Mr. John Hooks reports

PHX ENERGY RECEIVES TSX APPROVAL FOR RENEWAL OF NORMAL COURSE ISSUER BID

The Toronto Stock Exchange (TSX) has accepted PHX Energy Services Corp.'s notice of intention to renew its normal course issuer bid (NCIB) for a further one-year term. The previous NCIB expires on Aug. 15, 2023. Pursuant to the corporation's previous NCIB, the corporation purchased in the open market through the facilities of the TSX and through other alternative Canadian trading platforms and cancelled an aggregate of 1,509,800 common shares of the corporation at an average price paid of $6.39 per common share.

Under the renewed NCIB, PHX Energy may purchase for cancellation, from time to time, as PHX Energy considers advisable, up to a maximum of 3,552,810 common shares, representing 10 per cent of the corporation's public float of 35,528,100 common shares as at Aug. 2, 2023. Purchases of common shares may be made on the open market through the facilities of the TSX and through other alternative Canadian trading platforms at the prevailing market price at the time of such transaction. The actual number of common shares that may be purchased for cancellation and the timing of any such purchases will be determined by PHX Energy, subject to a maximum daily purchase limitation of 12,793 common shares, equating to 25 per cent of PHX Energy's average daily trading volume of 51,173 common shares for the six months ended July 31, 2023. PHX Energy may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any common shares that are purchased by PHX Energy under the NCIB will be cancelled.

The NCIB will commence on Aug. 16, 2023, and will terminate on Aug. 15, 2024, or such earlier time as the NCIB is completed or terminated at the option of PHX Energy.

PHX Energy believes that within a continued volatile market environment, at times, the prevailing market price does not reflect the underlying value of its common shares and the repurchase of its common shares for cancellation represents an attractive opportunity to enhance PHX Energy's per-share metrics and thereby increases the underlying value to its shareholders. PHX Energy intends to use the NCIB as another tool to enhance total long-term shareholder returns in conjunction with management's disciplined capital allocation strategy.

About PHX Energy Services Corp.

The corporation, through its directional drilling subsidiary entities, provides horizontal and directional drilling technology and services to oil-producing and natural-gas-producing companies primarily in Canada and the United States.

We seek Safe Harbor.