Americas Petrogas Announces Second Quarter 2013 Results

Operating Netback(1) increases $13.7 million or 234%; Increase in net revenue by 75%; Net income of $5.1 million; $36.7 million of cash, investments and financial assets

CALGARY, ALBERTA--(Marketwired - Aug. 30, 2013) - Americas Petrogas Inc. ("Americas Petrogas" or the "Company") (TSX VENTURE:BOE) announces the Company continued to execute on its investment plan on its oil and gas properties in Argentina.

Summary Financial and Operational Highlights

Selected financial and operational information is outlined below and should be read in conjunction with the Company's condensed interim consolidated financial statements and the related Management's Discussion and Analysis ("MD&A") for the quarter, which have been filed on SEDAR under the Company's profile at www.sedar.com and are also available on the Company's website at www.americaspetrogas.com. All amounts are in Canadian dollars unless otherwise stated.

Net income: $5,121,233 in the second quarter of 2013 compared to a net loss of $4,731,206 for the equivalent period of 2012. This is the second consecutive quarter that the Company has reported profitability. Net revenue: increased by $6,371,527 or 75% compared to second quarter of 2012. Cash position: $36.7 million of consolidated cash, cash equivalents, short-term investments, and available-for-sale financial assets as of June 30, 2013. Oil sales volume: during the second quarter of 2013, the Company continued to produce and sell oil primarily from its Medanito Sur conventional block. During the second quarter of 2013, sales volume averaged 2,398 bopd (net), an increase of 70% over the second quarter of 2012 of 1,409 bopd (net). Operating netback: for the second quarter of 2013, operating netback (excluding Oil Plus benefits) was $44.72 per barrel and operating netback (including Oil Plus benefits) was $89.51 per barrel. For the second quarter of 2012, operating netback was $45.68 per barrel. Oil Plus benefits: during the second quarter of 2013, the Company recognized $11.2 million of Oil Plus benefits (related to production and reserve increases). This is in addition to $3.4 million recognized in the first quarter of 2013 and to $1.3 million recognized in the fourth quarter of 2012. Operating netback (including Oil Plus benefits)(1)Operating netback (excluding Oil Plus benefits) per barrel(1)Operating netback (including Oil Plus benefits) per barrel(1)Net income (loss) attributable to owners of the CompanyWeighted average number of common shares outstanding(3)Cash flow from operating activitiesAverage selling price per barrel

Notes:

"Operating netback" is a non-GAAP measure and is calculated as revenues from oil sales less royalties and production costs. Operating netback is used as an indicator of operating performance, profitability and liquidity. Operating netback (excluding Oil Plus benefits) excludes any Oil Plus benefits credited to production costs. Operating netback (including Oil Plus benefits) is net of any Oil Plus benefits credited to production costs. Operating netback does not have a standardized meaning prescribed by IFRS. It is unlikely for non-GAAP measures to be comparable to similar measures presented by other companies. For the three months ended June 30, 2013, operating netback including Oil Plus benefits was $19,535,145 (calculated as gross oil sales revenue of $17,224,255 less royalties of $2,368,597 plus production costs recovery of $4,679,487). For the three months ended June 30, 2012, operating netback was $5,855,237 (calculated as gross oil sales revenue of $9,729,829 less royalties of $1,245,698 and production costs of $2,628,894). For the six months ended June 30, 2013, operating netback including Oil Plus benefits was $32,701,960 (calculated as gross oil sales revenue of $33,673,901 less royalties of $4,471,378 plus production costs recovery of $3,499,437). For the six months ended June 30, 2012, operating netback was $12,937,395 (calculated as gross oil sales revenue of $21,357,636 less royalties of $3,789,881 and production costs of $4,630,360). "Funds flow from operations" is an additional GAAP measure because it is presented in the consolidated statement of cash flows. Funds flow from operations and funds flow from operations per share are used to analyze operating performance and liquidity. Funds flow from operations is calculated as net cash generated from (used by) operating activities (as determined in accordance with IFRS) before changes in non-cash balance sheet operating items. Funds flow from operations per share is calculated by dividing funds flow from operations by the weighted average number of shares outstanding. Funds flow from operations should not be considered an alternative to, or more meaningful than net cash generated from (used by) operating activities as determined in accordance with IFRS. Funds flow from operations per share should not be considered an alternative to, or more meaningful than earnings (loss) per share as determined in accordance with IFRS. Diluted weighted average number of common shares outstanding is computed by adjusting basic weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method, which assumes any proceeds received by the Company upon exercise of the in-the-money instruments would be used to repurchase common shares at the average market price for the period. For the three and six months ended June 30, 2013, 1,936,583 (three months ended June 30, 2012 - 8,372,168) and 3,359,445 (six months ended June 30, 2012 - 9,970,025) common shares were deemed to be issued for no consideration in respect of options. Working capital is a non-GAAP measure and is calculated as current assets less current liabilities. Working capital is used to assess liquidity general financial strength. Working capital does not have a standardized meaning prescribed by IFRS. It is unlikely for non-GAAP measures to be comparable to similar measures presented by other companies. Working capital should not be considered an alternative to, or more meaningful than current assets or current liabilities as determined in accordance with IFRS.

Second Quarter Highlights and Recent Developments

Ryder Scott Company estimated that the Company has 56.1 Billion Barrels of Oil Equivalent ("BOE") initially in place and 8.3 Billion BOE Recoverable in the Company's nine unconventional shale oil and shale gas properties. The report only considered the Vaca Muerta, Agrio and Los Molles shales. The report did not consider additional zones of interest such as the Quintuco, Tordillo, Mulichinco and others. During the second quarter of 2013, Petrogas Argentina obtained two loans from the Industrial and Commercial Bank of China (Argentina) S.A. in the total amount of AR$50.0 million (approximately $9.5 million). Nine (9) conventional wells were drilled during the second quarter of 2013. Earlier in 2013, drilling on Medanito Sur resulted in the discovery of new production areas, including El Alpataco, El Calden Este, Amilcar and La Meseta. In total, twenty (20) conventional wells were drilled in the first half of 2013. As well, the Company invested $12.8 million in facilities and equipment during the first half of 2013. The Company, in conjunction with its partner, ExxonMobil, continued to conduct long-term production testing on the LTE.x-1 well and continued to analyze data relating to the ALL.x-1 well and ADA.x-1 well. During the second quarter of 2013, the Company made the necessary filings and received the necessary approvals to make a Normal Course Issuer Bid ("NCIB") to buy-back some of its common shares commencing on June 21, 2013 and terminating on June 20, 2014 or such earlier date as all shares which are subject to the NCIB are purchased. Up to the current date, the Company has bought back and cancelled 207,000 common shares for a total cost of approximately $185,000.

"We are pleased with our results this quarter, generating $19.5 million of operating netback at $89.51 per barrel, including Oil Plus benefits, and $5.1 million of net income," said Barclay Hambrook, President and Chief Executive Officer. Mr. Hambrook went on to say, "The results of the Ryder Scott Company report were excellent and this report clearly highlights the large upside potential of Americas Petrogas' Neuquen Basin blocks."

For further information regarding the Company's financial results, financial position and related changes, please see the consolidated financial statements and the related MD&A.

About Americas Petrogas Inc.

Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has conventional and unconventional shale oil and gas and tight sands oil and gas interests in numerous blocks in the Neuquén Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil and Apache, on various blocks in the shale oil and gas corridor in the Neuquén Basin, Argentina. Americas Petrogas also owns an 80% interest in GrowMax Agri Corp., a private company involved in the exploration for near-surface potash, phosphates and other minerals, and potential development of a fertilizer project in Peru. Indian Farmers Fertiliser Co-operative Limited (IFFCO) owns a 20% interest in GrowMax Agri Corp. For more information about Americas Petrogas Inc., please visit www.americaspetrogas.com.

This Press Release contains forward-looking information including, but not limited to, the Company's goals and growth, estimates of reserves and resources, production and cash flows, new production areas on the Medanito Sur block, production testing of the LTE.x-1 well, analysis relating to the ALL.x-1 well and ADA.x-1 well, results of the Ryder Scott Company report, the large upside potential of Americas Petrogas' Neuquen Basin blocks, exploration, appraisal and development activities related to conventional and unconventional oil and gas, and other exploration, development and production activities in respect of the projects in Argentina and Peru. The recovery and resources estimates for the Company's properties described in this Press Release are estimates only and there is no guarantee that the estimated resources will be recovered. The actual resources for the Company's properties may be greater or less than those calculated. Additional forward-looking information is contained in the Company's MD&A for this quarter and the Company's Annual MD&A for December 31, 2012, and reference should be made to the additional disclosures of the assumptions, risks and uncertainties relating to such forward-looking information in those MD&A documents.

Forward-looking information is based on management's expectations regarding the Company's future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity (including the timing, location, depth and the number of wells), environmental matters, business prospects and opportunities and expectations with respect to general economic conditions. Such forward-looking information reflects management's current beliefs and assumptions and is based on information, including reserves and resources information, currently available to management. Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including but not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production, delays or changes to plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of geological interpretations; the uncertainty of estimates and projections in relation to production, costs and expenses and health, safety and environment risks, extensions of concessions and commitments), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and third parties located in foreign jurisdictions and the risk associated with international activity.

Although the forward-looking information contained herein is based upon assumptions which management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is made as of the date hereof and the Company assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. Because of the risks, uncertainties and assumptions inherent in forward-looking information, prospective investors in the Company's securities should not place undue reliance on this forward-looking information.

The term BOE (barrels of oil equivalent) is used in this press release. All calculations converting natural gas to BOE have been made using a conversion ratio of six thousand cubic feet (six "Mcf") of natural gas to one barrel of oil, unless otherwise stated. The use of BOE may be misleading, particularly if used in isolation, as the conversion ratio of six Mcf of natural gas to one barrel of oil 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 that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

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 THE RELEASE.

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Niko Provides Updates

CALGARY, ALBERTA--(Marketwired - Aug. 30, 2013) - Niko Resources Ltd. ("Niko" or the "Company") (TSX:NKO) is pleased to provide the following updates:

Farm-outs, Non-core Asset Dispositions, and Other Arrangements Update

Niko is pleased to announce that it has executed two sets of agreements which, subject to the required government approvals, will provide proceeds of nearly $40 million.

Farm-out of Grand Prix PSC in Madagascar

Niko has signed a definitive farm-out agreement under which OMV, an integrated international oil and gas company, will earn a 40% interest in the Grand Prix PSC in Madagascar, with Niko retaining a 35% working interest. Closing of the deal is subject to the approval of the Government of Madagascar.

Other Arrangements for Semai V and Kofiau PSCs in Indonesia

Niko has also signed a definitive agreement with Hess Corporation for certain consideration in exchange for assuming a 100% interest in the Semai V PSC, located offshore Papua province in eastern Indonesia. Two wells have been previously drilled in the block, Andalan 1 and 2, with one future commitment well yet to be drilled. Drilling results from these wells indicate hydrocarbon potential remaining on the block. The Company also signed an agreement to increase its working interest (effective prior to the drilling of the Elit-1 well discussed below) to 100% in the Kofiau PSC, also located offshore Papua province, for nominal consideration. The closings of these transactions are subject to the approval of the Government of Indonesia.

Indonesia Exploration Updates

Elit-1 Well

The Elit-1 well, located in the Kofiau PSC offshore Papua province in eastern Indonesia, has been drilled in water depth of 1,335 feet to a total depth of 3,915 feet in 9 days by Diamond Offshore's Ocean Monarch drilling rig, under budget and ahead of schedule. The well encountered 10 feet of gas at the top of a 90 foot sand package and has been plugged and abandoned.

Drilling Operations

Pending the Company's re-evaluation of its go-forward exploration capital spending priorities, the Company has decided to temporarily suspend its drilling program in Indonesia. The Company is working on various options to drill for third parties or to assign the contract for the Ocean Monarch rig and related service contracts to third parties for an extended period of time. The Ocean Monarch is being mobilized to the Makassar Strait area until the decision on the next drilling location has been finalized.

Financing Updates

Credit Facility

The Company is continuing its discussions with its credit facility syndicate banks regarding the re-determination of the borrowing base under its credit facility and is working with the banks on a deferral to September 30, 2013 for the re-determination date and a deferral to October 31, 2013 for any required adjustment to outstanding borrowings to reflect the new borrowing base.

Potential Refinancing of the Credit Facility

The Company is working on options to potentially refinance its credit facility to provide increased funding for its future capital programs.

Forward-Looking Information

Certain statements in this press release constitute forward-looking information. Specifically, this press release contains forward looking information relating to various governmental approvals, proceeds from various agreements, the Company's working interest in various PSCs, the re-determination of the Company's borrowing base under the credit facility and the re-financing of the Company's credit facility. These forward looking statements are based on certain key expectations and assumptions of management, including anticipated market conditions. The reader is cautioned that the assumptions used in the preparation of such forward looking information, although considered reasonable at the time of preparation, may prove to be incorrect and there can be no assurance that the expected proceeds from agreements will occur or occur on terms acceptable to the Company. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors and such variations may be material. Such factors include, but are not limited to: risks associated with market conditions; risks associated with oil and gas operations including equipment failures or accidents; the ability of suppliers and third party contractors to meet commitments; pressure or irregularities in geological formations; and adverse weather conditions. Niko makes no representation that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

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Divestco Reports Q2 2013 Results

CALGARY, ALBERTA--(Marketwired - Aug. 29, 2013) - (TSX VENTURE:DVT) - Divestco Inc. ("Divestco" or the "Company") announces its operating results for the three and six months ended June 30, 2013.

Three Months Ended June 30, 2013

Divestco had a net loss of $2.2 million for the second quarter of 2013 ($0.03 per share - basic and diluted) compared to net income of $0.9 million ($0.01 per share - basic and diluted) for the same period in 2012. The loss in Q2 2013 was primarily due to the Company recognizing a $1 million accounting loss from the disposal of certain data library assets and a $0.7 million impairment of leasehold improvements (net of tenant inducements) associated with the surrender of office space in the quarter. Excluding the non-cash loss and impairment, the net loss for Q1 2013 would have been $0.5 million.

The Company generated revenue of $7.1 million in Q1 2013 compared to $11.5 million in Q2 2012, a decrease of $4.4 million (38%). Revenue in the Software and Data segment increased by $1 million (48%) related to a significant software license sale. Revenue in the Seismic Data segment decreased by $4 million (79%) due to lower industry activities and corresponding revenue in the Services segment also decreased by $1.3 million (32%) with geomatics, processing and land management services all experiencing weaker than normal demand as compared to Q2 2012.

Operating expenses (excluding depreciation and amortization) decreased by $1.3 million (17%) to $5.9 million in Q2 2013 from $7.2 million in Q2 2012. Salaries and wages were down $0.5 million (12%). G&A expenses were down $0.6 million (22%) due to lower occupancy costs as the Company surrendered a floor of office space effective January 1, 2013 and another floor effective June 1, 2013. In addition, stock-based compensation, professional fees, and bad debt expenses were lower than 2012. Depreciation and amortization decreased by $1.6 million (52%) mainly due to lower depreciation on seismic data as the Company completed a seismic program in Q2 2012 but did not acquire any new data in Q2 2013.

Excluding the non-cash accounting loss and impairment of $1.7 million, EBITDA was $1.1 million in Q2 2013, a $3.2 million (74%) decrease from $4.3 million for the same period in 2012. The Company generated funds from operations of $1.2 million ($0.02 per share - basic and diluted) for the second quarter of 2013, compared to $4.3 million ($0.06 per share - basic and diluted) for the same period in 2012, a decrease of $3.1 million (73%) primarily due to a lower volume of services and seismic data activities.

Six Months Ended June 30, 2013

Divestco had a net loss of $0.1 million for the first six months of 2013 ($nil per share - basic and diluted) compared to net income of $3.6 million ($0.05 per share - basic and diluted) for the same period in 2012. Excluding the loss and impairment, the Company would have had net income of $1.5 million ($0.02 per share - basic and diluted) for the six months ended June 30, 2013.

The Company generated revenue of $18.7 million compared to $25.9 million in 2012, a decrease of $7.2 million (26%). Revenue in the Software and Data segment increased by $1.1 million (28%) related to a significant software license sale. Revenue in the Seismic Data segment decreased by $4.6 million (39%) which was primarily due to lower speculative survey revenue and seismic data management revenue. Revenue in the Services segment decreased by $3.7 million (38%) with geomatics, processing and land management services all experiencing weaker demand as compared to 2012.

Operating expenses (excluding depreciation and amortization) decreased by $1.6 million (11%) to $12.6 million in for the first six months of 2013 from $14.2 million during the same period in 2012. Salaries and wages were down $1 million (11%) and G&A expenses were down $0.6 million (14%) due to lower occupancy costs as the Company surrendered a floor of office space effective January 1, 2013 and another floor effective June 1, 2013. In addition, stock-based compensation, professional fees, and bad debt expenses were lower than 2012. Depreciation and amortization decreased by $4.1 million (50%) mainly due to lower depreciation on seismic data as the Company acquired more data in 2012 as compared to 2013.

Excluding the non-cash accounting loss and impairment of $1.7 million, EBITDA was $6.1 million in the first six months of 2013, a $5.6 million (48%) decrease from $11.7 million for the same period in 2012. The Company generated funds from operations of $6.4 million ($0.10 per share - basic and diluted) in the first half of 2013, compared to $11.5 million ($0.17 per share - basic and diluted) for the same period in 2012, a decrease of $5.1 million (44%) primarily due to a lower volume of services and seismic data activities.

Liquidity and Working Capital

On May 9, 2013, the Company announced it had closed a new senior credit facility of up to $11 million. The Company also received $1 million in new shareholder loans just prior to the closing of the new facility. The proceeds were used to retire bank and subordinated debt totaling approximately $6 million. The facility has an expanded operating line ($8 million as compared to $5 million under its previous facility) based on receivables aged less than 90 days and $3 million in term debt as well as a financial covenant that is better suited to the Company's business.

Management ensures that Divestco's credit facilities, combined with its working capital and funds from operations, will be sufficient in the short-term and long-term to meet planned growth and to fund future capital expenditures.

Divestco ended Q2 2013 with positive working capital of $0.7 million (December 31, 2012: $7.5 million deficit), excluding deferred revenue of $3.4 million (December 31, 2012 - $2.4 million). The improvement in working capital from the end of 2012 was primarily due to a number of data transactions completed in the first six months of 2013 offset by an unpredictably slow period for the services segment. As a result of closing these data deals, the Company has significantly reduced its payables since the end of 2012. The Company's funded debt to equity ratio was 0.66:1 at June 30, 2013 compared to 0.64:1 at December 31, 2012.

Financial Position (Thousands)Long-Term Financial Liabilities (2)Excludes the current portion of deferred revenue of $3.4 million (December 31, 2012: $2.4 million; December 31, 2011: $4.6 million).Includes long-term debt obligations, deferred rent obligations, sublease loss provision and other long-term liabilities. The long-term debt obligations are comprised of the Company's subordinated debt, shareholder loans and finance leases.

Operations Update

In June, 2013, the Company subscribed for 500,000 shares of a newly incorporated entity in exchange for $0.2 million in cash and a portion of its well data library that was transferred to the new entity with a fair value of $0.3 million for a total investment of $0.5 million. Concurrently, two private companies (dealing at arm's length with the Company) subscribed for 1 million shares for $1 million in cash. As a result each company became a 1/3 shareholder of the new entity. Immediately thereafter, the Company granted a software license to the new entity for $1.2 million. The Company recognized $0.8 million of revenue on this transaction after eliminating the Company's share in the new entity. The new entity has granted each shareholder a data licence for $250,000 per annum payable on a monthly basis. As a result of the non-monetary contribution made by the Company, an accounting loss on disposal of $1 million was recognized for the difference between the net book value and fair value of the assets contributed.

During the first six months of 2013, the Company completed a 3D seismic participation survey, covering an area of approximately 93 square kilometers.

Mr. Stephen Popadynetz, CEO commented: "Divestco returned to positive working capital in Q2 2013 through the restructuring of its debt, commitment to cost control and realizing the value of its assets. Despite a weak industry in the first half of 2013, our seismic inventory sales and software sales in the first six months of 2013 remained strong. As well, despite the softness in our Services group as we entered 2013, we are seeing increased activity levels which should result in improved results going forward. Our efforts to expand into international markets are expected to result in increased revenue in 2013. Additionally, our Software group is rapidly developing new products which are about to hit the marketplace and we believe will lead to significant growth later this year. With all of these positive growth catalysts, we remain optimistic that Divestco will continue to strengthen its balance sheet."

Non-GAAP Measures

The Company's condensed consolidated interim financial statements have been prepared in accordance with IFRS. Certain measures in this document do not have any standardized meaning as prescribed by IFRS and are considered additional GAAP measures. While these measures may not be comparable to similar measures presented by other issuers, they are described and presented in this MD&A to provide shareholders and potential investors with additional information regarding the Company's results, liquidity, and its ability to generate funds to finance its operations. These measures include:

Earnings before interest, taxes, depreciation and amortization ("EBITDA")

Divestco uses EBITDA as a key measure to evaluate the performance of its segments and divisions as well as the Company overall, with the closest IFRS measure being net income or loss. EBITDA is a measure commonly reported and widely used by investors as indicators of the Company's operating performance and ability to incur and service debt, and as a valuation metric. The Company believes EBITDA assists investors in comparing the Company's performance on a consistent basis without regard to financing decisions and depreciation and amortization, which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors such as historical cost.

EBITDA is not a calculation based on IFRS and should not be considered an alternative to net income or loss in measuring the Company's performance. As well, EBITDA should not be used as an exclusive measure of cash flow, because it does not consider the impact of working capital growth, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows. While EBITDA has been disclosed herein to permit a more complete comparative analysis of the Company's operating performance and debt servicing ability relative to other companies, investors should be cautioned that EBITDA as reported by Divestco may not be comparable in all instances to EBITDA as reported by other companies. Investors should also carefully consider the specific items included in Divestco's computation of EBITDA.

The following is a reconciliation of EBITDA with net income (loss):

Working capital

Working Capital is calculated as current assets minus current liabilities (excluding deferred revenue). Working capital provides a measure that can be used to gauge Divestco's ability to meet its current obligations.

Additional GAAP Measure

Funds from operations

Divestco reports funds from operations because it is a key measure used by management to evaluate its performance and to assess the ability of the Company to finance operating and investing activities. Funds from operations excludes certain working capital changes and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows.

Funds from operations is not a calculation based on IFRS and should not be considered an alternative to the consolidated statements of cash flows. Funds from operations is a measure that can be used to gauge Divestco's capacity to generate discretionary cash flow. Investors should be cautioned that funds from operations as reported by Divestco may not be comparable in all instances to funds from operations as reported by other companies. While the closest IFRS measure is cash from operating activities, funds from operations is considered relevant because it provides an indication of how much cash generated by operations is available before proceeds from divested assets and changes in certain working capital items.

The following reconciles funds from operations with cash from operating activities:

Cash from Operating ActivitiesChanges in Non-Cash Working Capital Balances Related to Operating ActivitiesFinancial Results (Thousands, Except Per Share Amounts)Income (Loss) before Income TaxesWeighted Average Shares OutstandingThree months ended June 30, 2013 (Thousands)Income (loss) before income taxesLoss on Disposal of Intangibles and Impairment of Property and EquipmentThree months ended June 30, 2012 (Thousands)Income (loss) before income taxesSix months ended June 30, 2013 (Thousands)Income (loss) before income taxesLoss on Disposal of Intangibles and Impairment of Property and EquipmentSix months ended June 30, 2012 (Thousands)Income (loss) before income taxes

Divestco Inc.

Condensed Consolidated Interim Statements of Financial Position

Prepaid expenses, supplies and depositsInvestment in affiliated companyParticipation surveys in progressLiabilities and Shareholders' EquityAccounts payable and accrued liabilitiesCurrent loss on sublease loss provisionCurrent portion of long-term debt obligationsCurrent portion of tenant inducementTotal liabilities and shareholders' equityDivestco Inc.

Condensed Consolidated Interim Statements of Income and Comprehensive Income

(Thousands, Except Per Share Amounts - Unaudited)Net income (loss) and comprehensive income (loss) for the periodWeighted average number of shares

Divestco Inc.

Condensed Consolidated Interim Statements of Changes in Equity

Reduction of stated capital and deficitNet income (loss) and comprehensive income (loss) for the periodTransactions with owners, recorded in equity contributions by and distributions to owners:Issuance of Class A common shares as service
awardsIssuance of Class A common shares on exercise of PSUsReclassification on exercise of PSUsNet income (loss) and comprehensive income (loss) for the periodTransactions with owners, recorded in equity contributions by and distributions to owners:Issuance of Class A common shares as service awards

Divestco Inc.

Condensed Consolidated Interim Statements of Cash Flows

Cash from (used in) operating activitiesNet income (loss) for the periodAmortization of tenant inducementsLoss on disposal of intangiblesImpairment of property and equipmentUnrealized foreign exchange lossChanges in non-cash working capital balancesNet cash from operating activitiesCash from (used in) financing activitiesRepayment of long-term debt obligationsProceeds received from long-term debt obligations (net of committedNet cash from (used in) financing activitiesCash from (used in) investing activitiesAdditions to intangible assetsDecrease in participation surveys in progressPurchase of property and equipmentPayments towards sublease loss provisionAdvances from equity-accounted investeesChanges in non-cash working capital balancesNet cash from (used in) investing activities

About the Company

Divestco is an exploration services company that provides a comprehensive and integrated portfolio of data, software, and services to the oil and gas industry. Through continued commitment to align and bundle products and services to generate value for customers, Divestco is creating an unparalleled set of integrated solutions and unique benefits for the marketplace. Divestco's breadth of data, software and services offers customers the ability to access and analyze the information required to make business decisions and to optimize their success in the upstream oil and gas industry. Divestco is headquartered in Calgary, Alberta, Canada and trades on the TSX Venture Exchange under the symbol "DVT".

Neither 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 news release.

This press release contains forward-looking information related to the Company's capital expenditures, projected growth, view and outlook with respect to future oil and gas prices and market conditions, and demand for its products and services. Statements that contain words such as "could', "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning applicable by Canadian securities legislation. Although management of the Company believes that the expectations reflected in such forward-looking information are reasonable, there can be no assurance that such expectations will prove to have been correct because, should one or more of the risks materialize, or should the assumptions underlying forward-looking statements or forward-looking information prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Readers should not place undue reliance on forward-looking statements or forward-looking information. All of the forward-looking statements and forward-looking information of the Company contained in this press release are expressly qualified, in their entirety, by this cautionary statement. Except where required by law, the Company does not assume any obligation to update these forward-looking statements or forward-looking information if conditions or opinions should change.

In particular, this press release contains forward-looking statements pertaining to the following: Company's ability to keep debt and liquidity at acceptable levels, improve/maintain its working capital position and maintain profitability in the current economy; availability of external and internal funding for future operations; relative future competitive position of the Company; nature and timing of growth; oil and natural gas production levels; planned capital expenditure programs; supply and demand for oil and natural gas; future demand for products/services; commodity prices; impact of Canadian federal and provincial governmental regulation on the Company; expected levels of operating costs, finance costs and other costs and expenses; future ability to execute acquisitions and dispositions of assets or businesses; expectations regarding the Company's ability to raise capital and to add to seismic data through new seismic shoots and acquisition of existing seismic data; treatment under tax laws; and new accounting pronouncements.

These forward-looking statements are based upon assumptions including: future prices for crude oil and natural gas; future interest rates and future availability of debt and equity financing will be at levels and costs that allow the Company to manage, operate and finance its business and develop its software products and various oil and gas datasets including its seismic data library, and meet its future obligations; the regulatory framework in respect of royalties, taxes and environmental matters applicable to the Company and its customers will not become so onerous on both the Company and its customers as to preclude the Company and its customers from viably managing, operating and financing its business and the development of its software and data; and that the Company will continue to be able to identify, attract and employ qualified staff and obtain the outside expertise as well as specialized and other equipment it requires to manage, operate and finance its business and develop its properties.

These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including: general economic, market and business conditions; volatility in market prices for crude oil and natural gas; ability of Divestco's clients to explore for, develop and produce oil and gas; availability of financing and capital; fluctuations in interest rates; demand for the Company's product and services; weather and climate conditions; competitive actions by other companies; availability of skilled labour; failure to obtain regulatory approvals in a timely manner; adverse conditions in the debt and equity markets; and government actions including changes in environment and other regulation.

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