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CALGARY, ALBERTA — (Marketwire) — 05/14/12 — Skope Energy Inc. (“Skope” or the “Company”) (TSX:SKL) announced that the Toronto Stock Exchange (“TSX”) has informed the Company that it is reviewing the eligibility for continued listing of Skope’s common shares on the TSX. The TSX initiated its delisting review pursuant to its continued listing criteria and as a result of the market value of the Company’s TSX listed shares, the market value of the Company’s public float and the Company’s financial condition. The market value of Skope’s listed equity has declined from $28 million in December 2011 to $2 million as of May 11, 2012, on total volume of 1.2 million shares, or $1.3 million in trading value (excludes the Company’s non-voting shares). Despite Skope’s aggressive natural gas price hedging program, the reduction in market value is due primarily to matters arising as a result of a dramatic reduction in the price of Canadian conventional natural gas over the same period.

The Company is being reviewed under the TSX’s Remedial Review Process and has been granted 120 days to comply with all the TSX requirements for continued listing. If the Company is unable to demonstrate on or before September 14, 2012 that it meets all TSX requirements for continued listing, the Company’s securities will be delisted 30 days from such date.

At this time, Skope intends to defend its listing and will simultaneously pursue other alternatives. The Company is also continuing its process of evaluating and pursuing financing opportunities and corporate restructuring alternatives. The ultimate results of these ongoing financing efforts may be a factor in the Company’s ability to remain publicly listed. However, no assurances can be given that the financial issues being faced by the Company will be resolved satisfactorily and the Company’s securities may be delisted.

Operational Update

Despite low natural gas prices, Skope continues to generate positive free cash flow and has repaid $8.6 million of long term bank debt since inception and has positive working capital (before current bank debt). This is largely the result of low operating costs, capital spending efficiencies and commodity price hedging activities.

The Company currently has approximately 58% of anticipated net production from now until March 2013 hedged at an average price $4.20 per Mcf. As at the date hereof, the unrealized mark-to-market value of Skope’s commodity hedges is approximately $10.1 million.

Average production has remained steady at approximately 25 mmcf/d for the past fiscal year with approximately $5.5 million of capital spent for the fiscal year ended March 31, 2012. Decline rates on production have moderated from 17% at acquisition to the current rate of approximately 8%. This is largely the result of focused field activities including swabbing, recompletions and workovers.

Skope Energy Inc.

Skope is in the business of oil and natural gas acquisition, development and production in Western Canada with a focus on shallow natural gas. Skope owns an 80% working interest in a package of high quality, long-term, low decline producing shallow gas assets, located in southeast Alberta and southwest Saskatchewan.

Skope’s common shares are listed on the Toronto Stock Exchange under the symbol “SKL”.

Forward-Looking Statements

This news release contains forward looking statements. These statements relate to future events or the Company’s future performance. All information and statements contained herein that are not clearly historical in nature constitute forward looking statements, and the words “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “propose”, “predict”, “potential”, “continue”, or the negative of these terms or other comparable terminology are generally intended to identify forward looking statements. These statements involve known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. Undue reliance should not be placed on these forward looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. In particular, this news release contains forward-looking statements relating, but not limited to: the continued listing of the Company’s securities on the TSX; Skope’s plans and ability to defend its listing on the TSX and to pursue other alternatives; and the Company’s plans to evaluate and pursue financing opportunities and corporate restructuring alternatives and the use of proceeds therefrom.

Management has included forward-looking information 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. These forward-looking statements are based on certain assumptions and are subject to a number of risks. Investors are cautioned that such information, although considered reasonable by the Company, may prove to be incorrect.

Actual results achieved will vary from the information provided in this news release as a result of numerous known and unknown risks and uncertainties, including without limitation, risks associated with Scope’s ability to successfully maintain its listing; Skope’s ability to continue to receive the support of its lender; Skope’s ability to access necessary capital on acceptable terms or at all and on the timing needed; the availability of financing opportunities or corporate restructuring alternatives; the impact of general economic and credit conditions; and the impact of continued low and/or declining natural gas prices on Skope’s cash flow and financial position; general economic, market and business conditions, and Skope’s natural gas hedging activities.

Skope’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Skope will derive therefrom.

Such risks and uncertainties include, without limitation: risks associated with Skope’s ability to continue to receive the support of its lender, the availability of capital on acceptable terms or at all and on the timing needed; Scope’s ability to successfully maintain its listing; the impact of general economic and credit conditions; and the impact of continued low and/or declining natural gas prices on Skope’s cash flow and financial position; general economic, market and business conditions, and Skope’s natural gas hedging activities.

Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statement disclosure contained in this news release is expressly qualified by this cautionary statement.

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

Contacts:
Skope Energy Inc.
Henry Cohen
President and Chief Executive Officer
416 850 0193
henry.cohen@skopeenergy.com

Skope Energy Inc.
Viren Wong
Executive Vice-President and Chief Operating Officer
416 850 0193
viren.wong@skopeenergy.com

Skope Energy Inc.
Daniel Belot
Vice President, Finance and Chief Financial Officer
403 538 8018
daniel.belot@skopeenergy.com