Pieridae Energy Limited ('Pieridae' or the 'Company') (PEA.TO) announces the release of its fourth quarter and full year 2022 financial and operating results and year end 2022 reserves.

Pieridae generated Net Operating Income ('NOI')1 of $201 million and made term debt principal repayments totalling $48 million during 2022.

In addition, the Company filed its Annual Information Form ('AIF') for the year ended December 31, 2022 containing Pieridae's 2022 independent oil and natural reserves evaluation as required under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities ('NI51-101'). Pieridae's 2022 NI51-101 reserve report is highlighted by an 89% increase in Proved Developed Producing ('PDP') PV10 value to $807 million and 52% increase in Total Proved plus Probable ('TPP') PV10 value to $1,526 million.

HIGHLIGHTS

Q4 2022

Generated record quarterly NOI [1] of $67.7 million ($0.43 per basic and $0.42 per fully diluted share) up 120% from $30.8 million ($0.20 per basic and fully diluted share) in Q4 2021, as a result of strong natural gas and natural gas liquids ('NGL') prices; Generated Funds Flow from Operations [1] of $57.6 million ($0.36 per basic and $0.35 per fully diluted share), up 365% from $12.4 million ($0.08 per basic and fully diluted share) in Q4 2021;

Generated Net income of $114.7 million ($0.72 per basic and $0.70 per fully diluted share), compared to $4.7 million ($0.03 per basic and fully diluted share) in Q4 2021; Produced 34,715 boe/d (86% natural gas) down 16% from 41,304 boe/d in 2021, due primarily to the previously discussed re-injection of ethane volumes into the natural gas sales stream and an unplanned outage at the Caroline gas plant in Central Alberta, which has subsequently been repaired;

Repaid $10.7 million of the senior secured term loan (including the net impact of interest paid in kind 'PIK'), reducing the amount due at maturity to $217.1 million [2] at year end and Commenced winter drilling program in October, spudding the Company's first Foothills well (02/6-35-44-18W5, '6-35') targeting the Ostracod formation in the Brown Creek area of Central Alberta.

Full Year 2022

Generated Record annual NOI [1] of $201.0 million ($1.27 per basic and $1.25 per fully diluted share) up 139% from $84.1 million ($0.53 per basic and fully diluted share) in 2021, primarily as a result of strong natural gas and NGL prices;

Generated Funds Flow from Operations [1] of $153.7 million ($0.97 per basic and $0.95 per fully diluted share), up 658% from $20.3 million ($0.13 per basic and fully diluted share) in 2021;

Generated Net income of $146.7 million ($0.93 per basic and $0.91 per fully diluted share), compared to a net loss of $39.8 million (-$0.25 per basic and fully diluted share) in 2021; Produced 36,868 boe/d (82% natural gas) down 9% from 40,562 boe/d in 2021, due to the previously discussed re-injection of ethane volumes into the natural gas sales stream and natural production declines; Reduced term debt principal by $48.3 million (including the net impact of PIK) during 2022 and reduced the adjusted working capital deficit [3] by $50.3 million during 2022, primarily through reduction in accounts payable which totaled $22.6 million at year end 2022 compared to $74.7 million at year end 2021; Recorded 2022 NI51-101 PDP reserves of 126.8 MMboe, down 3% from 131.3 MMboe at year end 2021 with year over year increase of 89% in PDP PV10 reserve value to $807 million at Jan 1, 2023 evaluator consensus ('IC4') pricing and Recorded 2022 NI51-101 TPP reserves of 289.1 MMboe, up 7% from 269.2 MMboe at year end 2021 with year over year increase of 52% in TPP PV10 reserve value to $1,526 million at January 1, 2023 IC4 pricing.

Subsequent to Year End Repaid an additional $27 million of term debt.

Completed drilling our first Brown Creek well (6-35) in Central Alberta in February 2023. The well was completed and temporarily tied-in to existing production infrastructure in March 2023 and is currently being flow-tested with production sold into the TC Energy (NGTL) sales gas system. After flowing continuously for 90.5 hours on test, this 100% working interest well was producing sweet natural gas through 60.3mm production tubing at a downhole-choked flow rate of 6.8 MMcf/d and a restricted flowing wellhead tubing pressure of 11.1 MPa (corresponding shut-in casing pressure of 17.1 MPa). At the conclusion of the anticipated 7-day flow test, 6-35 will be shut-in for an extended pressure build-up, during which the well will be permanently tied-in to the existing on-lease gas gathering system.

Drilling also commenced on a second Brown Creek well in February 2023, with completion expected by April 2023 and Terminated the previously announced NE BC disposition transaction as the purchaser failed to meet the required closing conditions, following multiple extensions. The Company has retained a non-refundable deposit and will continue to market the NE BC property.

Pieridae put up a very good result in the fourth quarter, punctuating a transformational year for the Company,' said Pieridae's Chief Executive Officer, Alfred Sorensen. 'Strong gas and liquids pricing drove record funds flow in Q4, offsetting lower production, due in part, to an unplanned outage at our Caroline plant which the team has since repaired. 2022 saw the Company commence drilling our extensive inventory of high-impact Foothills development locations and make progress on our path to de-levering the balance sheet, all while operating our assets in a safe, responsible and effective manner. Our disciplined hedging strategy continues to mitigate commodity price volatility and is offsetting the impact of lower AECO gas prices through the first quarter of 2023. I'd like to thank all Pieridae shareholders, lenders, employees and the communities in which we operate, for their ongoing interest and support.'

ABOUT PIERIDAE

Pieridae is a Canadian energy company headquartered in Calgary, Alberta. Through a number of corporate and asset acquisitions, we have grown into a significant upstream and midstream producer with assets concentrated in the Canadian Foothills, producing conventional natural gas, NGLs, condensate and sulphur. Pieridae provides the energy to fuel people's daily lives while supporting the environment and the transition to a lower-carbon economy. Pieridae's common shares trade on the TSX under the symbol 'PEA'.

Contact:

Tel: (403) 2615900

Forward Looking Statements

Certain statements contained herein may constitute 'forward-looking statements' or 'forward-looking information' within the meaning of applicable securities laws (collectively 'forward-looking statements'). Words such as 'may', 'will', 'should', 'could', 'anticipate', 'believe', 'expect', 'intend', 'plan', 'potential', 'continue', 'shall', 'estimate', 'expect', 'propose', 'might', 'project', 'predict', 'forecast' and similar expressions may be used to identify these forward-looking statements.

Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of resources estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits or synergies from acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and the risk factors outlined under 'Risk Factors' and elsewhere herein. The recovery and resources estimate of Pieridae's reserves provided herein are estimates only and there is no guarantee that the estimated resources will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

Forward-looking statements are based on a number of factors and assumptions which have been used to develop such forward-looking statements, but which may prove to be incorrect. Although Pieridae believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because Pieridae can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Pieridae operates; the timely receipt of any required regulatory approvals; the ability of Pieridae to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of the operator of the projects which Pieridae has an interest in, to operate the field in a safe, efficient and effective manner; the ability of Pieridae to obtain financing on acceptable terms; the ability to replace and expand oil and natural gas resources through acquisition, development and exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of Pieridae to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Pieridae operates; timing and amount of capital expenditures, future sources of funding, production levels, weather conditions, success of exploration and development activities, access to gathering, processing and pipeline systems, advancing technologies, and the ability of Pieridae to successfully market its oil and natural gas products.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Pieridae's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Pieridae's website (www.pieridaeenergy.com). Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and Pieridae assumes no obligation to update or review them to reflect new events or circumstances except as required by Applicable Securities Laws.

Forward-looking statements contained herein concerning the oil and gas industry and Pieridae's general expectations concerning this industry are based on estimates prepared by management using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which Pieridae believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While Pieridae is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors.

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