Mr. John Jeffrey reports

SATURN OIL & GAS INC. ANNOUNCES SALE OF NON-CORE DEER MOUNTAIN PROPERTY

Saturn Oil & Gas Inc. has entered into a definitive agreement with a private operator to sell its non-core Deer Mountain property in North Alberta for cash of $27-million, less customary closing adjustments. The Deer Mountain Block had production of approximately 800 boe/d(1) (93% oil and NGLs) in March 2024, based on field estimates. The sale of the Deer Mountain Block is expected to close on or about May 1, 2024, subject to customary closing considerations.

Saturn is streamlining its development portfolio to drive enhanced operational efficiencies and accelerate net debt(2) reduction, further strengthening Saturn's balance sheet. The sale of the Deer Mountain Block does not impact Saturn's 2024 development capital expenditure budget.

"The Deer Mountain Block did not meet our expected investment return threshold to develop with new drilling in either of Saturn's 2023 or 2024 capital budgets," commented Justin Kaufmann, Chief Development Officer. "The Deer Mountain Block was acquired as part of the February 2023 acquisition of Ridgeback Resources Inc. for which Saturn paid approximately 1.7x the 12-month forecasted net operating income ("NOI") of the aggregate properties. The sale proceeds for the Deer Mountain Block are approximately 3.0x its forecasted 12-month NOI. Since the acquisition of the Deer Mountain Block, up to the expected closing date of its sale, Saturn estimates it will have received a total of $20 million of NOI from this property."

The proceeds from the sale of the Deer Mountain Block will be used to reduce the Company's Net Debt(2).

Revised Guidance

 Guidance Range                                 Full Year 2024
 
 WTI oil price 2024 average(3)           $US         75       
 Annual Average Production(2)            Boe/d 26,000 - 27,000
 Adjusted EBITDA(2), before derivatives  $MM      388 - 403   
 Adjusted EBITDA(2), net derivatives     $MM      346 - 362   
 Adjusted Funds Flow(2)                  $MM      290 - 306   
 Adjusted Funds Flow Per Share(2)        $/sh    1.82 - 1.92  
 Development capital expenditures(2)     $MM         146      
 Decommissioning expenditures            $MM         12       
 Free Funds Flow(2)                      $MM      134 - 150   
 Free Funds Flow Per Share(2)            $/sh.   0.85 - 0.94  
 Free Funds Flow Yield(2)                %        35% - 40%   
 Net Debt(2) December 2024               $MM      260 - 275   
 Net Debt(2) to Adjusted EBITDA(2)       Ratio   0.7x - 0.8x  
 Weighted average 2024 common shares out MM         159.7     

Sensitivities:

Assumption        Change Adjusted Funds Flow Effect ($ Millions) 
 WTI oil price (US$/bbl) $1.00                    3.0                   
 AECO C gas price        $0.10                    0.9                   

About Saturn Oil & Gas Inc.

Saturn Oil & Gas Inc. 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 ESG-focused culture, Saturn's goal is to increase reserves, production and cash flows at an attractive return on invested capital. Saturn's shares are listed for trading on the TSX under ticker 'SOIL' on the Frankfurt Stock Exchange under symbol 'SMKA' and on the OTCQX under the ticker 'OILSF'.

Notes(1)

See Reader Advisory "Supplemental Information Regarding Product Types"(2) See Reader Advisory "Non-GAAP and Other Financial Measures"(3) Guidance pricing assumptions: WTI US$ 75.04/bbl; MSW/WTI Differential USD 4.00; CAD USD FX of 0.74; and AECO of $2.74 /mcf

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