Mr. Jose Arata reports

NEW STRATUS ENERGY ANNOUNCES CONSOLIDATED FINANCIAL RESULTS FOR THREE MONTHS ENDED MARCH 31, 2023, SIGNING OF MOU & WARRANT EXTENSION

New Stratus Energy Inc. has entered into a memorandum of understanding (MOU) with a vendor to acquire operatorship and a high working interest in a light oil production block. Confirmatory due diligence is continuing and specific acquisition details will be provided upon signing of a definitive agreement. Additionally the consolidated financial and operating results for the three months ended March 31, 2023, have been filed on SEDAR.

Three months highlights:

• Adjusted working capital of $31.8-million (26 cents per share);
• Net (loss) income of ($3.2-million).

As previously disclosed, the corporation has changed its year end from March 31 to Dec. 31 effective the previous reporting period, accordingly March 31, 2023, represents its first quarter without production in Ecuador.

Corporate updates

• As indicated herein, the corporation has signed an MOU with a vendor to acquire operatorship and a high working interest in a light oil production block and confirmatory due diligence is continuing. Specific acquisition details will be provided with the signing of a definitive agreement, which is expected to occur later this month.
• As part of the July 30, 2021, financing, the corporation issued 16,095,376 warrants. Each warrant entitles the holder to purchase one common share at an exercise price of 45 cents until the second anniversary of the issuance of the warrant, specifically July 21, 2023. Accordingly, the corporation made a formal application to the TSX Venture Exchange to extend the exercise period to July 22, 2024, which has now been approved.
• The corporation has been approved as a qualified operator by the Ministry of Energy and Mines in Ecuador, thus allowing the corporation to participate in the bidding process for development and exploration blocks in the XIII Oil Round denominated Intracampos II as well as other tender processes to be launched by the ministry. The corporation will evaluate all relevant opportunities as an approved bidder while it continues to pursue its legal demand against the government of Ecuador under international arbitration.
• As previously disclosed the corporation continues to advance development/optimization opportunities in Mexico, Peru, Venezuela and Colombia. The corporation will provide further updates on these opportunities as they progress.
• The corporation remains a very well capitalized and technically focused entity pursuing its stated business plan of becoming a major operator of oil and gas assets in Latin America.

We seek Safe Harbor.