Stampede Drilling : Audited Consolidated Financials

Audited Consolidated Financial Statements of

Stampede Drilling Inc.

As at and for the Years Ended December 31, 2022 and 2021

(Expressed in Canadian Dollars)

MANAGEMENT'S REPORT

The accompanying consolidated financial statements of Stampede Drilling Inc. (the "Corporation") and all other financial and operating information contained in the report are the responsibility of management. The consolidated financial statements have been prepared in accordance with the accounting policies detailed in the notes to the consolidated financial statements and in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Management is also responsible for establishing and maintaining adequate internal controls over the Corporation's financial reporting. The Corporation's internal control system has been designed and maintained to provide reasonable assurance that assets are properly safeguarded and that the financial records are sufficiently and well maintained to provide relevant, timely and reliable information to management.

External auditors, appointed by the shareholders, have independently examined the consolidated financial statements. They have performed such tests they deem necessary to enable them to express an opinion on these consolidated financial statements.

The Audit Committee of the Board of Directors has discussed the consolidated financial statements, including the notes thereto, with management and the external auditors. The Board of Directors has approved the consolidated financial statements on the recommendation of the Audit Committee.

Signed "Lyle Whitmarsh"	Signed "Jeff Schab"
President, Chief Executive Officer	Chief Financial Officer
and Chairman of the Board	March 16, 2023
March 16, 2023

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Stampede Drilling Inc.
Consolidated Statements of Financial Position
		December 31,	December 31,
(Stated in thousands of Canadian dollars)	Note	2022	2021
Assets
Current Assets
Cash		703	665
Trade and other receivables	15	13,908	6,773
Prepaid expenses and deposits		315	213
Total Current Assets		14,926	7,651
Non-Current Assets
Property and equipment	9	87,047	42,289
Investment in equity securities	8	4,000	-
Right-of-use assets	4	1,846	354
Goodwill	10	461	461
Total Non-Current Assets		93,354	43,104
Total Assets		108,280	50,755
Liabilities
Current Liabilities
Accounts payable and accrued liabilities	15	7,652	2,574
Demand Facility	11	6,794	6,998
BDC Loan	11	1,500	400
Term Loan	11	931	-
Convertible debentures	12	2,380	-
Lease liabilities	5	433	157
Other liabilities	15	63	47
Total Current Liabilities		19,753	10,176
Non-Current Liabilities
BDC Loan	11	-	1,500
Convertible debentures	12	-	2,532
Term Loan	11	8,575	-
Lease liabilities	5	1,403	234
Other liabilities	15	72	134
Total Non-Current Liabilities		10,050	4,400
Total Liabilities		29,803	14,576
Shareholders' Equity
Share capital	13	87,194	62,220
Contributed surplus		8,135	4,688
Equity component of convertible debentures	12	43	46
Accumulated other comprehensive income		932	908
Accumulated deficit		(23,473)	(31,683)
Total Shareholders' Equity		72,831	36,179
Non-controlling interest	7	5,646	-
Total Equity		78,477	36,179
Total Liabilities and Equity		108,280	50,755
Note 21 Commitments and Contractual Obligations
Note 22 Subsequent Event
Signed "Thane Russell"		Signed "Murray Hinz"
Director		Director
See accompanying notes to these consolidated financial statements.

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Stampede Drilling Inc.

Consolidated Statements of Comprehensive Income

		Twelve months ended
		December 31,
(Stated in thousands of Canadian dollars, except per share
amounts)	Note	2022	2021
Revenue	3	66,879	32,163
Cost of sales:
Direct operating expenses	19	44,564	20,135
Depreciation of property and equipment	9	4,484	4,165
		49,048	24,300
Income from operations		17,831	7,863
Expenses
Administrative		2,881	1,492
Salaries and benefits		4,129	2,175
Share based payments	14	1,029	515
Depreciation of right-of-use assets	4	263	321
		8,302	4,503
Income before finance costs and other income (expense)		9,529	3,360
Gain on asset disposals		530	301
Finance costs	16	(1,246)	(670)
Other income		9	101
Foreign exchange loss		(3)	(30)
Transaction costs		(609)	(210)
Net income from operations before taxes		8,210	2,852
Current tax expense	20	-	-
Deferred tax expense (recovery)	20	-	-
Total income tax		-	-
Net income		8,210	2,852
Other comprehensive income
Items that may be subsequently reclassified to profit or
loss:
Foreign currency translation adjustment		24	26
Total comprehensive income		8,234	2,878
Basic income per share	6	$0.05	$0.02
Diluted income per share	6	$0.05	$0.02

See accompanying notes to these consolidated financial statements

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Stampede Drilling Inc.

Consolidated Statements of Changes in Equity (Stated in thousands of Canadian dollars)

					Equity	Accumulated
					Component of	Other	Non-
		Share Capital	Contributed	Convertible	Comprehensive	Controlling		Total
		Shares	Amount	Surplus	Debenture	Income	Interest	Deficit	Equity
	Note	(000's)	$	$	$	$	$	$	$
Balance as at January 1, 2021		132,091	62,194	4,184	46	882	-	(34,535)	32,771
Share based payments expense	14	-	-	515	-	-	-	-	515
Stock options exercised	13	80	15	-	-	-	-	-	15
Stock option value of exercised options	13		11	(11)	-	-	-	-	-
Comprehensive income for the period		-	-	-	-	26	-	2,852	2,878
Balance as at December 31, 2021		132,171	62,220	4,688	46	908	-	(31,683)	36,179
Share based payments expense	14	-	-	1,029	-	-	-	-	1,029
Adjustment to carrying amount of non-
controlling interest	7	-	-	2,540	-	-	5,646	-	8,186
Stock options exercised	13	608	127	-	-	-	-	-	127
Stock option value of exercised options	13	-	122	(122)	-	-	-	-	-
Issuance of common shares	13	83,202	26,625	-	-	-	-	-	26,625
Share issuance costs	13	-	(2,100)	-	-	-	-	-	(2,100)
Convertible debenture conversion	13	952	200	-	(3)	-	-	-	197
Comprehensive income for the period		-	-	-	-	24	-	8,210	8,234
Balance as at December 31, 2022		216,933	87,194	8,135	43	932	5,646	(23,473)	78,477

See accompanying notes to these consolidated financial statements

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