Mr. Robert Zakresky reports

COELACANTH ANNOUNCES Q3 2023 FINANCIAL AND OPERATING RESULTS

Coelacanth Energy Inc. has released its financial and operating results for the three and nine months ended Sept. 30, 2023.

Highlights:

• Completed two Upper Montney wells on its 10-08 pad at Two Rivers West;
• Drilled five wells on its 5-19 pad at Two Rivers East; four wells (three Lower Montney and one Basal Montney) are expected to be completed in Q4 2023;
• Subsequent to Sept. 30, 2023, closed a bought deal public financing issuing 100 million units of the company at a price of 80 cents per unit for gross proceeds of $80-million; each unit comprises of one common share of the company and 0.33 common share purchase warrants of the company; each whole common share purchase warrant entitles the holder to purchase one common share at an exercise price of $1.05 per common share expiring on Nov. 15, 2024.

Financial and operational results herein 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.

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 discussion and analysis (MD&A) for the three and nine months ended Sept. 30, 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. The financial and operational results herein present the historic financial position, results of operations and cash flows of the transferred Two Rivers assets for all prior periods up to and including May 31, 2022, on a carveout basis as if they had operated as a stand-alone entity subject to Leucrotta's control. The financial position, results of operations and cash flows from March 24, 2022 (the date of incorporation of Coelacanth), to May 31, 2022, include both the Two Rivers assets and Coelacanth on a combined basis and from May 31, 2022, forward include the results of Coelacanth after assuming the Two Rivers assets upon close of the arrangement.

Operations update

In Q3 2023, Coelacanth continued with development of its Two Rivers project. The Two Rivers project spans Coelacanth's 150 contiguous sections of Montney lands and is divided up geographically into two projects -- Two Rivers West (TRW) and Two Rivers East (TRE).

Although the overall project has been geologically defined and production tested with vertical and horizontal wells, Coelacanth needed to address infrastructure and egress issues, along with developing production type curves incorporating enhanced frac design.

During Q3 2023, Coelacanth:

• Drilled one Upper Montney well at TRE;
• Completed two Upper Montney wells at TRW (see news release dated Oct. 23, 2023);
• Drilled five Montney horizontal wells on its 5-19 pad at TRE.

Since inception in June, 2022, Coelacanth was able to accomplish many goals and objectives, furthering its long-term development goals for the Two Rivers project:

• Secured 60 million cubic feet per day of firm gas transportation capacity;
• Signed an agreement with NorthRiver Midstream securing up to 60 million cubic feet per day of firm processing capacity;
• Received a licence to drill up to 14 wells on the 5-19 pad at TRE;
• Drilled three Upper Montney horizontal wells at TRW (two completed in Q3 2023);
• Drilled six Montney horizontal wells at TRE (four to be completed in Q4 2023);
• Updated its enhanced frac design for completions at both TRW and TRE wells;
• Completed the engineering and design and secured a site to build a battery capable of handling approximately 20,000 barrels of oil equivalent per day;
• Initiated the process of permitting and securing land access to construct the gathering and sales pipelines to connect the 5-19 pad to the NorthRiver Midstream gathering system.

Subsequent to quarter-end, Coelacanth secured a frac crew to complete four wells at TRE, including three Lower Montney wells and one Basal Montney well on the 5-19 TRE pad. In addition, Coelacanth secured an $80-million bought deal financing and a $1.5-million private placement financing to three key employees that will add additional funds that will have a material effect on the financing of the overall project. The company looks forward to updating its stakeholders on its progress as it achieves various milestones.

The following is a complete breakdown of sales volumes for applicable periods by specific product types of shale gas, tight oil and NGLs (natural gas liquids).

Closing of private placement

Further to its press release dated Nov. 15, 2023, Coelacanth has closed its previously announced non-brokered private placement to three key employees of 1,875,000 units of the company, at a price of 80 cents per unit, for aggregate proceeds of $1.5-million. Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the company at a price of 80 cents per share expiring on Nov. 16, 2028. The securities issued pursuant to the offering are subject to a four-month-and-one-day hold period from the date of the closing of the offering, in accordance with applicable securities laws.

Coelacanth is an oil and natural gas company, actively engaged in the acquisition, development, exploration and production of oil and natural gas reserves in northeastern British Columbia, Canada.

The company did not file a material change report in respect of the offering more than 21 days prior to the closing of the offering as the company was unable to announce the offering until the short form prospectus financing that was announced by the company on Nov. 15, 2023, had closed, following which time the company deemed reasonable under the circumstances to close the offering on an expeditious manner. The company will file a material change report within 10 days following the date hereof, which will contain all prescribed disclosure relating to this related party transaction in connection with the offering.

We seek Safe Harbor.