Calgary, Alberta--(Newsfile Corp. - November 29, 2022) - New Stratus Energy Inc. (TSXV: NSE) ("New Stratus", "NSE" or the "Corporation") is pleased to announce its financial and operating results for the three months ended September 30, 2022.

Quarterly Highlights

• Quarterly revenue of $29.5 million

• Quarterly funds flow from operations ⁽¹⁾ of $9.0 million ($0.08 per share)

• Quarterly adjusted EBITDA ⁽¹⁾ of $10.5 million ($0.09 per share)

• Ended the quarter with a cash balance of $8.6 million ($0.07 per share) and working capital of $41.5 million ($0.35 per share).

(1) This is a non-IFRS financial measure or non-IFRS ratio. Refer to the disclosure under the heading "Non-IFRS and Other Financial Measures" within press release.

The three months ended September 30, 2022, marked the Corporation's second complete quarter following the acquisition of 100% of the shares of Repsol Ecuador S.A., which closed on January 14, 2022 (the "Acquisition"). For the six months ended September 30, 2022, NSE generated revenues of $62.7 million and net income of $10.3 million or $0.09 per share. Adjusted EBITDA was $30.2 million or $0.26 per share.

Following a record profitability during the first quarter where the Corporation generated revenues of $33.2 million as a result of the strong WTI pricing of US$108.72 per barrel, during the second quarter of fiscal 2023, the Corporation produced revenue of $29.5 million. The decrease in revenue was mainly caused by a decline of the WTI price to US$93.18 per barrel, generating a decrease in the carryforward received by approximately $6 million, when compared to the previous quarter.

Operating expenses increased by approximately $4.4 million during the three months ended September 30, 2022 as compared to the previous quarter. This increase is represented by higher consumption of diesel and inventories for approximately $0.7 million, an increase in the participation cost to the state social investment for approximately $ 0.6 million, an increase in administration related to personnel training, security and advertisement for approximately $0.9 million and an increase in restructuring of information technology systems in Ecuador for approximately $2.1 million.

In addition, as a result of new political intentions in Colombia, management considered it prudent to take a provision on its VMM-18 project and posted a one-time non-cash charge of $2.0 million, also affecting the profitability for the quarter.

Financial and Operational Summary

(1) Non-IFRS financial measure. Refer to "Non-IFRS and Other Financial Measures" within press release.
(2) Includes in-the-money dilutive instruments as at September 30, 2022 which include 8,505,000 stock options with a weighted average exercise price of $0.38 and 16,105,855 warrants with a weighted average exercise price of $0.46.
(3) Non-IFRS ratio. Refer to "Non-IFRS and Other Financial Measures" within press release.

Environmental and Social Responsibility

The Corporation also provided in its management's discussion and analysis, its Environmental, Social and Governance (ESG) performance including information relating to operations in Ecuador and how New Stratus is helping mitigate potential non-financial risks emanating from the oil fields.

Environmental
The operation of Blocks 16 and 67 (Tivacuno) takes place in an area of great environmental sensitivity, which partially coincides with the Yasuní National Park, located in the Amazon jungle of Ecuador.

NSE continues making improvements in the design and efficiency of the operational processes in Ecuador, with the goal to enhance environmental performance. We are reviewing practices such as cluster drilling (multiple wells drilled per location), directional and horizontal drilling, centralized production facilities, injection wells for handling produced water, construction of centralized industrial facilities, roads and right of way with minimization of the use of areas (reduction of deforestation) incorporated from the beginning. Thus, the area occupied by industrial facilities, internal roads and right of way is only 0.26% (367 hectares) of the total concession area (138,800 hectares).

Social
Blocks 16 and 67 (Tivacuno) are in the Waorani and Kichwa indigenous communities. To balance the opportunities that the communities have for a better quality of life, prior operators signed a collaboration agreement with N.A.W.E (Nacionalidad Waorani del Ecuador) in the Waorani community. The agreement focuses on the following four broad matters: health, education, support to N.A.W.E. management and community leaders and, support to the development of communities.

Contract Update

The Corporation continues to advance its discussions with the Ecuadorian Ministry of Energy and Mines (the "MEM") on the extension of the rights to Blocks 16 & 67 through a production sharing contract and expect the MEM will form the legally and contractually required Contract Negotiation Commission in the next four weeks Further updates will be provided by the Corporation as the arise in December 2022.

Partnership Acquisitions

The Corporation has previously disclosed signed definitive agreements (the "Agreements") with its three working interest partners and an intended closing of those acquisitions not later than November 30, 2022. The new closing date for the Agreements is expected to be on or about December 15, 2022, but not later than December 31, 2022.

Contact Information:

Jose Francisco Arata
Chairman & Chief Executive Officerjfarata@newstratus.energy

Wade Felesky
President & Directorwfelesky@newstratus.energy

Mario Miranda
Chief Financial Officermmiranda@newstratus.energy - (416) 363-4900

Forward-Looking Information

Certain information set forth in this news release constitutes "forward-looking statements", and "forward-looking information" under applicable securities legislation (collectively, "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements may be identified by the use of conditional or future tenses or by the use of words such as "will", "expects", "intends", "may", "should", "estimates", "anticipates", "believes", "projects", "plans", and similar expressions, including variations thereof and negative forms. Forward-looking information or statements included in this press release include, but are not limited to, statements with respect to the Corporation's Environmental, Social and Governance plans and activities, the Corporation's expectations regarding the discussions with the Ecuadorian Ministry of Energy and Mines on the extension of the rights to Blocks 16 and 67, and the Corporation's expectations regarding the closing of the Agreements with its three working interest partners. Forward-looking statements in this press release are based on the Corporation's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them.

In respect of the forward-looking statements contained herein, the Corporation has provided them in reliance on certain assumptions that it believes are reasonable at this time, some or all of which may prove to be incorrect. Accordingly, readers should not place undue reliance on the forward-looking statements contained herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. New Stratus undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. Actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits may be derived therefrom.

Non-IFRS and Other Financial Measures

This news release contains the financial terms "Adjusted EBITDA", "Funds flow from operations" and "Operating Netback" that do not have a standardized definition under International Financial Reporting Standards ("IFRS"). These financial measures, together with measures prepared in accordance with IFRS, provide useful information to investors and shareholders, as management uses them to evaluate the operating performance of the Corporation. The Corporation's determination of these non-IFRS measures may differ from other reporting issuers, and therefore are unlikely to be comparable to similar measures presented by other companies. Further, these non-IFRS measures should not be considered in isolation or as a substitute for measures of performance or cash flows prepared in accordance with IFRS.

Non-IFRS Measures

Adjusted EBITDA

Adjusted EBITDA is a non-IFRS measure. It is most comparable to net income before taxes as reported in the primary financial statements for management and investors. Adjusted EBITDA represents the operating results of the Corporation's primary business, excluding the following items: restructuring, severance and other costs, certain non-cash items (such as impairments, foreign exchange, costs under terminated pipeline contracts and share-based compensation) and gains or losses arising from the disposal of capital assets. In addition, other unusual or non-recurring items are excluded from adjusted EBITDA, as they are not indicative of the underlying core operating performance of the Corporation.

Adjusted EBITDA is not a standardized financial measure under the reporting framework used to prepare our financial statements and may not be comparable to similar financial measures disclosed by other issuers.

The following table provides a reconciliation of net income before taxes to adjusted EBITDA for the three months ended September 30, 2022 and 2021:

(1) The stock-based compensation are expenses incurred towards stock option plan for employees, officers, directors and consultants.

Funds Flow from operations

Funds flow provided by operations is a non-IFRS financial measure. It is most comparable to cash from operating activities. Funds flow provided by operations is a measure of the Corporation's ability to finance its capital investment plans and meet its financial obligations. This measure is defined as cash from (used in) operating activities excluding settlement of asset retirement obligations and net change in non-cash working capital items.

Funds flow provided by operations is not a standardized financial measure under the reporting framework used to prepare our financial statements and may not be comparable to similar financial measures disclosed by other issuers.

Neither 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 release.

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