Gear Energy Announces $85 Million Asset Acquisition and Increased 2014 Capital Budget - Seite 2

In conjunction with the Acquisition, Gear is pleased to announce that the Board of Directors have approved an increase in the 2014 development capital budget from $70 million to $85 million. The incremental development capital will be directed primarily towards the acquired Assets. We expect to drill an incremental seven horizontal wells and seven vertical wells on the acquired assets, along with 20 recompletions and multiple infrastructure projects that will result in lower operating costs.
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About Gear Energy Ltd.

Gear is a publically traded Canadian exploration and production company with predominantly horizontal heavy oil production in east central Alberta and west central Saskatchewan. The current and ongoing business plan is to continue focusing on being a low cost heavy oil operator, drilling economic wells and acquiring assets on an accretive basis.

FORWARD-LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward looking information includes, among other things, capital expenditure budgets, credit/debt requirements, drilling inventory and locations, and the anticipated benefits of the Acquisition. The words "future", "may", "could", "targeted", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target", "potential" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licenses and leases in the conduct of its business, reliance on third parties, regulatory and royalty regime changes, tax and legislative changes, reliance on key personnel, operational difficulties or failures, unscheduled shut down of facilities, transportation or production, possible failure to achieve the benefits of the Acquisition, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, competition, environmental matters, and insurance or lack thereof.