Midstates Petroleum Announces Year-End 2012 Proved Reserves Increased 188% to 75.5 Million Boe

Midstates Petroleum Announces Year-End 2012 Proved Reserves Increased 188% to 75.5 Million Boe

Drilling Activity Replaced 572% of 2012 Production

HOUSTON--(BUSINESS WIRE)-- Midstates Petroleum Company, Inc. (NYS: MPO) (the "Company" or "Midstates") today announced that it grew its year-end 2012 estimated proved reserves to 75.5 million barrels of oil equivalent ("MMBoe"), up 188% from 26.2 MMboe at year-end 2011. Midstates' reserves were fully engineered by its third-party reserve engineers, Netherland Sewell and Associates ("NSAI"). See notes below for additional disclosures regarding definitions of terms used in this release.

Year-end 2012 reserves were comprised of 50% oil, 19% natural gas liquids ("NGLs") and 31% natural gas. Of the total reserves, 37% are proved developed. Geographically, 36.8 MMBoe are in Louisiana, a 40% increase over 2011 year-end reserves, and 38.7 MMBoe are in Oklahoma. Midstates operates 94% of its reserves and improved its reserve life at year-end 2012 to 13.3 years using year-end 2012 proved reserves divided by annualized fourth quarter 2012 production rates.

During 2012, extensions, discoveries, and other additions added 20.9 MMBoe reflecting organic reserve replacement of 572% of 2012 production. The organic growth in Louisiana reserves was primarily from successful drilling activity during 2012 in the Pine Prairie and North Cowards Gully fields while fourth quarter drilling activity in the Mississippian Lime play in Woods and Alfalfa Counties added to Oklahoma reserves. Total Company production in 2012 was 3.6 MMBoe.

Acquisitions in 2012 added 35.0 MMBoe, all of which related to the purchase of reserves from Eagle Energy Production, LLC ("Eagle") that was effective October 1, 2012. At year-end 2012, the Oklahoma reserves totaled 38.7 MMBoe, comprised of 38% crude oil, 22% NGLs, and 40% natural gas. All in, including acquisitions, drill bit additions, and revisions, Midstates replaced 1,446% of total 2012 production. Revisions to previous reserve estimates totaled 3.0 MMBoe. While West Gordon accounted for 1.6 MMBoe of those revisions, net reserves at West Gordon remained largely unchanged due to reserve additions from drilling activities in the north fault block.

Midstates' 2012 proved reserves had a net present value discounted at 10% ("PV-10") of $1,489 million, up 115% from $693 million at year-end 2011.

John Crum, Midstates' CEO and President commented, "We are very pleased with the significant growth we achieved in our proved reserves during 2012 both organically in Louisiana and from the Eagle acquisition. We grew our Louisiana reserve base by 40% through successful drilling activities and increased proved reserves by 38.7 MMBoe through the acquisition and subsequent drilling of the Eagle properties. Importantly, Midstates replaced greater than 14 times its total 2012 production at a competitive all-in finding, development, and acquisition cost of approximately $20 to $23 per Boe based on preliminary cost estimates." Crum continued, "Our 2013 drilling program will provide the opportunity to further grow reserves. We will also look at increasing acreage in our existing focus areas in Louisiana and Oklahoma/Kansas and to adding a potential third core area to our portfolio."

About Midstates Petroleum Company, Inc.

Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques to oil-prone resources in previously discovered yet underdeveloped hydrocarbon trends. The Company's operations are currently focused on oilfields in the Upper Gulf Coast Tertiary trend onshore in central Louisiana and in the Mississippian Lime trend in northwestern Oklahoma and southern Kansas. The Company is headquartered in Houston, Texas. Additional information about the Company is available at www.midstatespetroleum.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of federal securities laws. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of words such as "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project," "guidance," and similar expressions. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. Factors that can affect future results are discussed in the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 and other reports filed by the Company from time to time with the Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.

Non-GAAP Disclosures and Definitions

PV-10

PV-10 is the estimated future net cash flows from proven reserves, discounted at an annual rate of 10 percent before giving effect to income taxes. Under SEC guidelines, the commodity prices used in the December 31, 2012 and December 31, 2011 PV-10 estimates were based on the 12-month un-weighted arithmetic average of the first day of the month prices for the period January 1, 2012 through December 31, 2012 and January 1, 2011 through December 31, 2011, respectively. Prices are adjusted for transportation fees and regional price differentials. For crude oil and NGL volumes, the average West Texas Intermediate posted price of $91.21 per barrel was used to calculate PV-10 at December 31, 2012 and $92.71 at December 31, 2011. For natural gas volumes, the average Henry Hub spot price of $2.76 per million British thermal units ("MMBTU") was used to calculate PV-10 at December 31, 2012 and $4.12 at December 31, 2011. All prices were held constant throughout the estimated economic life of the properties.

PV-10 is a non-GAAP financial measure, as defined under Regulation G of the rules and regulations of the Securities and Exchange Commission, and generally differs from standardized measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net cash flows. PV-10 is a useful measure for investors as it is based on prices and discount factors that are consistent for all entities and can be used to evaluate proved reserves on a more comparable basis. Midstates' management uses PV-10 when assessing the potential return on investment related to its oil and gas properties and acquisitions. However, PV-10 is not a substitute for the standardized measure of discounted future net cash flows. Midstates' PV-10 and the standardized measure of discounted future net cash flows do not purport to present the fair value of the Company's proved oil and natural gas reserves.

All-In Finding and Development Costs ("F&D")

Midstates believes that the analysis of F&D cost is a useful tool in helping to evaluate capital productivity. The Company calculates F&D cost by dividing development and exploration capital expenditures and the cost of acquired reserves by the sum of reserve extensions and discoveries, purchases of reserves in place, and total revisions for the year.

Midstates Petroleum Company, Inc.
Al Petrie, 713-595-9427
Al.Petrie@midstatespetroleum.com
or
Garrett Galloway, 713-595-9323
Garrett.Galloway@midstatesetroleum.com

KEYWORDS: United States North America Texas

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