Press Release: Q3 Results

1500, 308 - 4th Avenue SW Calgary, Alberta T2P 0H7

CANADA Tel : [phone] www.SpartanDeltaCorp.com

SPARTAN DELTA CORP. REPORTS FINANCIAL AND OPERATING RESULTS

FOR THE THIRD QUARTER OF 2021

Calgary, Alberta - November 08, 2021 - Spartan Delta Corp. ("Spartan" or the "Company") (TSX: SDE) is pleased to report its unaudited financial and operating results for the three and nine month periods ended September 30, 2021.

MESSAGE TO SHAREHOLDERS

The third quarter of 2021 represents the sixth consecutive quarter of record results through successful consolidation and execution within our two core areas, the Deep Basin and the Montney. Spartan achieved average production of 46,282 BOE per day reflecting one month of operations from the Velvet and Ferrier Acquisitions and continued outperformance from the Company's early 2021 development program in the Deep Basin.

THIRD QUARTER 2021 HIGHLIGHTS

• Production Growth: Quarterly production of 46,282 BOE per day, up 17% from the previous quarter and 76% from the third quarter of 2020
• Free Funds Flow: Record Adjusted Funds Flow of $69.4 million and an increase in Operating Netback of 11% to $18.79 per BOE (after hedging) led to Free Funds Flow generation of $24.8 million after capital expenditures of $44.6 million (before A&D)
• Operational Execution: In addition to seven new Montney wells previously drilled by Velvet, which were brought onstream in Q3, Spartan's drilling program resumed in the Deep Basin, with eight (seven net) new wells also brought onstream during the quarter
• Consolidation in Spartan's Two Core Areas: Spartan closed the Velvet and Ferrier Acquisitions on August 31st 2021 and September 3rd 2021 respectively, together adding approximately 23,000 BOE per day(1), over 732 Montney locations, 12 Deep Basin locations, and 440 net sections of Montney land establishing Spartan as the largest land holder in the oil window of the Montney
• Balance Sheet Strength: Exited the third quarter with Net Debt of $481.1 million with a forecasted 2022 year-end Net Debt to Adjusted Funds Flow of 0.8x on guidance pricing(2) of $60/bbl WTI and $3.25/GJ AECO
• Tax Horizon: The Velvet Acquisition materially improved Spartan's future tax horizon with total available tax pools now estimated at $1.8 billion, including over $900.0 million of non-capital losses
• Capital Structure: Converted the $50.0 million non-interest-bearing convertible promissory note at a conversion price of $8.50 per Common Share and completed a $150.0 million bought deal equity financing at a subscription price of $5.05 per Common Share

SELECTED FINANCIAL AND OPERATIONAL INFORMATION

Selected operational and financial information is outlined below and should be read in conjunction with Spartan's unaudited condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2021 and 2020, which are available on the Company's website at www.spartandeltacorp.comand filed on SEDAR at www.sedar.com. This press release contains certain non- GAAP measures and forward-looking statements, which are further described under the heading "Reader Advisories".

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	Three months ended September 30	Nine months ended September 30
(CA$ thousands, unless otherwise indicated)	2021	2020	%	2021	2020	%
OPERATING
Average daily production (BOE/d)
Crude oil (bbls/d)	4,647	318	1,361	2,421	150	1,514
Condensate (bbls/d) (1)	1,982	1,113	78	1,772	496	257
NGLs (bbls/d) (1)	8,102	6,811	19	7,618	3,037	151
Natural gas (mcf/d)	189,306	108,237	75	165,115	49,091	236
BOE/d	46,282	26,282	76	39,330	11,865	231
Average realized prices, before financial instruments
Crude oil ($/bbl)	83.01	44.56	86	78.67	44.60	76
Condensate ($/bbl) (1)	86.20	50.13	72	79.97	49.04	63
NGLs ($/bbl) (1)	38.87	15.65	148	32.75	15.55	111
Natural gas ($/mcf)	3.78	2.30	64	3.39	2.21	53
Combined average ($/BOE)	34.31	16.19	112	29.03	15.72	85
Operating Netbacks ($/BOE) (2)
Oil and gas sales	34.31	16.19	112	29.03	15.72	85
Processing and other revenue	0.53	0.50	6	0.64	0.56	14
Royalties	(3.46)	(1.37)	153	(3.16)	(1.25)	153
Operating expenses	(7.11)	(6.10)	17	(6.03)	(6.43)	(6)
Transportation expenses	(2.11)	(1.34)	57	(1.74)	(1.34)	30
Operating Netback, before hedging (2)	22.16	7.88	181	18.74	7.26	158
Operating Netback, after hedging (2)	18.79	8.32	126	16.95	7.63	122
FINANCIAL
Oil and gas sales	146,078	39,149	273	311,717	51,118	510
Cash provided by operating activities	53,771	22,724	137	133,906	16,145	729
Adjusted Funds from Operations (2)	71,801	15,854	353	165,039	18,369	798
$ per share, basic	0.57	0.27	111	1.60	0.46	248
$ per share, diluted	0.49	0.23	113	1.35	0.36	275
Net income (loss) and comprehensive income (loss)	126,937	(7,281)	nm	205,765	35,305	483
$ per share, basic	1.01	(0.13)	(877)	2.00	0.87	130
$ per share, diluted	0.87	(0.13)	(769)	1.70	0.69	146
Capital expenditures, before A&D (2)	44,609	1,254	3,457	73,293	2,817	2,502
Acquisitions, net of dispositions (3)	392,956	(76)	nm	423,266	108,706	289
Total assets	1,684,301	331,730	408	1,684,301	331,730	408
Net Debt (2)	481,087	14,477	3,223	481,087	14,477	3,223
Shareholders' equity	756,211	124,413	508	756,211	124,413	508
Common shares outstanding (000s) (4)
Weighted average, basic	125,626	58,118	116	102,892	40,358	155
Weighted average, diluted - for EPS	145,686	68,231	114	121,033	50,823	138
Weighted average, diluted - for AFFO (2)(4)	147,129	68,231	116	122,496	50,823	141
End of period	153,074	58,126	163	153,074	58,126	163

1. Condensate is a natural gas liquid as defined by NI 51-101. See "Oil and Gas Advisories" of this press release.
2. "Operating Netback", "Adjusted Funds from Operations", "Adjusted Funds from Operations per share", "Capital expenditures, before A&D" and "Net Debt (Surplus)" do not have standardized meanings under IFRS, refer to "Non-GAAP Measures" section of this press release.
3. Excludes non-cash consideration for acquisitions. Refer to "Acquisitions" section of this press release for additional information.
4. Refer to "Share Capital" section of this press release.

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RECORD AVERAGE PRODUCTION AND REVENUE

Production averaged 46,282 BOE per day during the third quarter of 2021, up 17% from average production of 39,638 BOE per day in the second quarter of 2021.

The progressive increase in crude oil production highlights the diversification of the Company's portfolio through the acquisition and development of its Montney oil assets, which are primarily concentrated in the Gold Creek and Karr areas of Alberta. Crude oil represented 10% of Spartan's total production on average during the third quarter of 2021, up from 5% in the second quarter of 2021 and 1% in the comparative periods of 2020. The oil weighting is expected to grow to greater than 15% in the fourth quarter of 2021 with a full quarter of production from the acquired properties.

Increased production and the impact of the diversification in Spartan's product mix is reflected by the significant increase in Spartan's sales revenue and average selling prices. Oil and gas sales were $146.1 million for the three months ended September 30, 2021, a 273% increase from $39.1 million of oil and gas sales in the third quarter of 2020. Compared to the previous quarter ended June 30, 2021, Spartan's oil and gas sales increased by 52% or $49.7 million on a 17% increase in average production volumes.

INCREASED OPERATING INCOME AND OPERATING NETBACKS

The Company generated Operating Income, after hedging, of $80.0 million during the quarter ended September 30, 2021, an increase of $19.1 million or 31% compared to $60.9 million in the previous quarter. On a per unit basis, Spartan's Operating Netback, after hedging, of $18.79 per BOE for the third quarter was 11% higher than the average of $16.89 per BOE in the second quarter of 2021. The Company's Operating Netback, before hedging, increased by 27% quarter over quarter and averaged $22.16 per BOE for the three months ended September 30, 2021.

Integration of the Velvet Acquisition drove stronger corporate average Operating Netbacks for Spartan, as higher realized pricing on its sweet crude oil production, along with lower average royalties, more than offset higher average operating and transportation expenses.

Operating and transportation expenses averaged $7.11 per BOE and $2.11 per BOE, respectively, during the third quarter of 2021, up from $5.56 per BOE and $1.62 per BOE in the previous quarter. The increase in per unit operating and transportation expenses reflects higher average costs on the recently acquired properties in the Montney which are more oil weighted relative to the Company's liquids-rich natural gas assets in the Deep Basin. Average operating expenses per unit are generally expected to be higher as the Company's portfolio becomes more oil weighted through development in the Montney.

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STRONG CASH FLOWS

Adjusted Funds from Operations of $71.8 million ($0.49 per share, diluted) increased by 28% on an absolute basis from $56.1 million ($0.41 per share, diluted) in the second quarter of 2021. On a diluted per share basis, Spartan's Adjusted Funds from Operations is up 20% quarter over quarter.

G&A expenses averaged $1.32 per BOE during the three months ended September 30, 2021, in line with the previous quarter average of $1.33 per BOE. G&A expenses for the third quarter include incremental overhead and administrative costs related to integration of the corporate acquisitions, as well as costs associated with Spartan's graduation to the TSX effective September 1, 2021.

Adjusted Funds Flow was $69.4 million after deducting decommissioning and lease payments from Adjusted Funds from Operations for the quarter ended September 30, 2021. Free Funds Flow was $24.8 million following the ramp up of drilling activity within Spartan's two core areas.

NET INCOME

Spartan generated net income of $126.9 million ($0.87 per share, diluted) for the three months ended September 30, 2021, and $205.8 million ($1.70 per share, diluted) of net income year to date in 2021. The variance in net income quarter over quarter is driven by increased operating profits from the Company's core business operations as well as a gain of $92.0 million on the Velvet and Ferrier Acquisitions during the third quarter of 2021.

Changes in the fair value of financial instruments had a significant impact on net income during the first nine months of 2021. Due to continued strength of forecast WTI and AECO natural gas prices, Spartan recorded losses on its commodity price risk management contracts of $30.2 million during the third quarter and $45.9 million for the nine months ended September 30, 2021.

ACQUISITIONS

Spartan completed the Velvet and Ferrier Acquisitions during the third quarter of 2021 for aggregate cash consideration of $393.0 million (net of minor disposition proceeds). In addition, Spartan repaid $352.5 million of Velvet's indebtedness at closing. The cash purchase price and debt repayment was funded by a combination of cash on hand, proceeds from

1. $150.0 million bought dealequity financing at a subscription priceof $5.05 per Common Share, a new five-year $150.0 million second lien term facility, and advances under Spartan's revolving credit facility.

STRONG BALANCE SHEET

Spartan exited the third quarter with total Net Debt of $481.1 million. As at September 30, 2021, the Company had $300.2 million of bank debt outstanding under its revolving credit facility with increased borrowing capacity up to $450.0 million. The Company's exploration and development capital expenditures were fully funded by cash provided by operating activities during the first nine months of 2021 and Spartan is well positioned financially to continue executing on its strategic growth objectives.

On September 29, 2021, Spartan converted a $50.0 million convertible promissory note into 5,882,353 Common Shares at a conversion price of $8.50 per Common Share.

OPERATIONAL UPDATE

The Deep Basin assets continue to deliver asset level Free Funds Flow growth due to low industry leading capital efficiencies, owned and operated infrastructure yielding low operating costs, and strengthening commodity prices. Individual well economics are expected to exceed a 500% IRR with capital payouts in less than 6 months on guidance pricing(2) of $60/bbl WTI and $3.25/GJ AECO.

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In the third quarter, Spartan brought eight (seven net) Deep Basin wells on production, with average performance of 1,325 BOE per day(3) over the first 30 days of production (25% liquids) and with estimated aggregate production of approximately 10,143 BOE per day(4) (28% liquids) in October.

Spartan expects to bring onstream up to 12 (11.4 net) additional wells in the Deep Basin in the fourth quarter, including two wells on the newly acquired Ferrier assets, to capitalize on strong winter gas pricing. Looking forward to 2022, the program is expected to grow area production to approximately 45,000 BOE per day to maximize throughput into Spartan's operated deep cut gas processing facilities at Alder Flats.

In the Montney, seven new wells on the newly acquired lands from Velvet have been placed on production. At Gold Creek, four of the best wells drilled into the acreage to date are now onstream with more than 60 days of production at an average rate of 1,445 BOE per day(5) (51% crude oil). At Karr, three new wells are now onstream with more than 90 days of production, with seven day average individual well production of 927 BOE per day(6) (73% crude oil) post the recent installation of electric submersible pumps. October production from the seven new Montney wells in aggregate is approximately 8,334 BOE per day(7) with over 4,300 BOE per day of crude oil production.

Spartan's field estimates for October production is approximately 68,000 BOE per day(8) (37% liquids).

OUTLOOK

Over the past year, the Company has grown production from approximately 26,000 BOE per day(9) in the third quarter of 2020 to current production of approximately 68,000 BOE per day(8) through strategic consolidation and organic growth. With a dominant, concentrated opportunity set established in two of Canada's most prolific plays, Spartan is focused on the execution of a 3-year plan poised to deliver peer leading organic growth and Free Funds Flow yield to its shareholders.

ABOUT SPARTAN DELTA CORP.

Spartan is building a sustainable energy company whose ESG-focused culture is centered on generating sustainable 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 Montney. Spartan is focused on the execution of the Company's organic drilling program, delivering operational synergies in a respectful and responsible manner to the environment and communities it operates in. The Company is well positioned to continue pursuing immediate production optimization, responsible future growth with organic drilling, opportunistic acquisitions and the delivery of Free Funds Flow. Further detail is available in Spartan's corporate presentation, which can be accessed on its website at www.spartandeltacorp.com.

FOR ADDITIONAL INFORMATION PLEASE CONTACT:

Fotis Kalantzis	Richard F. McHardy
President and Chief Executive Officer	Executive Chairman
[e-mail]	[e-mail]
Spartan Delta Corp.
1500, 308 - 4th Avenue SW
Calgary, Alberta T2P 0H7
Canada

www.spartandeltacorp.com