Mr. Robert Zakresky reports

COELACANTH ENERGY INC. ANNOUNCES OPERATIONS UPDATE

Coelacanth Energy Inc. has completed two wells at Two Rivers West and has finished the drilling of a five-well pad at Two Rivers East.

Two Rivers West project

Coelacanth has completed the two Upper Montney wells on its 10-08 pad at Two Rivers West and recently placed the first well (C10-08) on production at a rate of 542 boe/d (barrels of oil equivalent per day), composed of 225 bbl/d (barrels per day) of 42 API light oil, 1.75 MMcf/d (millions of cubic feet per day) of liquids-rich gas and approximately 26 bbl/d of NGLs (natural gas liquids).

Coelacanth anticipates that production of hydrocarbons will incline as excess initial frac and formation water are pumped and disposed. To facilitate this, consideration is being given to increasing water pumping capacity at the Two Rivers West battery.

The second well (B10-08) was flowed to remove some of the initial frac water and then shut in to focus on the C10-08 well. Coelacanth will flow both wells once additional pump capacity is installed at the facility and the water rate on the C10-08 declines as a result of additional frac water being produced out.

Coelacanth will continue to disseminate information on this project when more material information is gathered.

Two Rivers East project

Coelacanth has finished the drilling of its five-well pad at Two Rivers East that is composed of three Lower Montney wells, one Upper Montney well and one Basal Montney well. Completion and testing are scheduled for mid-November.

The 5-19 pad is directly offsetting a Lower Montney well on the pad site that was drilled and tested in 2018, and in proximity to new Lower Montney wells drilled and completed by a nearby operator using modern completion technology. The operator publicly released results of its two-well Lower Montney pad that had an average per well IP30 (average production rate over 30 consecutive days) of 1,250 boe/d (49 per cent light oil and 2 per cent NGL) and later updated that the pad was producing flat at that rate for its initial four months with an average 40 per cent liquids. This is above the type curve provided by the company's independent reserves evaluator (GLJ Ltd.) for the Lower Montney (see corporate presentation at the company's website). Coelacanth intends to use similar completion technology for its five-well pad.

The company is in the process of obtaining final regulatory approval to construct an oil battery and compression station (the Two Rivers East facility), as well as sales lines and gathering lines, to handle production from the 5-19 and subsequent pads. It is anticipated that the Two Rivers East facility and related pipelines will be completed for an on stream date in early 2025, and will be sized to handle over 20,000 boe/d by adding compression as needed.

The completion and testing of the five wells will be a big first step on proving up and quantifying estimated value on the company's large Montney land block of over 150 contiguous sections.

Processing and takeaway

As previously disclosed, Coelacanth has secured up to 60 MMcf/d of firm processing service in addition to long-term takeaway on 60 MMcf/d of gas to be delivered into the Westcoast system and 1.5 MMcf/d to be delivered into the Alliance system.

With both initial processing and takeaway secured, Coelacanth's business plan of building to over 20,000 boe/d over a four-year period has taken a significant step forward. Coelacanth looks forward to reporting on future developments as it continues to execute its plan and attain various milestones.

Financial

Coelacanth estimates positive working capital of approximately $24-million at the end of the third quarter.

We seek Safe Harbor.