Saturn Oil & Gas Inc. provided results to date from its 2022 drilling program, its new re-drill program to enhance production of existing low to non-producing horizontal wells. The 2022 drilling program has been focused on Saturn's two operational areas, the Oxbow Asset in Southeast Saskatchewan, and the Viking Asset in West-central Saskatchewan, and includes: The first 23 horizontal wells drilled, adding incremental aggregate production of 1,615 bbls/d, based on initial 30 days of production ("IP30") data; An additional 16 horizontal wells, with less than 30 days of production data, have been drilled and recently put onto production, or are awaiting near term tie-in, for a total of 39 completed horizontal wells to date; and The final 21 horizontal wells of the 2022 drilling program are expected to be completed by November 2022. Saturn has completed drilling 16 Oxbow horizontal wells in 2022, with 15 wells having average IP30 production of approximately 71.2 bbls/d, which is in-line with Saturn's guidance type cure expectations.

The average incurred capital cost of each Oxbow horizontal well has been within the budgeted $1.0 million per location. The implied capital efficiency of new production additions is at an attractive rate of approximately $14,230 /bbl/d. Saturn expects to drill an additional 10 Oxbow horizontal wells for the remainder of 2022 for a total of 26 new Oxbow wells for the year. The Company has identified several existing horizontal wells at the Oxbow Asset, drilled in previous years, that have none or very little oil production, as candidates for re-drill operations.

Re-drill operations involve entering an existing wellbore and drilling out a new horizontal leg into a prospective light oil formation, not previously accessed by the original drilling operation. With the cost savings of utilizing the vertical portion of an existing wellbore, a re-drill operation is expected to have approximately 60% of the costs of drilling a new horizontal well. Based on results to date, the four completed re-drill operations have produced oil at rates approximately 75% the average rate of a new Oxbow horizontal well.

Given the initial superior economic results, with an average capital efficiency of $11,260 /bbl/d, the Company plans to execute up to two additional re-drills in 2022 and include up to 20 re-drills in the 2023 capital expenditure budget. Saturn estimates there are up to 200 existing horizontal wells, with limited current oil production, that are candidates for re-drill operations and significantly adds to the Company's deep inventory of growth capital projects. Saturn continues to have great success with its Viking horizontal drill program having drilled and completed 21 Viking wells since June 2022, with the initial four wells having average IP30 rates of 83.6 bbls/d, which is 21% above Saturn's guidance type cure expectations.

The average capital cost per Viking location was $1.4 million. The capital cost and IP30 production rates were higher then projected partially due to extending the wellbores past the originally programmed 1.0 mile length (up to 1.5 miles), leading to additional completion costs. The realized average capital efficiency was an attractive $17,045 /bbl/d. The Company plans to drill an additional nine Viking wells in the remainder of 2022.

Saturn remains on track to meet its stated 2022 production guidance for annual average oil and gas production in the range of 9,750 boe/d to 10,350 boe/d and for Fourth Quarter 2022 average oil and gas production to be in the range of 12,300 boe/d and 12,700 boe/d. Achieving the Company's 2022 production targets will lay the foundation for Saturn to pursue it's stated guidance of 2023 average oil and gas production between 13,100 boe/d and 13,700 boe/d and the targeted Fourth Quarter 2023 average oil and gas production in the range of 13,950 boe/d to 14,550 boe/d. For the most recent 23 new horizontal and re-drilled wells executed to date, with 30 days of production data, the Company has incurred approximately $23.3 million in capital expenditures. The incremental aggregate oil production of 1,615 bbls/d from theses 23 wells is expected to produce approximately 1.2 million barrels of light oil and approximately $82.0 million in net operating income (undiscounted) over the economic life of the wells, based on Saturn's stated 2023 guidance of a $66.70/bbl net operating netback, assuming a USD 90 WTI flat price assumption, implying a 3.5x recycle ratio.