Mr. Philip Hodge reports

PINE CLIFF ENERGY LTD. ANNOUNCES FIRST QUARTER 2023 RESULTS, CONFIRMATION OF MONTHLY DIVIDEND, OPERATIONAL UPDATE AND INFORMATION REGARDING THE ANNUAL MEETING OF SHAREHOLDERS

Pine Cliff Energy Ltd. has released its first quarter 2023 financial and operating results, has confirmed its monthly dividend, has provided an operational update, and has provided information regarding the annual meeting of shareholders.

First quarter 2023 highlights

Highlights from the first quarter include:

• Generated $19.8-million of adjusted funds flow (six cents per basic and fully diluted share) for the three months ended March 31, 2023, compared with $32.3-million (nine cents per basic and fully diluted share) for the three months ended March 31, 2022;
• Paid dividends of $11.4-million (three cents per basic and fully diluted share) during the three months ended March 31, 2023;
• Positive net cash increased to $58.1-million at March 31, 2023, from $55.9-million on Dec. 31, 2022;
• Generated net earnings of $5.0-million (one cent per basic and fully diluted share) for the three months ended March 31, 2023, compared with net earnings of $15.4-million (five cents per basic and four cents per fully diluted share) for the comparable period in 2022;
• Production averaged 20,076 Boe/d (barrels of oil equivalent per day) for the three months ended March 31, 2023, 2 per cent lower than the 20,397 Boe/d for the comparable period in 2022; and
• Drilled two (1.4 net) North Twining unit Pekisko oil wells during the quarter.

Confirmation of monthly dividend

The company has approved a monthly dividend of 1.083 cents per common share to be paid May 31, 2023, to shareholders of record on May 15, 2023.

Dividends paid on Pine Cliff's common shares are designated as eligible dividends for Canadian federal income tax purposes. The declaration of dividends is at the sole discretion of the board of directors and is evaluated on a regular basis.

Operational update

Two Pekisko oil wells (1.4 net) were drilled during the first quarter with a third (0.7 net) drilled and rig released April 12, 2023. The three wells were drilled from the same pad location, minimizing surface disturbance, while maximizing cost-efficiencies. The three wells (2.1 net) are scheduled to be completed and placed on production before the end of the second quarter with the all in-capital costs per well expected to average $4.0-million ($2.8-million net).

Annual meeting of shareholders

Pine Cliff's annual meeting of shareholders will be held on Tuesday, May 16, 2023, at 11 a.m. (Calgary Time) at the offices of Bennett Jones LLP, 4500 Bankers Hall East, 855 2nd St. SW, Calgary, Alta. A corporate presentation will be provided following the meeting, which can be found on the company's website.

About Pine Cliff Energy Ltd.

Pine Cliff is a natural gas and oil company with a long-term view of creating shareholder value. Pine Cliff's current focus is on acquiring, developing and operating long-life assets that generate significant free funds flow that allows for capital to be returned to shareholders in the form of a dividend.

We seek Safe Harbor.