Mr. Lyle Whitmarsh reports

STAMPEDE DRILLING ANNOUNCES SALE OF EQUIPMENT

Stampede Drilling Inc. has entered into a drilling equipment purchase agreement with a private company, providing for the sale of certain drilling components from an A/C triple drilling rig, previously acquired by Stampede in August, 2022. Total consideration to be paid is $5-million in cash, plus the transfer to Stampede of certain drilling equipment valued at approximately $290,000.

Stampede has retained key components of the triple for future sale or internal deployment to minimize future capital expenditures.

Lyle Whitmarsh, president and chief executive officer of Stampede, commented: "In today's market conditions, this is a very positive transaction for Stampede and will substantially increase free cash flow. Cash on hand provides us with optionality, such as upgrading equipment, paying down debt or continuing purchases under our normal course issuer bid. This is a pro-active shift to monetize components of the triple without incurring significant capital expenditures, which improves our overall return on investment on the August, 2022, transaction, compared with entering into take-or-pay contracts for the triple which, based on current industry conditions, are unlikely to be on terms which meet our financial objectives."

The agreement contains customary covenants, representations and warranties of, and from, each of the purchaser and the corporation, and various conditions precedent, including that each party obtain all necessary consents from its lenders and other secured parties, and that the purchaser successfully completes a debt financing with its bank to enable it to pay the cash portion of the purchase price. Unless all such conditions are satisfied or waived by the party for which benefit such conditions exist, the transaction will not proceed. In connection with the transaction, Stampede and the purchaser have also agreed to indemnify one another in certain circumstances.

The agreement may be terminated prior to the closing of the transaction in certain circumstances, including by either the corporation or the purchaser if the transaction is not consummated on or before Nov. 30, 2025. If the agreement is terminated, the corporation will be entitled to retain, at no cost to it, any upgrades or other improvements that the purchaser makes to the equipment prior to the date of termination.

We seek Safe Harbor.