CALGARY - Altura Energy Inc. ('Altura' or the 'Corporation') (TSXV: ATU) announces its financial and operating results for the three and six months ended June 30, 2020 and the renewal of its credit facility.

The unaudited interim condensed consolidated financial statements and related management's discussion and analysis ('MD&A') are available at www.sedar.com and www.alturaenergy.ca. Selected financial and operating information for the three and six months ended June 30, 2020 appear below and should be read in conjunction with the related financial statements and MD&A.

SECOND QUARTER 2020 REVIEW

Production volumes averaged 435 boe per day in the second quarter, a 65% decrease from the first quarter of 2020. Production in the quarter was impacted by Altura's voluntary production curtailment of approximately 700 boe per day in response to the severe decline in crude oil prices caused by the COVID-19 pandemic and OPEC production quota concerns. Altura curtailed approximately 525 boe per day in April and as crude oil prices continued to rapidly decline in April, Altura made the decision to shut in all corporate production for the month of May. The Corporation began restoring curtailed volumes in June as oil prices improved, and production volumes increased to approximately 1,050 boe per day in July. Wet weather and third-party restrictions delayed approximately 300 boe per day of production from three wells that are expected to be back online in mid-September.

Altura's realized heavy oil price decreased 35% to $21.39 per barrel in the second quarter compared to $33.06 per barrel in the first quarter of 2020 and decreased 66% compared to $62.83 per barrel in the second quarter of 2019.

The Corporation realized a gain on financial instruments of $658,000 ($16.60 per boe) which reflected cash settlements received on Western Canadian Select ('WCS') contracts.

Operating expenses in the second quarter were $16.27 per boe, compared to $12.19 per boe in the first quarter of 2020. The increase was mainly due to lower volumes from the voluntary production curtailment. Transportation expenses were $2.46 per boe, consistent with $2.49 per boe in the first quarter of 2020.

The Corporation's operating netback1 averaged $14.51 per boe, up 9% from the first quarter of 2020 due to an increased gain on financial instruments and lower royalty expenses, partially offset by lower crude oil prices and higher operating expenses.

Adjusted funds flow1 was $0.2 million in the quarter, down 81% from the first quarter of 2020 due to lower production volumes, lower crude oil prices and higher per unit operating expenses.

Altura received $88,000 under the Canada Emergency Wage Subsidy in the second quarter, which was applied against G&A expenses.

Altura recorded a net loss of $1.2 million in the quarter due mainly to an unrealized loss on financial instruments of $1.5 million, partially offset by a gain on property disposition of $0.6 million.

On June 30, 2020, Altura divested of a 1.375% working interest in the Corporation's production, wells, lands and facilities for cash of $871,000 after transaction costs as outlined in the Corporation's June 30, 2020 news release.

Altura's net debt1 was $5.3 million as at June 30, 2020, a decrease of $0.9 million from March 31, 2020.

CREDIT FACILITY RENEWAL

In August, Altura and its lender completed the redetermination of its revolving operating demand loan (the 'Operating Loan') and the borrowing base was confirmed at $6.0 million. Additionally, Altura secured a $3.0 million term loan from its lender through the Business Credit Availability Program ('BCAP') from the Export Development Bank of Canada ('EDC') (the 'Term Loan'). The Operating Loan and the Term Loan (collectively the 'Credit Facilities') will provide Altura with $9.0 million of total Credit Facilities. Considering Altura's net debt of $5.3 million as at June 30, 2020, the Corporation has sufficient liquidity to execute its business plan in the current volatile commodity market. The next review date for the Credit Facilities has been scheduled for May 31, 2021 but may be set at an earlier or later date at the sole discretion of the lender.

The Term Loan is a non-revolving term facility to be used exclusively to provide additional liquidity to finance Altura's business operations. It has a five-year maturity with no less than 50% of amounts outstanding due on August 27, 2024 and the remaining balance due on August 27, 2025.

The interest rate on the Credit Facilities is the Lender's prime rate plus 4.5 percent per annum. Please refer to Altura's second quarter of 2020 MD&A and financial statements for additional information on the Credit Facilities.

ABOUT ALTURA ENERGY INC.

Altura is a junior oil and gas exploration, development and production company with operations in central Alberta. Altura predominantly produces from the Rex member in the Upper Mannville group and is focused on delivering per share growth and attractive shareholder returns through a combination of organic growth and strategic acquisitions.

Forward-looking Information and Statements

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words 'expect', 'anticipate', 'budget', 'forecast', 'continue', 'estimate', 'objective', 'ongoing', 'may', 'will', 'project', 'should', 'believe', 'plans', 'intends', 'strategy' and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to: uncertainty about the COVID-19 pandemic and the impact it will have on Altura's operations, the demand for Altura's products, and economic activity in general; Altura's plan to bring on three shut-in Leduc-Woodbend wells by mid-September; forecasted production volumes to range between 1,000 and 1,100 boe per day for the second half of 2020; the expected closing of three additional dispositions of a 1.375% working interest for $875,000 each on September 30, 2020, January 31, 2021 and June 30, 2021 and forecasted reduction of net debt to approximately $3.5 million by the end of the year.

The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Altura including, without limitation: the continued performance of Altura's oil and gas properties in a manner consistent with its past experiences; that Altura will continue to conduct its operations in a manner consistent with past operations; the return of industry conditions to pre-COVID-19 levels; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; the accuracy of the estimates of Altura's reserves and resource volumes; certain commodity price and other cost assumptions; the continued availability of oilfield services and the continued availability of adequate debt and equity financing and cash flow from operations to, among other things, fund its planned expenditures.

Altura believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable based on prior operating history but no assurance can be given that these factors, expectations and assumptions will prove to be correct particularly in the current operating environment which is unprecedented by any standard. To the extent that any forward-looking information contained herein may be considered future oriented financial information or a financial outlook, such information has been included to provide readers with an understanding of management's assumptions used for budgeted and developing future plans and readers are cautioned that the information may not be appropriate for other purposes.

Contact:

Tel: (403) 984-5197

Web: www.alturaenergy.ca

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