Mr. Richard McHardy reports

LOGAN ENERGY CORP. ANNOUNCES 2023 FINANCIAL RESULTS AND RESERVES, OPERATIONS UPDATE, AND UPSIZED CREDIT FACILITY

Logan Energy Corp. has released its financial and operating results for the period ended Dec. 31, 2023, and the results of the 2023 year-end reserves evaluation, and has provided an operations update and details of the company's upsized revolving credit facility.

Selected financial and operational information set out highlights results from the fourth quarter and second half of 2023 (H2 2023), the first full period of operations following the spinout of the early stage Montney assets of Spartan Delta Corp. to Logan on June 20, 2023. This information should be read in conjunction with the company's audited annual financial statements and related management's discussion and analysis (MD&A) as at and for the years ended Dec. 31, 2023, and 2022. In addition, readers are also directed to the company's annual information form (AIF) for the year ended Dec. 31, 2023, dated March 18, 2024. These documents are filed on SEDAR+ and are available on the company's website. The highlights reported in this press release include certain non-GAAP (generally accepted accounting principles) measures and ratios.

H2 2023 financial and operating highlights

Since commencing active operations on June 20, 2023:

• Logan raised net equity proceeds of $102.2-million through completion of a private placement and the exercise of common share purchase warrants in the third quarter.
• Successfully executed on its exploration and development capital expenditure program spending $74.1-million during the second half of 2023, in line with budgeted capital expenditures before A&D of $75.0-million for the period. The company also incurred $5.3-million of acquisition costs to expand its undeveloped acreage position at Simonette and to acquire certain equipment inventory.
  • At Simonette, the company began delineating its land base targeting both crude oil and liquids-rich natural gas prospects in the north and south sections of the play. Logan drilled, completed and brought 2.0 net wells on production in September. During the fourth quarter, Logan drilled two additional wells and a third well was spudded in late 2023.
  • At Pouce Coupe, Logan drilled, completed and brought 3.0 net oil wells on production in November driving the significant increase in oil production during the fourth quarter.
  • Logan added 62.25 net sections of land around the company's core area of Simonette, consisting of 32.75 net sections of Montney acreage and 29.5 net sections of land in non-Montney plays on and surrounding our existing asset base. Within the Montney acreage added, Logan has acquired a 14-net-section contiguous block of land in the Lator area west of Simonette.
• Achieved production growth to 7,515 BOE (barrels of oil equivalent) per day (35 per cent liquids) on average for the fourth quarter, up 39 per cent from 5,394 BOE per day (24 per cent liquids) during the previous quarter.
  • Production for the second half of 2023 exceeded guidance by 8 per cent averaging 6,455 BOE per day (31 per cent liquids) compared with the company's forecast of 6,000 BOE per day (28 per cent liquids).
• Logan's operating netback continues to improve as a result of operating leverage and improved scale in the business. The company's operating netback averaged $23.63 per BOE during the fourth quarter, up 116 per cent from $10.94 per BOE reported in the previous quarter, resulting in an average operating netback of $18.32 per BOE for the second half of 2023.
• Generated $15.4-million and $20.6-million of adjusted funds flow during the respective three- and six-month periods ended Dec. 31, 2023. Adjusted funds flow for the fourth quarter increased by 198 per cent from $5.2-million during the third quarter of 2023, driven by Logan's liquids-weighted production and revenue growth, together with lower average royalties and a decrease in per-unit operating and transportation expenses quarter over quarter.
• Logan exited 2023 with a working capital surplus of $41.6-million, including $54.0-million of cash on hand and no bank debt. Subsequent to the reporting period in March, 2024, the company's lender increased the authorized borrowing amount available on its revolving demand credit facility from $15.0-million to $50.0-million. Logan is well positioned to execute on its 2024 capital expenditure program.

The attached table summarizes selected highlights from the company's financial and operating results for the three- and six-month periods ended Dec. 31, 2023, representing the reporting periods subsequent to the spinout.

Operations update

In late November, 2023, three new wells were brought onstream from the 6-18-079-10W6 (6-18) pad at Pouce Coupe. The completion design of this phase was further optimized and thus far the three new wells are outperforming the average 6-18 well by 8 per cent and all three wells are exceeding the budgeted type curves. For the first 90 days of production, the pad has averaged 506 bbl/d (barrels per day) of oil, 18 bbl/d of NGLs (natural gas liquids) and 2.2 MMcf/d (million cubic feet per day) of gas per well (902 BOE/d with 58 per cent liquids per well).

After the rig completed drilling the three wells at Pouce Coupe, the rig moved to South Simonette to drill three wells at the 4-10-062-27W5 (4-10) pad offsetting the previously announced success of the 02/14-33-061-27W5 (14-33) drill. The modern completion design and updated landing depth of South Simonette 14-33 continues to deliver substantially elevated oil rates compared with the legacy wells. The objective with 4-10 is to follow up on this success and demonstrate reduced capital costs with scale. The three-well 4-10 pad has been successfully drilled and is awaiting completion which is planned for the summer following spring breakup.

The rig then moved to drill a single well (02/13-34-062-02W6 or 13-34) in the Lator area, west of Simonette. The Lator lands were acquired in the third quarter of 2023 and the 13-34 well will serve to validate the resource of the 14-section land block which is currently unbooked.

2023 reserves evaluation highlights

Logan is pleased to provide below select highlights from the results of its first year-end oil and gas reserves evaluation as of Dec. 31, 2023, as prepared by its independent qualified reserves evaluator, McDaniel & Associates Consultants Ltd. The evaluation of Logan's properties was prepared in accordance with the definitions, standards and procedures contained in the most recent publication of the Canadian Oil and Gas Evaluation Handbook (COGEH) and National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities (NI 51-101), and was based on the published average forecast pricing of three independent reserves evaluation firms (McDaniel, GLJ Ltd., Sproule Associates Ltd.). Additional reserves information as required under NI 51-101 is included in Logan's AIF for the year ended Dec. 31, 2023, which is filed on SEDAR+ and is available on the company's website.

• Logan's proved developed producing (PDP) reserves are 9.9 MMBOE, total proved (TP) reserves are 43.3 MMBOE, and total proved plus probable (TPP) reserves are 74.8 MMBOE at year-end 2023.
• The before-tax net present value (NPV) of reserves, discounted at 10 per cent, was approximately $51.3-million on a PDP basis, $192.6-million on a TP basis and $393.0-million on a TPP basis.
• The McDaniel report is reflective of the early stage of development of Logans assets. Within the report, there are 68.3 net undeveloped Montney locations assigned within Simonette and Pouce Coupe which Logan expects to drill within the next five years. These booked locations account for approximately 11 per cent of the company's identified Montney inventory.
• The McDaniel report includes future development capital (FDC) of $505.1-million in the TP category with 44.6 net locations and $771.7-million in the TPP category with 68.3 net locations.

The attached tables highlight the findings of the McDaniel report. The numbers in the tables may not add due to rounding.

Summary of reserves volumes as at Dec. 31, 2023

The company's reserves volumes and undiscounted FDC costs as at Dec. 31, 2023, are summarized in the attached table.

Net present value of future net revenue as at Dec. 31, 2023

The attached table summarizes the NPV of the company's reserves (before tax) as at Dec. 31, 2023. The reserves value on a $/BOE basis, discounted at 10 per cent per year, is also summarized for each category.

Future development capital

The attached table outlines estimated annual future development capital expenditures required to bring TP and TPP reserves on production per the McDaniel report.

Subsequent events

Upsized credit facility

Effective March 18, 2024, the company's lender increased the authorized borrowing amount available under the credit facility from $15.0-million to $50.0-million. The terms of the credit facility provided for certain minimum hedging requirements, which have been fully satisfied as of the date hereof.

Commodity hedging update

Logan has entered into short-term derivative financial contracts to hedge a notional 1,000 bbl/d of WTI (West Texas Intermediate) oil at $102.00/bbl for March to June, 2024, and an aggregate of 1,500 bbl/d of WTI oil at an average price of $101.33/bbl for July through December, 2024. Additionally, the company has hedged a notional 15,000 GJ/d (gigajoules per day) of AECO natural gas at $1.73/GJ for the period from April to June, 2024, and 20,000 GJ/d of AECO natural gas at $1.63/GJ for the period from July to September, 2024.

About Logan Energy Corp.

Logan is a growth-oriented exploration, development and production company formed through the spinout of Spartan's early stage Montney assets. Logan is founded with a strong initial capitalization and three high-quality and opportunity-rich Montney assets located in the Simonette and Pouce Coupe areas of northwest Alberta and the Flatrock area of northeastern British Columbia. The management team brings proven leadership and a record of generating excess returns in various business cycles.

Logan's corporate presentation has been updated as of March, 2024, and can be access on the company's website.

We seek Safe Harbor.