Mr. Fotis Kalantzis reports

SPARTAN DELTA CORP. ANNOUNCES DUVERNAY ACQUISITIONS, PRELIMINARY 2024 GUIDANCE, CFO RETIREMENT AND PROMOTION OF DIRECTOR, FINANCE TO VP, FINANCE AND CFO

Spartan Delta Corp. has completed a series of asset acquisitions in the West Shale basin Duvernay for aggregate cash consideration of approximately $25-million, and has provided its preliminary 2024 guidance.

MESSAGE TO SHAREHOLDERS

Spartan's Deep Basin asset has been the foundation of the Company's success since inception in December 2019, providing the Company and its shareholders with significant return on investment through consolidation and development.

Spartan's go-forward strategy is to grow through the continued optimization of its Deep Basin asset, participate in the consolidation of the Deep Basin fairway, and leverage the Company's balance sheet and Free Funds Flow to build a new growth core area in the Duvernay, commencing with the Acquisitions.

"I believe that the West Shale Basin Duvernay represents a unique opportunity to build a meaningful position at a low cost of entry in an oil and condensate resource play that is fragmented, undercapitalized, and proximal to Spartan's Deep Basin asset. The Company is excited to establish and develop a new core area," commented Fotis Kalantzis, President and CEO of Spartan.

2024 BUDGET AND PRELIMINARY GUIDANCE

Spartan is pleased to provide its financial and operating guidance for 2024 for its foundational Deep Basin asset.

For 2024, Spartan's Board has approved an initial capital budget of $130 million to drill and complete 19.2 net (21 gross) wells, resulting in annualized production of 39,500 BOE/D, a 7% increase in corporate production versus H2 2023 guidance. Spartan's development plan includes adding a second rig to the Deep Basin program through the first half of the year targeting Spirit River and Cardium locations and oil weighted drilling locations targeting the Viking, Wilrich, and Rock Creek formations, increasing Spartan's oil and condensate production by 17%.

Spartan's Deep Basin drilling inventory continues to grow as the Company further evolves its petrophysical, geological, and geophysical understanding of the region. Industry leading 3D seismic reservoir characterization, combined with the Company's detailed geological understanding of the subsurface is unveiling new locations that were previously overlooked. In addition, the quality of inventory in Spartan's future drilling campaigns are being optimized for capital efficiencies by extending lateral length, continuing to use existing surfaces, and lowering drilling and completion costs. In 2024, Spartan expects to see capital efficiency improvements of greater than 20% compared to 2023.

Based on forecast average production of 39,500 BOE/d and commodity price assumptions of US$75/bbl for WTI crude oil and $2.75/GJ for AECO natural gas, Spartan expects to generate approximately $177 million of Adjusted Funds Flow in 2024. Free Funds Flow is forecasted to be $47 million on a capital expenditure budget of $130 million, exiting 2024 with Net Debt of $19 million resulting in a 0.1X Net Debt to Annualized AFF ratio.

Spartan's preliminary 2024 guidance is summarized below:

Spartan's 2023 guidance is unchanged except for the $25 million of additional A&D capital associated with the Acquisitions.

DUVERNAY HIGHLIGHTS

The Acquisitions include a material Duvernay land position, extensive 3D seismic, and approximately 400 BOE/d of Duvernay production. Pursuant to the Acquisitions, Spartan accumulated approximately 137,000 gross acres (130,000 net acres) with the majority of the acreage residing in the volatile oil, condensate, and liquids-rich gas window of the Duvernay.

After over a decade of development, Spartan believes the Duvernay is poised to offer repeatable, economic results with a significant depth of inventory. Similar to Spartan's entry into the up-dip oil window of the Montney in 2021, the Company views its timing on the entry into the West Shale Basin Duvernay as optimal as the fairway is fragmented, undercapitalized and supports growth with available egress and existing underutilized infrastructure. Additionally, the West Shale Basin Duvernay possess geotechnical attributes comparable to the Kaybob Duvernay and the East Shale Basin Duvernay. Recent activity and new top-tier well results from bordering operators demonstrate the commerciality and scalability of the play.

Spartan looks forward to providing additional details on its Duvernay strategy in the new year as it continues to advance its current position and solidify its future operating plans for the area.

CFO RETIREMENT AND PROMOTION OF DIRECTOR, FINANCE TO VP, FINANCE AND CFO

The Company also announces Ms. Geri Greenall will retire as Chief Financial Officer effective December 31, 2023, to focus on other commitments. Ms. Greenall has been instrumental in the Company's success and value creation since inception. The Board and management team wish to express their gratitude to Ms. Greenall for her many contributions and wish her well in her future endeavors.

Effective January 1, 2024, Mr. Ronald Williams, Director, Finance of the Company, will be promoted to the roles of Vice President, Finance and Chief Financial Officer. Mr. Williams has been with Spartan since March 2021. He brings more than 31 years of industry experience in audit, finance, taxation, as well as corporate and asset acquisitions. Most recently, Mr. Williams has been providing financial accounting and taxation services to a variety of public and private Alberta based entities. Mr. Williams was the VP Finance, CFO and Co-Founder of two Alberta focused oil & gas companies traded on the TSX-V, and currently serves as a director on a private transportation logistics company.

ABOUT SPARTAN DELTA CORP.

Spartan is committed to creating value for its shareholders, focused on sustainability both in operations and financial performance. The Company's ESG-focused culture is centered 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 and the Duvernay. Spartan will continue to focus on the execution of the Company's organic drilling program in the Deep Basin, delivering operational synergies in a respectful and responsible manner to the environment and communities it operates in. The Company is well positioned to continue pursuing growth in the Deep Basin, participate in the consolidation of the Deep Basin fairway, and establish a new core area in the Duvernay by leveraging Spartan's balance sheet and Free Funds Flow.

Spartan's corporate presentation as of November 28, 2023, can be accessed on the Company's website.

Assumptions for 2024 Guidance

The significant assumptions used in the forecast of Operating Netbacks and Adjusted Funds Flow for 2024 are summarized below. These key performance measures expressed per BOE are based on the midpoint of calendar year average production guidance for 2024 of 39,500 BOE/d.

Changes in forecast commodity prices, exchange rates, differences in the amount and timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Spartan's guidance. The Company's actual results may differ materially from these estimates. Holding all other assumptions constant, a US$5/bbl increase (decrease) in the forecasted average WTI crude oil price for 2024 would increase Adjusted Funds Flow by approximately $11 million (decrease by $11 million). An increase (decrease) of CA$0.25/GJ in the forecasted average AECO natural gas price for 2024, holding the NYMEX-AECO basis differential and all other assumptions constant, would increase Adjusted Funds Flow by approximately $15 million (decrease by $15 million). Holding U.S. dollar benchmark commodity prices and all other assumptions constant, an increase (decrease) of $0.10 in the US$/CA$ exchange rate would increase Adjusted Funds Flow by approximately $15 million (decrease by $15 million). Assuming capital expenditures are unchanged, the impact on Free Funds Flow would be equivalent to the increase or decrease in Adjusted Funds Flow. An increase (decrease) in Free Funds Flow will result in an equivalent decrease (increase) in the forecasted Net Debt (Surplus).

Share Capital

Spartan's common shares are listed on the Toronto Stock Exchange ("TSX") and trade under the symbol "SDE". As at the date hereof, there are 173.2 MM common shares outstanding. There are no preferred shares or special shares outstanding. The following securities are outstanding as of the date of this press release: 0.1 MM stock options, and 2.4 MM restricted share awards ("RSAs"), however, Spartan intends to settle 1.1 MM of these RSAs in cash.

We seek Safe Harbor.