the last date of new well production additions) and current production includes approximately 200 boe/d of temporary restrictions at the Company's Wild River and Clive properties.

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