Pacific Provides an Operational Update

Guatiquia Block Continues to Deliver Potential

TORONTO, May 29, 2017 /PRNewswire/ - Pacific Exploration & Production Corporation (TSX: PEN) ("Pacific" or the "Company") is pleased to provide an operational update.

Message to Shareholders:

Barry Larson, Chief Executive Officer of the Company commented:

"We are very pleased with the results of our exploration and development program during the year-to-date, and we are looking forward to testing a number of our high impact prospects this year. The Company's exploitation activity has been particularly successful on the Guatiquia Block where both Ardilla-3 and Ceibo have added to the Company's light oil production in Colombia."

Exploration and Development Update

Colombia - Deep Llanos – Guatiquia Block – Avispa Ceibo Ardilla Field

The Ardilla-3 exploration well was spudded on March 9, 2017 and reached a total depth of 12,900 feet on April 16, 2017. Petrophysical interpretation indicated the presence of 66 feet of net pay in the Lower Sand 1 (with no water contact present), and 7 feet of net pay in the Guadalupe formation. The well was cased and perforated in the upper 20 feet of the Lower Sandstone-1 Unit. Production with an electrical submersible pump commenced on May 8, 2017.  Since then, the well has produced a total of 23,000 bbl of 18° API oil at an average rate of 2,030 bbl/d, an average water cut of 4 and 18% reservoir drawdown. The well is currently producing at 2,122 bbl/d with 6% water. Ardilla-3 was drilled in a structurally downdip position to test a potential oil water contact. The Company is currently revising the reservoir models as no water contact was interpreted from logs. The Ardilla-3 result suggests a materially larger pool than was originally discovered.

Ceibo-1, the discovery well for the Avispa-Ceibo-Ardilla ("ACA") pools in the Guatiquia block has been re-completed in the Guadalupe Formation. The well was placed on test commencing May 11, 2017 and has produced 6,800 bbls of 17 degree API oil at an average rate of 530 bbl/d with an average water cut of 78% with a 36% reservoir drawdown. The well is currently producing at 600 bbl/d at 77.5% water cut. The production will eventually be co-mingled with the LS-1 producing sand already completed in the well. Upon completion of testing of this interval two more tests are planned for the middle and upper Guadalupe sands. These tests will confirm the productivity of each Guadalupe unit which will assist in field development.

Since the drilling of Ceibo-1, twelve additional wells have been drilled into the pools giving a total of thirteen wells currently on production. Eleven wells are producing from the Lower Sand Unit and two wells from the Guadalupe Formation. The Company is updating the reservoir model in anticipation of implementing secondary recovery schemes for both the Lower Sand 1 and the Guadalupe reservoirs.

Colombia - Deep Llanos – Guatiquia Block – Candelilla Field:

The Candalilla 6 exploitation well was spud on May 24, 2017 and is targeting the Guadalupe formation on a structural high. The well is being directionally drilled from the Candelilla 1 pad.

About Pacific:

Pacific is a Canadian public company and a leading explorer and producer of natural gas and crude oil, with operations focused in Latin America. The Company has a diversified portfolio of assets with interests in more than 30 exploration and production blocks in Colombia and Peru. The Company's strategy is focused on sustainable growth in production & reserves and cash generation. Pacific is committed to conducting business safely, in a socially and environmentally responsible manner.

The Company's common shares trade on the Toronto Stock Exchange under the ticker symbol "PEN".

Advisories:

Cautionary Note Concerning Forward-Looking Statements

This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the Company's exploration and development plans and objectives) are forward-looking statements. In particular, forward-looking statements contained in this news release include, but are not limited to, statements with respect to the performance characteristics of the Company's oil properties and wells; results of drilling and testing; results of operations; and details about the Company's exploration drilling and testing program. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.

Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; uncertainties associated with estimating oil and natural gas reserves; failure to establish estimated resources or reserves; volatility in market prices for oil and natural gas; fluctuation in currency exchange rates; inflation; changes in equity markets; perceptions of the Company's prospects and the prospects of the oil and gas industry in Colombia and the other countries where the Company operates or has investments as the result of the completion of the Company's comprehensive restructuring transaction or otherwise; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 14, 2017 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

In addition, reported production levels may not be reflective of sustainable production rates and future production rates may differ materially from the production rates reflected in this press release due to, among other factors, difficulties or interruptions encountered during the production of hydrocarbons.

Boe Conversion

The term "boe" is used in this news release. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 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.

Definitions

SOURCE Pacific Exploration and Production Corporation