Mr. Lyle Whitmarsh reports

STAMPEDE DRILLING INC. ANNOUNCES 2023 SECOND QUARTER RESULTS

Stampede Drilling Inc. has released its consolidated financial and operational results for the three- and six-month periods ended June 30, 2023.

The following press release should be read in conjunction with the December 31, 2022 audited consolidated financial statements prepared in accordance with International Financial Reporting Standards ("IFRS"), December 31, 2022 annual MD&A and the annual information form ("AIF") for the year ended December 31, 2022, as well as the condensed unaudited consolidated interim financial statements and notes for the three and six month periods ended June 30, 2023 and 2022. Additional information regarding Stampede, including the AIF, is available on SEDAR.

All amounts or dollar figures are denominated in thousands of Canadian dollars except for per share amounts, number of drilling rigs, and operating days, or unless otherwise noted.

Estimates and forward-looking information are based on assumptions of future events and actual results may vary from these estimates. See "Forward-Looking Information" in this press release for additional details.

SECOND QUARTER 2023 Operational HIGHLIGHTS

For the three months ended June 30, 2023, the Corporation recorded:

• Revenue was $13,244, up $4,892 (59%) compared to $8,352 for the corresponding 2022 period.
• Adjusted EBITDA(1) for the three month period ended June 30, 2023 was $2,000, up $1,170 (141%) compared to $830 for the corresponding 2022 period.
• Net loss(1) for the three month period ended June 30, 2023 was $61, down $396 (87%) compared to a net loss of $457 for the corresponding 2022 period.

The Corporation's results were driven by higher operating days and higher revenue per day partially offset by higher operating expenses and general and administrative expenses. Total operating days in the quarter were 508, up 169 (50%) from the 339 operating days in the corresponding period of 2022. The increase in operating days was the result of an increase in the number of marketable rigs through acquisitions over the past nine months. The Corporation currently has 19 marketable rigs as compared to 13 for the corresponding 2022 period.

Total revenue per day of $26.1 was up $1.5 (6%) from the revenue per day of $24.6 in the corresponding period of 2022. Revenue per day increased due to increased customer demand and flow through field labour charges to our customers.

OUTLOOK

Stampede is anticipating continued commodity volatility throughout the remainder of 2023 due to current macroeconomic influences. Despite the anticipated volatility, Stampede is forecasting to continue its strong utilization and day rates for its fleet of 19 rigs for the back half of 2023. Coming out of spring breakup, Stampede was able to carry forward its first quarter momentum with 14 of our rigs firing up late May and early June and is forecasting again to be an industry utilization leader in Western Canada. Access to qualified field labour will continue to be an industry wide challenge for the remainder of 2023, however management has proven their ability to attract and crew qualified field hands since Stampede's inception.

Stampede ended Q2 2023 with a debt to EBITDA of under 1x and will continue to focus on maintaining its strong balance sheet and corresponding low debt levels. The Corporation will continue to align all levels of compensation and G&A spending to ensure shareholder value and alignment.

The Corporation will continue to assess capital allocations on its recently announced normal course issuer bid, acquisition opportunities and capital expenditures to further enhance customer desirability of its current fleet in 2023 while earning positive returns for our Shareholders.

• Revenue of $38,942 - an increase of $16,022 (70%) compared to $22,920 for the corresponding 2022 period. The increase was primarily related to the addition of 9 drilling rigs to the Corporation's fleet throughout 2022, combined with increased revenue per day due to increased customer demand and flow through field labour charges to our customers.
• Operating days of 1,426 - an increase of 443 operating days (45%) from the 983 operating days in the corresponding 2022 period. Operating days increased as a result of higher demand along with the increase in rig count compared to the prior period. Drilling rig utilization for the six month period ended June 30, 2023 was 41%, which was a 23% decrease from the corresponding 2022 period and 17% higher than the CAOEC industry average utilization rate of 35% for the six month period ended June 30, 2023.
• Gross margin percentage of 31% - a decrease of 1% from 32% as compared to the corresponding 2022 period. The gross margin decrease was primarily related to higher rig operating expenses due to inflationary pressures and labour costs, partially offset by the increase in revenue per day.
• Adjusted EBITDA of $7,991 - an increase of $3,404 (74%) from $4,587 from the corresponding 2022 period. The increase is primarily related to higher revenue due to increased revenue per day and partially offset by higher operating expenses and general and administrative expenses.
• Net income of $3,704 - an increase of $1,838 (98%) from $1,866 from the corresponding 2022 period. The increase is primarily related to increased operating days and revenue per day and partially offset by higher operating expenses, general and administrative expenses, and finance costs.
• General and administrative expenses of $4,864 - an increase of $1,888 (63%) from $2,976 compared to the corresponding 2022 period. The increase is primarily related to the Corporation's increased headcount and administration expenses due to the increased activity levels.

• Revenue of $13,244 - an increase of $4,892 (59%) compared to $8,352 for the corresponding 2022 period. The increase was primarily related to the addition of 9 drilling rigs to the Corporation's fleet throughout 2022, combined with increased revenue per day due to increased customer demand and flow through field labour charges to our customers.
• Operating days of 508 - an increase of 169 operating days (50%) from the 339 operating days in the corresponding 2022 period. Operating days increased as a result of higher demand along with the increase in rig count compared to the prior period. Drilling rig utilization for the three month period ended June 30, 2023 was 29%, which was a 19% decrease from 36% in the corresponding 2022 period and 16% higher than the CAOEC industry average utilization rate of 25% for the second quarter of 2023.
• Gross margin percentage of 28% - remained the same at 28% as compared to the corresponding 2022 period.
• Adjusted EBITDA of $2,000 - an increase of $1,170 (141%) from $830 in the corresponding 2022 period. The increase is primarily related to higher revenue due to increased revenue per day and partially offset by higher operating expenses and general and administrative expenses.
• Net loss of $61 - a decrease of $396 (87%) from net loss of $457 in the corresponding 2022 period. The decrease is primarily related to increased operating days and revenue per day and partially offset by higher operating expenses, general and administrative expenses, and finance costs.
• General and administrative expenses of $2,214 - an increase of $611 (38%) from $1,603 compared to the corresponding 2022 period. The increase is primarily related to increased headcount and administration expenses due to the increased activity levels.

We seek Safe Harbor.