SEDAR Interim Financial Statements

SPARTAN DELTA CORP. CONDENSED INTERIM FINANCIAL STATEMENTS AS AT AND FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 SPARTAN DELTA CORP. STATEMENTS OF FINANCIAL POSITION [UNAUDITED] Page 2 of 27 The accompanying notes are an integral part of these Financial Statements. Approved on behalf of the Board of Directors: [signed] “Richard McHardy” [signed] “Donald Archibald” Richard McHardy, Director Donald Archibald, Director (CA$ thousands) [Note] September 30, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents 333 924 Restricted cash [11] 150,811 150,811 Accounts receivable [4] 37,360 47,150 Prepaid expenses and deposits 10,623 6,427 Derivative financial instruments [4] 7,554 5,810 Total current assets 206,681 211,122 Exploration and evaluation assets [5,6] 117,425 82,039 Property, plant and equipment [5,7] 722,960 585,805 Right-of-use assets [8] 19,262 23,238 Derivative financial instruments [4] 1,407 - Deferred income tax asset [12] 20,480 30,940 Total assets 1,088,215 933,144 LIABILITIES Current liabilities Accounts payable and accrued liabilities [4] 118,103 78,996 Dividends payable [11] 150,811 150,811 Derivative financial instruments [4] - 143 Lease liabilities [8] 9,578 9,721 Decommissioning obligations [9] 2,000 2,700 Total current liabilities 280,492 242,371 Derivative financial instruments [4] 2,584 2,722 Long-term debt [10] 107,087 120,912 Lease liabilities [8] 11,350 16,114 Decommissioning obligations [9] 77,756 79,598 Total liabilities 479,269 461,717 SHAREHOLDERS' EQUITY Share capital [11] 112,265 13,528 Contributed surplus 12,003 6,914 Retained earnings 484,678 450,985 Total shareholders' equity 608,946 471,427 Total liabilities and shareholders' equity 1,088,215 933,144 Commitments and contingencies [17] Subsequent events [19] SPARTAN DELTA CORP. STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME [UNAUDITED] Page 3 of 27 The accompanying notes are an integral part of these Financial Statements. Three months ended September 30 Nine months ended September 30 (CA$ thousands, except per share amounts) [Note] 2025 2024 2025 2024 Revenue Oil and gas sales [13] 82,744 60,551 254,989 218,150 Royalties [13] (9,180) (7,942) (32,664) (29,641) Oil and gas sales, net of royalties 73,564 52,609 222,325 188,509 Sales of commodities purchased from third parties 6,656 2,647 14,030 5,713 Processing and other 1,441 1,190 6,766 4,568 81,661 56,446 243,121 198,790 Gain on derivative financial instruments [4] 7,568 10,904 21,550 20,036 Expenses Operating 21,309 20,009 64,742 62,209 Transportation 6,931 5,113 19,024 15,905 Cost of commodities purchased from third parties 6,319 2,647 13,398 5,713 General and administrative 4,020 4,501 12,303 13,798 Share-based compensation [11] 3,538 2,036 9,602 5,555 Financing [14] 1,708 1,637 4,131 3,627 Exploration and evaluation [6] - 17 68 17 Depletion, depreciation and impairment [7,8] 38,111 26,630 99,850 78,169 81,936 62,590 223,118 184,993 Other income (expenses) Gain on sale of assets [5] - - 23 141 Other income - - 3,705 2,673 Foreign exchange gain (loss) [4] 50 (45) (74) 3 50 (45) 3,654 2,817 Net income before income taxes 7,343 4,715 45,207 36,650 Deferred income tax expense [12] 2,012 1,187 11,514 7,556 Net income and comprehensive income 5,331 3,528 33,693 29,094 Net income per share Basic [11] 0.03 0.02 0.17 0.17 Diluted [11] 0.03 0.02 0.17 0.17 SPARTAN DELTA CORP. STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY [UNAUDITED] Page 4 of 27 (CA$ thousands) [Note] Share c --- apital Contributed surplus Retained earnings Total Balance at December 31, 2024 13,528 6,914 450,985 471,427 Net income and comprehensive income - - 33,693 33,693 Common shares issued, net of costs: Prospectus Offering [11] 97,753 - - 97,753 Issue costs, net of deferred tax [11] (3,529) - - (3,529) Share awards released on vesting [11] 4,513 (4,513) - - Share-based compensation expense - 9,602 - 9,602 Balance at September 30, 2025 112,265 12,003 484,678 608,946 Balance at December 31, 2023 11,712 1,303 416,702 429,717 Net income and comprehensive income - - 29,094 29,094 Common shares issued, net of costs: Share awards released on vesting 1,734 (1,734) - - Share-based compensation expense - 5,555 - 5,555 Balance at September 30, 2024 13,446 5,124 445,796 464,366 The accompanying notes are an integral part of these Financial Statements. SPARTAN DELTA CORP. STATEMENTS OF CASH FLOW [UNAUDITED] Page 5 of 27 The accompanying notes are an integral part of these Financial Statements. Three months ended September 30 Nine months ended September 30 (CA$ thousands) [Note] 2025 2024 2025 2024 Operating activities Net income 5,331 3,528 33,693 29,094 Items not affecting cash: Unrealized (gain) loss on derivatives [4] 4,084 2,032 (3,432) 2,336 Unrealized foreign exchange loss [4] 1 - 14 - Share-based compensation [11] 3,538 2,036 9,602 5,555 Financing [14] 691 564 1,995 1,634 Exploration and evaluation [6] - 17 68 17 Depletion, depreciation and impairment [7,8] 38,111 26,630 99,850 78,169 Gain on sale of assets [5] - - (23) (141) Other income - - - (70) Deferred income tax expense [12] 2,012 1,187 11,514 7,556 Settlement of decommissioning obligations [9] (909) (2,304) (1,975) (2,938) Change in non-cash working capital [15] 1,135 1,335 2,583 6,638 Cash provided by operating activities 53,994 35,025 153,889 127,850 Financing activities Advances (repayments) of long-term debt, net of costs [10] 40,611 (4,910) (13,825) 59,654 Issue of common shares, net of costs [11] - - 93,170 - Lease payments [8] (2,494) (2,390) (7,427) (7,062) Dividends paid [11] - - - (53) Transfer from restricted cash [11] - - - 53 Change in non-cash working capital [15] (150) - - - Cash provided by (used in) financing activities 37,967 (7,300) 71,918 52,592 Investing activities Exploration and evaluation assets [6] (14,490) (3,320) (33,988) (8,196) Property, plant and equipment [7] (90,658) (51,218) (227,443) (113,931) Acquisitions [5] (1,051) (4,486) (7,118) (76,919) Dispositions [5] - 128 47 93 Change in non-cash working capital [15] 14,377 30,912 42,104 18,456 Cash used in investing activities (91,822) (27,984) (226,398) (180,497) Net change in cash and cash equivalents 139 (259) (591) (55) Cash and cash equivalents, beginning of period 194 610 924 406 Cash and cash equivalents, end of period 333 351 333 351 SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 6 of 27 1. GENERAL INFORMATION Spartan Delta Corp. (“Spartan” or the “Company”) was incorporated under the Business Corporations Act (Alberta) on March 20, 2006. The Company is engaged in exploration, development and production of crude oil and natural gas properties in western Canada. The Company does not have any subsidiaries as at September 30, 2025 (note 18). Spartan’s common shares are listed on the Toronto Stock Exchange (“TSX”) and trade under the symbol “SDE”. The Company’s head office is located at 1400, 350 – 7th Avenue S.W., Calgary, Alberta T2P 3N9 and its registered --- office address is 4200 Bankers Hall West, 888 – 3rd Street S.W., Calgary, Alberta T2P 5C5. 2. BASIS OF PREPARATION a) Statement of compliance These condensed interim financial statements as at September 30, 2025 (the “Financial Statements”) have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting. Certain disclosures included in the notes to the annual financial statements have been condensed in the following interim note disclosures or have been disclosed on an annual basis only. Accordingly, these Financial Statements should be read in conjunction with the audited consolidated annual financial statements for the year ended December 31, 2024 (the “2024 Annual Financial Statements”). Certain comparative figures in these Financial Statements have been adjusted to conform with the current period presentation. On the Statements of Net Income and Comprehensive Income, sales of commodities purchased from third parties and cost of commodities purchased from third parties were disaggregated from oil and natural gas sales. For the three and nine months ended September 30, 2025, $6.7 million and $14.0 million, respectively (three and nine months ended September 30, 2024 – $2.6 million and $5.7 million, respectively) has been reclassified as sales of commodities purchased from third parties and cost of commodities purchased from third parties. This adjustment is a presentation change only and there is no impact to net income on the Statements of Net Income and Comprehensive Income. The Company’s Board of Directors approved these Financial Statements on November 4, 2025. b) Basis of measurement Unless otherwise indicated, all references to dollar amounts in these Financial Statements and related notes are in thousands of Canadian dollars (“CA$”), which is the functional and presentation currency of the Company. The Financial Statements have been prepared on a historical cost basis, except for certain financial instruments which are recorded at fair value as detailed in the accounting policies disclosed in note 3 of the 2024 Annual Financial Statements. c) Significant estimates and judgements The timely preparation of the Financial Statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ materially from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are reviewed and for any future years affected. Significant judgements, estimates and assumptions made by management in these Financial Statements are consistent with those outlined in note 2 of the 2024 Annual Financial Statements. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 7 of 27 3. MATERIAL ACCOUNTING POLICIES The material accounting policies applied by the Company are described in note 3 of the 2024 Annual Financial Statements. The Financial Statements at September 30, 2025 have been prepared following the same accounting policies and methods of computation as the 2024 Annual Financial Statements, unless otherwise noted below. Revenue recogni --- tion Spartan may purchase commodity products from third parties to fulfill sales commitments and subsequently sells these products to its customers. The sale of commodities purchased from third parties and the corresponding cost of commodities purchased from third parties is recorded on a gross basis when commodities are purchased for resale to a separate downstream customer. If Spartan enters a product purchase and resale netting transaction with the same counterparty to facilitate the downstream delivery of like commodities (a commodity swap arrangement), the transaction is recorded on a net basis as these lack commercial substance and do not give rise to separate recognition of revenue and expense. a) Future Accounting Changes IFRS 18, Presentation and Disclosure in Financial Statements In April 2024, the International Accounting Standards Board issued IFRS 18 Presentation and Disclosure in Financial Statements (“IFRS 18”) to replace IAS 1 Presentation of Financial Statements. IFRS 18 sets out requirements for the presentation and disclosure of information in the financial statements including a new structure for the Statements of Net Income and Comprehensive Income, disclosure of Management-defined performance measures and enhanced principles on aggregation and disaggregation. In addition, interest paid will be classified under financing activities on the Statements of Cash Flows which could result in a material change under IFRS 18. This standard is effective for annual reporting periods beginning on or after January 1, 2027, including for interim financial statements. Spartan is still assessing the full impact of this amendment. IFRS 7, Financial Instruments: Disclosures and IFRS 9, Financial Instruments In May 2024, the International Accounting Standards Board issued amendments to IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial Instruments relating to settling financial liabilities using electronic payment system and assessing contractual cash flow characteristics of financial assets. The amendments will be effective on January 1, 2026 and Spartan determined the impact from this amendment is immaterial. 4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT As at September 30, 2025 and December 31, 2024, financial instruments of the Company include cash and cash equivalents, restricted cash, accounts receivable, deposits, accounts payable and accrued liabilities, dividends payable, derivative financial instruments and long-term debt. The fair values of these financial assets and liabilities, excluding debt, approximate their carrying value due to the short term to maturity of those instruments. The fair value of debt approximates its carrying value given it bears floating rates of interest (note 10). The methodology used to determine the fair value for the Company’s derivative financial instruments is described further in this note. Lease liabilities are financial liabilities measured at amortized cost. The Company is exposed to financial risks arising from its financial assets and liabilities that include credit and liquidity risk, market risks associated with commodity prices and interest and foreign exchange rates. Net income, cash flows and the fair value of financial assets and liabilities may fluctuate due to movement in market prices or as a result of the Company’s exposure to credit and liquidity risks. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 8 of 27 Risk Manage --- ment Overview Spartan’s risk management objective is to manage and control market risk exposures within acceptable limits, while maximizing long-term returns. The Company uses derivative financial instruments to manage market risks. All such transactions are conducted in accordance with the Company’s established risk management policies that permit management to enter into derivative financial contracts, provided that: (i) the contracts are not entered into for speculative purposes; (ii) the aggregate quantity hedged, at the time of entering into the contract, does not exceed 75% of future forecasted average daily production (net, after royalties); and (iii) the contracted term does not exceed 36 months. a) Credit Risk The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, deposits and derivative financial instrument assets represent the Company’s maximum credit exposure. Cash and cash equivalents and restricted cash are held on deposit with Canadian chartered banks and collection risk on derivative financial instrument assets is mitigated by a cross-default provision under the Credit Facility (defined herein). The Company’s credit risk exposure arises primarily from receivables from oil and gas marketers and joint venture partners. The composition of the Company’s accounts receivable is set out in the following table: (CA$ thousands) September 30, 2025 December 31, 2024 Oil and gas customers 22,137 33,319 Joint venture partners 13,166 13,230 GST receivable and other 2,057 601 Accounts receivable 37,360 47,150 During the nine months ended September 30, 2025, sales to four oil and gas customers represented more than 10% of revenue. Sales to these customers account for approximately 72% of total oil and gas sales revenue (before royalties) in the nine months ended September 30, 2025. During the year ended December 31, 2024, sales to three customers accounted for approximately 71% of total oil and gas sales revenue (before royalties). Spartan’s oil and gas customers are primarily large, credit-worthy institutions. As at September 30, 2025, $3.6 million owing from a joint venture partner was outstanding for greater than 90 days. This balance is disputed; however, Spartan believes it is collectible under the terms of the joint venture agreement and that it will be received within one year. The total amount outstanding has been recorded as a current asset on the Statement of Financial Position. In general, Spartan collects amounts owing from joint venture partners within thirty days. The aging of the Company’s accounts receivable is summarized as follows: (CA$ thousands) Current 30-60 days 61-90 days Over 90 days Total Balance at September 30, 2025 27,610 2,880 833 6,037 37,360 Balance at December 31, 2024 41,298 2,607 357 2,888 47,150 The oil and gas industry has a pre-arranged monthly clearing day for payment of revenues from all buyers of oil and natural gas; this occurs on the 25th day following the month of sale. As a result, the Company’s production receivables are current. All other accounts receivable are, in general, contractually due within 30 days, however the collection period is typically between 61 to 90 days. Amounts outstanding for more than 90 days are generally considered “past due” and relate primarily to receivables from the Company’s joint venture partners. When determining whether amounts that are past due are collectible, management assesses the creditworthiness and past payment history --- of the counterparty, as well as the nature of the past due amount. Management has reviewed past due accounts receivable balances as at September 30, 2025 and expects the accounts to be collectible, except for approximately $1.2 million of accounts receivable which are provided for in the expected credit loss provision ($1.3 million at December 31, 2024). SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 9 of 27 b) Liquidity Risks Liquidity risk is the risk that a company will not be able to meet its financial obligations as they become due. The Company’s financial liabilities as at September 30, 2025 include accounts payable, dividends payable, derivative financial instrument liabilities and long-term debt. In addition, the Company has financial commitments in respect of lease liabilities (note 8). The Company prepares and regularly updates its capital and operating budget to forecast future cash flows to ensure, to the extent possible, that it will have sufficient liquidity to meet its obligations. As at September 30, 2025, Spartan had $107.8 million drawn ($121.5 million drawn as at December 31, 2024) on its revolving Credit Facility (the “Credit Facility”) with an authorized borrowing amount of $250.0 million. Following the quarter, the Company amended its Credit Facility, increasing the facility size from $250.0 million to $450.0 million (note 10 & 19). The Company has sufficient liquidity for the next 12 months as current cash balances of $151.1 million (cash and restricted cash), future cash flow from operations and access to the remaining undrawn Credit Facility is expected to exceed the Company’s financial obligations (including the dividends payable). The following table outlines a contractual maturity analysis for the Company’s financial liabilities and undiscounted lease liabilities as at September 30, 2025: (CA$ thousands) 1 year 2 to 3 years 4 to 5 years > 5 years Total Accounts payable and accrued liabilities 118,103 - - - 118,103 Dividends payable (note 11) 150,811 - - - 150,811 Derivative financial instrument liabilities - 2,584 - - 2,584 Credit Facility (1) (note 10) 8,020 113,117 - - 121,137 Undiscounted lease liabilities (2) (note 8) 10,519 9,041 2,160 1,023 22,743 Total 287,453 124,742 2,160 1,023 415,378 (1) The Credit Facility (defined in note 10) was drawn $107.8 million as at September 30, 2025. The table above includes estimated interest to be incurred on the $107.8 million drawn balance and standby charges on the undrawn balance, up to May 31, 2026 (being the end of the current revolving period) plus estimated interest to be incurred up to May 31, 2027, repayable one year after the expiry of the revolving period, if not extended. (2) As at September 30, 2025, the present value of the Company’s total lease liability is $20.9 million, of which $9.6 million in principal repayments are expected to be settled in the next twelve months. c) Market Risks Market risk is the risk that changes in market conditions such as commodity prices, interest rates and foreign exchange rates, will affect the Company’s cash flows, net income or fair value of financial instruments. Spartan’s risk management objective is to manage and control market risk exposures within acceptable limits, while maximizing long-term returns. The Company utilizes both derivative financial instruments and physical delivery sales contracts to manage market risks. All such transactions are conducted in accordan --- ce with the Company’s risk management policies. Commodity price risk Inherent to the business of producing oil and gas, the Company’s revenue and cash provided by operating activities is subject to commodity price risk. Commodity price risk is the risk that future cash flows will fluctuate as a result of changes in commodity prices. Commodity prices are impacted by world economic events that dictate the levels of supply and demand as well as the currency exchange rate relationship between the Canadian and U.S. dollar. As at September 30, 2025, Spartan has commodity price risk management contracts in place to protect cash flows and project economics. These instruments are not used for trading or speculative purposes. The Company has not designated its financial derivative contracts as effective accounting hedges, even though the Company considers all commodity contracts to be effective economic hedges. As a result, all such financial commodity contracts are recorded SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 10 of 27 on the Statements of Financial Position at fair value, with changes in the fair value being recognized as an unrealized gain or loss through the Statements of Net Income and Comprehensive Income. The table below summarizes average prices and notional volumes contracted under the Company’s outstanding financial derivative contracts as at September 30, 2025: Crude Oil (1) Natural Gas (1) CA$ WTI Swaps – Short (2) AECO 7A Swaps (3) Period Volume Bbl/d CA$/ Bbl Volume GJ/d CA$/ GJ Q4 2025 2,950 $98.63 98,880 $2.35 Q1 2026 1,900 $89.31 84,000 $2.84 Q2 2026 1,600 $90.28 52,000 $2.61 Q3 2026 1,600 $90.28 46,500 $2.60 Q4 2026 1,900 $89.29 63,424 $2.96 Q1 2027 1,200 $85.66 52,500 $3.31 Q2 2027 800 $85.07 12,500 $2.92 Q3 2027 550 $85.56 9,500 $2.94 Q4 2027 300 $84.40 6,000 $3.10 Asset/(Liability) $7.2 million ($0.8 million) (1) The prices and volumes in this table represent averages for contracts represented in the respective periods. (2) CA$ WTI swaps are translated at the average daily noon rate for the settlement month. (3) AECO 7A swaps are settled the first day of the month based on a weighted average of the previous month’s fixed price trades. Subsequent to September 30, 2025, Spartan entered into additional WTI and natural gas swaps for 2026 and 2027 (see note 19). The fair values of derivative financial instruments are designated as Level 2 in the fair value hierarchy and are highly sensitive to changes in underlying commodity prices. The table below illustrates the stand-alone impact of changes in specified benchmark prices on net income before income taxes, holding all other variables constant, of risk management contracts in place as at September 30, 2025: (CA$ thousands) Change in price Positive movement Negative movement AECO 7A +/- CA$ 0.25 per GJ (9,698) 9,698 CA$ WTI Swaps – Short +/- CA$ 5.00 per bbl (5,845) 5,845 Foreign exchange risk Currency risk is the risk that future cash flows will change as a result of fluctuations in the Canadian to U.S. dollar exchange rate. Spartan is exposed to currency risk given the Company’s realized pricing in Canadian dollars is directly influenced by U.S. dollar denominated benchmark pricing. The Company is also exposed to currency fluctuations through its U.S. dollar commodity sales. In addition, Spartan is exposed to currency risk on U.S. cash, accounts receivable and accounts payable balances, however the Company’s currency expo --- sure based on U.S. dollar denominated working capital balances outstanding at September 30, 2025 and at December 31, 2024 was not significant. The table below summarizes the realized and unrealized component of the foreign exchange gain (loss) during the three and nine months ended September 30, 2025 and 2024: SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 11 of 27 Three months ended September 30 Nine months ended September 30 (CA$ thousands) 2025 2024 2025 2024 Realized foreign exchange gain (loss) 51 (45) (60) 3 Unrealized foreign exchange loss (1) - (14) - Foreign exchange gain (loss) 50 (45) (74) 3 Interest rate risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate risk on long-term debt which bears floating rates of interest. Under the Credit Facility (note 10), interest rates fluctuate based on the bank prime rate plus an applicable margin, which varies based on the Company’s net debt to cash flow ratio each quarter. Based on the balance of long-term debt outstanding at September 30, 2025, an increase (decrease) in the market rate of interest by 50 basis points would increase (decrease) annualized interest expense by approximately $0.5 million. Gains and losses on derivative financial instruments The table below summarizes the realized and unrealized component of gains and losses on the Company’s derivative financial instruments during the three and nine months ended September 30, 2025 and 2024: Three months ended September 30 Nine months ended September 30 (CA$ thousands) 2025 2024 2025 2024 Unrealized loss – AECO 7A (311) (6,977) (4,214) (5,848) Unrealized gain (loss) – WTI (3,773) 4,945 7,646 4,179 Unrealized loss – AECO Basis - - - (667) Unrealized gain (loss) (4,084) (2,032) 3,432 (2,336) Realized gain 11,652 12,936 18,118 22,372 Gain on derivative financial instruments 7,568 10,904 21,550 20,036 Offsetting of financial instruments Financial assets and liabilities are only offset in the Statements of Financial Position if the Company has the legal right to offset, intends to settle on a net basis and settle the asset and liability simultaneously. Spartan offsets derivative financial instrument assets and liabilities when the counterparty, currency and timing of settlement are the same. Carrying Value (“CV”) Balance as at September 30, 2025 (CA$ thousands) Gross Netting Net CV Financial assets Derivative financial instruments 9,500 (539) 8,961 Financial liabilities Derivative financial instruments (2,584) - (2,584) Carrying Value (“CV”) Balance as at December 31, 2024 (CA$ thousands) Gross Netting Net CV Financial assets Derivative financial instruments 6,500 (690) 5,810 Financial liabilities Derivative financial instruments (3,509) 644 (2,865) SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 12 of 27 5. ACQUISITIONS AND DISPOSITIONS 2025 Acquisitions & Dispositions Spartan acquired $7.1 million of freehold land during the nine months ended September 30, 2025. 2024 Acquisitions The table below summarizes the aggregate total consideration and estimated fair value of the identifiable assets acquired and liabilities assumed on the respective closing dates: 2024 ACQUISITION SUMMARY (CA$ thousands) WGN Acq May 1, 2024 (1)(2) Other Various (3) Total 2024 Cash consideration, after adjustments 48,625 27,918 76,543 Exploration and eva --- luation assets 19,199 27,887 47,086 Property, plant and equipment (1) 29,688 430 30,118 Decommissioning obligations (2) (262) (399) (661) Fair value of net assets acquired (1) 48,625 27,918 76,543 (1) The fair value of property, plant and equipment (“PP&E”) acquired was estimated based on fair value less costs of disposal (“FVLCD”) methodology (Level 3 fair value measurement), calculated using the present value of the expected future cash flows after-tax. The projected cash flows used in the FVLCD calculation were derived from reports on the acquired oil and gas reserves. (2) The aggregate fair value of decommissioning obligations acquired of $0.7 million was estimated by discounting the inflated cost estimates using a “credit-adjusted risk-free rate” ranging from 7.72% to 8.77% on the respective closing dates of the acquisitions. Subsequent remeasurement of the decommissioning obligations acquired at a risk-free rate, under Spartan’s accounting policy, resulted in an increase in the present value of decommissioning obligations acquired by $0.8 million to $1.5 million in aggregate. (3) During the year ended December 31, 2024, the Company acquired additional Duvernay undeveloped land and minor asset acquisitions as part of its Duvernay growth strategy. Willesden Green North Acquisition On May 1, 2024, the Company closed an acquisition of producing crude oil and natural gas properties and undeveloped land in the Duvernay for cash consideration of $48.6 million after final adjustments, effective March 1, 2024 (the “Willesden Green North Acquisition” or “WGN Acquisition”). The Consolidated Statements of Net Income and Comprehensive Income for the nine months ended September 30, 2024 include the results of operations for the WGN Acquisition starting from the closing date. Specifically, Spartan’s net income for the nine months ended September 30, 2024, includes $9.5 million of revenue (after royalties) and $7.6 million of operating income generated from the WGN Acquisition for the period from May 1 to September 30, 2024. If the WGN Acquisition had occurred on January 1, 2024, pro-forma revenue (after royalties) and operating income is estimated to be approximately $19.5 million and $16.1 million, respectively, for the nine months ended September 30, 2024. For purposes of this pro-forma disclosure, the Company has calculated operating income as revenue (after royalties), less operating and transportation expenses. “Operating income” does not have a standardized meaning under IFRS Accounting Standards. This pro-forma information is not necessarily indicative of the results of operations that would have resulted had the acquisition been effected on the dates indicated, or the results that may be obtained in the future. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 13 of 27 6. EXPLORATION AND EVALUATION ASSETS The Company’s E&E assets consist primarily of undeveloped land and seismic. The following table reconciles the change in carrying value during the periods: (CA$ thousands) September 30, 2025 December 31, 2024 Balance, beginning of year 82,039 28,807 Additions 33,988 11,494 Acquisitions (note 5) 7,146 47,086 Dispositions (5) - Transfers to PP&E (note 7) (5,675) (4,478) Expired mineral leases (1) (68) (870) Balance, end of period 117,425 82,039 (1) Relates to mineral leases that expired or are expected to expire. Spartan assessed its E&E assets for potential impairment indicators prior to tran --- sferring costs to PP&E and, as at September 30, 2025 and December 31, 2024, concluded there are no indicators of impairment. 7. PROPERTY, PLANT AND EQUIPMENT The Company’s PP&E includes development and production (“D&P”) assets and corporate assets. D&P assets include the Company’s interests in developed crude oil and natural gas properties, as well as interests in facilities and pipelines. The following tables reconcile the movements in the cost and accumulated depletion, depreciation and impairment (“DD&I”) during the periods: PP&E, at cost (CA$ thousands) D&P assets Corporate Total PP&E Balance at December 31, 2023 690,834 1,924 692,758 Additions (1) 149,541 867 150,408 Acquisitions (note 5) (2) 30,118 - 30,118 Dispositions (2) 5 (43) (38) Transfers from E&E (note 6) 4,478 - 4,478 Changes in decommissioning cost estimates (note 9) 10,514 - 10,514 Balance at December 31, 2024 885,490 2,748 888,238 Additions (1) 226,410 1,033 227,443 Acquisitions 94 - 94 Dispositions (42) - (42) Transfers from E&E (note 6) 5,675 - 5,675 Changes in decommissioning cost estimates (note 9) (2,661) - (2,661) Balance at September 30, 2025 1,114,966 3,781 1,118,747 (1) During the nine months ended September 30, 2025, the Company capitalized $1.6 million of general and administrative expenses directly related to development activities. For the year ended December 31, 2024, the Company capitalized $2.9 million of general and administrative expenses. (2) The year ended December 31, 2024 includes PP&E acquisition and disposition costs from closing adjustments on transactions completed in the previous years. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 14 of 27 Accumulated DD&I (CA$ thousands) D&P assets Corporate Total PP&E Balance at December 31, 2023 201,047 1,246 202,293 Depletion and depreciation 99,674 471 100,145 Dispositions - (5) (5) Balance at December 31, 2024 300,721 1,712 302,433 Depletion and depreciation 92,926 428 93,354 Balance at September 30, 2025 393,647 2,140 395,787 Net carrying value D&P assets Corporate Total PP&E Balance at December 31, 2024 584,769 1,036 585,805 Balance at September 30, 2025 721,319 1,641 722,960 Future Development Capital expenditures required to develop total proved plus probable reserves in the amount of $1.9 billion are included in the depletion calculation for D&P assets for the three months ended September 30, 2025 ($2.0 billion at December 31, 2024). Impairment of PP&E Spartan reviews its CGUs for indicators of potential impairment at the end of each reporting period. As at September 30, 2025 and December 31, 2024, there are no indicators of impairment. 8. LEASES The Company has various lease contracts in place for compression equipment, facilities, office buildings and vehicles. Spartan’s lease obligations and corresponding Right-of-Use (“ROU“) assets are recognized initially based on the present value of the remaining lease payments, except for certain short-term leases which have been charged to general and administrative expenses or operating expenses, as appropriate depending on the nature of the lease, in the Statements of Net Income and Comprehensive Income. A contingent termination feature exists within a lease agreement based on a net debt to cash flow ratio that is outside of each parties’ control. If Spartan’s net debt to cash flow ratio is below the predetermined threshold at the end of the first fiscal quarter of 2026, the counterparty can exercise a --- termination option requiring Spartan to acquire the leased processing facilities. If exercised, the Company has sufficient liquidity to cover this termination option. The exercise window begins on the filing date of the March 31, 2026 interim financial statements and concludes on June 30, 2026. Both parties have alternative termination features available to them pursuant to the lease agreement. This feature has been excluded from the right-of-use asset and lease liability calculations being a variable lease payment beyond the control of each party. During the second quarter of 2025, Spartan entered into a new office lease agreement, which commenced on September 1, 2025 and ends on May 31, 2031. The new office lease has been recorded as a right-of-use asset and lease liability in the third quarter of 2025. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 15 of 27 RIGHT-OF-USE ASSETS The following table reconciles the change in the Company’s ROU assets during the periods: (CA$ thousands) September 30, 2025 December 31, 2024 Right-of-use asset, at cost Balance, beginning of year 62,781 62,625 Additions 2,520 136 Lease modification - 20 Balance, end of period 65,301 62,781 (CA$ thousands) September 30, 2025 December 31, 2024 Accumulated depreciation Balance, beginning of year 39,543 30,979 Depreciation expense 6,496 8,564 Balance, end of period 46,039 39,543 Right-of-use asset, net carrying value 19,262 23,238 LEASE LIABILITIES As at September 30, 2025, the present value of the Company’s total lease liabilities are $20.9 million, of which approximately $9.6 million is expected to be settled in the next twelve months. A continuity of the lease obligations is provided below: (CA$ thousands) September 30, 2025 December 31, 2024 Lease liabilities Balance, beginning of year 25,835 35,232 Additions 2,520 136 Lease payments (8,429) (11,273) Financing cost (note 14) 1,002 1,791 Lease modification - (51) Balance, end of period 20,928 25,835 Expected to be settled within one year 9,578 9,721 Expected to be settled beyond one year 11,350 16,114 A contractual maturity of the undiscounted payments due under the Company’s lease agreements is provided in note 4 of these Financial Statements. The Company has short term leases in place primarily for equipment with contract terms less than twelve months, expensed within operating expenses. The total amount expensed in respect of short-term leases was approximately $0.9 million during the nine months ended September 30, 2025 (nine months ended September 30, 2024 – $1.2 million). SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 16 of 27 9. DECOMMISSIONING OBLIGATIONS Decommissioning obligations arise as a result of the Company’s net ownership interests in crude oil and natural gas assets including well sites, processing facilities and other infrastructure. The following table provides a reconciliation of the carrying amount of the obligation associated with the retirement of oil and gas properties: (CA$ thousands) September 30, 2025 December 31, 2024 Balance, beginning of year 82,298 72,970 Obligations incurred 2,175 1,414 Obligations acquired (note 5) 122 661 Discount rate adjustment on obligations acquired 17 865 Obligations disposed (23) (131) Obligations settled (1,975) (4,004) Changes in discount rate (4,485) (4,914) Changes in estimates (368) 13,149 Accretion (note 14) 1,995 2,288 Balance, end of period 79,756 8 --- 2,298 Expected to be settled within one year 2,000 2,700 Expected to be settled beyond one year 77,756 79,598 The underlying cost estimates are derived from a combination of published industry benchmarks as well as site specific information. As at September 30, 2025, the total undiscounted amount of the estimated cash flows required to settle the obligation is $111.2 million ($109.5 million as of December 31, 2024), of which, Spartan expects to incur approximately $50.4 million over the next 20 years, $59.4 million in 20 to 50 years and the residual thereafter. The estimated inflated undiscounted future cash flows required to settle the obligation is $186.9 million at September 30, 2025 based on an inflation rate of 2.0% on average over the restoration period (December 31, 2024 – $179.5 million based on an inflation rate of 2.0%). As at September 30, 2025, the carrying amount of the decommissioning obligations is based on a risk-free rate of 3.6% (3.3% at December 31, 2024). The increase in discount rate resulted in a decrease in the carrying amount of decommissioning obligations by $4.5 million as at September 30, 2025 compared to December 31, 2024. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 17 of 27 10. LONG-TERM DEBT As at September 30, 2025, debt is comprised of bank debt drawn under the revolving credit facility. The balance of debt is presented net of unamortized issue costs. (CA$ thousands) September 30, 2025 December 31, 2024 Credit Facility 107,799 121,500 Unamortized issue costs (712) (588) Long-term debt 107,087 120,912 a) Bank debt The Company has a secured revolving credit facility with a syndicate of financial institutions (the “Credit Facility”). The authorized borrowing base available under the Credit Facility is $250.0 million, comprised of a $50.0 million operating facility and a $200.0 million syndicated facility. As at September 30, 2025, the Credit Facility was $107.8 million drawn. The Credit Facility has a revolving period until May 2026, extendible annually at the request of the Company, subject to approval of the Lenders. If not extended, the facilities will automatically convert to a term loan and all outstanding obligations will be repayable one year after the expiry of the revolving period. The borrowing base is subject to semi- annual reviews and the Credit Facility may also be subject to redetermination throughout the revolving period. Following the quarter, the Company completed an off-cycle borrowing base review and amended its Credit Facility, increasing the facility size from $250.0 million to $450.0 million. The amendment also introduced a new financial covenant for the upcoming five fiscal quarters (note 19). The next borrowing base redetermination is anticipated to be completed on or before May 31, 2026. Following the amendment the Company continues to be subject to other standard business operating covenants, including but not limited to certain restrictions on acquisitions and dispositions, distributions and hedging arrangements. As at September 30, 2025, Spartan is in compliance with all covenants. The Credit Facility is secured by a first fixed and floating charge debenture over all the Company's assets and a general assignment of book debts. Repayments of principal are not required until the maturity date, provided that the borrowings do not exceed the authorized borrowing base and the Company is in compliance with all covenants, representatio --- ns and warranties. Interest is payable monthly for borrowings through direct advances under the Credit Facility. Interest rates fluctuate based on bank prime rate plus an applicable margin. Under the Credit Facility, borrowings through the use of term Canadian Overnight Repo Rate Average (“CORRA”) loans are available at the CORRA rate, plus applicable stamping fees. The Company incurs standby fees on the undrawn facility which also fluctuate based on the pricing grid. The Company has a demand letter of credit facility which provides Spartan with $10.0 million of additional credit capacity to issue letters of credit. The letters of credit may be issued for general corporate purposes and are limited to a term of one year from the date of issuance. Letter of credit obligations are repayable on demand. As September 30, 2025, there is $1.7 million of issued but undrawn letters of credit under the letter of credit facility (December 31, 2024 - $1.7 million). SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 18 of 27 b) Movements in debt The following table reconciles movements in debt during the periods September 30, 2025 and December 31, 2024: (CA$ thousands) September 30, 2025 December 31, 2024 Balance, beginning of year 120,912 44,476 Advances (repayments) on Credit Facility (13,701) 76,450 Issue costs incurred (613) (671) Amortization of issue costs 489 657 Balance, end of period 107,087 120,912 11. SHARE CAPITAL a) Authorized The Company is authorized to issue an unlimited number of common shares, an unlimited number of preferred shares, and an unlimited number of special shares, each without par value. Common shares carry one vote per share and the right to any dividends declared. The preferred shares may be issued in series, with the directors determining the terms of the preferred shares on a series-by-series basis. b) Issued and outstanding The following table summarizes the change in common shares issued and outstanding. There are no preferred shares or special shares outstanding as of September 30, 2025 (December 31, 2024 – nil). Number of common shares (000s) Amount ($ thousands) Balance at December 31, 2023 173,201 11,712 Released upon vesting of restricted share awards 423 1,816 Balance at December 31, 2024 173,624 13,528 Equity offering Prospectus Offering 25,590 97,753 Issue costs, net of deferred tax ($1,054) - (3,529) Released upon vesting of restricted share awards 1,276 4,513 Balance at September 30, 2025 200,490 112,265 January 2025 Financing On January 30, 2025, the Company completed a bought deal public offering for gross proceeds of $97.8 million. The offering was underwritten by a syndicate led by National Bank Financial Inc. by way of a short-form prospectus, pursuant to which the Company issued 25,589,800 common shares of Spartan at a price of $3.82 per common share (the "Prospectus Offering"). Net proceeds of the Prospectus Offering were $93.2 million after underwriting commissions and other expenses. The net proceeds of the Prospectus Offering were applied to amounts drawn on the Credit Facility. The additional liquidity was used to fund the Corporation’s accelerated development program in the Duvernay and for general corporate purposes. The use of net proceeds of the Prospectus Offering by the Corporation is consistent with its stated business objectives and strategic goals of the exploration for, and development and acquisition of, oil and natural gas reserves. SPART --- AN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 19 of 27 Dividends and Returns of Capital The following table summarizes the dividends declared and paid up to September 30, 2025: Declaration Date (CA$ thousands) Nov. 8, 2022(1) May 10, 2023(2) May 10, 2023(3) Total Balance at December 31, 2022 85,704 - - 85,704 Declared - 1,645,413 17,320 1,662,733 Paid (76,681) (1,505,049) (15,843) (1,597,573) Balance at December 31, 2023 9,023 140,364 1,477 150,864 Paid in 2024 (3) (50) - (53) Balance at Dec. 31, 2024 and Sep. 30, 2025 9,020 140,314 1,477 150,811 (1) $0.50 per common share. Payable on January 16, 2023 to eligible shareholders of record on December 15, 2022. (2) $9.50 per common share. Payable on July 6, 2023 to eligible shareholders of record on June 20, 2023. (3) $0.10 per common share. Payable on July 31, 2023 to eligible shareholders of record on July 14, 2023. As of September 30, 2025, Spartan has paid $1.6 billion to shareholders for which the Company has received the required attestations to confirm eligibility. The remaining balance of $150.8 million continues to be accrued as a financial liability and included in restricted cash (December 31, 2024 – $150.8 million). All dividend payments are subject to shareholders meeting certain eligibility requirements. c) Warrants There were no warrants outstanding as of September 30, 2025 and December 31, 2024. d) Stock options The Company has a stock option plan under which options to purchase common shares may be granted to officers, directors, employees and consultants. The Board has approved a policy of reserving up to 10% of the outstanding common shares for issuance to eligible participants of the stock option and share award plans. All stock options have a maximum term of five years and the vesting period for each grant is determined at the discretion of the Board. The following table summarizes the change in stock options outstanding: Number of options (000s) Average exercise price ($/share) Balance at December 31, 2023 98 4.32 Granted (1) 1,401 3.16 Forfeited (145) (3.13) Balance at December 31, 2024 1,354 3.25 Granted (1) 4,490 3.63 Balance at September 30, 2025 5,844 3.55 (1) In general, options granted vest one-third per year on the anniversary date of the grant for three years. During the nine months ended September 30, 2025, 2.8 million options were granted having a vesting schedule of 10% vesting on the first anniversary, 20% vesting on the second anniversary and 70% vesting on the third anniversary. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 20 of 27 The fair value of stock options granted is estimated on the date of grant using the Black-Scholes option pricing model with weighted average assumptions as follows: Nine months ended September 30 2025 2024 Risk free interest rate 2.7% 3.9% Expected life (years) 3.4 3.0 Expected volatility (1) 50.0% 50.0% Expected dividend yield 0.0% 0.0% Expected forfeiture rate 3.5% 0.8% Average fair value of options granted ($/share) 1.38 1.17 (1) Spartan has estimated the expected volatility over the life of the option based on a peer group average for intermediate oil and gas companies. A peer group average was used because the Company’s historical share price volatility is not expected to be representative of future volatility due to Spartan’s significant changes over the previous three years. The following table summarizes information regardin --- g stock options outstanding at September 30, 2025: Exercise price ($/share) Number of options outstanding (000s) Weighted average remaining term (years) Weighted average exercise price for options outstanding ($/share) Number of options exercisable (000s) Weighted average exercise price for options exercisable ($/share) $2.94 - $3.04 33 4.7 2.94 - - $3.05 - $3.39 1,213 3.4 3.13 404 3.13 $3.40 - $3.93 4,457 4.4 3.64 - - $3.94 - $4.27 43 3.6 4.21 14 4.21 $4.28 - $4.32 98 2.8 4.32 65 4.32 Total 5,844 4.2 3.55 483 3.32 The volume weighted average trading price of the Company’s common shares on the TSX for the three and nine months ended September 30, 2025 was $4.72 and $3.82, respectively. During the three and nine months ended September 30, 2024, the volume weighted average trading price of the Company’s common shares on the TSX was $3.97 and $3.78, respectively. e) Share awards The Company has a share award incentive plan, pursuant to which the Company may grant RSAs and PSAs to directors, officers, employees and consultants of the Company. The share awards, being RSAs or PSAs as applicable, granted under the share award incentive plan are intended to be settled through the issuance of common shares upon vesting. The Board of Directors shall not grant new share awards under the plan if the number of shares issuable pursuant to outstanding share awards, when combined with the number of shares issuable pursuant to outstanding stock options granted under the Company’s stock option plan, would exceed 10% of the issued and outstanding common shares at the time of the grant. RSAs granted shall vest as to one-third (1/3) on each of the first, second and third anniversaries of the award date and PSAs shall vest on the third anniversary of the award date, unless otherwise stipulated by the Board or Compensation Committee at the time of granting the Share Award, and subject to earlier vesting in accordance with the plan. There were no PSAs outstanding as of September 30, 2025 and December 31, 2024. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 21 of 27 The following table summarizes the change in share awards outstanding: Number of RSAs (000s) Balance at December 31, 2023 1,274 Granted (1) 2,833 Released upon vesting (423) Forfeited (201) Balance at December 31, 2024 3,483 Granted (1) 3,537 Released upon vesting (1,276) Forfeited (82) Balance at September 30, 2025 5,662 (1) The RSAs granted vest one-third each year for three years on the anniversary date of the grant. f) Per share amounts The table below summarizes the weighted average (“WA”) number of common shares outstanding (000’s) used in the calculation of net income per share for the three and nine months ended September 30, 2025 and 2024: Three months ended September 30 Nine months ended September 30 (000s) 2025 2024 2025 2024 WA common shares outstanding, basic 200,303 173,415 197,231 173,273 Dilutive effect of stock options 498 26 128 - Dilutive effect of share awards 3,528 1,749 3,027 1,659 WA common shares outstanding, diluted 204,329 175,190 200,386 174,932 Net income 5,331 3,528 33,693 29,094 $ per common share, basic 0.03 0.02 0.17 0.17 $ per common share, diluted 0.03 0.02 0.17 0.17 SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 22 of 27 12. INCOME TAXES As at September 30, 2025, Spartan has recognized a deferred income tax asset of $20.5 million on the Statement of Financial Position --- and the total tax pools available to the Company are estimated to be $850.9 million (December 31, 2024 – $716.8 million), of which approximately 44% are non-capital losses (“NCLs”). The Company expects to have sufficient taxable profits in the future to utilize its non-capital losses. The following table reconciles income taxes calculated at the weighted average Canadian statutory rate with the actual provision for income taxes per the Statements of Net Income and Comprehensive Income: Three months ended September 30 Nine months ended September 30 (CA$ thousands) 2025 2024 2025 2024 Net income before income taxes 7,343 4,715 45,207 36,650 Canadian statutory tax rate (1) 23.0% 23.0% 23.0% 23.0% Expected income tax expense 1,689 1,085 10,398 8,430 Increase (decrease) resulting from: Non-deductible expenses (2) 323 102 1,116 918 True-up tax pools - - - (1,792) Deferred income tax expense 2,012 1,187 11,514 7,556 (1) The Canadian statutory tax rate per the rate reconciliation represents the average combined federal and provincial corporate tax rate. (2) Non-deductible expenses primarily relate to share-based compensation offset by the deductible value of RSAs released on vesting. The movement in deferred tax assets and liabilities, without taking into consideration the offsetting balances within the same tax jurisdiction, are as follows: (CA$ thousands) Balance at Dec 31, 2024 Recognized in net income Recognized in balance sheet Balance at Sep 30, 2025 Derivative financial instruments (678) (789) - (1,467) Accelerated tax basis depreciation (73,081) (9,588) - (82,669) Decommissioning obligations 18,929 (585) - 18,344 Leases 598 (215) - 383 Share issue costs 706 (685) 1,054 1,075 Non-capital losses and other (1) 84,466 348 - 84,814 Deferred income tax asset 30,940 (11,514) 1,054 20,480 (1) The Company expects to have sufficient taxable profits in the future to utilize its NCLs which expire in years 2039 to 2041 and has recognized the deferred tax asset related to NCLs. Under IFRS Accounting Standards, deferred income tax assets may only be recognized to the extent that it is probable that future taxable profits will be available against which unused tax losses and deductible temporary differences can be utilized. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 23 of 27 Uncertain Tax Positions On February 14, 2025, the Company received a reassessment from the Canada Revenue Agency (the "CRA") for a previously amalgamated subsidiary that restricts the deductibility of non-capital losses relevant to the calculation of income taxes. The reassessment seeks to disallow the carry forward of approximately $217.8 million of these non- capital losses under the Income Tax Act (Canada). Spartan remains confident in the appropriateness of its tax filing position and intends to vigorously defend it. As such, Spartan has not recognized any provision in its Financial Statements with respect to the reassessment. During the second quarter of 2025, Spartan filed a notice of objection for the CRA reassessment and, if necessary, will subsequently file an appeal directly to the Tax Court of Canada. If Spartan is unsuccessful in this matter, then the Company would derecognize the corresponding deferred tax asset resulting in an ending deferred tax liability position, shortening its estimated tax horizon. 13. OIL AND GAS SALES, NET OF ROYALTIES The following table summarizes the composition of Spartan’s oil and gas sa --- les revenue by product type: Three months ended September 30 Nine months ended September 30 (CA$ thousands) 2025 2024 2025 2024 Oil and gas sales Crude oil 32,839 10,138 71,376 25,633 Natural gas liquids 37,894 39,900 118,183 129,855 Natural gas 12,011 10,513 65,430 62,662 Oil and gas sales 82,744 60,551 254,989 218,150 Royalties (9,180) (7,942) (32,664) (29,641) Oil and gas sales, net of royalties 73,564 52,609 222,325 188,509 14. FINANCING The following table summarizes the significant components of the Company’s financing expense, which is presented net of financing income in the Statements of Net Income and Comprehensive Income: Three months ended September 30 Nine months ended September 30 (CA$ thousands) 2025 2024 2025 2024 Interest and fees on debt 1,951 2,549 4,973 6,631 Financing cost of lease liabilities 307 431 1,002 1,393 Accretion of decommissioning obligations 691 564 1,995 1,634 Financing expense 2,949 3,544 7,970 9,658 Interest income (1,241) (1,907) (3,839) (6,031) Financing expense 1,708 1,637 4,131 3,627 SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 24 of 27 15. SUPPLEMENTAL CASH FLOW INFORMATION Three months ended September 30 Nine months ended September 30 (CA$ thousands) 2025 2024 2025 2024 Accounts receivable 14,845 10,358 9,790 25,653 Prepaid expenses and deposits (639) (1,130) (4,196) (1,993) Accounts payable and accrued liabilities 1,157 23,147 39,107 1,508 Non-cash working capital disposed - (128) - (74) Foreign exchange (1) - (14) - Change in non-cash working capital (1) 15,362 32,247 44,687 25,094 Relating to: Operating activities 1,135 1,335 2,583 6,638 Financing activities (150) - - - Investing activities 14,377 30,912 42,104 18,456 Change in non-cash working capital 15,362 32,247 44,687 25,094 Cash payments in respect of: Interest and fees on debt 1,721 1,995 4,988 6,000 (1) Change in non-cash working capital excludes the impact of $150.8 million of dividends declared, but not yet paid as at September 30, 2025 and December 31, 2024. 16. CAPITAL MANAGEMENT Spartan's capital management objectives are to maintain a flexible capital structure in order to respond to changes in economic conditions, execute on strategic opportunities throughout the business cycle, meet its financial obligations, and to fund current and future settlements of decommissioning obligations. The Company seeks to create long-term shareholder value by prioritizing profitability over production growth, as well as investing in projects that are expected to strengthen its overall asset portfolio and suite of internally generated prospects. As at September 30, 2025, the Company’s capital structure is comprised of adjusted working capital, debt and shareholders’ equity. The significant components of the Company’s capital structure are summarized below: (CA$ thousands) September 30, 2025 December 31, 2024 Working capital deficit 73,811 31,249 Adjusted for current portion of: Derivative financial instrument assets 7,554 5,810 Derivative financial instrument liabilities - (143) Lease liabilities (9,578) (9,721) Adjusted Working Capital deficit (1)(2) 71,787 27,195 Long-term debt 107,087 120,912 Net Debt (2) 178,874 148,107 Total shareholders’ equity 608,946 471,427 (1) “Adjusted Working Capital” is calculated as current assets less current liabilities, excluding derivative financial instruments and lease liabilities. As at September 30, 2025 and December 31, 2024, Adjusted Working Capital includ --- es cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and deposits, accounts payable and accrued liabilities, dividends payable and the current portion of decommissioning obligations. (2) Adjusted Working Capital and Net Debt are not standardized measures and therefore may not be comparable with the calculation of similar measures by other entities. Spartan uses Adjusted Working Capital and Net Debt as capital management measures of the Company's financial position and liquidity. SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 25 of 27 Spartan’s Adjusted Working Capital deficit of $71.8 million at September 30, 2025 increased from the Adjusted Working Capital deficit of $27.2 million at December 31, 2024. The capital-intensive nature of Spartan’s operations may create working capital fluctuations during periods with varying levels of capital investment, however the Company maintains sufficient unused bank credit lines to satisfy working capital deficiencies when they occur. The Company has sufficient liquidity for the next 12 months to meet working capital requirements with the current cash balances of $151.1 million (including restricted cash), future cash flow from operations and access to the remaining undrawn balance on the Credit Facility (note 10), all of which are expected to meet the Company’s financial obligations (including the dividends payable). During the nine months ended September 30, 2025, the Company’s primary sources of funds were $153.9 million of cash provided by operating activities, $93.2 million from the Prospectus Offering and a change of $42.1 million of non- cash working capital in investing activities. Spartan used its cash provided by operating activities, the Prospectus Offering and the change in non-cash working capital to fund the Company’s exploration and development capital expenditures of $261.4 million, $13.8 million of Credit Facility repayments, $7.1 million of acquisitions and $7.4 million for lease principal payments. The Company monitors its capital structure and short-term financing requirements using a “Net Debt to Annualized AFF Ratio”, which is calculated by Spartan as the Company’s Net Debt (calculated above) relative to its “Annualized Adjusted Funds Flow” (calculated below). The reader is cautioned that “Net Debt” and “Adjusted Funds Flow” do not have standardized meanings under IFRS Accounting Standards may not be directly comparable to measures of other companies where similar terminology is used. Spartan calculates “Adjusted Funds Flow” by deducting lease payments and adding back transaction costs on acquisitions/dispositions and the change in non-cash working capital to cash provided by operating activities. Spartan utilizes Adjusted Funds Flow as a key performance measure in the Company’s annual financial forecasts and public guidance because it reflects the net cash flow generated from routine business operations. Adjusted Funds Flow is reported net of cash lease payments in the year, therefore Spartan believes Adjusted Funds Flow is an appropriate metric to compare relative to its Net Debt which does not include lease liabilities. “Annualized Adjusted Funds Flow” is calculated by multiplying Adjusted Funds Flow for the most recently completed quarter, normalized for significant non-recurring items, by a factor of 4; management considers this annualized measure to be more representative of the Company’s cur --- rent financial position than a 12-month trailing measure. Management believes that the Net Debt to Annualized AFF Ratio provides investors with information to understand the Company’s liquidity risk and its ability to repay long-term debt and fund future capital expenditures. Three months ended (CA$ thousands) September 30, 2025 December 31, 2024 Cash provided by operating activities 53,994 46,227 Change in non-cash operating working capital (1,135) 6,662 Deduct: lease payments (2,494) (2,420) Adjusted Funds Flow for the quarter 50,365 50,469 Factor to Annualize 4 4 Annualized Adjusted Funds Flow (1) 201,460 201,876 Net Debt 178,874 148,107 Annualized Adjusted Funds Flow 201,460 201,876 Net Debt to Annualized AFF Ratio 0.9x 0.7x (1) The Annualized Adjusted Funds Flow reflects ongoing operations for the three months ended September 30, 2025 and December 31, 2024, respectively, multiplied by a factor of four (4). SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 26 of 27 As at September 30, 2025, Spartan had Net Debt of $178.9 million, which is approximately 0.9 times the Company’s Annualized Adjusted Funds Flow for the third quarter of 2025. Net Debt of $178.9 million at September 30, 2025 increased from the prior year primarily as a result of the Company’s exploration, development and acquisition activities which created a free funds flow deficit, partially offset by the Prospectus Offering completed in 2025. The Company’s existing capital resources are sufficient to satisfy its financial obligations for the next twelve months and Spartan is well positioned to execute on its short and longer term growth strategy. The Company’s exploration and development capital expenditures for 2025 are expected to be funded by a combination of cash provided by operating activities and supplemented by the unutilized Credit Facility during periods of high capital investment. As at September 30, 2025, the Company is not subject to any externally imposed capital requirements other than the standard business operating covenants under the amended and restated Credit Facility, to which Spartan is in full compliance (note 10). 17. COMMITMENTS AND CONTINGENCIES The following table summarizes the Company’s contractual commitments as of September 30, 2025: (CA$ thousands) 2025 2026 2027 2028 2029 Thereafter Gas transportation (1) 2,753 10,467 5,410 4,583 1,569 13 Liquids transportation (2) 753 753 - - - - Total commitments (3) 3,506 11,220 5,410 4,583 1,569 13 (1) Spartan has firm transportation commitments on natural gas pipelines in Alberta until April 2030. (2) Liquids transportation commitment relates to a take-or-pay on NGL volumes at the Keyera Fort Saskatchewan Fractionation Facility until March 2026. Subsequent to September 30, 2025, Spartan amended its liquids transportation agreement and eliminated the take-or-pay commitment retrospectively from April 1, 2025. (3) The commitments table does not include lease liabilities and the contingent termination feature related to a lease agreement (note 8). A contractual maturity of the Company’s financial liabilities and undiscounted lease payments is provided in note 4(b). Litigation In the normal course of the Company’s operations, it may become involved in, named as a party to, or be the subject of, various legal proceedings, including regulatory proceedings, tax proceedings and legal actions, related to personal injuries, property damage, property tax, land right --- s, the environment and contract disputes with partners or other stakeholders. The outcome of outstanding, pending or future proceedings cannot be predicted with certainty and may be determined to have an adverse effect on the Company’s future operations or financial condition. As of the date of these Financial Statements, the Company has no material litigation or claims outstanding that have not already been reflected in these Financial Statements. 18. RELATED PARTY DISCLOSURES a) Inter-corporate relationships As at September 30, 2025 and December 31, 2024, Spartan had no subsidiaries. b) Related party transactions During the nine months ended September 30, 2025, the Company incurred $1.3 million of legal fees to a law firm where the corporate secretary of the Company is a partner (nine months ended September 30, 2024 – $0.7 million), with the fees primarily relating to ongoing legal support. Approximately $0.1 million of legal fees are included in the balance of accounts payable and accrued liabilities as at September 30, 2025 (December 31, 2024 – $0.2 million). SPARTAN DELTA CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Page 27 of 27 19. SUBSEQUENT EVENTS Credit Facility Amendment On October 7, 2025, the Company amended its Credit Facility to increase the borrowing base from $250.0 million to $450.0 million, comprised of a $50.0 million operating facility and a $400.0 million syndicated facility. The Company will continue to be subject to pre-existing operating covenants and will have a new financial covenant under the amended agreement. For the upcoming five fiscal quarters, the Company is required to maintain a debt to adjusted EBITDA ratio of less than 2.00 : 1.00 where debt is determined as the total drawn amount on the Credit Facility. The next scheduled borrowing base review will be on or around May 31, 2026. Asset Swap On October 20, 2025, the Company executed a non-monetary exchange with two arm’s length counterparties to swap undeveloped land parcels in the Gilby area. The lands exchanged had no reserves assigned. Derivative Financial Instruments Subsequent to September 30, 2025, Spartan entered into additional WTI and natural gas swaps for 2026 and 2027. The table below summarizes average prices and notional volumes contracted under the Company’s outstanding financial derivative contracts as of November 4, 2025: Crude Oil (1) Natural Gas (1) CA$ WTI Swaps – Short (2) AECO 7A Swaps (3) Period Volume Bbl/d CA$/ Bbl Volume GJ/d CA$/ GJ Q4 2025 3,149 $97.77 98,880 $2.35 Q1 2026 2,500 $87.95 90,000 $2.87 Q2 2026 2,500 $87.68 64,500 $2.67 Q3 2026 2,500 $87.68 59,000 $2.68 Q4 2026 2,800 $87.28 75,924 $2.98 Q1 2027 1,800 $84.51 65,000 $3.25 Q2 2027 1,400 $83.84 25,000 $2.95 Q3 2027 1,150 $83.81 22,000 $2.97 Q4 2027 900 $82.93 18,500 $3.03 (1) The prices and volumes in this table represent averages for contracts represented in the respective periods. (2) CA$ WTI swaps are translated at the average daily noon rate for the settlement month. (3) AECO 7A swaps are settled the first day of the month based on a weighted average of the previous month’s fixed price trades.