Mr. Robert Zakresky reports

COELACANTH ANNOUNCES Q1 2023 FINANCIAL AND OPERATING RESULTS

Coelacanth Energy Inc. has provided its financial and operating results for the three months ended March 31, 2023.

Financial and operational results in the attached tables present the carved-out historic financial position, results of operations and cash flows of Leucrotta's Two Rivers assets for all prior periods up to and including May 31, 2022, and the results of operations from May 31, 2022, forward include the results of Coelacanth after assuming the Two Rivers assets upon close of the arrangement.

                        FINANCIAL RESULTS
      (in thousands of dollars, except per-share amounts)

                                              Three months ended
                                                        March 31,
                                               2023         2022                                                  
                                                                
Oil and natural gas sales                      $954       $1,688
Cash flow used in operating activities       (2,042)        (660)
Per share -- basic and diluted (1)                -            -
Adjusted funds used (1)                        (554)        (473)
Per share -- basic and diluted                    -            -
Net (loss)                                   (1,789)      (1,546)
Per share -- basic and diluted                    -        (0.01)
Capital expenditures (1)                      5,139          297
Adjusted working capital (1)                 61,215          285

                         OPERATING RESULTS
                                                 Three months ended
                                                           March 31,
                                                   2023        2022

Daily production                                                
Oil and condensate (bbl/d)                           46          70
Other NGLs (bbl/d)                                   14          21
Oil and NGLs (bbl/d)                                 60          91
Natural gas (mcf/d)                               1,380       1,750
Oil equivalent (boe/d)                              290         383
Oil and natural gas sales                                          
Oil and condensate ($/bbl)                        94.78      113.55
Other NGLs ($/bbl)                                42.98       45.79
Oil and NGLs ($/bbl)                              82.72       97.58
Natural gas ($/mcf)                                4.11        5.65
Oil equivalent ($/boe)                            36.60       49.04
Royalties                                                          
Oil and NGLs ($/bbl)                              26.31       30.87
Natural gas ($/mcf)                                1.02        1.25
Oil equivalent ($/boe)                            10.26       13.07
Operating expenses                                                 
Oil and NGLs ($/bbl)                              16.93       12.91
Natural gas ($/mcf)                                2.82        2.12
Oil equivalent ($/boe)                            16.93       12.79
Net transportation expenses                                     
Oil and NGLs ($/bbl)                               1.43        3.53
Natural gas ($/mcf)                                1.30        0.66
Oil equivalent ($/boe)                             6.50        3.86
Operating netback                                               
Oil and NGLs ($/bbl)                              38.05       50.27
Natural gas ($/mcf)                               (1.03)       1.62
Oil equivalent ($/boe)                             2.91       19.32
Depletion and depreciation ($/boe)               (15.94)     (14.99)
General and administrative expenses ($/boe)      (46.35)     (33.10)
Share based compensation ($/boe)                 (29.10)     (15.85)
Finance expense ($/boe)                           (3.18)      (1.59)
Finance income ($/boe)                            27.22           -
Other income ($/boe)                                  -        1.30
Unutilized transportation ($/boe)                 (4.17)          -
Net (loss) ($/boe)                               (68.61)     (44.91)

Selected financial and operational information outlined in this news release should be read in conjunction with Coelacanth's unaudited condensed interim financial statements and related management's discussion and analysis (MD&A) for the three months ended March 31, 2023, which are available for review under the company's profile on SEDAR.

Common-control transaction

On May 31, 2022, the arrangement agreement between Coelacanth, Leucrotta Exploration Inc., Vermilion Energy Inc. and the shareholders of Leucrotta closed and Vermilion acquired all of the issued and outstanding common shares of Leucrotta in exchange for $1.73 cash for each common share of Leucrotta held.

Pursuant to an asset conveyance agreement between Coelacanth and Leucrotta made as of May 31, 2022, and immediately prior to the closing of the arrangement, Leucrotta transferred approximately $45.1-million cash, net of transaction costs, and certain oil and natural gas assets primarily located in the Two Rivers area of British Columbia to Coelacanth in exchange for one common share of Coelacanth, and 0.1917 of a common share purchase warrant of Coelacanth for each common share of Leucrotta outstanding. The Coelacanth shares and arrangement warrants were then transferred to the shareholders of Leucrotta.

Since the shareholders of Coelacanth and Leucrotta were the same both before and after the conveyance of the Two Rivers assets (at the time Coelacanth was a wholly owned subsidiary of Leucrotta), this transaction was deemed a common-control transaction.

Operations update

Coelacanth commenced operations June 1, 2022, with its lands previously being a small part of a larger business plan for Leucrotta. Although the lands had been geologically delineated and production tested with vertical and horizontal test wells, there was significant infrastructure and corresponding pad drilling required to bring the greater vision for the area to fruition.

To that end, Coelacanth has geographically divided up its two projects as Two Rivers West (TRW) and Two Rivers East (TRE) with TRW already producing from two Montney wells into a small battery facility owned and operated by Coelacanth.

At TRW, a small pad has already been licensed and Coelacanth plans to have two wells completed on the pad and producing in Q4 2023. A battery upgrade was also initiated to accommodate additional volumes. Coelacanth is currently drilling the second well on the TRW pad and is scheduled to complete and test both wells in late July. The new horizontal wells will have two-mile laterals completed with approximately 160 fracs as opposed to the previous wells drilled with one-mile laterals and completed with 41 frac stages.

At TRE, a larger-scale development is planned that includes constructing a battery to process up to 20,000 barrels of oil equivalent per day of production coming from larger pads that would carry the company's products to market through approximately 25 miles of new gathering and sales pipelines. The initial pad (five wells) is planned offsetting a previously drilled Montney well that tested over 1,000 boe/d but was only drilled with a one-mile lateral and completed with 41 fracs. Similar to TRW, new pad wells will be a minimum of two-mile laterals and completed with approximately 160 fracs. To date, Coelacanth has completed the engineering design and secured a site to build a battery capable of handling approximately 20,000 boe/d, surveyed and started the process of securing land access to construct the gathering and sales pipelines, and applied for a licence to drill its first pad at TRE. The company is currently waiting on regulatory permits to drill these wells and will proceed with drilling soon after receipt of approvals.

Industry had previously experienced delays and uncertainty due to the court ruling on the dispute between the B.C. government and Blueberry River First Nations regarding Treaty 8 rights. A settlement agreement was reached and announced on Jan. 18, 2023, that will allow industry to resume business but with new restrictions to adhere to particularly on Crown surface lands.

Coelacanth now has more certainty as to the timing of the initial development of its large Montney resource and is excited to initiate this project.

We seek Safe Harbor.