Target Energy Limited provided an operations update. The operations referred to in this release were committed to prior to the recent decline in the oil price and represent completion of the 2014 drilling program. The Company has meanwhile instituted a program to reduce its costs and to put its 2015 capital expenditure program on hold pending an improvement in commodity prices.

Font-weight: bold;Fairway Project, Texas: Drilling operations at font-weight: bold;Darwin #4 concluded on 18 December 2014. Wireline logs indicated potential pay in the Fusselman and Wolfberry sections in the well. Completion operations have commenced with oil recovered from the Fusselman section.

Darwin #4 is situated approximately 1,800 ft south of the Company's 2012 Darwin #1 discovery well. Target has a 60% Working Interest Following a fracture stimulation program on 21 November 2014, the font-weight: bold;Taree 193 #1 well in Glasscock County was put on pump on 27 December 2014. Average flow in the first 10 producing days was 71 BOPD with 189 BWPD.

Approximately 62% of the load water from the stimulation program has been recovered. Target has a 50% WI in Taree 193 #1 which is situated approximately 2 km south east of the Ballarat 185 #1 well. Completion operations remain underway at font-weight: bold;BOA North #5 in Howard County (Target 50% WI).

Font-weight: bold;East Chalkley: Work-over operations are underway at the company's East Chalkley field (Target 35% WI) in Cameron Parish, Louisiana. The Pine Pasture #3 well was found to have a damaged pump as a likely result of a downhole filter screen failure which permitted sand from the formation and the completion program to pack around the pump, ultimately disabling the impeller. The screen and pump are to be replaced.

An inspection of casing in the Pine Pasture #2 well revealed a number of holes due to corrosion. Remedial work is also underway on the Pine Pasture #1 well. The wells are expected to be back online in February.

font-weight: bold;Section 28: A work-over on the SML #A3 well (Target 25% WI) in St Martin Parish Louisiana was successfully completed in December 2014. The well was recompleted for production from the 1stMarg Tex sand and is presently flowing approximately 500 mcfgd with 5 BOPD.