Longview Announces 2013 Year End Financial Results and Independent Reserve Report

Message to Shareholders

• Funds from operations increased by 5% for the year ended December 31, 2013 to $63.2 million from $60.4 million received in 2012.
• On a per share basis, funds from operations for the year ended December 31, 2013 was $1.35 per share versus $1.29 per share in 2012, an increase of 5%.
• The increase in funds from operations is attributable to strengthening pricing for Canadian oil sales, offset by lower total production.
• The payout ratio for the year ended December 31, 2013 was 105% versus 120% for the year ended December 31, 2012.
• Preservation of a sustainable payout ratio is the cornerstone of our business strategy which is based on the maintenance of a solid balance sheet while funding our dividend payments and capital expenditure programs primarily with funds from operations.

• 2013 Crude oil production remained comparable to 2012, increasing 1%, despite a 13% decrease in capital spending.
• Extreme spring break-up conditions in Southeast Saskatchewan, where 70% of Longview's 2013 capital spending occurred, persisted throughout the second quarter and well into the third quarter of 2013 causing delays in our capital program. Additionally, extreme cold weather conditions created operational execution issues in the latter half of the fourth quarter of 2013. As a result, Longview was unable to add new production volumes to offset natural declines.
• In spite of these delays in executing our 2013 drilling program, our crude oil and natural gas liquids production volumes remained relatively stable when compared to levels reported in 2012, demonstrating the high quality, low decline nature of our existing production base.
• Crude oil revenue, which comprised 87% of total revenue in 2013, increased by 9% to $130.7 million from $120.0 million in 2012.
• Longview realized better crude oil pricing as the price of WTI increased in 2013 averaging US$97.97/bbl versus US$94.19/bbl in 2012.
• The WTI/Canadian oil price differential averaged $7.70/bbl in 2013, comparable to the average WTI/Canadian oil price differential of $7.46/bbl in 2012.
• Operating netbacks increased by 22% from $29.19/bbl in 2012 to $35.69/bbl in 2013.
• Operating costs were held constant with prior year levels as ongoing cost reduction efforts are offsetting inflationary pressures seen throughout the Western Canadian sedimentary basin.
• Royalty expenses remained comparable to those of the prior year whereas royalties as a percentage of sales decreased due to lower rates associated with new production additions.
• Total capital expenditures for the year ended December 31, 2013 amounted to $38.7 million. During 2013, we drilled a total of 18.1 net (24 gross) wells at a 95% success rate.
• As at December 31, 2013, Longview's bank debt was $117.6 million on a credit facility of $200 million (59% drawn) resulting in an unutilized capacity of approximately $82.4 million. Longview currently pays a monthly dividend of $0.04 per common share and has declared and paid $28.1 million of dividends for the year ended December 31, 2013.

Reserve Additions Replace 103% of Production

• At December 31, 2013 we had Proved plus Probable ("2P") Company interest reserves of 37.9 mmboe with proved reserves representing 51% of the total. Our 2013 capital program replaced 103% of production adding 2.2 mmboe of 2P reserves.
• Finding, Development & Acquisition ("FD&A") cost was $31.45 /boe including the change in Future Development Capital ("FDC"), resulting in a one year recycle ratio of 1.0x using our 2013 annual operating netback of $32.57/boe.
• Longview's December 31, 2013 Net Asset Value ("NAV") is $11.23/share at a 10% discount rate on a pre-tax basis.
• The Corporation's 2P Reserve Life Index ("RLI") is 17.9 years using our fourth quarter 2013 average production rate.

Commodity Hedging Program

• Longview's hedging program for calendar 2014 includes crude oil hedges of 2,000 bbls/d at $94.84/bbl for January to December 2014.
• The Corporation will continue to hedge a portion of its production in the future in order to provide stability to cash flow in order to fund our dividend payments and capital expenditure program.

Possible Transportation Disruption

• On March 24, 2014, the Corporation learned that due to a safety order from the National Energy Board, the Nevis North and Nevis South meter stations on the Nova Gas Transmission Ltd. ("NGTL") system are to be 100% restricted beginning on or before April 3, 2014. The restriction may affect Longview's ability to ship natural gas produced at its Nevis property and impact its crude oil and NGLs production. For the year ended December 31, 2013, our Nevis property produced approximately 570 bbl/d of crude oil, 165 bbl/d of NGLs and 3,880 mcf/d of natural gas. As of March 27, 2014, NGTL has provided no information as to the length of the restriction and the Corporation has yet to determine the extent, if any, of the impact on our production volumes.

Looking Forward

• Longview's business strategy is based on providing shareholders with attractive long term returns by exploiting our assets in a financially disciplined manner and by acquiring additional long-life oil and gas assets of a similar nature. Longview has a base decline rate of approximately 19% which allows the Corporation to maintain production with a modest level of capital expenditures, as demonstrated during 2013 and 2012.
• The 2014 drilling program is budgeted to increase by 44% from 2013 spending levels and will focus on the ongoing development of light oil reserves at 11 project areas in both Saskatchewan and Alberta. The majority of the 29 gross (22.3 net) wells in our 2014 drilling program are expected to qualify for reduced royalty rates and will be directed towards areas where we have existing infrastructure in place resulting in lower operating costs and comparatively high rates of return. In addition, approximately 14% of our total capital budget will be allocated to waterflood enhancement and facility improvements at seven project areas designed to increase reservoir pressures and establish additional drilling locations.
• In order to fund the expansion of our capital development program, Longview pared back its monthly dividend to four cents per common share in December 2013. Longview anticipates that this strategy will lead to a 20% increase in cash flow per share, 16% increase in operating netbacks and 12% increase in crude oil production in 2014, with a payout ratio of 102%. This is supported by our expected base decline rate of 19%, which is among the lowest in the industry.

Financial Statements and MD&A

• This press release should be read in conjunction with Longview's audited financial statements for the year ended December 31, 2013 together with the notes thereto, and Management's Discussion and Analysis for the three months and year ended December 31, 2013 which have been prepared in accordance with International Financial Reporting Standards ("IFRS") and posted on our website at www.longviewoil.com and filed under our profile on SEDAR at www.sedar.com.

APPENDIX 1 - Reserves Summary

Longview engaged our independent qualified reserves evaluator Sproule Associates Ltd. ("Sproule") to update the reserves analysis for the Company in accordance with National Instrument 51-101 and the COGE Handbook. Reserves and production information included herein is stated on a Company Interest basis (before royalty burdens and including royalty interests receivable) unless noted otherwise. This summary contains several cautionary statements that are specifically required by NI 51-101. In addition to the detailed information disclosed in this press release, more detailed information on a net interest basis (after royalty burdens and including royalty interests) and on a gross interest basis (before royalty burdens and excluding royalty interests) will be included in Longview's Annual Information Form ("AIF") and will be available at www.longviewoil.com and www.sedar.com.

Highlights - Company Interest Reserves (Working Interests plus Royalty Interests Receivable)

Company Interest Reserves (Working Interests plus Royalty Interests Receivable)

Summary as at December 31, 2013

Proved plus Probable reserve additions for Company Interest Reserves were 2,232 mboe in 2013 which replaced 103% of annual production of 2,173 mboe.

Gross Working Interest Reserves (Working Interest only)

Summary as at December 31, 2013

Present Value of Future Net Revenue using Sproule price and cost forecasts ⁽¹⁾⁽²⁾
($000)

Sproule Price Forecasts

The present value of future net revenue at December 31, 2013 was based upon crude oil and natural gas pricing assumptions prepared by Sproule effective December 31, 2013. These forecasts are adjusted for reserve quality, transportation charges and the provision of any applicable sales contracts. The price assumptions used over the next seven years are summarized in the table below:

Net Asset Value using Sproule price and cost forecasts (before income taxes)

The following net asset value ("NAV") table shows what is normally referred to as a "produce-out" NAV calculation under which the current value of the Company's reserves would be produced at forecast future prices and costs. The value is a snapshot in time and is based on various assumptions including commodity prices and foreign exchange rates that vary over time.

Gross Working Interest Reserves Reconciliation

Finding, Development & Acquisitions Costs ("FD&A") ^(1)(2)(3)

2013 FD&A Costs - Gross Working Interest Reserves excluding Future Development Capital

NI 51-101
2013 FD&A Costs - Gross Working Interest Reserves including Future Development Capital

Forward-Looking Statements

Certain information regarding Longview set forth in this press release, including management's assessment of the Corporation's future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward looking statements. Such statements represent Longview's internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of capital expenditures or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Longview believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Longview's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Longview.

In particular, forward-looking statements included in this press release include, but are not limited to, statements with respect to Longview's business strategy; the Corporation's dividend policy; the Corporation's hedging program and its plans to hedge a portion of its production in the future; expected restrictions on the south meter stations on the NGTL and the effect of such restrictions on Longview's production and its ability to ship natural gas produced at its Nevis property; Longview's plans to exploit its assets in a financially disciplined manner and to acquire additional long-life oil and gas assets of a similar nature; the Corporation's expectations as to an increased 2014 drilling program and the focus of such drilling program; Longview's expectations that the wells in its 2014 drilling program will qualify for reduced royalty rates and will be directed towards areas where the Corporation existing infrastructure in place and the effect on operating costs and rates of return; anticipated allocation of the Corporation's total capital budget to waterflood enhancement and facility improvements at seven project areas designed to increase reservoir pressures and establish additional drilling locations; anticipated effect of reduction in dividend on cash flow per share, operating netbacks, crude oil production and the Corporation's payout ratio and base decline rate; and the Corporation's anticipated drilling, development and recompletion activities. In addition, statements relating to "reserves" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.

These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Corporation's control, including, but not limited to, the impact of general economic conditions; volatility in market prices for crude oil and natural gas; industry conditions; volatility of commodity prices; currency fluctuation; imprecision of reserve estimates; liabilities inherent in crude oil and natural gas operations; environmental risks; incorrect assessments of the value of acquisitions and exploration and development programs; competition from other producers; the lack of availability of qualified personnel or management; changes in tax laws, royalty regimes and incentive programs relating to the oil and gas industry; changes to legislation and regulations and how they are interpreted and enforced; hazards such as fire, explosion, blowouts, cratering, and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; unexpected drilling results; changes or fluctuations in production levels; risk that the expected restrictions on the south meter stations on the NGTL will affect Longview's production and its ability to ship natural gas produced at its Nevis property; delays in anticipated timing of drilling and completion of wells; stock market volatility; ability to access sufficient capital from internal and external sources and the other risks considered under "Risk Factors" in Longview's Annual Information Form, which is available on www.sedar.com and www.longviewoil.com.

With respect to forward-looking statements contained in this press release, Longview has made assumptions regarding, among other things: current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil and natural gas; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates; future operating costs; that the Corporation will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; availability of funds for the payment of dividends and our capital program; that the Corporation's conduct and results of operations will be consistent with its expectations; that the Corporation will have the ability to develop the Corporation's properties in the manner currently contemplated; that current or, where applicable, proposed assumed industry conditions, laws and regulations will continue in effect or as anticipated; and the estimates of the Corporation's production and reserves volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide shareholders with a more complete perspective on Longview's future operations and such information may not be appropriate for other purposes. Longview's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Corporation will derive there from. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and the Corporation disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Advisory

Any references in this news release to test rates or initial production rates ("IP"), including IP rates of 30 days or less, are useful in confirming the presence of hydrocarbons, however, such rates are not necessarily indicative of long-term performance or ultimate recovery and such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Corporation.

Non-GAAP Measures, Definitions and Abbreviations

The Corporation discloses several financial measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or "GAAP"), such as funds from operations and payout ratio. Management believes that these financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Corporation's principal business activities. Longview's method of calculating these measures may differ from other companies, and accordingly, they may not be comparable to similar measures used by other companies. Please see the Corporation's most recent management's discussion and analysis, which is available on www.sedar.com for additional information about these financial measures.

"Boe" may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (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.

"Funds from operations" represents cash provided by operating activities, adjusted for expenditures on decommissioning liability, changes in non-cash working capital and interest on bank indebtedness.

"Payout ratio" is calculated as cash dividends declared and capital expenditures divided by funds from operations.

"Working capital deficit" includes trade and other receivables, prepaid expenses and deposits, trade and other accrued liabilities and due to parent.

The following abbreviations used in this press release have the meanings set forth below: