Petroshale Inc (PSH) Share Price

FORGOT WE OWNED THiS DOG ----I said to the wife next................. ..thing I knew I was locked out of the house, and had to share supper with the dog

Petroshale letter to Shareholders..

Throughout calendar 2013, we enhanced PetroShale's strategic position, which included changing the Company's year end to December 31. As a result of this change, this report provides our results and discusses our achievements for the six month period from July 1, 2013 to December 31, 2013.

As part of our ongoing strategy to acquire and consolidate working interests in the prolific Williston Basin in North Dakota, we completed several acquisitions that we anticipate will contribute to growth in production, reserves and cash flows. In August, 2013, we partnered with Slawson Exploration Inc. ("Slawson"), one of the largest private operators in the Williston Basin, to acquire certain assets within the Stockyard Creek field (situated in southern Williams County, North Dakota). These assets included 106 net leased acres giving the Company a 5.5% interest in a 17 well drilling program over three 640 acre sections. The Stockyard Creek assets are operated by Slawson, and to date include the successful drilling and completion of five wells, including four new wells that came on production in February 2014.

Subsequent to the end of 2013, two additional acquisitions were completed. The first was the acquisition of the North Antelope Project in McKenzie County, North Dakota, operated by EOG, a large and experienced operator in shale oil plays, including the Bakken. The Antelope Project provides PetroShale with an 18.75% working interest in a proposed drilling unit, which has been spaced for the drilling of 8 wells. Based on current capital plans, we expect results from those wells should have a positive impact on PetroShale's production and cash flows later in 2014. The second acquisition we completed after year end 2013 was the purchase of 245 net held-by-production acres, giving the Company an approximate 19% working interest in a 1,280 acre drilling unit in Williams County, North Dakota.

As a result of our activities to date, PetroShale's production has grown to approximately 240 boe/d currently. Following the acquisitions completed in the first quarter of 2014, our pro forma P+P reserves increased to approximately 2,188 Mboe (1,750 Mboe net of royalty), with a NPV10 of $44.1 million.

In addition to growing the Company's asset base, we also took steps in the latter half of 2013 to strengthen our Board and management team. PetroShale's management team and Board have extensive experience in managing and governing high-growth oil and natural gas entities. We look forward to a focused expansion of our operations in the Williston Basin.

We appreciate your continued support of PetroShale, and look forward to updating you on our progress and achievements in our next financial report, for the first quarter ended March 31, 2014.

M. Bruce Chernoff, Executive Chairman and CEO

Petroshale (PSH)$1.34 Cdn. PSHIF. $1,204 USD.. it's a long read.. Will get to it later.. hank

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
As at As at
(thousands of Canadian dollars) (unaudited) NOTE September 30, 2013 June 30, 2013
ASSETS
Current assets
Cash and cash equivalents $ 2,217 $ 2,192
Restricted cash 11 70 70
Accounts receivable 830 768
Fair value of financial instruments 8 4 -
Prepaid expenses 42 27
Total current assets 3,163 3,057
Non-current assets
Exploration and evaluation 4 1,880 1,910
Property and equipment 5 9,266 8,261
Total property and equipment 11,146 10,171
Fair value of financial instruments 8 5 -
Total assets $ 14,314 $ 13,228
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 1,388 $ 1,441
Note payable – related party 7 - 2,208
Total current liabilities 1,388 3,649
Non-current liabilities
Notes payable – line of credit 7 1,018 -
Note payable – related party 7 2,163 -
Decommissioning provision 6 279 283
Total liabilities 4,848 283
SHAREHOLDERS’ EQUITY
Share capital 28,948 28,948
Warrants 1,002 1,002
Contributed surplus 1,613 1,460
Deficit (22,570) (22,483)
Accumulated other comprehensive income 473 369
Total Shareholders’ equity $ 9,466 9,296
Subsequent Events 14
Total Shareholders’ equity and liabilities $ 14,314 $ 13,228
See accompanying notes to the consolidated interim financial statements.
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Three months ended Three months ended
(thousands of Canadian dollars) (unaudited) NOTE September 30, 2013 September 30, 2012
Revenues
Oil and natural gas revenue, net of royalties $ 1,274 $ 448
Unrealized gain on financial derivatives 9 -
Total revenue 1,283 448
Expenses
Production and operating 173 119
Depletion and depreciation 434 185
Impairment of exploration and evaluation - 1,079
General and administrative 559 268
Share based compensation 9 153 392
Total expenses 1,319 2,043
Loss from operations (36) (1,595)
Finance income - 4
Finance expense (52) -
Foreign exchange gain (loss) 1 (14)
Net finance expenses (51) (10)
Net loss for the period (87) (1,605)
Currency translation adjustment 104 293
Comprehensive income (loss) for the period $ 17 $ (1,312)
Net loss per share
Basic 10 $ 0.00 $ (0.06)
Diluted 10 $ 0.00 $ (0.06)
See accompanying notes to the consolidated interim financial statements.
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
For the three months ended September 30, 2013 and 2012
(unaudited)
(thousands of Canadian dollars)
Non Voting Voting
Common Shares Common Shares
Contributed
Surplus
Other
Comprehensive
Shares Amount Shares Amount Warrants Income Deficit Total
Balances, June 30, 2012 6,700,000 $ - 22,173,552 $ 28,909 $ 1,002 $ 567
$
(5) $ (1,354) $ 29,119
Share-based compensation - - - - - 392 - - 392
Net loss for the period - - - - - - - (1,605) (1,605)
Other comprehensive gain for the period - - - - - - 293 - 293
Balances, September 30, 2012 6,700,000 $ - 22,173,552 $ 28,909 $ 1,002 $ 959 $ 288 $ (2,959) $ 28,199
Balances, June 30, 2013 6,700,000 $ - 22,307,552 $ 28,948 $ 1,002 $ 1,460 $ 369 $ (22,483) $ 9,296
Share-based compensation - - - - - 153 - - 153
Net loss for the period - - - - - - - (87) (87)
Other comprehensive gain for the period - - - - - - 104 - 104
Balances, September 30, 2013 6,700,000 $ - 22,307,552 $ 28,948 $ 1,002 $ 1,613 $ 473 $(22,570) $ 9,466
See accompanying notes to the consolidated interim financial statements.
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
Three months ended Three months ended
(thousands of Canadian dollars) (unaudited) September 30, 2013 September 30, 2012
Cash provided by (used in)
Operating Activities
Net loss for the period $ (87) $ (1,605)
Items not affecting cash
Depletion and depreciation 434 185
Impairment of exploration and evaluation assets - 1,079
Share based compensation 153 392
Unrealized (gain) loss on financial derivative assets (9) -
Change in non-cash working capital 134 113
625 164
Investing activities
Acquisition of property and equipment (958) -
Exploration and evaluation assets (10) (2,386)
Additions to property and equipment (613) -
(1,581) (2,386)
Financing activities
Proceeds from note payable – line of credit 973 -
973 -
Change in cash and cash equivalents 17 (2,222)
Effect of foreign exchange rates on cash and cash equivalents 8 208
Cash and cash equivalents, beginning of period 2,192 9,182
Cash and cash equivalents, end of period 2,217 7,168
See accompanying notes to the consolidated interim financial statements.
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NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)
1. BUSINESS AND NATURE OF OPERATIONS
PetroShale Inc. (formerly Algonquin Oil & Gas Limited) (the "Company") is a publicly traded resource
company formed to acquire, develop and explore for petroleum and natural gas production. The Company
currently operates in two geographic regions, Canada and the United States.
These consolidated interim financial statements include the accounts of the Company and its wholly-owned
subsidiaries, PetroShale (US), Inc., GEL Exploration Limited, Zama Production Limited, PetroShale (US)
Production, LLC (“Production LLC”) and PetroShale (US) Land 1, LLC (“Land”).
The head office of PetroShale Inc., principal address and records are located at 1801 Broadway, Suite 920,
Denver, CO 80202. The registered office of PetroShale Inc. is located at 1250, 639 Fifth Ave. S.S., Calgary,
Alberta Canada, T2P 0M9.
2. BASIS OF PREPARATION
These consolidated interim financial statements and the notes thereto should be read in conjunction with the
Company’s audited financial statements as at and for the year ended June 30, 2013, and do not include all of
the information required for full annual financial statements.
These consolidated interim financial statements are unaudited and have been prepared in accordance with
IAS 34 Interim Financial Reporting using accounting policies consistent with International Financial
Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and
interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").
The accounting policies applied for the consolidated interim financial statements as at and for the three
months ended September 30, 2013 are consistent with those applied for the financial statements as at and for
the year ended June 30, 2013 which have been prepared on the basis of IFRS issued by the IASB and
interpretations of the IFRIC, except as noted below.
These consolidated interim financial statements were approved by the Company's Board of Directors on
November 21, 2013.
On January 1, 2013, the Company adopted new standards with respect to consolidations (IFRS 10), joint
arrangements (IFRS 11), fair value measurements (IFRS 13) and amendments to financial instrument
disclosures (IFRS 7). The adoption of these standards had no impact on the amounts recorded in the financial
statements as at January 1, 2013 or on the comparative periods.
3. ACQUISITIONS
Stockyard Acquisition
On August 19, 2013 the Company, in partnership with Slawson Exploration Company, Inc. (“Slawson”),
entered into a purchase and sale agreement (“Stockyard Acquisition”) with Samson Oil & Gas Limited
(“Samson” or “Seller”) to purchase certain assets within the Stockyard Creek field, southern Williams
County, North Dakota, for a purchase price of US$934,000 dollars.
The net assets to the Company consist of approximately; (i) 5.5% working interest in 106 net leased acres, (ii)
an interest in the drilled, and yet to be completed, middle Bakken Sail & Anchor well and (iii) a share of the
operating salt water gathering and disposal system.
As part of the Stockyard Acquisition, the parties acknowledge that if Samson performs certain obligations the
Company will remit an additional US$178,000 for a working interest in an additional well. As at September
30, 2013 it is unknown if Samson will meet its obligations, therefore in accordance with IFRS 37 –
Provisions, Contingent Liabilities and Contingent Assets the value of this asset has not been recorded as part
of the purchase price allocation until the occurrence of the obligations are probable.
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The purchase price is summarized as follows (in thousands):
CONSIDERATION (US$934,000) $ 965
NET ASSETS ACQUIRED AT FAIR VALUE
Property and equipment $ 972
Asset retirement obligation (7)
$ 965
4. EXPLORATION AND EVALUATION ASSETS
Exploration and evaluation (“E&E”) assets consist of the following:
(in thousands)
Petroleum and
Natural Gas
Properties
Balance as at June 30, 2012 18,909
Additions 3,159
Transfers (4,665)
Impairment (15,625)
Effect of foreign exchange rate 132
Balance as at June 30, 2013 $ 1,910
Additions 10
Transfers -
Impairment -
Effect of foreign exchange rate (40)
Balance as at September 30, 2013 $ 1,880
E&E assets represent the costs incurred on the development of wells that have not yet reached the stage of
commercial production or the determination of technical viability. Once technical feasibility and commercial
viability of production are demonstrated, E&E assets are tested for impairment and are reclassified to
property and equipment.
For the three months ended September 30, 2013 and 2012 the Company recognized $nil and $1.1 million,
respectively of impairment expense related to the MonDak project. Impairment expense related to wells that
reached technical feasibility and commercial viability was $1.1 million. There was no impairment related to
capitalized leasehold costs.
The impairment of the wells was based on the difference between the year-end net book value of the assets
and the estimated recoverable amount and was recorded as impairment expense in the statement of operations
with the offset charged against exploration and evaluation. The impairment of leasehold costs was estimated
using current economic conditions in the same geographical area with similar geologic features as the
Company’s leasehold positions.
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5. PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
(in thousands) Office
Petroleum and
Natural Gas
Properties Total
Balance as at June 30, 2012 15 2,032 2,047
Acquisition of petroleum and natural gas properties - 5,665 5,665
Additions 21 673 694
Transfers - 4,665 4,665
Impairment (3,749) (3,749)
Depletion, depreciation and amortization (6) (1,063) (1,069)
Effect of foreign exchange rate 8 8
Balance as at June 30, 2013 $ 30 $ 8,231 $ 8,261
Acquisition of petroleum and natural gas properties - 965 965
Additions 6 594 600
Depletion, depreciation and amortization (2) (432) (434)
Effect of foreign exchange rate (1) (125) (126)
Balance as at September 30, 2013 $ 33 $ 9,233 $ 9,266
Depletion, Depreciation, Amortization and Future Development Costs
The Company recorded $434,000 and $185,000 to depreciation and depletion for the three month periods
ended September 30, 2013 and 2012, respectively, which included an estimated $1.3 million of future
development costs associated with proved plus probable undeveloped reserves.
6. DECOMMISSIONING LIABILITIES
The following table presents the decommissioning liabilities;
(in thousands)
September
30, 2013
June 30,
2013
Beginning balance $ 283 $ 207
Acquisition of petroleum and natural gas properties 7 39
Additions - 15
Revisions of estimated cash flows (13) 15
Accretion 2 6
Effect of foreign exchange rate - 1
Total 279 283
The Company's provision consists of remediation obligations resulting from its ownership interests in
petroleum assets. The total obligation is estimated based on the Company's net working interest in each well
site, estimated costs to return these sites to their original condition and costs to plug the wells and the
estimated timing of the costs to be incurred in future years.
The total undiscounted amount of estimated cash flows required to settle the obligation at September 30,
2013 is $402,000 which has been discounted at the risk free rate of approximately 3.0%, includes an inflation
factor of approximately 1.5% on the costs of decommissioning and assumes that the liabilities are settled over
the next 50 years in accordance with estimates prepared by independent engineers.
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7. LONG TERM DEBT
Revolving credit facility
On August 6, 2013 Production LLC entered into a three year US$50 million dollar revolving line of credit
with a 36 month term, expiring July 31st, 2016. The initial borrowing base is US$3.0 million secured by the
assets of Production LLC. The amount of the facility is subject to a borrowing base test performed on a
periodic basis and at least twice annually by the lenders, based primarily on reserves and using commodity
prices estimated by the lenders as well as other factors. A decrease in the borrowing base could result in a
reduction to the credit facility, which may require a repayment to the lenders. This facility includes a 1%
origination fee, a 0.5% fee on available but undrawn funds, prime plus 0.5% interest with a 4.0% interest
minimum, with no parent company guarantees. The revolving credit facility is subject to financial and nonfinancial
covenants. The financial covenants consist of an interest rate coverage ratio, which the Company
shall not permit, as of the last day of each fiscal quarter the ratio of earnings before interest, taxes,
depreciation, amortization, exploration expense and other non-cash charges to income (“EBITDAX”) to
interest expense for the four fiscal quarter period then ended, to be less than 3:00 to 1:00 and a current ratio,
which the Company shall not permit the current assets to current liabilities to be less than 1.00 to 1.00.
Current assets shall mean all assets, in accordance with IFRS, included as current assets on the balance sheet
plus the then current unused portion of the revolving credit facility and excluding the fair value of any
financial instruments classified as current assets. Current liabilities shall mean all liabilities which would, in
accordance with IFRS, be included in current liabilities, but excluding current maturities in respect to the
revolving credit facility (both principal and interest), and the fair value of any financial instruments classified
as current liabilities. As at September 30, 2013 the Company is in compliance with all of its financial and
non-financial covenants.
As at September 30, 2013 the Company accrued approximately $5,000 of interest expense, which is included
in accounts payable.
Revolving credit facility- Related Party
On October 17, 2012 the Company entered into a debt instrument with a Trust of an individual that is both:
(i) a principal with Slawson Exploration Company, Inc. ("Slawson Exploration"), the Company’s strategic
partner in the Williston Bakken; and (ii) a principal with Alameda Energy, Inc., a shareholder of the
Company which owns 6.7 million non-voting shares of the Company. On July 25, 2013 the Company entered
into an amendment, which restructured the loan. The principal terms of the restructuring are as follows; (i)
the note shall become a US$2.1 million dollar revolving credit facility, which matures on October 12, 2014,
(ii) the loan shall include a 0.75% loan origination fee and shall bear interest of 0.5% on available but
undrawn funds and 12% on any outstanding balance with interest payments due quarterly. As security for the
payment of the indebtedness, the Company executed a mortgage, assignment of production, security
agreement and financing statement covering certain oil and gas interests.
As at September 30, 2013 the Company accrued approximately $64,000 of interest expense, which is
included in accounts payable.
8. FINANCIAL DERIVATIVE INSTRUMENTS
The Company has utilized swaps to reduce the effect of price changes on a portion of its future oil
production. A swap requires the Company to pay the counterparty if the settlement price exceeds the strike
price and the same counterparty is required to pay the Company if the settlement price is less than the strike
price. The objective of the Company’s use of derivative financial instruments is to achieve more predictable
cash flows in an environment of volatile oil and gas prices and to manage its exposure to commodity price
risk. While the use of these derivative instruments limits the downside risk of adverse price movements, such
use may also limit the Company’s ability to benefit from favorable price movements. The Company may,
from time to time, add incremental derivatives to hedge additional production, restructure existing derivative
contracts or enter into new transactions to modify the terms of current contracts in order to realize the current
value of the Company’s existing positions. The Company does not enter into derivative contracts for
speculative purposes.
The use of derivatives involves the risk that the counterparties to such instruments will be unable to meet the
9
financial terms of such contracts. The Company’s derivative contracts are currently with one counterparty.
The Company has netting arrangements with the counterparty that provide for the offset of payables against
receivables from separate derivative arrangements with the counterparty.
The Company’s commodity derivative instruments are measured at fair value and are included in the
accompanying balance sheets as derivative management assets and liabilities. Unrealized gains and losses are
recorded based on the changes in the fair values of the derivative instruments. Both the unrealized and
realized gains and losses resulting from the contract settlement of derivatives are recorded in the consolidated
statement of operations.
The Company’s commodity derivative contracts as at September 30, 2013 are summarized below:
Term Type
Total
Volumes
Price
(per Bbl
$US) Reference
Fair
Value
August 1, 2013 to December 31, 2013 SWAP* 950 $ 104.00 WTI $ 2,000
September 1, 2013 to December 31, 2013 SWAP* 1,124 $ 105.70 WTI $ 4,000
January 1, 2014 to December 31, 2014 SWAP* 1,900 $ 94.25 WTI $ -
January 1, 2014 to December 31, 2014 SWAP* 2,852 $ 95.00 WTI $ 3,000
January 1, 2015 to July 31, 2015 SWAP* 1,128 $ 87.75 WTI $ -
January 1, 2015 to July 31, 2015 SWAP* 751 $ 87.25 WTI $ -
*Includes a 25% participation clause, whereby, if the floating price exceeds the fixed price the Company will
receive an amount equal to the product of 25% multiplied by the floating price minus the fixed price
multiplied by the contract quantity.
9. SHARE CAPITAL
The Company has an employee stock option plan under which employees and directors are eligible to receive
option grants (“Stock Options”). The total aggregate amount of Stock Options that can be issued cannot
exceed ten percent of the outstanding Common Shares. Stock Options granted under the plan have a term of
five years to expiry and have various vesting periods up to three years.
The following table summarizes the stock option activity:
Number of
Options
Weighted
Average
Exercise Price
Balance as at June 30, 2012 1,441,281 $ 1.50
Granted 443,470 0.29
Exercised - -
Forfeited - -
Expired - -
Balance as at June 30, 2013 and September 30, 2013 1,884,751 $ 1.22
The Company uses the fair value method to account for all stock-based awards granted to employees, officers
and directors. The estimated fair value of these stock options granted during the year was determined using
the Black Scholes option pricing model and is recorded as a charge to income over the vesting period
with a corresponding increase to contributed surplus. During the three months ended September 30, 2013
and 2012 the Company recorded $153,000 and $392,000, respectively for stock based expense.
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10. NET LOSS PER COMMON SHARE
The following table presents the Company’s net loss per common share;
(thousands, except for per share data)
September
30, 2013
September
30, 2012
Net loss for the period $ 87 $ (1,605)
Weighted average number of basic and diluted common shares: 29,007,552 28,873,552
Net income (loss) per weighted average basic and diluted common share $ (0.00) $ (0.06)
There were no vested in-the-money Stock Options as at September 30, 2013, therefore basic and diluted
shares are the same.
11. COMMITMENTS
The Company has an outstanding letter of credit in favor of the Ministry of Natural Resources in the amount
of $58,000. As security for this letter of credit, the Company has set aside $58,000 in cash at the financial
institution that issued the letter of credit. In addition, the Company has set aside $12,000 as cash security for
two credit cards held by the Company.
The Company leases its office space in Ontario, Canada from a company owned by the President of GEL
Exploration Limited. The Company is committed to rental payments of $11,100 per year expiring November
30, 2015. The Company also leases office space in Denver, Colorado and is committed to monthly payments
of $950 per month commencing April 1, 2012 and expiring on April 30, 2014.
12. RELATED PARTY TRANSACTIONS
Related party transactions are measured at the exchange amount, which is the amount of
consideration established and agreed to by the related parties.
An overriding royalty in the amount of $6,000 was paid to the President of GEL Exploration Limited and
$1,000 for rent and utilities for each of the three month periods ended September 30, 2013 and 2012.
The Company paid $45,000 for accounting and CFO services to a company that the Chief Financial Officer
has an ownership interest in and is the President for the three month period ended September 30, 2013. There
were no payments to this company for the three month period ended September 30, 2012.
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13. SEGMENT DISCLOSURES
The Company operates in one industry segment, the production of petroleum and natural gas and the
exploration and development of oil and gas properties.
The Company and its subsidiaries operate in two geographical segments, Canada and the United States.
Three Months Ended Three Months Ended
(in thousands) September 30, 2013 September 30, 2012
Revenue
Canada $ 249 $ 216
United States 1,025 232
$ 1,274 $ 448
Loss for period
Canada $ (122) $ (847)
United States 35 (758)
$ (87) $ (1,605)
Three Months Ended Year Ended
(in thousands) September 30, 2013 June 30, 2013
Exploration and evaluation assets
Canada $ – $ –
United States 1,880 1,910
$ 1,880 $ 1,910
Property and equipment
Canada $ 1,763 $ 1,812
United States 7,503 6,449
$ 9,266 $ 8,261
14. SUBSEQUENT EVENTS
On October 31, 2013, Evan Genaud resigned as a Director, President and Chief Executive Officer of
PetroShale Inc. and James D. Fair was named interim Chief Executive Officer. Payment of USD$250,000
was made to Mr. Genaud with respect to cessation of employment. All of the stock options that were granted
to Mr. Genaud were forfeited.
The Company entered into the following hedging agreements subsequent to the three months ended
September 30, 2013:
Term Type
Total
Volumes
Price
(per Bbl $US) Reference
November 1, 2013 to December 31, 2013 SWAP 1,220 $ 96.44 WTI
January 1, 2014 to December 31, 2014 SWAP 4,380 $ 93.81 WTI
January 1, 2015 to December 31, 2015 Collar 4,745 $75 floor /
$96.25 cap WTI

PetroShale Announces Results for the Six Month Period Ended December 31, 2013 and Updated Reserves

Thursday, April 24, 2014




PetroShale Announces Results for the Six Month Period Ended December 31, 2013 and Updated Reserves

17:55 EDT Thursday, April 24, 2014

CALGARY, ALBERTA--(Marketwired - April 24, 2014) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH)(OTCQX:PSHIF) today announces its financial and operating results for the six month period ended December 31, 2013, as well as its updated reserves as at December 31, 2013. The Company changed its financial year-end from June 30 to December 31 and as a result, the current reporting period is a six month stub period (July 1, 2013 to December 31, 2013), with the comparative period being the twelve months ended June 30, 2013. The Company's next reporting period will be the three months ended March 31, 2014.

PetroShale has filed its audited consolidated financial statements as at and for the period ended December 31, 2013 and the corresponding Management's Discussion and Analysis on SEDAR at www.sedar.com, and posted the information on PetroShale's website at www.petroshaleinc.com. Copies of the materials can also be obtained upon request without charge by contacting the Company directly.

Highlights:
•Reported production of 185 boe/d (Company interest, gross of royalty - 147 boe/d net of royalty interest), an increase of 52% over the year ended June 30, 2013, primarily due to the production generated from the Company's Stockyard Creek and Antelope/MJ Angus assets, which were acquired in August and May of 2013, respectively;


•Reported a strong operating netback of $56.75 (Company interest, gross of royalties, and excluding the impact of hedging - $71.58 net of royalty interest), reflecting higher realized pricing and lower operating expenses;


•Subsequent to the end of the period, completed two additional acquisitions in North Dakota, including the North Antelope Project operated by EOG Resources Inc. ("EOG"), and the acquisition of a 19% interest in 1,280 total acres of undeveloped land in Williams County, North Dakota, both of which add to the Company's growing base of existing or near-term cash flowing assets;


•Secured a subordinated loan facility with two significant shareholders, which provides PetroShale access to a $20 million revolving line of credit; and


•Increased proved plus probable ("P+P") reserves by 88% to 701.2 Mboe (561.9 Mboe net of royalty interest) as at December 31, 2013, and after reflecting acquisitions completed in the first quarter of 2014, P+P reserves increased further to 2,188 Mboe (1,750 Mboe net of royalty interest) on a pro forma basis.



Results of Oil and Gas Activities

For the period ended Six Months Ended
December 31, 2013 Year Ended
June 30, 2013
Sales volumes
Oil and natural gas liquids (Bbl/d) 165 118
Natural gas (Mcf/d) 124 29
Barrel of oil equivalent (Boe/d) 185 122

Operating Netbacks ($/Boe)
Revenue $ 89.80 $ 83.02
Royalties (18.61) (18.59)
Realized hedge gain 0.23 -
Operating expenses (9.87) (14.56)
Production taxes (4.57) (2.19)
Operating netback $ 56.98 $ 47.68
Operating netback prior to hedging $ 56.75 $ 47.68

Funds flow from operations was $264,000 for the six month period ended December 31, 2013 compared to $207,000 for the year ended June 30, 2013. For the six month period ended December 31, 2013, the Company reported a net loss of $2.7 million ($0.09 per share), compared to a loss of $21.1 million ($0.73 per share) for the year ended June 30, 2013.

2013 Year-End Reserves:

The reserves data in this press release is based upon evaluations by Netherland, Sewell & Associates, Inc. ("NSAI") with respect to our assets in the United States, and by Jim McIntosh Petroleum Engineering Ltd. ("McIntosh") with respect to our Canadian assets, all with an effective date of December 31, 2013. The reserves data summarizes PetroShale's crude oil, natural gas liquids and natural gas reserves and the net present values of future net revenue for these reserves using forecast prices and costs, not including the impact of any price risk management activities. The reserves data described herein as pro forma reflect an evaluation performed by NSAI of our United States assets, including those arising from the acquisitions completed by the Company subsequent to December 31, 2013, with an effective date of December 31, 2013, aggregated with the evaluation of our Canadian assets as described above. The Reserve Reports have been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in NI 51-101 and CSA 51-324. No attempt was made to evaluate possible reserves.

Reserves Highlights:
•P+P reserves as at December 31, 2013 increased 88% to 701.2 Mboe (561.9 Mboe net of royalty), while total proved reserves increased 57% to 553.0 Mboe (448.5 Mboe net of royalty).


•86% of PetroShale's total P+P reserves on a boe basis are light, sweet oil, and 94% are attributed to the U.S assets located in North Dakota and Montana.


•Before tax net present value (discounted at 10%) ("NPV10") of the Company's P+P reserves totaled $15.0 million, while the NPV10 of total proved reserves increased to $13.5 million.


•Following completion of acquisitions in the first quarter of 2014, pro forma P+P reserves increased further to 2,188 Mboe (1,750 Mboe net of royalty) with an NPV10 of $44.1 million.



Gross Company Interest Reserves

AGGREGATED CANADA AND UNITED STATES OIL & GAS ASSETS
RESERVES
LIGHT AND MEDIUM
OIL
NATURAL GAS NATURAL GAS
LIQUIDS
BOE


RESERVES CATEGORY Gross Net Gross Net Gross Net Gross Net
(Mbbls) (Mbbls) (MMcf) (MMcf) (Mbbls) (Mbbls) (Mboe) (Mboe)
PROVED:
Developed Producing 305.9 256.4 234.0 193.2 - 0.6 344.9 289.2
Developed Non-Producing 44.1 33.7 56.4 43.1 - - 53.5 40.9
Undeveloped 128.2 98.2 158.1 121.0 - - 154.6 118.4
TOTAL PROVED 478.2 388.3 448.5 357.3 - 0.6 553.0 448.5
PROBABLE 123.2 94.3 149.6 114.6 - - 148.1 113.4
TOTAL PROVED PLUS PROBABLE 601.4 482.6 598.1 471.9 - 0.6 701.2 561.9

Columns may not add due to rounding.

Net Present Value of Future Net Revenue

AGGREGATED CANADA AND UNITED STATES OIL & GAS ASSETS
BEFORE INCOME TAXES DISCOUNTED AT (%/year)
RESERVES CATEGORY 0% 5% 10% 15% 20%
($000s) ($000s) ($000s) ($000s) ($000s)
PROVED:
Developed Producing 18,602.3 12,853.5 9,949.7 8,221.4 7,078.3
Developed Non-Producing 2,595.4 2,118.8 1,821.7 1,621.1 1,476.7
Undeveloped 4,375.3 2,720.6 1,762.2 1,147.8 727.2
TOTAL PROVED 25,573.0 17,692.9 13,533.6 10,990.3 9,282.2
PROBABLE 4,119.4 2,437.9 1,485.6 891.0 488.3
TOTAL PROVED PLUS PROBABLE 29,692.4 20,130.8 15,019.2 11,881.3 9,770.5

Columns may not add due to rounding.

Reserves Reconciliation - Aggregate

TOTAL CANADA (MBOE) TOTAL UNITED STATES (MBOE) TOTAL (MBOE)


Gross
Proved

Gross
Probable Gross
Proved
Plus
Probable

Gross
Proved

Gross
Probable Gross
Proved
Plus
Probable

Gross
Proved

Gross
Probable Gross
Proved
Plus
Probable
June 30, 2013 44.5 - 44.5 306.6 21.7 328.2 351.1 21.7 372.8
Discoveries - - - - - - - - -
Improved Recovery 3.9 - 3.9 - - - 3.9 - 3.9
Technical Revisions - - - 38.7 (0.5) 38.2 38.7 (0.5) 38.2
Acquisitions - - - 196.6 127.6 324.2 196.6 127.6 324.2
Dispositions - - - - - - - - -
Economic Factors - - - (1.1) (0.6) (1.7) (1.1) (0.6) (1.7)
Production (2.8) - (2.8) (33.4) - (33.4) (36.2) - (36.2)
December 31, 2013 45.6 - 45.6 507.4 148.2 655.5 553.0 148.2 701.2

Columns may not add due to rounding.

Letter to shareholders:

Throughout calendar 2013, we enhanced PetroShale's strategic position, which included changing the Company's year end to December 31. As a result of this change, this report provides our results and discusses our achievements for the six month period from July 1, 2013 to December 31, 2013.

As part of our ongoing strategy to acquire and consolidate working interests in the prolific Williston Basin in North Dakota, we completed several acquisitions that we anticipate will contribute to growth in production, reserves and cash flows. In August, 2013, we partnered with Slawson Exploration Inc. ("Slawson"), one of the largest private operators in the Williston Basin, to acquire certain assets within the Stockyard Creek field (situated in southern Williams County, North Dakota). These assets included 106 net leased acres giving the Company a 5.5% interest in a 17 well drilling program over three 640 acre sections. The Stockyard Creek assets are operated by Slawson, and to date include the successful drilling and completion of five wells, including four new wells that came on production in February 2014.

Subsequent to the end of 2013, two additional acquisitions were completed. The first was the acquisition of the North Antelope Project in McKenzie County, North Dakota, operated by EOG, a large and experienced operator in shale oil plays, including the Bakken. The Antelope Project provides PetroShale with an 18.75% working interest in a proposed drilling unit, which has been spaced for the drilling of 8 wells. Based on current capital plans, we expect results from those wells should have a positive impact on PetroShale's production and cash flows later in 2014. The second acquisition we completed after year end 2013 was the purchase of 245 net held-by-production acres, giving the Company an approximate 19% working interest in a 1,280 acre drilling unit in Williams County, North Dakota.

As a result of our activities to date, PetroShale's production has grown to approximately 240 boe/d currently. Following the acquisitions completed in the first quarter of 2014, our pro forma P+P reserves increased to approximately 2,188 Mboe (1,750 Mboe net of royalty), with a NPV10 of $44.1 million.

In addition to growing the Company's asset base, we also took steps in the latter half of 2013 to strengthen our Board and management team. PetroShale's management team and Board have extensive experience in managing and governing high-growth oil and natural gas entities. We look forward to a focused expansion of our operations in the Williston Basin.

We appreciate your continued support of PetroShale, and look forward to updating you on our progress and achievements in our next financial report, for the first quarter ended March 31, 2014.

M. Bruce Chernoff, Executive Chairman and CEO

About PetroShale

PetroShale is a growing oil company engaged in the acquisition and consolidation of interests in the Williston Basin in North Dakota and Montana. The strategy focuses on acquiring leases in the most prolific and proven areas of the Williston Basin.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note Regarding Forward-Looking Statements and Other Advisories

It should not be assumed that the discounted future revenue estimated by NSAI represent the fair market value of the reserves. Company interest means, in relation to the Company's interest in production and reserves, the Company's working interest (operating and non-operating) before the deduction of royalties payable and including such entity's royalty interest in production and reserves. Where volumes of reserves and production have been presented, they have been presented as company working interest, gross of royalties. All operating netbacks referenced in this press release are Company working interest. Relative price deck used by NSAI and McIntosh in their reserves evaluations has been disclosed within our Annual Information Form, which will be available on our SEDAR profile. All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.

Within this press release, references are made to terms commonly used in the oil and natural gas industry. The term "netback" or "operating netback" in this press release is not a recognized measure under generally accepted accounting principles in Canada. PetroShale uses "netback" as a key performance indicator and it is used by the Company to evaluate the operating performance of its petroleum and natural gas assets and is determined by deducting royalties and production and operating expenses from petroleum and natural gas revenue. Readers are cautioned; however, that this measure should not be construed as an alternative to net earnings or cash flow from operating activities determined in accordance with generally accepted accounting principles in Canada as an indication of our performance. "Funds flow from operations" is calculated based on cash flow from operating activities before the change in non-cash working capital and settlement of decommissioning obligations. PetroShale believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating PetroShale's operating performance. Management utilizes funds flow from operations as a key measure to assess the ability of the Company to finance operating activities and capital expenditures. Funds flow from operations should not be construed as an alternative to net earnings or cash flow from operating activities determined in accordance with GAAP as an indication of PetroShale's performance. A reconciliation of funds flow from operations to cash flow from operating activities is provided in the MD&A.

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to aspects of management focus, objectives, strategies and business opportunities. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. Statements relating to "reserves" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and that the reserves or resources can be profitably produced in the future. The forward-looking information is based on certain key expectations and assumptions made by the Company's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; the Company's ability to access capital, ad obtaining the necessary regulatory approvals.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas volumes have been converted to boe using a ratio of 6,000 cubic feet of natural gas to one barrel of oil (6 Mcf: 1 Bbl). This boe conversion ratio 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 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 Mcf: 1 Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Attention: Executive Chairman and CEO
+1.303.297.1407
Info@PetroShaleInc.com
www.petroshaleinc.com




5 Quarters Investor Relations, Inc.
Cindy Gray
403.828.0146
cgray@5qir.com

PetroShale Announces Change to Year End

Tuesday, February 11, 2014




PetroShale Announces Change to Year End

16:21 EST Tuesday, February 11, 2014

CALGARY, ALBERTA--(Marketwired - Feb. 11, 2014) - PetroShale Inc. (TSX VENTURE:PSH)(OTCQX:PSHIF) ("PetroShale" or the "Company") today announced that the financial year end of the Company has been changed from June 30 to December 31. Implementing this change enables PetroShale to align its continuous disclosure reporting and shareholder meeting schedule with the majority of its oil and gas industry peer group, and helps facilitate peer comparisons.

The Company's next filing of financial information under the new financial year end will be a stub audited period for the six months ended December 31, 2013 which will be filed on or before April 30, 2014. Subsequently, the interim financial statements and MD&A for the first quarter ended March 31, 2014 will be filed on or before May 30, 2014. A Notice of Change in Year End has been filed via SEDAR and is accessible at www.sedar.com.

About PetroShale

PetroShale is a growing oil company committed to value creation by identifying and consolidating interests in the prolific, multi-zone Williston Basin in North Dakota and Montana. Through a strategic relationship with Denver-based Slawson Exploration Company, Inc. (SECI), a division of Slawson Companies, PetroShale seeks to leverage SECI's operating expertise to effectively and efficiently exploit this high-impact resource. PetroShale manages its risk and capital exposure by acquiring working interests in fields being developed by large, experienced and capable operators who employ leading-edge technologies to maximize production, optimize ultimate recoveries and enhance rates of return.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Attention: Executive Chairman and CEO
Email: Info@PetroShaleInc.com
Phone: +1.303.297.1407
www.petroshaleinc.com

PetroShale Announces Trading on OTCQX to Enhance Access for U.S. Investors and Closing of North Dakota Acquisition

Monday, January 27, 2014




PetroShale Announces Trading on OTCQX to Enhance Access for U.S. Investors and Closing of North Dakota Acquisition

17:16 EST Monday, January 27, 2014

CALGARY, ALBERTA--(Marketwired - Jan. 27, 2014) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) (OTCQX:PSHIF) is pleased to announce that its common shares will commence trading on OTCQX International, a segment of the OTCQX marketplace in the U.S., effective January 28th, under the ticker PSHIF. Trading on OTCQX is designed to provide current and future U.S.-based shareholders with greater access to and ease of trading in PetroShale's shares. U.S. based legal firm Dorsey & Whitney LLP is serving as the Company's Principal American Liaison on OTCQX International. U.S. investors can find current financial disclosures and Real-Time Level 2 quotes for PetroShale on www.otcmarkets.com.

In addition, PetroShale confirms that the acquisition of interests in North Dakota, previously announced on January 15, 2014, has now closed. Under the terms of the agreement, PetroShale paid a finders' fee of US$75,000 to an arm's length third party. This fee represents less than 3% of the total transaction cost to the Company.

About PetroShale

PetroShale is a growing oil company committed to value creation by identifying and consolidating interests in the prolific, multi-zone Williston Basin in North Dakota and Montana. Through a strategic relationship with Denver-based Slawson Exploration Company, Inc. (SECI), a division of Slawson Companies, PetroShale seeks to leverage SECI's operating expertise to effectively and efficiently exploit this high-impact resource. PetroShale manages its risk and capital exposure by acquiring working interests in fields being developed by large, experienced and capable operators who employ leading-edge technologies to maximize production, optimize ultimate recoveries and enhance rates of return.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note Regarding Forward-Looking Statements and Other Advisories

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws, including but not limited to statements regarding the commencement of trading on the OTCQX marketplace and the benefits of trading on OTCQX to US-based shareholders. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events, or otherwise.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Attention: Executive Chairman and CEO
+1.303.297.1407
Info@PetroShaleInc.com
www.petroshaleinc.com




5 Quarters Investor Relations, Inc.
Cindy Gray
403.828.0146
cgray@5qir.com

PetroShale Announces Strategic Asset Acquisition in North Dakota

Transformative deal adds attractive acreage with substantial future upside

Wednesday, January 15, 2014




PetroShale Announces Strategic Asset Acquisition in North Dakota

17:17 EST Wednesday, January 15, 2014

CALGARY, ALBERTA--(Marketwired - Jan. 15, 2014) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) is pleased to announce that it has finalized an agreement to acquire an 18.75% Working Interest in a proposed drilling unit in McKenzie County, North Dakota, for a total purchase price of US$3.25 million, including 200,000 common shares issued at a price of $1.34 per share. The Company intends to use existing credit facilities and cash resources to fund the cash portion of the purchase price and anticipates the transaction will close before the end of January.

This transaction is a continuation of PetroShale's strategy to selectively acquire acreage that offers highly economic upside potential, and is operated by a leading Basin operator.

Transaction Details

The acquired acreage is being spaced for 8 wells and will be operated by EOG Resources, Inc. Of these 8 gross drilling locations, 4 locations have reserves assigned to them as outlined below. The following reserve information relates solely to this transaction, and does not reflect the Company's pre-existing reserves. These reserve volumes are presented on a net working interest basis, before royalties.

Proved reserves (2) 474.8 Mboe
Proved plus probable reserves (2) 697.7 Mboe
Proved reserves (discounted 10%/year) (1)(2) US$9.3 million
Proved plus probable reserves (discounted 10%/year) (1)(2) US$14.9 million

Notes:
1.Based on a December 31, 2013 forecast of West Texas Intermediate ("WTI") for oil prices and NYMEX Henry Hub for natural gas prices, adjusted for quality and transportation costs.
2.Based on the working interest to be acquired in the reserves before the calculation for royalties, and before the consideration of the vendor's royalty interest reserves. Reserve estimates for the assets were prepared by PetroShale's independent reserves evaluator Netherland, Sewell & Associates Inc. ("NSAI") as of December 31, 2013. The reserves data summarizes the crude oil, natural gas liquids and natural gas reserves and the net present values of future net revenue for these reserves using forecast prices and costs. The reserves information has been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in NI 51-101, with the exception that the effective date of the report precedes the date of the acquisition.

Investor Relations Firm Retained

PetroShale also announces it has retained 5 Quarters Investor Relations, Inc. ("5QIR") to provide strategic investor relations (IR) services on behalf of the Company. 5QIR is a Calgary-based capital markets communications firm providing strategic counsel on financial communications, continuous disclosure compliance and proactive corporate outreach programs for public and private companies.

Under the terms of the agreement, 5QIR will provide investor relations services to the Company for a term of three months, after which the agreement will automatically renew on the same terms, subject to termination upon 14 days' written notice by either party. As consideration for the services, 5QIR will be paid a retainer fee of $3,000 per month. 5QIR acts at arm's length to PetroShale and does not have any interest, directly or indirectly, in PetroShale or its securities, or any right or intent to acquire such an interest.

The appointment of 5QIR remains subject to approval by the TSX Venture Exchange.

About PetroShale

PetroShale is a growing oil company committed to value creation by identifying and consolidating interests in the prolific, multi-zone Williston Basin in North Dakota and Montana. Through a strategic relationship with Denver-based Slawson Exploration Company, Inc. (SECI), a division of Slawson Companies, PetroShale seeks to leverage SECI's operating expertise to effectively and efficiently exploit this high-impact resource. PetroShale manages its risk and capital exposure by acquiring working interests in fields being developed by large, experienced and capable operators who employ leading-edge technologies to maximize production, optimize ultimate recoveries and enhance rates of return.

About 5QIR

Based on the belief that effective Investor Relations goes beyond four quarters, 5 Quarters Investor Relations, Inc. was established to support public companies with financial communications, continuous disclosure compliance and proactive investor outreach programs. The firm is based in Calgary, Alberta, and is owned and operated by Cindy Gray, a seasoned IR professional with over 16 years of experience working in IR as well as leading the oil & gas business development practice for TSX and TSX Venture Exchange from Calgary. For further information, please visit www.5qir.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note Regarding Forward-Looking Statements and Other Advisories

It should not be assumed that the discounted future revenue estimated by NSAI represents the fair market value of the reserves. Company interest means, in relation to the Company's interest in production and reserves, the Company's working interest (operating and non-operating) before the deduction of royalties payable and including such entity's royalty interest in production and reserves.

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Transaction, the Company's plans, the closing of the Transaction, the timing of the Operator's development and drilling of the assets, and other aspects of management focus, objectives, strategies and business opportunities. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. Statements relating to "reserves" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and that the reserves or resources can be profitably produced in the future. The forward-looking information is based on certain key expectations and assumptions made by the Company's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; the Company's ability to access capital, and obtaining the necessary regulatory approvals.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas volumes have been converted to boe using a ratio of 6,000 cubic feet of natural gas to one barrel of oil (6 Mcf: 1 Bbl). This boe conversion ratio 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 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 Mcf: 1 Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.

Where volumes of reserves and production have been presented, they have been presented as company working interest, gross of royalties.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Attention: Executive Chairman and CEO
+1.303.297.1407
Info@PetroShaleInc.com
www.petroshaleinc.com




5 Quarters Investor Relations, Inc.
Cindy Gray
403.828.0146
www.5qir.com

PetroShale Announces Key Executive and Board Appointments, Provides Operational Update and Secures Financing

Monday, November 25, 2013




PetroShale Announces Key Executive and Board Appointments, Provides Operational Update and Secures Financing

16:30 EST Monday, November 25, 2013

CALGARY, ALBERTA--(Marketwired - Nov. 25, 2013) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) announces key executive appointments and changes to its Board of Directors, effective immediately. These appointments add significant depth to PetroShale's team, and further advance the Company's execution of its renewed growth strategy.

Calgary-Based Executive Appointments

M. Bruce Chernoff, P.Eng. - Executive Chairman and CEO. Mr. Chernoff has over 25 years of hands-on experience as an oil and gas entrepreneur, financing and building energy companies. Mr. Chernoff is the President of Caribou Capital Corp., a private investment company, and serves as a director of several public and private entities.

David Rain, CA - CFO. Mr. Rain has served as the CFO of Caribou Capital Corp. since its inception in 1999, and has over 25 years of experience in corporate finance primarily in the oil and gas and investment industries.

Mr. Chernoff and Mr. Rain have been involved in a number of successful oil and gas ventures, which included acquiring and developing properties, completing debt and equity financings in Canada and the U.S., and building organizations of a significant size. Notably, Mr. Chernoff and Mr. Rain were founders of Harvest Energy Trust in 2002, where Mr. Chernoff was Chairman and Mr. Rain was CFO, which grew to approximately 64,000 boe/day of production and was sold to the Korean National Oil Company in 2009 for $4.1 billion. Mr. Chernoff was also a co-founder and Executive VP of Pacalta Resources Ltd. which was sold to Alberta Energy Company, now EnCana Corp., for $1billion in 1999.

Tony Izzo - Vice President, Business Development. Mr. Izzo has more than 25 years of combined engineering, operations and management experience in the oil and gas industry. He brings a strong technical background with specific expertise in the evaluation, acquisition and operation of oil and gas properties. Mr. Izzo has been involved in the start-up of new oil and gas entities as well as serving in senior technical and management positions in a number of junior and large oil and gas companies.

John Fair, President of PetroShale (U.S.) Inc. will continue to play an integral role in the growth and evolution of the Company. Mr. Fair is based in PetroShale's Denver office, which facilitates access to acquisition opportunities, as well as strong local relationships.

Board of Directors and Corporate Secretary Changes

Ken McCagherty, P. Eng. - appointed to the Board of Directors. Mr. McCagherty is President and CEO of Westbrick Energy Ltd., a KKR-sponsored private oil and gas company with operations in Western Canada.

He was previously President and CEO of West Energy Ltd., a TSX listed company founded in 2003 and sold in 2010 for $575 million. Mr. McCagherty is a Professional Engineer with over 30 years of experience in the domestic and international upstream energy business.

Brett Herman (President and CEO of TORC Oil & Gas Ltd.) and Jacob Roorda (Managing Director, Windward Capital Ltd., Director of Angle Energy, Inc.) will continue as directors of the Company. John Hagg has resigned as a director and PetroShale wishes to thank him for his valued service and contribution.

Ms. Nicole Bacsalmasi, of Burnet Duckworth & Palmer, LLP has been appointed as Corporate Secretary. PetroShale wishes to thank Bryce Tingle for his valued contribution as Corporate Secretary and in the formation of the Company.

The Company also wishes to express its appreciation to James Fair as interim President and CEO of PetroShale and Tristan Farel as Chief Financial Officer. Mr. Fair will remain as a director of PetroShale.

In concert with the appointments above, PetroShale has issued an aggregate of 828,264 stock options to insiders at an average exercise price of $0.70 per share, representing the closing price on November 22, 2013.

Growth Strategy & Operational Update

PetroShale is a growing oil company committed to value creation by identifying and consolidating interests in the prolific, multi-zone Williston Basin in North Dakota and Montana. Through a strategic relationship with Denver-based Slawson Exploration Company, Inc. (SECI), a division of Slawson Companies, PetroShale seeks to leverage SECI's operating expertise to effectively and efficiently exploit this high-impact resource. PetroShale manages its risk and capital exposure by acquiring working interests in fields being developed by large, experienced and capable operators who employ leading-edge technologies to maximize production, optimize ultimate recoveries and enhance rates of return.

Over the past 12 months, the Company has been focused on refining and executing this strategy and has successfully assembled 3 projects, Melbby, Stockyard Creek and MJ/Angus. In Melbby, the Company has working interests in 48 producing wells. At Stockyard Creek, the Company is currently drilling and has an average working interest of 5.5% in 1,920 gross acres (106 net). At MJ/Angus, the Company has an average 0.5% working interest in 19,200 gross acres (102 net), where a recently drilled second bench Three Forks well (2.5% working interest) has yielded strong initial production rates. The Company plans to complete an additional 3 gross wells (0.2 net) before the end of calendar 2013 in Stockyard Creek, and has permitted a further 13 gross drilling locations (0.7 net) in that area.

PetroShale's current production is approximately 150 boe/day (85% oil weighted), with a number of additional wells expected to be brought on to production in the quarter ended December 31, 2013. As at June 30, 2013, the Company's proved plus probable reserves totaled 373 mboe with a net present value (discounted at 10%) of $9.0 million.

The current projects described above collectively provide PetroShale with a stable base of production, near term operational catalysts and longer term growth. The Company intends to pursue additional acquisitions with similar characteristics to complement and expand this portfolio.

Revolving Acquisition Facility

To provide PetroShale with access to incremental capital for the continued advancement of its growth strategy, development of its existing assets, as well as flexibility to pursue additional opportunities, the Company secured a $20.0 million revolving acquisition facility provided by entities controlled by M. Bruce Chernoff and Todd Slawson, who own 45% of the outstanding voting common shares, and 100% of the outstanding non-voting common shares of the Company, respectively. The acquisition facility bears interest at 12% per annum, has a commitment fee of 2.5%, and is secured by the assets of the Company, subject to subordination to the Company's existing $50 million revolving line of credit. The acquisition facility will replace the existing $2.1 million note payable to an entity controlled by Mr. Slawson.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note Regarding Forward-Looking Statements and Other Advisories

Reserve data presented in this press release is taken from the report of Netherland, Sewell & Associates, Inc. (NSAI) dated September 10, 2013 evaluating the crude oil, natural gas and natural gas liquids reserves attributable to PetroShales's oil and natural gas assets located in Montana and North Dakota as at June 30, 2013 and the report of Jim McIntosh Petroleum Engineering Ltd. (McIntosh) dated September 4, 2013 evaluating the crude oil, natural gas and natural gas liquids reserves attributable to PetroShale's properties located in Ontario as at June 30, 2013. The reports are prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook. The estimates of reserves and future net revenue for individual properties contained in this press release may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. It should not be assumed that the discounted future revenue estimated by NSAI and McIntosh represent the fair market value of the reserves. Company interest means, in relation to the Company's interest in production and reserves, the Company's working interest (operating and non-operating) before the deduction of royalties payable and including such entity's royalty interest in production and reserves.

This press release contains forward-looking statements and forward-looking information (collectively "forward- looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of management focus, objectives, strategies and business opportunities. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by the Company's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; the Company's ability to access capital, ad obtaining the necessary regulatory approvals.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward- looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward- looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas volumes have been converted to boe using a ratio of 6,000 cubic feet of natural gas to one barrel of oil (6 Mcf: 1 Bbl). This boe conversion ratio 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 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 Mcf: 1 Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.

Where volumes of reserves and production have been presented, they have been presented as company working interest, gross of royalties.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Attention: Executive Chairman and CEO
+1.303.297.1407
Info@PetroShaleInc.com
www.petroshaleinc.com

Petroshale Announces Fourth Quarter Filing

Monday, October 28, 2013




Petroshale Announces Fourth Quarter Filing

21:08 EDT Monday, October 28, 2013

DENVER, COLORADO--(Marketwired - Oct. 28, 2013) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) is pleased to announce the filing of its (i) audited financial statements for the fiscal year ending June 30, 2013; and (ii) the corresponding Management's Discussion and Analysis. Electronic copies of these documents may be obtained on PetroShale's SEDAR profile at www.sedar.com. To the extent investors do not have access to SEDAR, copies of the materials can be obtained on request without charge by contacting PetroShale.

Daily production for the fiscal year ended June 30, 2013 increased compared to the period ended June 30, 2012 primarily as a result of a full year production from the Canadian assets, the acquisition of Melbby in October 2012 and the MJ Angus project in May of 2013. Canadian production increased approximately 6,300 barrels compared to the prior year, while the US assets increased approximately 25,000 barrels. Sales from produced volumes increased by approximately 780% to $2.78 million for the fiscal year ended June 30, 2013 compared to the period ended June 30, 2012. During the fiscal year ended June 30, 2013 75% and 25% of the Company's production came from the US and Canada, respectively.

The following table summarizes production volumes for the fiscal year ended June 30, 2013 and period ended June 30, 2012, net of royalties.

June 30, 2013 2012
Crude oil (Bbl per day) 97 11
Natural gas (Mcf per day) 29 2
Total (Boe per day) 102 12
1."Bbl" refers to barrels.
2."Mcf" refers to thousand cubic feet.

PetroShale continues exploiting the assets in our inventory with a focus of adding strategic acquisitions that will deepend its growth inventory. It is now facing a very attractive year ahead enabled by its previously announced change to corporate structure and banking facilities with Independent Bank. Recently PetroShale announced the acquisition of 106 net leased acres in two overlapping 1,280 acre drilling units. The first well on this project, Sail & Anchor 4-13-14HBK, recently completed, has an estimated 24 hour initial production of 1,533 BOE on a 6,375 ft. lateral. The Sail and Anchor well has already produced approximately 12,520 barrels of oil over 24 days online in the first month. The relationship with Slawson Exploration Corporation continues to provide the Company with unique opportunities for acquisitions in the Williston Basin.

Results of Oil and Gas Activities

Three months ended
June 30, 2013 Three months ended
June 30, 2012 Fiscal year ended
June 30, 2013 Period ended June 30, 2012
Sales volumes
Oil sales (Bbl) 10,586 2,749 35,538 4,113
Natural gas sales (Mcf) 3,182 413 10,682 875
Barrel of oil equivalent (Boe) 11,116 2,818 37,318 4,259

Sales ( 000s )
Oil sales, net of royalties $ 962 $ 240 $ 2,731 $ 314
Natural gas sales, net of royalties 1 1 50 2
Other - - 2 -
Total oil and gas revenue, net of royalties $ 963 241 $ 2,783 $ 316

Expenses ( 000s )
Production and operating $ 139 133 $ 651 $ 148
Depletion and depreciation 419 55 1,069 68
Impairment of exploration and evaluation (166 ) - 15,625 -
Impairment of property and equipment 486 - 3,749 -
General and administrative 414 249 1,395 1,012
Share based compensation 169 497 893 567
Total expenses $ 1,461 $ 934 $ 23,382 $ 1,795

Net loss $ (605 ) $ (97 ) $ (20,755 ) $ (1,359 )

Net loss - Basic and diluted $ (0.02 ) $ (0.00 ) $ (0.73 ) $ (0.07 )

Funds from operations $ 282 $ (1,016 ) $ 292 $ 44

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note Regarding Forward-Looking Statements and Other Advisories

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of the Company's anticipated future operations, management focus, objectives, strategies and business opportunities, including expected 2013 drilling and development plans and the timing thereof. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding the drilling potential of the Company's assets and anticipated results and future development plans. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by the Company's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; the Company's ability to access capital, obtaining the necessary regulatory approvals.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

References in this press release to initial production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroShale.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Evan Genaud
Chief Executive Officer
Info@PetroShaleInc.com
www.petroshaleinc.com

PetroShale Provides Update on Operational Activities

Thursday, October 03, 2013




PetroShale Provides Update on Operational Activities

09:46 EDT Thursday, October 03, 2013

DENVER, COLORADO--(Marketwired - Oct. 3, 2013) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) is pleased to provide an update of its recent operational activities.

Stockyard Creek Field

On August 19, 2013, PetroShale closed the previously announced acquisition of 106 net leased acres in two overlapping 1280 acre drilling units within Stockyard Creek Field in Williams County, North Dakota, operated by Slawson Exploration Company. The first well, Sail & Anchor 4-13-14HBK, recently completed, has an estimated 24 hour initial production ("IP") of 1,533 BOE on a 6,375 ft. lateral. The second well, Coopers 2-15-14HBK, is waiting on completion. The third well, Tooheys 4-15-14HBK, is currently drilling, and the fourth well, Little Creature 1-15-14H, is expected to be drilled on the same pad with Coopers and Tooheys; with all three wells projected to be completed in December.

This Stockyard Creek project currently has a rig available to drill an additional 14-15 potential locations based upon promising results to date. Total capital expenditures, net to PetroShale, is projected to be $7 million. The Company expects to fund the acquisition and development through existing liquidity, PetroShale's revolving credit facility, and cash flow. The following table illustrates PetroShale's activity in Stockyard Creek.


Stockyard Creek Production Update
Well WI% Status Est. Completion
Sail&Anchor 4-13-14HBK 5.01% 1533 BOE est 24hr IP
Coopers 2-15-14HBK 5.65% Wating on Completion December 2013
Tooheys 4-15-14HBK 5.65% Currently Drilling December 2013
Little Creature 1-15-14H 5.65% Spud October 2013 December 2013

MJ/Angus Field

On May 21, 2013, PetroShale purchased 105 net acres in Northeast Mackenzie County, North Dakota for $1,050,000 plus the net costs and revenues of 11 wells recently completed or in progress at that time. The Angus 2-9H2 (2.0% net interest), a second bench Three Forks well, has produced 130,091 BOE in 156 days. In addition to potential future increased density in two producing 53 net acres drilling units, PetroShale owns 52 net acres in an additional six undeveloped drilling units.

The following table illustrates PetroShale's activity in MJ/Angus.


MJ/Angus Production Update

Well WI% Total
Produced
BOE Days on Production BOEPD/days on
Angus 1-9H 2.60% 116,684 159 734
Angus 2-9H2 2.60% 130,091 156 834
Angus 3-9H 2.60% 99,995 147 680
Angus Federal 4-9H 1.30% 36,000 60 600
Angus Federal 5-9H 1.30% 42,497 41 1,037
Simmental Federal 3-16H 1.30% 39,315 59 666
Simmental Federal 4-16H 1.30% 35,896 43 835
Sorenson 1-21AH 0.77% 55,936 185 302
Sorenson 2-21AH 0.77% 65,516 183 358
Thornson 1-28AH 0.77% 57,171 183 312
Thornson 2-28AH 0.77% 58,593 195 300

Notes:

(1) The term "BOEPD" (Barrels of Oil Equivalent Per Day) and "BOE" may be misleading, particularly if used in isolation. "BOE" means barrels of crude oil equivalent, and includes gas and NGLs calculated on a production basis of six thousand cubic feet ("Mcf") of gas/NGLs being equivalent to one barrel of crude oil based on the average equivalent energy content of the two commodities applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ration of the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 barrel, using a conversion ratio of 6 Mcf: 1 barrel may be misleading as an indication of value.
(2) Some of the above listed wells have gas pipeline and sales agreements in place.
(3) All $are expressed in United States Dollars

Evan Genaud, CEO of PetroShale Inc. stated, "The Stockyard Creek and MJ/Angus transactions are indicative of PetroShale's strategy of acquiring leases in the top producing areas of the Williston Bakken/Three Forks play with wells either drilling or imminently drilling. We believe this strategy represents an efficient allocation of capital, maximizing the capture of proven and probable reserves with relatively low risk."

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note Regarding Forward-Looking Statements and Other Advisories

This press release contains forward-looking statements and forward-looking information (collectively "forward- looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of the Company's anticipated future operations, management focus, objectives, strategies and business opportunities, including expected 2013 drilling and development plans and the timing thereof. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding the drilling potential of the Company's assets and anticipated results and future development plans. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by the Company's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; the Company's ability to access capital, obtaining the necessary regulatory approvals.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward- looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward- looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

References in this press release to initial production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroShale.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Attention: Evan Genaud, Chief Executive Officer
Email: Info@PetroShaleInc.com
www.petroshaleinc.com

PetroShale Announces Asset Acquisition

Monday, August 19, 2013




PetroShale Announces Asset Acquisition

16:15 EDT Monday, August 19, 2013

DENVER, COLORADO--(Marketwired - Aug. 19, 2013) - PetroShale Inc. (TSX VENTURE:PSH) (the "Company") is pleased to announce, in partnership with Slawson Exploration Company, Inc. the execution of an agreement to purchase certain assets within the Stockyard Creek field, southern Williams County, North Dakota, from Samson Oil & Gas Limited for a purchase price of US$934,407 dollars.

The net asset, to the Company, consists of approximately a 5.5% working interest in 106 net leased Bakken and Three Fork acres in two overlapping 1280 acre drilling units in sections 13, 14, and 15 Township 154N Range 99W, an interest in the drilled, and yet to be completed, middle Bakken Sail & Anchor well as well as a share of the operating salt water gathering and disposal system. Upon completion of customary post-closing items, the assets acquired will be held by the Company's wholly owned subsidiary PetroShale (US) Land 1 LLC.

As part of the transaction Slawson Exploration Company, Inc. will take over operatorship and commence completion of the Sail & Anchor well and begin a planned drilling program with a dedicated rig, which will include an anticipated additional 3 to 4 (gross) wells drilled by year end 2013.

Evan Genaud, CEO and President of PetroShale Inc. stated, "We are very pleased to be partnering with operator Slawson Exploration Company, Inc. and Samson Oil & Gas Limited to develop the Bakken and Three Forks formation in the Stockyard Creek field. This transaction is an illustration of PetroShale (US)'s growth strategy in the Rocky Mountain region."

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note Regarding Forward-Looking Statements and Other Advisories

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of the Company's anticipated future operations, management focus, objectives, strategies and business opportunities, including expected 2013 drilling and development plans and the timing thereof. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding the acquisition and the benefits to be acquired therefrom including drilling potential and the impact of the acquisition on the Company and its results and development plans. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by the Company's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; the Company's ability to access capital, obtaining the necessary regulatory approvals.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide securityholders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Attention: Evan Genaud
Chief Executive Officer
Info@PetroShaleInc.com
www.petroshaleinc.com

PetroShale Announces New Corporate Structure and Credit Facilities

Tuesday, August 06, 2013




PetroShale Announces New Corporate Structure and Credit Facilities

09:15 EDT Tuesday, August 06, 2013

DENVER, COLORADO--(Marketwired - Aug. 6, 2013) - PetroShale (TSX VENTURE:PSH) is pleased to announce the new corporate structure of PetroShale (US), Inc., the execution of a new three year revolving credit facility with Independent Bank of Dallas, Texas, and the execution of a new one year revolving credit facility with the Todd Slawson Trust ("Slawson Note").

The new structure of PetroShale (US), Inc., a subsidiary of PetroShale Inc., involved the creation of PetroShale (US) Land 1 LLC ("Land LLC") and PetroShale (US) Production LLC ("Production LLC") as wholly owned subsidiaries. "Production LLC" primarily holds proved producing assets, whereas "Land LLC" holds our leased US acreage and new wells.

The Independent Bank $50 million dollar revolving line of credit has a 36 month term, expiring August 31st, 2016, with an initial borrowing base of $3 million secured by the assets of "Production LLC". The borrowing base will be re-determined a minimum of twice yearly. Terms of the Independent Bank facility include a 1% origination fee, a 0.5% fee on available but undrawn funds, prime plus 0.5% interest with a 4.0% interest minimum, with no parent company guarantees.

The Slawson Note is a restructuring of the previous Slawson Note into a revolving facility secured by the assets of "Land LLC". The Slawson Note, provided by Todd Slawson Trust, is a $2.1 million dollar credit facility that expires October 12, 2014. The basic terms of the Slawson Note include a 0.75% origination fee, a 0.5% fee on available but undrawn funds, a 12% interest rate, with no parent company guarantees.

Evan Genaud, CEO and President of PetroShale Inc., stated, "The new structure of our US subsidiary is an instrumental step for efficiently growing PetroShale to benefit our shareholders. We have significantly increased our corporate flexibility to attract quality partners and deals, and at the same time expanded our sources of financing to efficiently lower the cost of capital, while maturing our undeveloped inventory. Both Independent Bank and the Todd Slawson Trust have been excellent to work with, delivering flexible solutions to enable our continued growth."

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
PetroShale Inc.
Attention: Evan Genaud
Chief Executive Officer
Info@PetroShaleInc.com
www.petroshaleinc.com

PetroShale Announces Closing of Private Placement

Wednesday, June 05, 2013




PetroShale Announces Closing of Private Placement

22:19 EDT Wednesday, June 05, 2013

DENVER, COLORADO--(Marketwired - June 5, 2013) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) is pleased to announced that further to the press release dated May 6, 2013, the Company has closed the placement of 134,000 common shares of the Company ("Common Shares") at a price of $0.29 per Common Share for gross proceeds to the Company of $38,860. The Common Shares were sold to Mr. Evan Genaud in connection with his appointment as the Company's new President and Chief Executive Officer.

The Common Shares issued are subject to a statutory hold period expiring on October 6, 2013.

FOR FURTHER INFORMATION PLEASE CONTACT:



Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:
PetroShale Inc.
Evan Genaud
info@petroshaleinc.com
www.petroshaleinc.com

Petroshale Announces Appointment of CFO

Thursday, May 30, 2013




Petroshale Announces Appointment of CFO

19:49 EDT Thursday, May 30, 2013

DENVER, COLORADO--(Marketwired - May 30, 2013) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) is pleased to announce the appointment of Tristan Farel as CFO.

"Mr. Farel has extensive experience with public oil and gas E&P accounting and reporting in the US and Canada. His expertise and systems implementation will facilitate our ability to grow the company while ensuring accounting and reporting best practices," says John Fair, President of PetroShale (US) Inc.

Mr. Farel has more than eleven years of experience in the oil and gas industry including five years as an auditor for Hein & Associates, LLP, three years with Resolute Energy Corporation as Financial Reporting Manager and three years as a consultant to both private and public oil companies in the US, Canada, and Australia. Mr. Farel is President of Pivot Accounting, LLC a specialty accounting firm focused on providing accounting and reporting services to both private and public E&P companies. PetroShale has contracted with Pivot to provide full accounting services for the Company.

FOR FURTHER INFORMATION PLEASE CONTACT:



Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:
PetroShale Inc.
Evan Genaud
Chief Executive Officer
evan@petroshaleinc.com
www.petroshaleinc.com

Petroshale Announces Asset Acquistion

Wednesday, May 22, 2013




Petroshale Announces Asset Acquistion

09:00 EDT Wednesday, May 22, 2013

DENVER, COLORADO--(Marketwired - May 22, 2013) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) is pleased to announce it has completed an acquisition of 105 net acres of land and a 1.5% average working interest in 11 producing wells in the Williston Basin Bakken and Three Forks play for a purchase price of $2.5 million in cash.

Current production net to PetroShale from seven wells is approximately 60 BOE per day (approximately 86% liquids). The other four producing wells remain on confidential status until June 2013. In addition to the 11 producing wells there are 10 permitted well locations from a total of 45 gross drilling locations in the area of the Williston Basin along the Mackenzie County/Mountrail County border.

"This transaction illustrates our current strategy of purchasing non-operated interests in prime locations with strong near term drilling activity and economics", says Evan Genaud, CEO of PetroShale. "Lease holders are feeling the financial pressures associated with the new paradigm of high well counts per drilling pad in the Williston Basin. We are able to help current owners monetize their assets while building a quality resource portfolio for PetroShale shareholders."

Note: "BOE" means barrel of oil equivalent on the basis of 6 Mcf of natural gas to 1 Bbl of oil. BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 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 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 Mcf:1 Bbl, utilizing a conversion ratio at 6 Mcf:1 Bbl may be misleading as an indication of value.

FOR FURTHER INFORMATION PLEASE CONTACT:



Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:
PetroShale Inc.
Attention: Evan Genaud
Chief Executive Officer
evan@petroshaleinc.com
www.petroshaleinc.com

PetroShale Announces Appointment of New President & Chief Executive Officer

Monday, May 06, 2013




PetroShale Announces Appointment of New President & Chief Executive Officer

16:11 EDT Monday, May 06, 2013

DENVER, COLORADO--(Marketwired - May 6, 2013) - PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE:PSH) is pleased to announce the appointment of Mr. Evan Genaud, 38, as President and CEO. Mr. James Fair, who is retiring from his current executive role, will continue to serve as a Director.

"On behalf of the Board of Directors of PetroShale, we are very pleased Evan Genaud has agreed to join the Company as President and CEO. Evan's unique background of technical, entrepreneurial and financial markets experience makes him an ideal CEO to lead PetroShale", commented John Fair, President PetroShale (US) Inc. "Governments and leading international oil companies have sought Evan's advice on high profile projects around the globe. I look forward to working together with Evan to aggressively grow the Company".

Genaud's experience over the past 17 years has included technical, business development, entrepreneurial and financial markets positions in North America, South America, Europe, Asia, Africa, and the Middle East. After three years as Global Oil and Gas Advisor and Chief Engineer for HSBC, London, UK, Genaud recently moved back to Denver with his family. Genaud played an instrumental role helping HSBC grow its highly successful worldwide energy practice.

Prior to HSBC, Genaud spent seven years with Anadarko/Kerr-McGee in increasing roles of responsibility both internationally and in the Rocky Mountain region, including extensive experience in the Williston Basin.

Genaud is an MBA graduate from the University of Colorado and holds a BS in Geophysical Engineering from the Colorado School of Mines. Mr. Genaud's appointment remains subject to regulatory approval, including the approval of the TSX Venture Exchange.

In connection with his appointment, Genaud has agreed to purchase up to 134,000 common shares of the Company ("Common Shares") at a price of $0.29 per Common Share for gross proceeds to the Company of $38,860 (the "Genaud Placement"). Closing of the Genaud Placement shall occur as soon as practicable following receipt of all regulatory approvals including the approval of the TSX Venture Exchange.

The Company also announces that pursuant to the provisions of Company's option plan, the board of directors of the Company have agreed to grant Genaud 443,470 options purchase Common Shares at an exercise price of $0.29 per Common Share. The options granted shall vest on each of the next three anniversaries of the date of grant and expire on May 6, 2018. All stock option grants are subject to regulatory approval including the approval of the TSX Venture Exchange.

NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "intends" and similar expressions is intended to identify forward-looking information concerning the Company's plan to complete a the Genaud Placement and the receipt of all necessary regulatory approvals regarding the appointment of Genaud, the Genaud Placement and the option grant. The forward-looking information in this news release is based on certain key expectations and assumptions made by the Company, including assumptions as to: the submission, in a timely manner, of regulatory and third party applications and the receipt in a timely manner, of regulatory and third party approvals.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct.

The forward-looking information in this news release is subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied in the forward-looking information. Such risks, uncertainties and factors include, among others, the inability to secure necessary regulatory or other third party approvals. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward-looking information contained in this news release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities law.

FOR FURTHER INFORMATION PLEASE CONTACT:



Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:
PetroShale Inc.
John Fair
john@petroshaleinc.com
www.petroshaleinc.com

PetroShale Announces Results for the Six Month Period Ended December 31, 2013 and Updated Reserves

Marketwire - Apr 24 17:55 EDT

Alert hits:OTC
Company Symbols: TorontoVE:PSH, OTC-PINK:PSHIF


CALGARY, ALBERTA -- (Marketwired) -- 04/24/14 -- PetroShale Inc. ("PetroShale" or the "Company") (TSX VENTURE: PSH)(OTCQX: PSHIF) today announces its financial and operating results for the six month period ended December 31, 2013, as well as its updated reserves as at December 31, 2013. The Company changed its financial year-end from June 30 to December 31 and as a result, the current reporting period is a six month stub period (July 1, 2013 to December 31, 2013), with the comparative period being the twelve months ended June 30, 2013. The Company's next reporting period will be the three months ended March 31, 2014.

PetroShale has filed its audited consolidated financial statements as at and for the period ended December 31, 2013 and the corresponding Management's Discussion and Analysis on SEDAR at www.sedar.com, and posted the information on PetroShale's website at www.petroshaleinc.com. Copies of the materials can also be obtained upon request without charge by contacting the Company directly.

Highlights:


-- Reported production of 185 boe/d (Company interest, gross of royalty -
147 boe/d net of royalty interest), an increase of 52% over the year
ended June 30, 2013, primarily due to the production generated from the
Company's Stockyard Creek and Antelope/MJ Angus assets, which were
acquired in August and May of 2013, respectively;

-- Reported a strong operating netback of $56.75 (Company interest, gross
of royalties, and excluding the impact of hedging - $71.58 net of
royalty interest), reflecting higher realized pricing and lower
operating expenses;

-- Subsequent to the end of the period, completed two additional
acquisitions in North Dakota, including the North Antelope Project
operated by EOG Resources Inc. ("EOG"), and the acquisition of a 19%
interest in 1,280 total acres of undeveloped land in Williams County,
North Dakota, both of which add to the Company's growing base of
existing or near-term cash flowing assets;

-- Secured a subordinated loan facility with two significant shareholders,
which provides PetroShale access to a $20 million revolving line of
credit; and

-- Increased proved plus probable ("P+P") reserves by 88% to 701.2 Mboe
(561.9 Mboe net of royalty interest) as at December 31, 2013, and after
reflecting acquisitions completed in the first quarter of 2014, P+P
reserves increased further to 2,188 Mboe (1,750 Mboe net of royalty
interest) on a pro forma basis.


Results of Oil and Gas Activities


Six Months Ended Year Ended
For the period ended December 31, 2013 June 30, 2013
----------------------------------------------------------------------------
Sales volumes
Oil and natural gas liquids
(Bbl/d) 165 118
Natural gas (Mcf/d) 124 29
----------------------------------------------------------------------------
Barrel of oil equivalent
(Boe/d) 185 122

Operating Netbacks ($/Boe)
Revenue $ 89.80 $ 83.02
Royalties (18.61) (18.59)
Realized hedge gain 0.23 -
Operating expenses (9.87) (14.56)
Production taxes (4.57) (2.19)
----------------------------------------------------------------------------
Operating netback $ 56.98 $ 47.68
----------------------------------------------------------------------------
Operating netback prior to
hedging $ 56.75 $ 47.68
----------------------------------------------------------------------------


Funds flow from operations was $264,000 for the six month period ended December 31, 2013 compared to $207,000 for the year ended June 30, 2013. For the six month period ended December 31, 2013, the Company reported a net loss of $2.7 million ($0.09 per share), compared to a loss of $21.1 million ($0.73 per share) for the year ended June 30, 2013.

2013 Year-End Reserves:

The reserves data in this press release is based upon evaluations by Netherland, Sewell & Associates, Inc. ("NSAI") with respect to our assets in the United States, and by Jim McIntosh Petroleum Engineering Ltd. ("McIntosh") with respect to our Canadian assets, all with an effective date of December 31, 2013. The reserves data summarizes PetroShale's crude oil, natural gas liquids and natural gas reserves and the net present values of future net revenue for these reserves using forecast prices and costs, not including the impact of any price risk management activities. The reserves data described herein as pro forma reflect an evaluation performed by NSAI of our United States assets, including those arising from the acquisitions completed by the Company subsequent to December 31, 2013, with an effective date of December 31, 2013, aggregated with the evaluation of our Canadian assets as described above. The Reserve Reports have been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in NI 51-101 and CSA 51-324. No attempt was made to evaluate possible reserves.

Reserves Highlights:


-- P+P reserves as at December 31, 2013 increased 88% to 701.2 Mboe (561.9
Mboe net of royalty), while total proved reserves increased 57% to 553.0
Mboe (448.5 Mboe net of royalty).

-- 86% of PetroShale's total P+P reserves on a boe basis are light, sweet
oil, and 94% are attributed to the U.S assets located in North Dakota
and Montana.

-- Before tax net present value (discounted at 10%) ("NPV10") of the
Company's P+P reserves totaled $15.0 million, while the NPV10 of total
proved reserves increased to $13.5 million.

-- Following completion of acquisitions in the first quarter of 2014, pro
forma P+P reserves increased further to 2,188 Mboe (1,750 Mboe net of
royalty) with an NPV10 of $44.1 million.


Gross Company Interest Reserves


AGGREGATED CANADA AND UNITED STATES OIL & GAS ASSETS
RESERVES
LIGHT AND
MEDIUM NATURAL GAS
OIL NATURAL GAS LIQUIDS BOE


RESERVES
CATEGORY Gross Net Gross Net Gross Net Gross Net
(Mbbls) (Mbbls) (MMcf) (MMcf) (Mbbls) (Mbbls) (Mboe) (Mboe)
PROVED:
Developed
Producing 305.9 256.4 234.0 193.2 - 0.6 344.9 289.2
Developed Non-
Producing 44.1 33.7 56.4 43.1 - - 53.5 40.9
Undeveloped 128.2 98.2 158.1 121.0 - - 154.6 118.4
----------------------------------------------------------------------------
TOTAL PROVED 478.2 388.3 448.5 357.3 - 0.6 553.0 448.5
PROBABLE 123.2 94.3 149.6 114.6 - - 148.1 113.4
----------------------------------------------------------------------------
TOTAL PROVED
PLUS PROBABLE 601.4 482.6 598.1 471.9 - 0.6 701.2 561.9
----------------------------------------------------------------------------


Columns may not add due to rounding.

Net Present Value of Future Net Revenue


AGGREGATED CANADA AND UNITED STATES OIL & GAS ASSETS
BEFORE INCOME TAXES DISCOUNTED AT (%/year)
RESERVES CATEGORY 0% 5% 10% 15% 20%
($000s) ($000s) ($000s) ($000s) ($000s)
PROVED:
Developed Producing 18,602.3 12,853.5 9,949.7 8,221.4 7,078.3
Developed Non-
Producing 2,595.4 2,118.8 1,821.7 1,621.1 1,476.7
Undeveloped 4,375.3 2,720.6 1,762.2 1,147.8 727.2
----------------------------------------------------------------------------
TOTAL PROVED 25,573.0 17,692.9 13,533.6 10,990.3 9,282.2
PROBABLE 4,119.4 2,437.9 1,485.6 891.0 488.3
----------------------------------------------------------------------------
TOTAL PROVED PLUS
PROBABLE 29,692.4 20,130.8 15,019.2 11,881.3 9,770.5
----------------------------------------------------------------------------


Columns may not add due to rounding.

Reserves Reconciliation - Aggregate


TOTAL CANADA (MBOE) TOTAL UNITED STATES (MBOE)
Gross Gross
Proved Proved
Gross Gross Plus Gross Gross Plus
Proved Probable Probable Proved Probable Probable
----------------------------------------------------------------------------
June 30, 2013 44.5 - 44.5 306.6 21.7 328.2
Discoveries - - - - - -
Improved
Recovery 3.9 - 3.9 - - -
Technical
Revisions - - - 38.7 (0.5) 38.2
Acquisitions - - - 196.6 127.6 324.2
Dispositions - - - - - -
Economic Factors - - - (1.1) (0.6) (1.7)
Production (2.8) - (2.8) (33.4) - (33.4)
----------------------------------------------------------------------------
December 31,
2013 45.6 - 45.6 507.4 148.2 655.5

TOTAL (MBOE)
Gross
Proved
Gross Gross Plus
Proved Probable Probable
----------------------------------------------------------------------------
June 30, 2013 351.1 21.7 372.8
Discoveries - - -
Improved
Recovery 3.9 - 3.9
Technical
Revisions 38.7 (0.5) 38.2
Acquisitions 196.6 127.6 324.2
Dispositions - - -
Economic Factors (1.1) (0.6) (1.7)
Production (36.2) - (36.2)
----------------------------------------------------------------------------
December 31,
2013 553.0 148.2 701.2


Columns may not add due to rounding.

Letter to shareholders:

Throughout calendar 2013, we enhanced PetroShale's strategic position, which included changing the Company's year end to December 31. As a result of this change, this report provides our results and discusses our achievements for the six month period from July 1, 2013 to December 31, 2013.

As part of our ongoing strategy to acquire and consolidate working interests in the prolific Williston Basin in North Dakota, we completed several acquisitions that we anticipate will contribute to growth in production, reserves and cash flows. In August, 2013, we partnered with Slawson Exploration Inc. ("Slawson"), one of the largest private operators in the Williston Basin, to acquire certain assets within the Stockyard Creek field (situated in southern Williams County, North Dakota). These assets included 106 net leased acres giving the Company a 5.5% interest in a 17 well drilling program over three 640 acre sections. The Stockyard Creek assets are operated by Slawson, and to date include the successful drilling and completion of five wells, including four new wells that came on production in February 2014.

Subsequent to the end of 2013, two additional acquisitions were completed. The first was the acquisition of the North Antelope Project in McKenzie County, North Dakota, operated by EOG, a large and experienced operator in shale oil plays, including the Bakken. The Antelope Project provides PetroShale with an 18.75% working interest in a proposed drilling unit, which has been spaced for the drilling of 8 wells. Based on current capital plans, we expect results from those wells should have a positive impact on PetroShale's production and cash flows later in 2014. The second acquisition we completed after year end 2013 was the purchase of 245 net held-by-production acres, giving the Company an approximate 19% working interest in a 1,280 acre drilling unit in Williams County, North Dakota.

As a result of our activities to date, PetroShale's production has grown to approximately 240 boe/d currently. Following the acquisitions completed in the first quarter of 2014, our pro forma P+P reserves increased to approximately 2,188 Mboe (1,750 Mboe net of royalty), with a NPV10 of $44.1 million.

In addition to growing the Company's asset base, we also took steps in the latter half of 2013 to strengthen our Board and management team. PetroShale's management team and Board have extensive experience in managing and governing high-growth oil and natural gas entities. We look forward to a focused expansion of our operations in the Williston Basin.

We appreciate your continued support of PetroShale, and look forward to updating you on our progress and achievements in our next financial report, for the first quarter ended March 31, 2014.

M. Bruce Chernoff, Executive Chairman and CEO

About PetroShale

PetroShale is a growing oil company engaged in the acquisition and consolidation of interests in the Williston Basin in North Dakota and Montana. The strategy focuses on acquiring leases in the most prolific and proven areas of the Williston Basin.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note Regarding Forward-Looking Statements and Other Advisories

It should not be assumed that the discounted future revenue estimated by NSAI represent the fair market value of the reserves. Company interest means, in relation to the Company's interest in production and reserves, the Company's working interest (operating and non-operating) before the deduction of royalties payable and including such entity's royalty interest in production and reserves. Where volumes of reserves and production have been presented, they have been presented as company working interest, gross of royalties. All operating netbacks referenced in this press release are Company working interest. Relative price deck used by NSAI and McIntosh in their reserves evaluations has been disclosed within our Annual Information Form, which will be available on our SEDAR profile. All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.

Within this press release, references are made to terms commonly used in the oil and natural gas industry. The term "netback" or "operating netback" in this press release is not a recognized measure under generally accepted accounting principles in Canada. PetroShale uses "netback" as a key performance indicator and it is used by the Company to evaluate the operating performance of its petroleum and natural gas assets and is determined by deducting royalties and production and operating expenses from petroleum and natural gas revenue. Readers are cautioned; however, that this measure should not be construed as an alternative to net earnings or cash flow from operating activities determined in accordance with generally accepted accounting principles in Canada as an indication of our performance. "Funds flow from operations" is calculated based on cash flow from operating activities before the change in non-cash working capital and settlement of decommissioning obligations. PetroShale believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating PetroShale's operating performance. Management utilizes funds flow from operations as a key measure to assess the ability of the Company to finance operating activities and capital expenditures. Funds flow from operations should not be construed as an alternative to net earnings or cash flow from operating activities determined in accordance with GAAP as an indication of PetroShale's performance. A reconciliation of funds flow from operations to cash flow from operating activities is provided in the MD&A.

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to aspects of management focus, objectives, strategies and business opportunities. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. Statements relating to "reserves" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and that the reserves or resources can be profitably produced in the future. The forward-looking information is based on certain key expectations and assumptions made by the Company's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; the Company's ability to access capital, ad obtaining the necessary regulatory approvals.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas volumes have been converted to boe using a ratio of 6,000 cubic feet of natural gas to one barrel of oil (6 Mcf: 1 Bbl). This boe conversion ratio 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 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 Mcf: 1 Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.

Contacts:
PetroShale Inc.
Attention: Executive Chairman and CEO
+1.303.297.1407
Info@PetroShaleInc.com
www.petroshaleinc.com

5 Quarters Investor Relations, Inc.
Cindy Gray
403.828.0146
cgray@5qir.com


Source: PetroShale Inc.