CALGARY, ALBERTA--(Marketwire - May 17, 2012) - Cumberland Oil & Gas Ltd. (TSX VENTURE:COG) ("Cumberland" or the "Company") is pleased to provide an update on the status of the proposed drilling of an Upper Montney horizontal well on its land at West Nig, British Columbia.

In December 2011, Cumberland reported that it had entered into a farm-out and joint venture agreement coverings its 1,128 hectares at West Nig. The proposed earning well, HZ W NIG b-97-K/94-A-13 (the "Earning Well") has been licensed and plans are underway to commence drilling operations in late June 2012, weather permitting. A drilling rig has been secured and will be available in that time frame.

The proposed well site will be constructed to allow for upwards of 8 horizontal wells from this central location. Four of these potential wells would traverse Cumberland lands. The Earning Well plans to target the Triassic Upper Montney at a true vertical depth of approximately 1,760 metres and the horizontal well trajectory will be approximately 2,200 metres in length. Drilling operations are expected to take upwards of three weeks with plans to conduct the completion and production testing immediately thereafter.

The Upper Montney in this area is believed to be over-pressured with very attractive liquids content. Both the Upper and Lower Montney zones have now been successfully completed by other operators in this area with very encouraging results. Due to the high liquids content in this specific area, this project remains economically viable at current natural gas prices.

The Company's production for the three months ended March 31, 2012 averaged 92 barrels of oil equivalent per day, split 55% light oil and 45% natural gas. The Company expects to release its first quarter results on or about May 24, 2012.

READER ADVISORIES

Forward-Looking Statement Advisory

Certain information set forth in this news release, contains forward-looking statements, including plans to commence drilling operations on the Earning Well, the anticipated timing of the commencement of drilling operations on the Earning Well, the depth and trajectory of the Earning Well, the total estimated time to drill, complete and production test the Earning Well, the belief of the presence of liquids rich natural gas in the Upper Montney formation and the anticipated economics of the area due to the anticipated presence of liquids rich natural gas in the area. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Cumberland's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, delays resulting from or the inability to obtain required regulatory approvals, inability to retain and delays in retaining drilling rigs and other services, reliance on third parties, including Cumberland's joint venture partner, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, incorrect geological and geophysical assessments, failure to realize the anticipated benefits of acquisitions, and ability to access sufficient capital from internal and external sources. The foregoing list is not exhaustive. Additional information on these and other risks that could affect Cumberland's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ([ www.sedar.com ]). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Cumberland could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Cumberland will derive therefrom. Cumberland disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

BOE Equivalent

Barrels of oil equivalent (Boe) may be misleading, particularly if used in isolation. A boe conversion of 6 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. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio of 6:1 may be a misleading indication of value.

Contributing Sources

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