Crew Energy Inc. provided production guidance for the month and year December 2018. Based on field estimates, December 2018 average production is estimated at 24,200 boe per day (70% natural gas) as a result of higher production rates from Ultra Condensate Rich ("UCR") wells and a portion of shut-in production being restored as differentials improved through the month. Average production in Fourth Quarter 2018 is estimated at 22,400 boe per day as approximately 1,300 boe per day of natural gas and 700 bbls per day of heavy oil was shut-in for the majority of the quarter due to low pricing.

Annual production is estimated at 23,850 boe per day, which is within guidance of 23,500 to 24,500 boe per day.

The company has two drilling rigs currently working in Northeast B.C. One rig is drilling the last well on a six well pad (at the 4-21 location) directly south of recently completed 15-20 wells in the UCR area. This rig will then be moved to drill a four well UCR pad directly north of the 15-20 location at 3-32; where lateral lengths are planned at over 3,000 metres. The second rig is drilling a lease retention well at Attachie before moving to drill an exploratory horizontal well approximately 18 kilometers northwest of Crew's UCR area, to delineate Crew's liquids rich play in the area. The company has continued to refine a number of variables in drilling operations to improve efficiencies and the company have seen a 35% reduction in costs per metre of lateral length drilled. Crew continues to trial different lateral lengths, fluid systems, drill bits and downhole assemblies in order to optimize efficiencies. Crew now has production data from its three recently completed, extended reach wells in the UCR area that are exceeding Company forecasts. The wells were drilled with lateral lengths of 2,500 to 2,700 metres versus previous average lateral lengths of 1,840 metres in this area.