Half-yearly Report

Caracal Energy Provides 2013 Half-year Results

CALGARY, Aug. 19, 2013 /CNW/ - Caracal Energy Inc. ("Caracal", the "Company",
or the "Group") is pleased to announce its half year results for the six months
ended June 30, 2013.

2013 Half-yearly results summary

Caracal had a successful first half of 2013. The Badila development project was
completed in early June. The Group was able to test new reservoir horizons
successfully, and apply modern 3D seismic techniques over the Badila and
Mangara developments and surrounding exploration opportunities. The Group
continues to undertake intensive analysis of the exploration portfolio
opportunities. Caracal achieved a significant milestone with the admission of
its common shares to the premium list on the London Stock Exchange on July 9,
2013.

Operational Highlights

·         Completed construction and commissioning of the first phase of the
modular production facilities and gathering system at Badila,

·         Completed construction and commissioning of the 17 kilometre pipeline
from the Badila facilities to the TOTCO-COTCO export line,

·         Completed the interconnection with the TOTCO-COTCO export line,

·         Completed and tied-in the Badila-1 and Badila-2 wells,

·         Completed a 3D seismic survey covering the Badila field and the
adjoining Bitanda Ridge exploration prospect. Bitanda Ridge exploration
prospect is targeting 277 million bbls unrisked P mean, 648 million bbls
unrisked P10,

·         Filed an application for the 25 year development license for the
Kibea field,

·         Drilled the Badila-3 well to a total depth of 2,150 meters, with test
results indicating production of approximately 2,400 bopd,

·         Drilled and cased the Mangara-5 development well, then deepened it to
explore and test the lower Cretaceous E sands,

·         Spudded the Krim exploration target on August 6, 2013,

·         Received delivery of a second drilling rig (Rig-96) in Chad and spud
Badila-4 on August 8, 2013.

Corporate Highlights

·         Admitted to the premium listing segment of the Official List of the
Financial Conduct Authority and began trading July 9, 2013 on the London Stock
Exchange's main market for listed securities,

·         Completed the Farm-in Agreement with GlencoreXstrata plc
("Glencore"),

·         Increased net entitlement proven plus probable reserves ("2P") by 59
percent to 50.6 million barrels of light oil and proven plus probable plus
possible reserves ("3P") by 41 percent to 89.8 million barrels of light oil,

·         Increased mean unrisked gross lease prospective resources to 4.1
billion barrels and mean risked gross lease prospective resources to 833
million,

·         Increased Caracal's 2P Net Present Value to $1,413 million
(discounted at 10% after tax) and 3P to $2,533 million (discounted at 10% after
tax),

·         The Group's convertible bonds issued in September 2012 were admitted
to the official list of the Luxembourg Stock Exchange and have been admitted to
trading on the Euro MTF market,

·         Appointed Peter Dey as independent director,

·         Exited the second quarter with working capital of $178.2 million
including cash and cash equivalents of $78.6 million,

·         Achieved a UK Classification by the FTSE Nationality Committee for
purposes of Caracal's application to be included on the FTSE index series.

Outlook

·         Bitanda exploration target well to spud in the third quarter of 2013;

·         Complete the testing of the Cretaceous E sands at Mangara-5 well,

·         Complete and commission the 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,

·         Complete and commission the blending and shipping facilities required
to bring Mangara onstream,

·         Exit 2013 at a forecasted gross production rate of 20,000 to 23,000
barrels oil per day.

Operational Review

Badila Development

Caracal has full 3D coverage of the Badila field, and the results of the
initial processing of the 3D seismic are incorporated in the mid-year reserves
update. The results suggest extension of the Cretaceous D sands to the east of
the previously understood field limits, and this extension will be confirmed by
further drilling commencing with the Badila-4 well. The Badila-4 was spudded on
August 8 and is expected to take 20 - 25 days to drill.

Badila-3

Badila-3 was drilled to test the flank of the field structure at the Cretaceous
C and D levels. Drilling   and petrophysical analysis suggested the Cretaceous
D sands may contain additional moveable oil, therefore, three additional well
tests were added. Results are encouraging, and suggest economic reserves may be
produced from the C1a, C3, D6 and D8 zones as follows:

ZONE   COMMINGLED TESTING INDIVIDUAL TESTING POTENTIAL RATE WITH ESP
                                                                    
       Fluid Rate Oil Cut Fluid Rate Oil Cut Fluid Rate   Oil Rate  
                                                                    
       (BBL/day)  %       (BBL/day)  %       (BBL/day)    (BBL/day) 
                                                                    
C1a    1,734      6%      697        11%     311          99        
                                                                    
C3                        1,438      5%      4,446        218       
                                                                    
D4, D5                    1,492      0%      7,500        0         
                                                                    
D6                        1,655      36%     6,834        2,434     
                                                                    
D8                        854        22%     2,641        585       
                                                                    

 

Notes: Productivity Index was estimated from swab tests, and used to estimate  
ESP (Electric Submersible Pump) rates at an intake pressure of 1,350 psi (~35% 
drawdown)                                                                      
                                                                               

The oil gravity of the D6 and D8 zones is ~36 degrees API. With only the D6 and
D8 zones completed with an electric submersible pump, the well is capable of
~2,400 barrels of oil per day commingled from these two zones. However, since
this oil comes with ~5,100 barrels of water per day, these zones will be
produced when additional processing and water injection facilities are
available.

             
             

Badila Production

The first phase of the modular Badila production facilities was completed on
schedule at the end of May 2013. President Idriss Déby inaugurated the Badila
facilities on June 9, 2013 by opening the production shipping valve.  First
production from Badila is expected imminently.

Mangara Development

Mangara-4

The Mangara-4 development well spudded on March 13, 2013 and was drilled to a
total depth of 2,471 meters. Petro-physical results show 40-60 meters of
estimated oil pay in the lower Cretaceous C & D sands. The well was suspended
due to hole instability, and will be re-entered in the near future and
completed as a producer. Depending on the testing results of Mangara-5,
Mangara-4 may be deepened and completed as a dedicated lower Cretaceous E sands
producer.

Mangara-5

The Mangara-5 development well was drilled and cased as a lower Cretaceous C &
D sands producer. The well was also deepened to 3,339 meters to test the
Cretaceous E sands, a new exploration horizon below the Mangara field.

Recent 3D seismic acquired over Mangara, which has been subjected to
specialized processing and interpretation techniques, suggests the sands within
the lower Cretaceous E could hold significant hydrocarbons. From drilling and
petrophysical analysis, preliminary Mangara-5 results suggest this well has a
potential range of 150-230 meters of estimated net oil pay in the Cretaceous E
sands. The first of a series of planned tests was across a 25 meter interval
and achieved a maximum oil rate during this period of 815 bopd. The interval
produced a total of 200 barrels of 39 degree API oil with no water over the 16-
½ hour test period. Testing of the additional identified pay is ongoing with
results expected in early September.

Exploration

Caracal completed a 3D seismic program covering 320 km2 of the Badila field, as
well as the adjoining Bitanda ridge, where multiple exploration prospects had
previously been identified on 2D seismic.

The 3D seismic confirmed closure of the Bitanda structure against a basin
bounding fault, moving the priority of this exploration prospect near the top
of the Group's drilling sequence. The Bitanda prospect is scheduled to spud in
Q3 2013 targeting unrisked mean prospective resources of 277 million bbls as
per the Group's recent reserves and resources evaluation dated effective June
30, 2013 from McDaniel & Associates Consultants Ltd. (the "Competent Persons
Report", or "CPR").

On August 6, 2013 Caracal spudded the Krim exploration well targeting unrisked
mean prospective resources of 29 million bbls exploration based on the CPR. The
Krim prospect is immediately adjacent to the Mangara field, with the
implication that a discovery here could be brought on stream in an expedited
manner.

Kibea development

Caracal filed an Exclusive Exploitation Authorization ("EXA") application on
April 25, 2013 and was deemed conditionally approved on May 25, 2013 pending
submission of an Environmental Impact Assessment ("EIA"). The EIA is underway,
and potential pipeline routes are being surveyed. A 3D seismic survey over the
Kibea field and nearby exploration prospects is scheduled to commence in the
4th Quarter of 2013 or 1st Quarter of 2014. Based on well drilling sequence and
concentration on west side of the E sands in the Mangara structure, the Kibea
appraisal well that was originally scheduled for Q4 2013/Q1 2014 may be delayed
until Q3 2014, after the rainy season. The appraisal well will test deeper
horizons and obtain core and fluid samples for development planning and
facilities design.

Outlook

The first half of 2013 has been transformational for Caracal. With the closing
of the Glencore transaction and with production commencing in the very short
term, Caracal is in a position to develop its existing world class asset base
while pursing accretive opportunities. Caracal is forecasting to exit 2013 in
the range of 20,000 to 23,000 bopd (gross).

Finance Review

Commitments

Under the terms of its individual production sharing contracts ("PSC's") the
Group has committed to various work programmes. The agreed-upon minimum work
requirement amounts to $115.0 million for the three PSCs over five years. As at
June 30, 2013, $76.8 million is yet to be spent with three more years remaining
in the agreements.

Other commitments consist of training of Chadian Nationals and employees of the
Energy Ministry as well as office lease commitments in both N'Djamena, Chad and
Calgary, Alberta.

Liquidity

The Group's available cash resources as at June 30, 2013 and 2012 were $78.6
million and $100.7 million respectively. The Group exited the second quarter
with working capital of $178.2 million. The Group entered into the Glencore
Farm-in agreement in 2012 which closed in June 2013. This transaction provided
approximately $330.8 million in liquidity and reduces future capital
requirements by reducing the Group's working interest in the PSCs.

Historically, the Group financed its capital resource needs through the sale of
its common shares, convertible bonds and farm-outs with the objective of the
acquiring prospective oil and gas assets and maximizing long-term financial
returns to its shareholders. The Group may consider additional debt, the
issuance of equity and other farm-outs in the future, if available on
reasonable terms, in order to accelerate exploration drilling on its existing
lands or pursue accretive opportunities.

Principal risks and uncertainties

Information regarding the Group's risk factors may be found under the headings
"Risk Factors" in the Group's final Canadian prospectus dated July 2, 2013
available under the Caracal's profile on SEDAR (www.sedar.com) and the final UK
prospectus dated June 28, 2013 available on the Group's website (to
non-Canadian viewers).

Strategy

The strategy of the Group is to increase shareholder value through sustained
growth in production, cash flow and reserves. Reserves growth targets include
optimum development of six known discoveries on lands in Chad, as well as
reinvestment of cash flow for exploration of 80 identified prospects on lands
in these licenses.

The Group intends to lead the development and operate infrastructure in the
regions in which it develops and produces oil and gas. The PSCs offer
significant near-term production and long-term exploration opportunities with
substantial resource potential. The combination of the Group's existing asset
base and experienced technical management team will contribute significantly to
the Group's growth and aim of being a leading independent international oil
Group. The Group is able to manage expenditures on its development of Mangara
and Badila, through the completion of the $330.8 million Farm-in with Glencore.
The Group remains focused on bringing Mangara on production and have commenced
the engineering of the expansion of both the Badila and Mangara facilities.
These two fields will provide the Group the required cash flow to fund its
exploration program.

UK Classification for FTSE UK Index Series Inclusion

On August 13, the FTSE Nationality Committee allocated Caracal a UK
classification for FTSE UK index series inclusion purposes.  As part of its
application to be indexed, Caracal agreed to commit to adhere to the UK
Takeover Code to the extent reasonably practicable.  At the next shareholder
meeting, Caracal will amend its articles of incorporation to include this
commitment. With this classification determined, the FTSE Committee will
consider Caracal's application to be included in the FTSE index at its
quarterly meeting on September 11, 2013.

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 contained in this press release constitutes forward-looking
information or statements including, without limitation, information and
statements respecting: drilling operations, anticipated cash flow, future
investment objectives, anticipated oil and gas pricing, expected inflation and
future foreign exchange rates. Statements relating to "reserves" and
"resources" are forward-looking information as they involve the implied
assessment, based on certain estimates and assumptions that, among others, the
reserves and resources described exist in the quantities predicted or
estimated. Forward-looking information and statements are often, but not
always, identified by the use of words such as "anticipate", "seek", "believe",
"expect", "hope", "plan", "intend", "forecast", "target", "project",
"guidance", "may", " might", "will", "should", "could", "estimate", "predict"
or similar words or expressions suggesting future outcomes or language
suggesting an outlook. By their very nature, forward-looking information and
statements involve inherent risks and uncertainties, both general and specific,
and risks that predictions, forecasts, projections and other forward-looking
information and statements will not be achieved. We caution readers not to
place undue reliance on these statements as a number of important factors could
cause the actual results to vary materially from the forward-looking
information or statements. These factors include, but are not limited to: the
volatility of oil and gas prices; production and development costs; capital
expenditures; the imprecision of reserve and resource estimates and estimates
of recoverable quantities of oil, natural gas and liquids; the Company's
ability to replace and expand oil and gas reserves; environmental claims and
liabilities; incorrect assessments of value when making acquisitions or
dispositions; increases in debt service charges; the loss of key personnel; the
marketability of production; defaults by third party operators; unforeseen
title defects; fluctuations in foreign currency and exchange rates; inadequate
insurance coverage; compliance with environmental laws and regulations; changes
in tax and royalty laws; the Company's ability to access external sources of
debt and equity capital; and the Company's ability to obtain equipment in a
timely manner to carry out development activities. Further information
regarding these factors may be found under the headings "General Advisory",
"Reserves and Resources Advisory" and "Risk Factors" in the Company's final
Canadian prospectus dated July 2, 2013 available under the Company's profile on
SEDAR (www.sedar.com) and the final UK prospectus dated June 28, 2013 available
on the Company's website (to non-Canadian viewers). Readers are cautioned that
the foregoing list of factors that may affect future results is not exhaustive.
When relying on these forward-looking statements to make decisions with respect
to the Company, investors and others should also carefully consider information
set forth in the section "Forward-Looking Statements" of the Company's
prospectuses respecting the assumptions upon which the Company bases certain
forward-looking information and the uncertainties inherent in such assumptions.
The Company does not assume responsibility for the accuracy and completeness of
the forward-looking information or statements and such information and
statements should not be taken as guarantees of future outcomes. 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. This cautionary statement expressly
qualifies the forward-looking information and statements contained in this
press release.

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]

(CRCL)