Hanwei Energy Services Announces Initial NI 51-101 Compliant Oil & Gas Reserves Report

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 23, 2014) - Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), is pleased to announce that Sproule Associates Limited ("Sproule"), an independent qualified reserves evaluator, has prepared a report as of August 31, 2014 (the "Reserves Report") estimating reserves data and future net revenues for the Company's oil and gas properties in Leduc, Alberta (the "Leduc Lands"), in accordance with National Instrument 51-101.

The Reserves Report is the first reserves report issued by the Company since the acquisition of its Leduc Lands was completed and announced on May 5, 2014 (the "Acquisition"). The Reserves Report estimates as of August 31, 2014, total proved reserves (1P) at 547.4 Mboe (thousands of barrels of oil equivalent). Of note the vendor to the Acquisition commissioned a reserves report dated March 31, 2013 (the "Vendor Report" which was also prepared by Sproule) that previously indicated total oil and gas proved reserves (1P) in the Leduc Lands of 325.9 Mboe. The 68% increase in the proved oil and gas reserves of the Leduc Lands is principally due to the Company's initial work over activities undertaken prior to August 31, 2014.

In addition, the Reserves Report indicated total proved and probable oil and gas reserves (2P) of 1,198.1 Mboe (as compared to the Vendor Report indicating previous proved and probable reserves (2P) of 802 Mboe representing a 49% increase). The estimated net reserves of the Leduc Lands and future net revenues before income tax using various discount rates is summarized in the following table:

		Remaining Reserves					Net Present Value After Income Taxes ($'000's)
		Gross		Company			Discount Rate
Category (Mboe)		100%		Gross	Net		0%	5%	10%	15%	20%
Proved Developed Producing		307.3		249.3	205.1		3,656	3,336	3,075	2,857	2,674
Proved Undeveloped		240.1		240.1	197.8		5,609	4,601	3,806	3,167	2,644
Total Proved		547.4		489.3	402.9		9,265	7,937	6,881	6,024	5,318
Probable Developed Producing		215.5		197.1	160.1		5,234	3,764	2,906	2,364	2,000
Probable Undeveloped		435.2		435.2	366.8		8,201	5,877	4,296	3,170	2,336
Total Probable		650.7		632.3	526.9		13,436	9,641	7,202	5,534	4,336
Total Proved + Probable		1,198.1		1,121.7	929.8		22,700	17,578	14,083	11,559	9,654

The reserves shown above are estimates only and should not be construed as exact quantities. Proved reserves are those reserves which can be estimated with a high degree of certainty to be recoverable; probable reserves are those additional reserves, which are less certain to be recovered than proved reserves. A complete copy of the Reserves Report has been filed on SEDAR. The content of this press release has been reviewed by Sproule, as the Company's independent qualified reserves evaluator.