Mr. Fotis Kalantzis reports

SPARTAN DELTA CORP. ANNOUNCES 2023 YEAR-END RESULTS, RESERVES AND UPDATED GUIDANCE FOR 2024

Spartan Delta Corp. has released its financial and operating results for the fourth quarter and year ended Dec. 31, 2023, highlights of the company's year-end reserves evaluation, as well as updated guidance for 2024.

Selected financial and operational information is set out below and should be read in conjunction with Spartan's audited consolidated annual financial statements and related management's discussion and analysis ("MD&A") for the years ended December 31, 2023 and 2022, which are filed on SEDAR+ and are available on the Company's website. The highlights reported in this press release include certain non-GAAP financial measures and ratios which have been identified using capital letters. The reader is cautioned that these measures may not be directly comparable to other issuers; please refer to additional information under the heading "Reader Advisories - Non-GAAP Measures and Ratios".

MESSAGE TO SHAREHOLDERS

"2023 was a transformational year for Spartan strategically executing on the opportunity to crystalize outsized shareholder returns.

From growing the Company to over 80,000 BOE/d in Q1 2023, to divesting its Montney assets in Q2 2023, Spartan has created tremendous value for its shareholders by having declared, since our initial recapitalization transaction in 2019, $1.8 billion in dividends and distributions, after only having raised $537 million in equity.

As a result of the Montney divestitures, certain metrics year over year in the reported year-end financials and reserves may not be comparable.

Spartan continues to demonstrate the underlying strength of its foundational Deep Basin asset by executing on a successful second half 2023. We are excited to continue building value for Spartan's shareholders in 2024 through the optimization and development of its Deep Basin asset, participating in the consolidation of the Deep Basin, and leveraging the strength of the Company's balance sheet and Free Funds Flow to continue advancing our Duvernay strategy," commented Fotis Kalantzis, President and CEO of Spartan.

2023 FINANCIAL AND OPERATING HIGHLIGHTS

• Spartan successfully closed the sale of its Gold Creek and Karr Montney assets on May 10, 2023, to Crescent Point Energy Corp. for cash consideration of $1.7 billion (the "Asset Sale").
• The Company declared $1.7 billion, or $9.60 per share, in dividends and distributions to its shareholders during the year ended December 31, 2023. Since inception Spartan has raised $537 million of equity at an average cost of $3.16 per share.
• On June 20, 2023, Spartan successfully completed the spin-out of its early stage Montney assets (the "Spin-Out") to Logan Energy Corp. ("Logan") at a net asset value of $0.35 per share by distributing 1.0 Logan Share and 1.0 Logan Warrant per Spartan Share, with each warrant entitling the holder to acquire 1.0 Logan Share at an exercise price of $0.35 per share.
• The Company reported production of 53,179 BOE/d in 2023, a decrease from 73,084 BOE/d in 2022. The decrease in production volume year over year is a result of the Asset Sale and the Spin-Out.
• Fourth quarter 2023 production averaged 37,664 BOE/d (31% liquids), reflecting a slight increase in production and an 8% increase in liquids production from the third quarter of 2023.
• As a result of the Asset Sale, the Spin-Out, and reduced commodity prices, Spartan reported oil and gas sales of $652.8 million in 2023 compared to $1.5 billion in 2022.
• Fourth quarter 2023 oil and gas sales increased to $85.8 million, up 5% from the third of quarter 2023.
• The Company's operations generated Adjusted Funds Flow of $425.2 million ($2.45 per share, diluted) in 2023, 7% higher than 2023 guidance. In H2 2023, Spartan generated Adjusted Funds Flow of $119.6 million, 29% higher than H2 2023 guidance.
• Spartan successfully executed a capital program of $295.0 million in 2023, of which $31.9 million was in the fourth quarter.
• Spartan generated Free Funds Flow of $130.1 million in 2023, 10% higher than 2023 guidance. In H2 2023, Spartan generated Free Funds Flow of $60.2 million, 32% higher than H2 2023 guidance.
• In the fourth quarter of 2023, Spartan closed acquisitions in the West Shale Basin Duvernay (the " Duvernay ") for aggregate cash consideration of approximately $32.5 million. The acquisitions included undeveloped acreage, 3D seismic, and approximately 400 BOE/d of Duvernay production. To date, Spartan has accumulated greater than 170,000 net acres in the Duvernay.
• On December 29, 2023, the Company fully repaid its term facility of $150 million and exited 2023 with Net Debt of $75.3 million resulting in a 0.3X Net Debt to Annualized AFF ratio.
• As at December 31, 2023, Spartan had $641.3 million tax pools, of which $398.0 million are non-capital losses.
• Subsequent to December 31, 2023, Spartan increased its 2024 AECO 7A hedge position to 41% of net natural gas production at an average price of $2.79/GJ and has hedged 21% of its net oil and condensate production at an average price of $101.06/bbl.

The table below summarizes the Company's financial and operating results for the fourth quarters and years ended December 31, 2023, and December 31, 2022:

2023 CAPITAL ACTIVITY

In 2023, Spartan successfully executed a $295.0 million capital program focusing on continued development across multiple horizons in the Deep Basin and completed a pre-disposition development program of its Gold Creek and Karr assets located in the Montney.

• In the Deep Basin, Spartan drilled 20.2 net wells, completed 22.9 net wells, and brought 23.9 net wells on production.
• In the Montney, Spartan drilled 14.6 net wells, completed 9.0 net wells, and brought 7.3 net wells on production.

Spartan's 2023 capital program was $15.0 million higher than guidance, as a result of higher than anticipated activity related to the divested Montney assets, 3D seismic, land sales, and modifications to the Deep Basin drilling program to ensure continuous and efficient rig operations.

2023 RESERVES INFORMATION

Spartan is pleased to provide select highlights from the results of its year end independent oil and gas reserves evaluation as of December 31, 2023 (the "McDaniel Report"), as prepared by its independent qualified reserves evaluator, McDaniel & Associates Consultants Ltd. ("McDaniel"). The evaluation of Spartan's properties was prepared in accordance with the definitions, standards and procedures contained in the most recent publication of the Canadian Oil and Gas Evaluation Handbook ("COGEH") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

The following tables highlight the findings of the McDaniel Report. The McDaniel Report was based on the published average forecast pricing of McDaniel, GLJ Ltd. and Sproule Associates Limited. See "O&G Reader Advisories - Reserves Disclosure" for more information. Additional reserves information as required under NI 51-101 will be included in Spartan's Annual Information Form for the year ended December 31, 2023, which will be filed on or before March 31, 2024, on SEDAR+. The numbers in the tables below may not add due to rounding.

Summary of Reserves Volumes as at December 31, 2023

The Company's reserves volumes and undiscounted Future Development Costs ("FDC") as at December 31, 2023 are summarized below:

Net Present Value of Future Net Revenue as at December 31, 2023 (Before-Tax)

The following table summarizes the Net Present Value ("NPV") of the Company's reserves (before-tax) as at December 31, 2023. The reserves value on a $/BOE basis, discounted at 10% per year, is also summarized for each category.

Forecast Costs

The following table outlines estimated annual future development capital expenditures required to bring total proved ("TP") and total proved plus probable ("TPP") reserves on production per the McDaniel Report:

UPDATED 2024 GUIDANCE

Spartan is encouraged by the initial results of its Deep Basin asset optimization campaign and drilling improvements, and is pleased to announce that it is reducing its 2024 forecast operating costs by 9% to $6.07/BOE and reducing its Capital Expenditures, before A&D, by $5 million to $125 million, exclusive of Duvernay activity, while production guidance remains unchanged at 38,500 - 40,500 BOE/d.

As a result of the significant decrease in natural gas prices due to high North American supply growth and challenging weather conditions impacting demand, Spartan has increased its 2024 AECO 7A hedge position to 41% of net natural gas production at an average price of $2.79/GJ and has hedged 21% of its net oil and condensate production at an average price of $101.06/bbl. Despite a drastic decrease in natural gas prices, Spartan expects to generate Adjusted Funds Flow of $170 million and Free Funds Flow of $45 million in 2024.

In 2024, Spartan is focused on optimizing its foundational Deep Basin asset, participating in the consolidation of the Deep Basin, and leveraging the Company's strong balance sheet and Free Funds Flow to progress its Duvernay strategy. Spartan believes it is well positioned to continue generating shareholders significant return on investment through optimization, consolidation, and development.

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 continue advancing its Duvernay strategy by leveraging Spartan's balance sheet and Free Funds Flow.

Spartan's corporate presentation as of February 26, 2024, can be accessed on the Company's website.

We seek Safe Harbor.