Mr. John Jeffrey reports

SATURN OIL & GAS INC. ANNOUNCES 145 MILLION boe OF RESERVES AND PROVED DEVELOPED PRODUCING NET PRESENT VALVE 10% OF $1.4 BILLION

Saturn Oil & Gas Inc. has released the results of the independent reserves evaluation of the company's crude oil and natural gas assets, dated Jan. 29, 2024, and effective Dec. 31, 2023, in compliance with National Instrument 51-101 (Standards of Disclosure for Oil and Gas Activities) and in accordance with the Canadian oil and gas evaluation handbook.

Reserves evaluation highlights

The company's reserve report, prepared by Ryder Scott Company-Canada, evaluated the company's oil and gas assets in Saskatchewan and Alberta, and is highlighted by:

• 145.3 million barrels of oil equivalent of total proven plus probable reserves, representing a 131-per-cent year-over-year increase;
• $1.4-billion net present value of future net revenue of the proven developed producing reserves discounted at 10 per cent;
• 879 gross (727.2 net) booked drilling locations, 78 per cent located in Saskatchewan and 22 per cent in Alberta;
• High oil weighting with TP+P reserves composed of 82 per cent light and medium oil and natural gas liquids;
• Long reserve life index of 6.2 years for PDP reserves and 14.8 years for TP+P reserves;
• 2023 TP+P finding and development costs of $19.13 per boe (2.5 times recycle ratio);
• 2023 TP+P finding, development and acquisition costs of $15.29 per boe (3.1 times recycle ratio);
• Net asset value per share:
  • Proven developed producing of $6.72;
  • Total proven of $10.89;
  • Total proven plus probable of $16.69.

"In 2023, Saturn executed the largest drilling program in its history, complemented by the impactful acquisition of Ridgeback Resources Inc., which together drove significant production and reserve growth for the company. The Ridgeback acquisition added 474 gross (363.7 net) booked future drilling locations, which will support future oil and gas production and sustainable free cash flow generation," commented Justin Kaufmann, chief development officer. "We are proud of our development programs and strategic acquisitions that have amounted to over 150 million boe of TP+P reserves additions, over the past three years, at an attractive average finding, development and acquisition cost of $14.35 per boe, accounting for expected future development costs."

As a result of the successful 2023 drilling program and the acquisition of Ridgeback, Saturn's average oil and gas production in fourth quarter 2023 was approximately 26,890 barrels of oil equivalent per day, and December, 2023, average production of approximately 28,000 boe/d, based on field estimates, was in excess of the company's guidance exit rate of 27,000 boe/d.

The reserve report encompasses 680 gross (576.6 net) drilling location in Saskatchewan and 199 gross (150.6 net) drilling locations in Alberta. Included in the Saskatchewan booked locations are 20 gross (18.1 net) open-hole multilateral locations targeting Bakken light oil in the Viewfield area. The recent advancements in OHML drilling is expected to continue to open increased drilling inventory with greater capital efficiencies. The company has an internally estimated additional 550 gross (450 net) unbooked drilling locations in Alberta and Saskatchewan, which, combined with the booked locations of the reserve report, amounts to over 20 years of drilling inventory.

Summary of gross oil and gas reserves and net present value of revenue

The attached tables are a summary of the Ryder Scott estimated company reserves (company share gross volumes) and net present values of future net revenue, before tax, based on forecast price and costs as contained in the reserve report. The reserve report encompasses 100 per cent of the company's oil and gas properties as of Dec. 31, 2023.

Net asset value

An attached table sets out a calculation of NAV based on the before-tax estimated net present value of future net revenue discounted at 10 per cent associated with the PDP, total proven and TP+P reserves, as evaluated in the reserve report, including deductions for future development costs, abandonment and reclamation obligations.

Reconciliation of reserves

An attached table provides a summary of the reconciliation of the changes in the company's gross reserves as of Dec. 31, 2023, against reserves at Dec. 31, 2022, based on forecast prices and costs assumptions in effect at the applicable reserve evaluation date.

Future development costs

An attached table provides a summary of the estimated future development costs required to bring Saturn's total proven and total proven plus probable undeveloped reserves to production, as reflected in the reserve report, which costs have been deducted in Ryder Scott's estimation of future net revenue associated with such reserves.

Performance measures

An attached table highlights finding, development and acquisition costs and associated recycle ratios based on the evaluation of reserves prepared by Ryder Scott.

An attached table highlights finding and development costs and associated recycle ratios based on the evaluation of reserves prepared by Ryder Scott.

Total location summary

An attached table summarizes the gross drilling locations identified for future development in the reserve report.

Unaudited financial information

Certain financial and operating information for the year ended Dec. 31, 2023, contained in this news release, is based on unaudited financial results. Accordingly, such information may materially change upon the completion of the audited financial statements for the year ended Dec. 31, 2023, scheduled to be released on or about March 12, 2024.

Investor webcast

Saturn will host a webcast at 10 a.m. MDT (12 p.m. EDT) on March 13, 2024, to review the fourth quarter and annual 2024 financial and operational results, and highlights of the reserve report. Participants can attend the live webcast. A recorded archive of the webcast will be available afterward on the company's website.

Additional reserve information as required under NI 51-101 will be included in the company's annual information form, which will be filed on SEDAR+ on or about March 12, 2024.

About Saturn Oil & Gas Inc.

Saturn is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light-oil-weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities. Saturn has assembled an attractive portfolio of free-cash-flowing, low-decline operated assets in Saskatchewan and Alberta that provide a deep inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an environmental, social and governance focused culture, Saturn has a goal to increase reserves, production and cash flows at an attractive return on invested capital. Saturn's shares are listed for trading on the Toronto Stock Exchange under ticker SOIL, on the Frankfurt Stock Exchange under symbol SMKA and on the OTCQX under ticker OILSF.

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