CALGARY, ALBERTA--(Marketwire - Aug. 14, 2012) - Argosy Energy Inc. ("Argosy" or the "Company") (TSX:GSY) announces its financial and operating results for the three and six months ended June 30, 2012.

The Company has filed its unaudited interim condensed consolidated financial statements and related Management Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2012 on www.SEDAR.com. The materials will also be available on the Company's website at www.argosyenergy.com.

Certain selected financial and operational information for the three and six months ended June 30, 2012 and 2011 are set out below and should be read in conjunction with Argosy's unaudited interim condensed consolidated financial statements and related MD&A for the three and six months ended June 30, 2012.

HIGHLIGHTS

			Three Months Ended June 30,						Six Months Ended June 30,
			2012			2011			2012			2011
FINANCIAL ($000's, except per share data)
Oil and gas sales			1,768			2,630			3,421			5,039
Cash flow (1)			(1,150	)		(560	)		(2,205	)		(45	)
	Per share - basic		(0.04	)		(0.03	)		(0.08	)		(0.00	)
	Per share - diluted		(0.04	)		(0.03	)		(0.08	)		(0.00	)
Loss and comprehensive loss			(1,447	)		1,689			(7,708	)		1,250
	Per share - basic		(0.05	)		0.08			(0.28	)		0.06
	Per share - diluted		(0.05	)		0.08			(0.28	)		0.06
Capital expenditures (2)			1,465			13,640			10,723			26,967
Total assets			51,961			69,775			51,961			69,775
Net debt (3)			(23,000	)		(24,338	)		(23,000	)		(24,338	)
Shareholders' equity			26,316			39,331			26,316			39,331
COMMON SHARE DATA (000's)
Weighted average - basic			27,415			20,157			27,415			19,237
Weighted average - diluted			27,415			21,065			27,415			20,145
Issued and outstanding			27,415			20,244			27,415			20,244
OPERATING (6:1 b oe conversion)
Average daily production
	Oil (bbl/d)		138			107			119			95
	NGLs (bbl/d)		44			62			41			63
	Natural gas (mcf/day)		2,262			3,194			2,291			3,364
	Total boe/d		559			701			541			718
Average sales prices
	Oil ($/bbl)		79.95			96.65			82.90			92.00
	NGLs ($/bbl)		80.46			80.32			86.93			76.49
	Natural gas ($/mcf)		2.15			4.25			2.37			4.25
Production and operating cost ($/boe)			24.69			12.79			25.30			11.18
Field netback ($/boe) (4)			5.66			21.43			5.31			22.93
Gross (net) wells drilled
	Oil		1(1	)		-			1(1	)		2(2	)
	Natural gas		-			-			-			-
	Dry and abandoned		-			-			-			-
	Total		1(1	)		-			1(1	)		2(2	)

⁽¹⁾ The term "cash flow" should not be considered an alternative to, or more meaningful than cash flow from operating activities as prescribed by IFRS as an indicator of the Company's performance. Argosy's definition of cash flow may not be comparable to that reported by other companies.

⁽²⁾ Total capital expenditures, including acquisitions

⁽³⁾ Calculated by subtracting the sum of current assets from the sum of current liabilities (including bank debt) without consideration of current values of derivative instruments. The term "net debt" is not prescribed by IFRS; therefore the Company's definition and calculation may not be comparable to that reported by other companies.

⁽⁴⁾ Calculated by deducting operating expenses per boe and royalties per boe from petroleum and natural gas sales per boe. Field netback is not a prescribed measure under IFRS and may not be comparable with that reported by other Companies

UPDATE

The Company's primary asset is a 100% working interest in a 34 section land position within a well- developed portion of the Alberta Basin Bakken prospect trend. Argosy has identified up to 100 development drilling locations on a comprehensive, proprietary 3D seismic base. In addition, the Company retains an attractive farm-in option to earn an additional 11 sections prospective for the Big Valley formation which may provide for an additional 20 development locations if fully earned. The Company has drilled one vertical well and two horizontal wells targeting the Wabamun/Big Valley Formation and currently produces approximately100 bbls/d from these wells. On the same land base, the Company has mapped an extension of the Penny area Barons oil pool and has identified an additional 96 development locations on this trend. In addition, the Company currently produces approximately 450 boe/d of natural gas at Claresholm through an 11mmcf/d gas plant (75% working interest). The Company has identified an additional 21 drill-ready natural gas prospects on its land base.

The Big Valley horizontal wells have produced on an intermittent basis since being put on test production. Once drilled, a certain amount of experimenting with respect to operating techniques was and will still be required to achieve satisfactory results from the Big Valley wells. Production from the new oil wells has been intermittent as the Company gathered information about the geological and production characteristics of the wells. The Company has also performed remedial completion operations on both Big Valley horizontal wells and it re-equipped both of these wells during 2012.

The Company is in the process of procuring appropriate production facilities for its Alberta Bakken wells. In the meantime it has relied heavily on the use of rented production equipment which in turn has resulted in higher operating costs for the new oil wells than that which management would consider reasonable over the long run. The installation of Company owned production equipment together with electrification at the well sites should result in considerable operating cost savings.

Positive horizontal drilling results by competitors and continued high priced land sale activity in the immediate area support management's sentiment that the Alberta Bakken constitutes a viable and economic opportunity. However, it has concluded that further development will require significant capital to unlock its potential. The amount of capital that may be required may well be beyond that which the Company could access on its own at this time. There can be no guarantees that additional capital funding in the form of additional equity, debt and/or farm-out arrangements would be available to enable the Company to meet enable the Company to fund a significant exploration and development program.

The Company has undertaken the following initiatives to address this situation:

• The Strategic Alternatives Process, previously announced on May 1, 2012, is currently ongoing and may include a number of strategic alternatives, such as: a sale of the shares of the Company either in one or a series of transactions or in the form of a financing, a merger, recapitalization, arrangement, amalgamation, a sale of corporate assets, signing of a joint venture agreement, or consideration of other alternatives as the Special Committee sees fit. The Company does not intend to disclose developments with respect to the process unless and until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is required or appropriate.
• In June 2012, the Company took aggressive steps to drastically reduce general and administrative expenses including reducing staff by approximately half effective June 30, 2012. The effect of this action will have a positive effect on such expenses in future periods.
• During the 2^nd quarter the Company, entered into a number of financial transactions to mitigate price risk on oil and natural gas sales. At June 30, 2012, the following derivative contracts were outstanding:

Type of Contract		Commodity	Volume		Price		Basis		Term
Financial Swap		Oil	100 Bbls/day		103.40/Bbl		WTI-NYMEX converted to Canadian $		April 1, 2012 - December 31, 2012
Financial Bought Swap		Natural gas	1,500 Gj's/day		$3.30/Gj(1)		AECO C 5A Index		July 1, 2012 - December 31, 2013

⁽¹⁾ A gigajoule (Gj) converts to a mcf at the rate of 1.055056 GJs per mcf.

In July 2012, the Company entered into a financial swap contract for 500Gj's of natural gas at a price of $2.50/Gj on an AECO C 5A Index basis for the period from August 1, 2012 to December 31, 2012.

The Company's credit facilities are subject to regular reviews by the Company's Bank. The last such review was completed in May 2012 The next such review is scheduled for August 2012. There can be no assurance that the terms or limits of the credit facility will not change upon the completion of this review. In addition, at June 30, 2012 the Company was in breach of the working capital covenant provision of its Revolving Operating Demand Loan Facility for which a waiver is being sought. There is no certainty that a waiver will be granted by the Company's bank for the breach or should the Company be in violation of the covenant in the future.

ABOUT ARGOSY ENERGY INC.

Argosy is a junior oil and gas company focused on the exploration for and development of oil and natural gas in western Canada.

In this press release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (Mcf) of natural gas for one barrel (Bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead.

Advisory Regarding Forward-Looking Information

This press release contains forward-looking information concerning including but not limited to the Strategic Alternatives Process, the Company's banking arrangements, management's assessment of future plans and operations, capital expenditures and the timing thereof and the results of operations that involve substantial known and unknown risks, uncertainties and assumptions, certain of which are beyond the Company's control. Although Argosy believes that the expectations reflected in the forward-looking statements are reasonable, the forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to the future results, levels of activity or achievements. Risks include, but are not limited to: uncertainties and other factors that are beyond the control of the Company, risks associated with the oil and gas industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Corporation. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Additional information identifying risks and uncertainties is contained in the Company's Annual Information Form as well as other filings of the Company with Canadian securities regulators, which filings are available under the Corporation's profile at www.sedar.com.