Caracal Energy Provides Operational Update

Caracal Energy Provides Operational Update

CALGARY, Aug. 12, 2013 /CNW/ - Caracal Energy Inc. ("Caracal" or the "Company")
is pleased to provide an operational update summarizing current development and
exploration drilling activities in Chad, as well as facilities construction and
progress toward first oil production.

Highlights

Drilling activities

·         Krim Exploration well spudded on August 4 2013, immediately southwest
          of Mangara development field.

·         Badila-4 appraisal well spudded on August 8 2013, appraising
          southeast extension of the primary Badila Field.

·         Rig will then move to spud the Bitanda exploration prospect.

Development facilities and production

·         Badila production facilities completed and commissioned and Mangara
          production facilities scheduled for completion and commissioning Q4 2013.

·         Initial production from Badila wells 1 and 2 expected to be up to
          14,000 bopd.

·         Execution of the documentation for Caracal to be the first third
          party shipper into the TOTCO/COTCO export line is imminent.

Drilling activities

The Krim exploration well was spudded on August 4 2013 and is expected to take
40 to 45 days to reach target depth. Krim is immediately southwest of the
Mangara development field, and the exploration well is targeting the Cretaceous
C and D sands that are currently under development in Mangara, and the
Cretaceous E sands, which in Mangara-5 have a potential range of 150 to 230
meters of net pay based on petrophysical analysis. The Company's reserve and
resource evaluator, McDaniel & Associates ("McDaniel") has assigned between 29
and 64 million barrels of Pmean to P10 unrisked prospective resource on the
Krim prospect, which is less than 10 kilometres from the infrastructure being
constructed at Mangara.

The Badila-4 appraisal well was spud on August 8 2013 and is expected to take
20 to 25 days to reach target depth. Badila-4 is northeast of the primary
Badila field where the first three development wells are located. The well
location was chosen to target a new structural high that was mapped on the
recent 3D seismic program shot over Badila in Q2 2013. The Badila field has
total possible reserves of 40 million barrels, over and above the proved plus
probable reserves of 45 million barrels. Much of the possible reserves are
associated with the area in and around the Badila-4 well location.

After the Badila-4 well is finished, the same rig will move to the Bitanda
prospect, which McDaniel has assigned between 277 and 648 million barrels of
Pmean to P10 unrisked prospective resource. It is expected that this well will
spud late in Q3 or early in Q4 2013, and will take 35 to 40 days to drill.

Development Facilities

Badila Production Facility- The facilities are constructed and commissioning
was completed during Q2 2013. This included the tie-in of the first two
production wells Badila-1 and Badila-2. The facility is designed to handle up
to 14,000 bopd, which will initially come from production in the Badila-1 and
Badila-2 wells.

Mangara Production Facility- The materials for the construction of the
facilities for Mangara started arriving during Q2 2013, and the facility is
currently under construction.  The Mangara production facilities are scheduled
to be completed and commissioned in Q4 2013. 

Southern Processing Terminal ("SPT") - The SPT will remove any remaining water
or sediment from Mangara production just prior to allocation measurement and
blending with Badila oil production. The terminal construction is underway and
expected to be completed and commissioned in Q4 2013.

PetroChad Transportation Inc. ("PCT")- is the company authorized to ship oil
within Chad as defined under our Production Sharing Contract. The Inland
Transportation Authorization ("ITA") has been granted and PCT will be shipping
and measuring oil shipments into the Export Transportation System through
custody transfer metering. Also under construction by PCT are the blending and
shipping facilities required to bring Mangara onstream.  The blending and
shipping facilities will be completed and commissioned in Q4 2013.

First Oil

The Company continues to make progress toward producing into the export line
from Chad to Cameroon. The Company will initially ship 468,000 barrels of line
fill contribution for the partners Glencore, SHT and Caracal, after which it
can accumulate oil for sale. Initial production coming from the Badila-1 and
Badila-2 wells is expected to be up to 14,000 bopd.

Gary Guidry, President and Chief Executive Officer, commented:

"We are very pleased with the progress we are making with the governments of
Chad and Cameroon and TOTCO/COTCO, as we move closer toward finalising
documentation and technical work necessary to begin shipping crude.

"We are also very pleased to be progressing the exploration and appraisal
activities on the licence area with the spudding of the Krim exploration well
close to the Mangara field and the appraisal well at Badila. We look forward to
updating the market as we move into Q3 2013 with the spudding of the high
impact Bitanda well and first oil."

About Caracal Energy Inc.

Based in Canada, Caracal Energy Inc. is an international exploration and
development company focused on oil and gas exploration, development and
production activities in the Republic of Chad, Africa. In 2011, the Company
acquired three production sharing contracts ("PSCs") from the government of the
Republic of Chad. These PSCs provide exclusive rights to explore and develop
reserves and resources over a combined area of 26,103 km2 in southern Chad. The
PSCs cover two world-class oil basins with development opportunity, oil
discoveries, and numerous exploration prospects.

Cautionary Statement

Certain information in this press release constitutes forward-looking
statements under applicable securities law. Any statements that are contained
in this press release that are not statements of historical fact may be deemed
to be forward-looking statements. Forward-looking statements are often
identified by terms such as "may," "should," "anticipate," "expects," "seeks"
and similar expressions. Specific forward-looking statements included in this
press release include comments related to the expected timing of pipeline
completion and facilities advancement; potential production rates; expected
completion of well servicing operations including the SPT; development of the
Mangara and Badila field; expected drilling of the Krim prospect; and other
matters. Subject to applicable securities laws, the Company does not undertake
any obligation to revise this forward-looking information or these
forward-looking statements to reflect subsequent events or circumstances. The
forward-looking information and statements contained in this press release are
expressly qualified by this cautionary statement. Well-test results are not
necessarily indicative of long-term performance or of ultimate recovery.

SOURCE: Caracal Energy Inc.

For further information:

Caracal Energy Inc.
Gary Guidry, President and Chief Executive Officer
Trevor Peters, Chief Financial Officer
403-724-7200

Longview Communications - Canadian Media Enquiries
Alan Bayless 604-694-6035
Joel Shaffer 416-649-8006

FTI Consulting - UK Media Enquiries
Ben Brewerton / Ed Westropp
+ 44 (0) 207 8313 3113
[e-mail]