Mr. Fotis Kalantzis reports

SPARTAN DELTA CORP. ANNOUNCES PRO FORMA BUDGET, UPDATED GUIDANCE FOR 2023 AND ANNUAL MEETING VOTING RESULTS

Spartan Delta Corp.'s board of directors has approved the pro forma capital expenditure budget and updated guidance for 2023, following the recent sale of the company's Gold Creek and Karr Montney assets. The company has also released the voting results from its annual general and special meeting of shareholders held on May 16, 2023.

2023 budget and updated guidance

Spartan is pleased to provide its updated financial and operating guidance for 2023.

The company's capital expenditure budget and guidance for 2023 is presented on a pro forma basis, accounting for the forthcoming distribution of the cash proceeds of the asset sale and the shares and warrants of Logan Energy Corp. to Spartan's shareholders.

Based on forecast annual 2023 average production of between 52,000 and 54,000 boe/d (barrels of oil equivalent per day) and commodity price assumptions of $74 (U.S.)/barrel for WTI crude oil and $2.75/gigajoule for AECO natural gas average for the year, Spartan expects to generate approximately $398-million of adjusted funds flow in 2023. Free funds flow is forecast to be $118-million on a capital expenditure budget of $280-million.

As part of the company's 2023 capital budget, Spartan plans to drill a total of 16.0 net wells targeting both light oil and liquids-rich gas in the Spirit River, Cardium and Rock Creek horizons within the Deep basin. Spartan is also on track to have drilled a total of 14.7 wells in the Montney core area in the first half of 2023 that were divested pursuant to the asset sale.

Spartan's 2023 guidance is summarized in the attached table.

Outlook

With a robust inventory and numerous drilling opportunities, Spartan's management team and board look forward to the delivery of a repositioned business model focused on highly capital-efficient, liquids-rich gas development to sustain annual production levels of approximately 39,100 boe/d into its owned and operated deep-cut gas processing infrastructure in the Deep basin.

With over 70 per cent of Spartan's gas hedged at attractive levels well above prevailing strip pricing through the balance of the year, the company expects to deliver meaningful free funds flow in 2023.

Maintaining a strong balance sheet continues to be a core aspect of Spartan's sustainable business model and the company is targeting a leverage ratio of approximately 0.5 times debt to adjusted fund flow into the future.

Shareholder meeting

A total of 110,834,450 common shares, representing approximately 64.65 per cent of Spartan's issued and outstanding shares, were represented at the meeting.

The nominees noted herein were elected as directors of Spartan for the ensuing year.

For voting results on the other matters considered at the meeting, all of which were approved, please see the company's report of voting results dated May 16, 2023, available on SEDAR.

About Spartan Delta Corp.

Spartan is committed to creating a modern energy company, focused on sustainability both in operations and financial performance. The company's ESG-focused (environmental, social, governance) culture is centred on generating free funds flow through responsible oil and gas exploration and development. The company has established a portfolio of high-quality production and development opportunities in the Deep basin of Alberta. Spartan is focused on the execution of the company's organic drilling program, delivering operational synergies in a respectful and responsible manner to the environment and communities it operates in. The company is well positioned with flexibility to continue pursuing immediate production optimization, sustainable growth with organic drilling, opportunistic acquisitions, and a focus on the generation of free funds flow and periodic special dividends to shareholders.

We seek Safe Harbor.