• Saturn has tied-in nine horizontal wells drilled since spring break up increasing production to 12,000 boe/d^[1]
• $8 million of environmental remediation expenditures have been deployed of total 2022 budget of $14 million^[2]
• Dr. Thomas Gutschlag and Mr. Grant MacKenzie are new nominees for election to the board of directors

Calgary, Alberta--(Newsfile Corp. - September 7, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) ("Saturn" or the "Company") is committed to leading environment, social and governance ("ESG") policies and procedures in its operations and is pleased to announce that the Company has reached the midpoint of its 2022 Land Reclamation Program (the "LRP") and successful progress in our 2022 drilling program.

Operations Update

Saturn is pleased to announce that since spring breakup concluded, the Company has drilled and rig released 20 horizontal wells, of which nine have been recently placed onto production, seven are imminent to be put into production and four are currently being completed.

"Saturn is now well into its H2 2022 capital expenditure program, which is budgeted for the drilling of 50 horizontal wells, which comparatively is a greater number of wells than Saturn has drilled in its previous history as an oil and gas producer," stated Jordan Meyer, Saturn's Vice President Engineering. "We are pleased with the operational results to date and our continued production growth and we look forward to executing on a very active drilling program for the remainder of the year."

Saturn expects to release a more detailed operational update in mid September when sufficient data is available for IP30 results on the new drilled wells. The successful drilling results to date and the increased production to approximately 12,000 boe/d, based on field estimates, are encouraging and the Company remains on track to reach stated guidance of 12,500 boe/d average production for Q4 2022.

Land Reclamation Program Update

The LRP was initiated in December 2021 with the goal of returning land previously leased for oil and gas production to landowners in pristine condition. Saturn is currently operating three service rigs full time to the remediation of uneconomic wells, and to date:

• 63 wells have been fully abandoned, cut and capped;
  
  
• 11 additional wells have been abandoned downhole, awaiting to be cut and capped;
  
  
• 32 flow lines have been abandoned;
  
  
• 41 additional flow lines are now discontinued; and
  
  
• Over 30 local service providers have been contracted under the LRP.

The Company is conducting ongoing activities for surface remediation including Electro-Magnetic Surveys, Gas Migration Testing, Surface Casing Vent Flow Assessment, and civil works towards full land reclamation and return to landowners.

Saturn expects up to 90 additional wells to be fully abandoned, cut and capped for the remainder of the year along with 50 additional flow lines to be abandoned.

The LRP is an important program towards the environmental remediation of legacy operational areas and offers economic support to local business and indigenous communities. Remediation activities also provide valuable salvaged wellheads, downhole equipment, steel tubing and other materials for reuse which lowers Saturn's ongoing operating and drilling costs. The progress of the LRP contributes to the elimination of certain abandonment and reclamation obligations ("ARO"), improving balance sheet strength, reducing Company liabilities. Reducing ARO further contributes to increasing the net present value of future net revenue as determined by independent reserves evaluation of the Company's crude oil and natural gas assets.

First Nations Partners and Funding of the Land Reclamation Program

The majority of Saturn's LRP activities are funded through $12.6 million awarded under the Accelerated Site Closure Program ("ASCP") from the Saskatchewan provincial and the Canadian federal governments. Saturn has engaged the Onion Lake and Whitebear First Nations and through the employment of eligible indigenous service companies and has been approved for $1.5 million through the Indigenous Business Credit Pool ("IBCP") and the First Nations Stewardship Fund ("FNSF").

Board Nominations

Saturn is pleased to announce the following individuals have been nominated for election to the Company's board of directors at the upcoming AGM of the Company scheduled for September 15, 2022:

• Dr. Thomas Gutschlag - currently the Chairman of Deutsche Rohstoff AG ("DRAG"), a public company listed on the Frankfurt Stock Exchange which identifies, and develops resource projects globally, with a focus on oil and gas development in the United States. Dr. Gutschlag cofounded DRAG in 2006, was its Chief Financial Officer from 2007 to 2015 and was its Chief Executive Officer from 2015 to 2022. Dr. Gutschlag is a qualified economist with a degree in economics from the University of Heidelberg and a doctorate from the University of Mannheim.
  
  
• Mr. Grant MacKenzie - a partner at Dentons Canada LLP, the worlds largest law firm, and is the corporate co-lead of Dentons' Calgary office. He has over 20 years experience advising private and public companies in capital markets, mergers and acquisitions, start-ups, public offerings and stock exchange compliance advice. Mr. MacKenzie has extensive experience advising boards and management teams on matters concerning shareholder activism, corporate governance and TSX and TSX Venture Exchange listing matters. Mr. MacKenzie has been corporate secretary for Saturn since February, 2022.

Mr. Calvin Payne will not be standing for renomination to the Company's board of directors at the upcoming AGM. Mr. Payne has been a valuable advisor to the Company since his election to the board of directors in August 2017. The Company wishes Mr. Payne an active and enjoyable retirement and thanks him for his important leadership through Saturn's development.

Current directors Messrs. John Jeffrey, Ivan Bergerman, Jim Payne and Christopher Ryan are also being renominated for election to the Company's board of directors at the upcoming AGM.

"I want to congratulate and thank the entire Saturn team for managing the tremendous growth the Company has undergone in the past 18 months. Reaching the important milestone of 12,000 boe/d and over 5,000% production growth was only possible with the commitment and hard work of our talented team of industry professionals," acknowledged John Jeffrey, Saturn's Chief Executive Officer. "I especially want to thank Calvin Payne for his five years of dedication and guidance to the Company as a director of the board, and for his valued mentorship for myself personally and for Saturn's executives."

About Saturn Oil & Gas Inc.

Saturn Oil & Gas Inc. is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities. Saturn has assembled an attractive portfolio of free-cash flowing, low-decline operated assets in Southeastern Saskatchewan and West Central Saskatchewan that provide a deep inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an ESG-focused culture, Saturn's goal is to increase reserves, production and cash flows at an attractive return on invested capital. Saturn's shares are listed for trading on the TSX.V under ticker 'SOIL' and on the Frankfurt Stock Exchange under symbol 'SMKA'.

Further information and a corporate presentation is available on Saturn's website at www.saturnoil.com

Saturn Oil & Gas Investor & Media Contacts:

John Jeffrey, MBA - Chief Executive Officer
Tel: +1 (587) 392-7902
www.saturnoil.com

Kevin Smith, MBA - VP Corporate Development
Tel: +1 (587) 392-7900
info@saturnoil.com

Reader Advisory

FORWARD-LOOKING INFORMATION AND STATEMENTS.

Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "budgeted", "expect", "plan", "intend", "estimate", "propose", "project", "scheduled", "will" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to (i) future drilling and completions programs; (ii) capital expenditure plans; (iii) expectations regarding production guidance; (iv) timing and progress of the Company LRP program; and (iii) the election of directors at the AGM

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Saturn, including expectations and assumptions concerning: the timing of and success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Saturn's properties, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners and the ability to source and complete further asset acquisitions.

Although Saturn believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Saturn can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, actions of OPEC and OPEC+ members, the impact of the conflict in Ukraine, changes in legislation impacting the oil and gas industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Saturn's Annual Information Form for the year ended December 31, 2021.

Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although Saturn believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Saturn 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 press release, assumptions have been made regarding and are implicit in, among other things, the Company's expectations on its drilling, completions and workover programs, the Company's growth strategy and trading of the Shares and Warrants. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

The forward-looking information contained in this press release is made as of the date hereof and Saturn undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.

^[1] 12,000 boe/d is the field estimate for exit rate production for August 2022

^[2] All Land Reclamation Program expenditures are expected to be incurred by November 2022

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/136241