Mr. Craig Blackwood reports

ADVANTAGE ANNOUNCES OPERATIONAL UPDATE

Advantage Energy Ltd. has provided an operational update in advance of today's scheduled analyst presentation. While Glacier well results continue to achieve new benchmarks, Wembley, Valhalla and Progress have now been established as top-tier development-ready liquids assets.

Highlights:

• At Glacier, the last 14 wells have achieved an average IP30 (initial 30 days of production) of 14.3 mmcf/d (million cubic feet per day) (see the attached table), an increase of over 35 per cent compared with a year ago.
• The Glacier gas plant expansion to 425 mmcf/d capacity has now been completed.
• At Wembley, the last three wells in the D3 bench have achieved an average IP30 of 1,393 boe/d (63 per cent oil and NGLs (natural gas liquids) (see the attached table).
• The company's first well in Wembley's D4 bench has been on production for nine days, with initial liquids and gas rates exceeding any of its prior D3 wells.
• At Valhalla, Advantage has high-graded the D4 bench, with its five most recent wells achieving IP30 rates of 1,704 boe/d (barrels of oil equivalent per day) (6.7 mmcf/d natural gas, 392 bbl/d (barrels per day) condensate and 196 bbl/d NGLs, totalling 33.5 per cent liquids).
• At Progress, all expiry and delineation drilling has been completed. The D1 bench has been high-graded, with the first well having recovered over 200,000 bbl total liquids and 2.4 Bcf (billion cubic feet) of gas in approximately 30 months.
• Prior third party production constraints at Progress have been eliminated with commissioning of the new Progress liquids battery.
• Advantage remains on schedule to meet its capital and production guidance, including 20 per cent annual liquids growth, despite second quarter production being reduced 2 per cent by wildfires, unplanned downtime and third party pipeline outages.

Looking forward

To maximize shareholder value, Advantage remains focused on growing adjusted funds flow per share through organic growth and share repurchases. Advantage's three-year plan is to deliver annual production growth of approximately 10 per cent, with annual capital spending between $250-million and $300-million, including planned processing capacity expansions. All free cash flow is planned to be returned to shareholders through share buybacks. Its net debt target range remains between $170-million and $230-million.

Advantage's 2023 capital guidance remains between $250-million and $280-million. Development activities during the remainder of 2023 include increased focus on liquids-weighted growth into the company's existing facilities at Wembley.

Production guidance for 2023 remains between 59,000 boe/d and 62,500 boe/d, with recent well outperformance partially offset by unplanned third party pipeline restrictions. For 2024 and beyond, the company's increasing type curves are expected to help it achieve its growth goals with fewer wells and enhanced economics. Once the Glacier gas plant is filled to 425 mmcf/d, likely by the end of 2024, approximately nine wells per year will be required to maintain production at the asset. By 2025, the company's growth focus is expected to shift to the gas and liquids opportunities in Valhalla, Progress and Wembley.

With modern, low emissions intensity assets and ownership of 85 per cent of Entropy, the corporation continues to proudly deliver clean, reliable, sustainable energy, contributing to a reduction in global emissions by displacing high-carbon fuels. Advantage wishes to thank its employees, board of directors and its shareholders for their continuing support.

We seek Safe Harbor.