Big Sky Petroleum Corporation provided a review of the company's first quarter of 2013 activities and an update on plans for 2013. The two recently announced lease block acquisitions and drilling of the first Wolfberry test capped a highly active and successful first quarter for Big Sky. The focus for Big Sky in 2013 to date, has been the establishment of a prospective leasehold position out in front of the currently expanding Wolfcamp/Wolfberry play in the west Texas Permian Basin. After geologic review and evaluation of the eastern shelf of the Midland Basin, Big Sky initiated and completed a leasing program that resulted in the acquisition of a contiguous lease block of 2,300 acres and subsequently added another 1,100 net acres to bring the Company's current leasehold position in the Schleicher Prospect to 3,350 net operated acres. The initial well drilled in first quarter 2013 in the Schleicher Prospect is the Schafer No.1. The Schafer No.1 is a Wolfberry test drilled to a (TVD) total vertical depth of 7,370 feet and was completed with a 6 stage fracture stimulation on February 21st with a total of 34,000 barrels of fluid and 1,000,000 lbs of proppant. The well was placed on pump April 10th, 2013 and approximately 85% of the frac fluids have been recovered. During the flow back period, the company has recovered to date 348 barrels of oil and produced 1,266 MCF of gas. The well will continue on pump until the remaining fluid is recovered and then put on test for a period of 30 days to establish a 30 day IP.

The company has continued to conduct a focused leasing program within the Schleicher Prospect area with the primary objective of consolidating interest near existing leasehold positions. This program is expected to continue into third quarter of 2013, targeting highly selective areas for further development. It is the managements' plan to increase the Big Sky leasehold position in the Schleicher Prospect to a total of 10,000 net acres by the first half of third quarter. Management is currently reviewing several options to fund this program including the possibility of entering into a joint venture with an industry partner. Depending on the progress of the company's leasing program, the company could continue the leasing activity into early fourth quarter. However, the main objective of fourth quarter will be to drill and complete another Schleicher Prospect test before the end of fourth quarter.