These guys are the real deal.

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Asset Outperformance Supported by Strong Hedge Book

Based on field receipts, Spartan's current production is estimated at approximately 26,000 boe/d1, primarily from the Ferrier and Willesden Green areas, compared to approximately 25,000 boe/d (30% oil and natural gas liquids) estimated at the time of closing the Transaction five weeks ago. This production outperformance was achieved without capital investment and demonstrates the success of Spartan's recent production optimization and integration activities, the high caliber of staff retained through the Transaction, as well as the predictable and stable nature of its asset base. Continued growth will be pursued through the ongoing development of existing assets with exposure to the Spirit River, Cardium and other Cretaceous target formations, along with synergistic and accretive acquisitions. Spartan's future growth is supported by the Company's strategic working interest ownership in three gas plants, including one operated deep cut facility with excess capacity. This infrastructure, with an estimated $200 million of replacement value net to the Company, ensures Spartan can capitalize on both organic growth and strategic acquisitions, positively impacting corporate operating efficiencies.

To protect project economics and cash flows, while mitigating ongoing volatility in commodity markets, Spartan has strategically hedged approximately 60% of its natural gas volumes for the latter half of 2020 and approximately 45% of forecast natural gas volumes for 2021 at attractive price levels. Spartan's complete natural gas hedging positions as of July 6, 2020 are outlined below:

Period

Price (C$/GJ)

Volume (GJ/d)

Reference

Apr 1, 2020 to Oct 31, 2020

$1.54

750

AECO

Jul 1, 2020 to Mar 31, 2021

$2.23

60,000

AECO

Apr 1, 2021 to Oct 21, 2021

$2.02

5,000

AECO

Apr 1, 2021 to Mar 31, 2022

$2.25

35,000

AECO

Fostering Key Stakeholder Relationships

As a critical component of its strategy, Spartan is targeting industry leadership across environmental, social and governance ("ESG") best practices and will uphold a corporate culture that embodies the responsible and ethical stewardship of assets and investor capital. Consistent with this philosophy, Spartan and the O'Chiese First Nation community are working together to set the stage for a long and mutually beneficial relationship based on trust and mutual respect. The O'Chiese First Nation currently has a five percent working interest in Spartan's operated Nees-Ohpawaganu'ck deep cut plant and is a joint venture partner in the development of oil and gas resources situated on O'Chiese First Nation lands. Spartan will seek to engage O'Chiese First Nation businesses and business partners for its field operations, further supporting a collaborative environment that can benefit both parties.

Upon closing of the Transaction, Spartan seamlessly integrated the acquired assets, systems, processes and most importantly, people, despite the social distancing challenges presented by COVID-19. With the addition of over 100 new, permanent employees and contractors across its head office and field operations, Spartan is pleased to have assembled a talented group of professionals who bring valuable skills, expertise, and knowledge of the acquired assets, further strengthening the Company's rapidly evolving position in the industry.

Second Quarter 2020 Results

The Company also confirms its second quarter 2020 financial and operating results for the period ended June 30, 2020 will be issued by press release and filed on SEDAR before markets open on August 20th. Spartan also anticipates posting an updated corporate presentation on its website contemporaneous with the second quarter results release.

About Spartan Delta Corp.

Spartan Delta is a differentiated energy company whose ESG-focused culture is centered on generating sustainable free cash flow through oil and gas exploration and development. Building on its existing high-quality, low-decline operated production in the heart of the Alberta Deep Basin, Spartan intends to continue acquiring undervalued diversified assets that can be restructured, optimized and rebranded, financially or operationally, yielding accretion to shareholder value. With excess infrastructure capacity, the Company is well positioned to continue pursuing immediate production optimization and responsible future growth. Further detail is available in Spartan's July corporate presentation, which can be accessed on its website at www.spartandeltacorp.com.

READER ADVISORY

Forward-Looking and Cautionary Statements
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https://ceo.ca/@newswire/c-o-r-r-e-c-t-i-o-n-from-source-spartan-delta

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