Mr. Jeff Tonken reports

BIRCHCLIFF ENERGY LTD. ANNOUNCES Q1 2023 RESULTS, DECLARATION OF Q2 2023 DIVIDEND OF $0.20 PER COMMON SHARE AND DISCLOSES ELMWORTH LAND POSITION

Birchcliff Energy Ltd. has released its Q1 2023 financial and operational results and its board of directors has declared a quarterly cash dividend of 20 cents per common share for the quarter ending June 30, 2023. Birchcliff is also pleased to disclose the details of its land position on the Montney/Doig Resource Play in Elmworth, Alberta. "In Q1 2023, we generated adjusted funds flow( 1 ) of $88.7 million, with average production of 74,592 boe/d. In addition, we returned an aggregate of $53.4 million to shareholders in Q1 2023 through our base common share dividend," commented Jeff Tonken, Chief Executive Officer of Birchcliff. "We are also pleased to disclose our large Montney land position in the Elmworth area of Alberta, which consists of 153 sections of contiguous 100% working interest land located 25 kilometres to the south of our producing properties in Pouce Coupe and Gordondale. This significant land base positions Birchcliff to continue to drive long-term shareholder value, providing us with a large potential future development area that can supply clean natural gas for many years to come."

Q1 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS

• Achieved quarterly average production of 74,592 boe/d, a 2% decrease from Q1 2022, notwithstanding an unplanned outage on Pembina Pipeline Corporation's Northern Pipeline system that significantly impacted the Corporation's NGLs sales volumes in Q1 2023. Generated quarterly adjusted funds flow of $88.7 million, or $0.33 per basic common share( 2 ), both of which decreased by 52% from Q1 2022. Cash flow from operating activities was $111.3 million, a 28% decrease from Q1 2022. Reported a quarterly net loss to common shareholders of $42.5 million, or $0.16 per basic common share, as compared to net income to common shareholders of $125.8 million and $0.47 per basic common share in Q1 2022.
• Achieved an operating netback(2) of $17.45/boe and adjusted funds flow per boe(2) of $13.22, a 39% and 51% decrease, respectively, from Q1 2022.
• Realized an operating expense( 3 ) of $3.95/boe, a 13% increase from Q1 2022. Total debt( 4 ) at March 31, 2023 was $217.9 million, a 47% decrease from March 31, 2022.
• F&D capital expenditures were $115.0 million in Q1 2023.
• Returned $53.4 million to common shareholders in Q1 2023 through dividends as compared to $2.7 million in Q1 2022.

Birchcliff's unaudited interim condensed financial statements for the three months ended March 31, 2023 and related management's discussion and analysis will be available on its website at www.birchcliffenergy.com and on SEDAR at www.sedar.com.

DECLARATION OF Q2 2023 QUARTERLY DIVIDEND AND SHAREHOLDER RETURNS

• As part of its commitment to delivering significant shareholder returns, the Board has declared a quarterly cash dividend of $0.20 per common share for the quarter ending June 30, 2023. The dividend will be payable on June 30, 2023 to shareholders of record at the close of business on June 15, 2023. The ex-dividend date is June 14, 2023. The dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada).
• This is the third consecutive quarter in which Birchcliff's Board has declared a cash dividend of $0.20 per common share.
• The Board previously approved an annual base dividend of $0.80 per common share for 2023, which is expected to be declared and paid quarterly at the rate of $0.20 per common share, at the discretion of the Board.
• Subsequent to Q1 2023, Birchcliff purchased and cancelled an aggregate of 1,265,268 common shares pursuant to its normal course issuer bid at an average price of $8.10 per common share for an aggregate cost of $10.2 million, before fees.

ELMWORTH - UPDATED LAND POSITION

• Over the last number of years, Birchcliff has strategically built a large, contiguous 100% working interest Montney land position in the Elmworth area of Alberta, located 25 kilometres to the south of the Corporation's producing properties in Pouce Coupe and Gordondale.
• As at May 9, 2023, Birchcliff held 153 sections( 5 ) (97,920 acres( 5 )) of contiguous Montney lands in Elmworth, which are largely undeveloped. Birchcliff expects minimal yearly capital commitments over the next several years to maintain its land position in the area.
• This significant, largely undeveloped land base in Elmworth positions the Corporation to continue to drive long-term shareholder value by enhancing its ability for future production growth. The Elmworth asset provides Birchcliff with a large potential future development area which can be responsibly developed over time, leveraging the extensive knowledge that Birchcliff has gained in developing its Pouce Coupe and Gordondale assets. In addition, the Corporation's lands in Elmworth are located in an area that is well suited to supply clean natural gas to future LNG export facilities in Canada. This significant land position in Elmworth also builds upon Birchcliff's existing extensive inventory of potential future drilling locations in Pouce Coupe and Gordondale.
• To preserve its optionality for future growth in Elmworth, Birchcliff has licenced and is planning to drill 2 (2.0 net) Montney horizontal wells in Elmworth in late Q2 2023, which will continue a number of sections of Montney lands in the area that are set to expire in 2023.
  • Birchcliff expects that the drilling of these wells will be accomplished within the Corporation's F&D capital expenditures guidance range of $270 million to $280 million. See "Outlook and Guidance" and "Operational Update".
  • Birchcliff is only required to drill the wells in order to continue the lands and accordingly, the wells will not be completed or brought on production in 2023.
  • By drilling these wells to the planned measured depth, Birchcliff will validate multiple initial term licenses and continue 64 sections of land into their five-year intermediate term.
  • Birchcliff anticipates that these wells will be completed as it commences the development of its Elmworth area in the future.
• Over the last six months, significant Crown land sale activity has occurred in the areas offsetting Birchcliff's Elmworth land position, which has seen substantially higher prices for the Montney mineral rights as compared to previous years. Since the November 2, 2022 Alberta land sale, approximately $36 million has been spent on 111 sections of prospective Montney lands in the Elmworth area at Alberta Crown land sales( 6 ). There have also been a significant number of sections in Elmworth posted for several upcoming land sales. In addition, several wells have recently been drilled and brought on production in the area, which have had strong production results. The Montney/Doig Resource Play in Elmworth continues to garner attention and capital investment, which solidifies the value of Birchcliff's contiguous land position in the area.

ALBERTA WILDFIRE UPDATE

• Our first priority is the health and safety of our personnel. At the present time, none of Birchcliff's operations, which are located northwest of Grande Prairie, Alberta, have been directly impacted by the wildfires in Alberta. We will continue to closely monitor the situation.
• Birchcliff's thoughts are with the people and communities who have been impacted by the wildfires. We would like to thank all emergency responders for their tireless work in responding to the fires and we hope that everyone remains safe.

ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

• Birchcliff's annual and special meeting of shareholders is scheduled to take place tomorrow, Thursday, May 11, 2023, at 3:00 p.m. (Mountain Daylight Time) in the McMurray Room at the Calgary Petroleum Club, 319 - 5th Avenue S.W., Calgary, Alberta.

OUTLOOK AND GUIDANCE

Updated 2023 Guidance

As a result of the ongoing impact of a force majeure event on Pembina Pipeline Corporation's ("Pembina") Northern Pipeline system (the "Pembina Pipeline System"), Birchcliff currently expects that it will be on the low end of its annual average production guidance range of 77,000 to 80,000 boe/d. As previously disclosed in Birchcliff's press releases dated February 15, 2023 and March 15, 2023, Pembina notified Birchcliff on January 19, 2023 of a force majeure event on the Pembina Pipeline System, which resulted in an unplanned outage impacting a substantial portion of the volumes on the system, including the Corporation's NGLs sales volumes. The Pembina Pipeline System has been operating under limited NGLs capacity since February 2023, which continues to impact the Corporation's NGLs sales revenue and volumes. The Corporation has been closely monitoring the situation and diligently working with Pembina to help mitigate the impact of the outage and is optimistic that the outage will be resolved in the near-term.

The Corporation is tightening its 2023 F&D capital expenditures guidance range to $270 million to $280 million (previously $260 million to $280 million) to reflect the drilling of an additional 2 (2.0 net) wells in the Elmworth area, as discussed in further detail under the headings "Elmworth - Updated Land Position" and "Operational Update".

The Corporation is lowering its 2023 guidance for adjusted funds flow, free funds flow and excess free funds flow to reflect a lower commodity price forecast for 2023. As a result of lower anticipated adjusted funds flow in 2023, Birchcliff now expects to fund its capital program and dividend payments in 2023 through a combination of adjusted funds flow and the Corporation's extendible revolving term credit facilities (the "Credit Facilities"), which is anticipated to result in higher total debt at year-end 2023 than previously forecast. Birchcliff has significant unutilized credit capacity under its Credit Facilities, which provides it with substantial financial flexibility and additional capital resources. Subsequent to Q1 2023, Birchcliff's syndicate of lenders confirmed the borrowing base limit under the Credit Facilities at $850.0 million. See "Q1 2023 Financial and Operational Results - Debt and Credit Facilities".

The following tables set forth Birchcliff's updated and previous guidance and commodity price assumptions for 2023, as well as its free funds flow sensitivity:

Updated Five-Year Outlook ( 7 )

As a result of the changes to its 2023 guidance, Birchcliff is also updating its five-year outlook for 2023 to 2027.

2024

As previously updated in Birchcliff's press release dated March 15, 2023, the Corporation currently expects that it will keep its production relatively flat year-over-year. 2024 annual average production is currently forecast to be 78,000 boe/d (previously 78,500 boe/d) resulting from forecast 2024 F&D capital expenditures of $255 million. Assuming the payment of an annual base dividend of $0.80 per common share ( 8 ) and that realized commodity prices match the Corporation's commodity price assumptions, Birchcliff would achieve 2024 excess free funds flow of $67 million (previously $82 million) and total debt at year end 2024 of $230 million (previously $85 million). Birchcliff currently anticipates that excess free funds flow generated in 2024 will be primarily used to reduce indebtedness and that it will be in a position to fund its common share dividend payments and reduce its total debt in 2024 from year-end 2023.

Outlook to 2027

Over the longer-term, Birchcliff remains committed to generating substantial free funds flow and delivering significant returns to shareholders, while achieving disciplined production growth to fully utilize the Corporation's existing processing and transportation capacity. Birchcliff's five-year outlook still provides for potential cumulative free funds flow of approximately $1.3 billion by the end of the five-year period. Annual average production in 2027 is still forecast to be 87,000 boe/d, subject to commodity prices.

ABOUT BIRCHCLIFF

Birchcliff is a Calgary, Alberta based intermediate oil and natural gas company with operations focused on the Montney/Doig Resource Play in Alberta. Birchcliff's common shares are listed for trading on the Toronto Stock Exchange under the symbol "BIR".

We seek Safe Harbor.