Spartan Delta forecasts 2026 production of 51,000 boe/d

Mr. Fotis Kalantzis reports SPARTAN DELTA CORP. ANNOUNCES 2026 GUIDANCE AND OPERATIONS UPDATE Spartan Delta Corp. has released its guidance for 2026 and has provided an operations update following the successful completion of its 2025 drilling program. 2026 budget and guidance Spartan is pleased to provide its financial and operating guidance for 2026 focused on delivering significant light oil and condensate production growth as it accelerates development in the West Shale Basin Duvernay. For 2026, Spartan intends to deploy a capital program of $410-million to $470-million, delivering annualized production of 50,000 to 52,000 boe/d (barrels on equivalent per day) (44 per cent liquids), a 28-per-cent increase in production and an 89-per-cent increase in crude oil and condensate production from midpoint 2025 guidance. Spartan anticipates spending $320-million to $360-million on drilling, completion, equipping and tie-ins (DCET), bringing 38 net wells on-stream, and is allocating $60-million to $80-million of capital to infrastructure, and $30-million to corporate and other. Duvernay Building off the strong success and momentum of Spartan's Duvernay results to date, the company is allocating approximately $350-million of capital at midpoint guidance in 2026, inclusive of DCET, the construction of facilities, gathering, pipelines and other. Spartan anticipates bringing 24 net wells on stream and is targeting an annual production growth rate of greater than 100 per cent in the Duvernay. Spartan's Duvernay performance underscores the robust productivity, consistency and scalability of its acreage. These results reinforce that Spartan's Duvernay asset is one of the most compelling emerging oil-weighted growth opportunities in Western Canada and has advanced the company's production target to 50,000 boe/d in the Duvernay by 2030 while maintaining a strong balance sheet of approximately 1.0 times net debt to adjusted funds flow ratio at guidance pricing. Spartan's Duvernay field production estimates averaged 13,872 boe/d (78 per cent liquids) for December, 2025, a 174-per-cent increase from December, 2024. Spartan's most recent production results are: 04-20-041-03W5 pad initial production results from 3.0 net wells have averaged IP30 rates of 1,179 BOE/d and 91 per cent liquids per well (1,043 BBL/d of crude oil, 29 BBL/d of NGLs (natural gas liquids) and 0.6 MMcf/d (million cubic feet per day) of natural gas). Spartan is focused on continuing cost reductions and increasing well productivity through decreased drilling and completion times, consistent frac placements, and optimizing proppant and water usage. These initiatives have reduced Spartan's drilling and completion costs by more than 17 per cent and increased productivity by 25 per cent since 2024. Spartan is targeting average DCET costs of less than $12.0-million per well in 2026. To date, Spartan has established one of the largest Duvernay positions, totalling 457,000 net acres (714 sections), an 83-per-cent increase from 2024, supporting more than 800 drilling locations. In 2025, Spartan acquired more than 204,000 net acres (319 sections) for approximately $40-million and intends to continue acquiring additional Duvernay acreage in 2026. Deep basin In 2026, Spartan is allocating approximately $90-million of capital at midpoint guidance, inclusive of DCET, infrastructure and other. Spartan anticipates bringing 14 net wells on stream to maintain flat production. The company intends to focus on development in the Belly River, Cardium, Viking, Spirit River, Wilrich, Lower Manville, and Rock Creek formations, and is prepared to expand the capital budget in response to higher natural gas prices. Based on the success of Spartan's 2025 Deep basin program, the company has strategically accumulated additional acreage and has identified multiple, liquids weighted high-value targets. To date, Spartan has 243,000 net acres (380 sections) in the Deep basin, an 87-per-cent increase since 2024. Spartan intends to commence drilling on its newly acquired Deep basin acreage in the first half of 2026. Management retirement Spartan announces the retirement of Randy Berg, vice-president, land and stakeholder relations, effective Feb. 28, 2026. Mr. Berg has been an integral part of Spartan's success and growth since inception and has contributed to the Spartan franchise for more than a decade. The board and management extend their sincere appreciation for his leadership and dedication and wish him all the best in his retirement. About Spartan Delta Corp. Spartan is committed to creating value for its shareholders, focused on sustainability in both operations and financial performance. The company's culture is centered on generating free funds flow through responsible oil and gas exploration and development. The company has established a portfolio of high-quality production and development opportunities in the Deep basin and the Duvernay. Spartan will continue to focus on the execution of the company's organic drilling program across its portfolio, delivering operational synergies in a respectful and responsible manner in relation to the environment and communities it operates in. The company is well positioned to continue pursuing optimization in the Deep basin, participate in the consolidation of the Deep basin fairway, and continue growing and developing its Duvernay asset. Spartan's corporate presentation, as of Jan. 5, 2026, can be accessed on the company's website. Assumptions for 2026 guidance The significant assumptions used in the forecast of operating netbacks and adjusted funds flow for 2026 are summarized below. These key performance measures expressed per BOE are based on the calendar year average production guidance for 2026 of approximately 51,000 BOE/d. Changes in forecast commodity prices, exchange rates, differences in the amount and timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Spartan's guidance. The company's actual results may differ materially from these estimates. Holding all other assumptions constant, a $5.00 (U.S.)/bbl increase (decrease) in the forecasted average WTI (West Texas Intermediate) crude oil price for 2026 would increase adjusted funds flow by approximately $22-million (decrease by $22-million). An increase (decrease) of 25 cents/gigajoule in the forecasted average AECO natural gas price for 2026, holding the NYMEX-AECO basis differential and all other assumptions constant, would increase adjusted funds flow by approximately $9-million (decrease by $9-million). Holding United States-dollar benchmark commodity prices and all other assumptions constant, an increase (decrease) of $0.05 in the US$/CA$ exchange rate would increase adjusted funds flow by approximately $11-million (decrease by $11-million). Assuming capital expenditures are unchanged, the impact on free funds flow would be equivalent to the increase or decrease in adjusted funds flow. An increase (decrease) in free funds flow will result in an equivalent decrease (increase) in the forecasted net debt (surplus). We seek Safe Harbor.