JOURNEY ENERGY INC. ACHIEVES RECORD 2022 YEAR-END RESERVE LEVELS AND INCREASES YEAR OVER YEAR PDP VALUE PER SHARE BY 138%

The press release initially issued on February 22, 2023 is herein revised to incorporate additional proved, developed producing reserves tables for enhanced reader information

CALGARY, AB, Feb. 24, 2023 /CNW/ - Journey Energy Inc. (TSX: JOY) ("Journey" or the "Company") is pleased to report its year-end 2022 oil and gas reserves evaluation.  These results highlight another excellent year of value creation and prudent capital allocation.

 2022 Reserve Report Highlights:

• Proved developed producing ("PDP") reserves increased 66% to 39.8 MMboe, with a corresponding increase of 169% in NPV@10% to $485 million from $180.1 million in 2021. The PDP reserve life index increased to 8.3 years from 7.8 years and the liquids weighting increased to 56% from 43% at year-end 2021. The year-over-year increase in reserve life demonstrated Journey's ability to grow its base production while maintaining or reducing its corporate decline rate.

• Proved reserves increased 53% to 50.8 MMboe, with a corresponding increase of 136% in NPV@10% to $604.9 million.

• Proved plus probable, developed, producing ("PPDP") reserves increased 65% to 51.2 MMboe, with a corresponding increase of 154% in NPV@10% to $581.1 million. The PPDP reserve life index increased to 10.5 years from 9.9 years.

• Proved plus probable reserves increased 48% to 81.0 MMboe, with a corresponding increase of 106% in NPV@10% to $894.9 million. These values are exclusive of the value of Journey's growing power business.

• The net present value (discounted at 10%) of Journey's power business climbed to $34.7 million. This includes the producing Countess power project and the Gilby power project that is under construction. However, this does not include Journey's planned purchase of the 16.5 MW power plant in the second quarter of 2023.  

• Realized attractive F&D and FD&A recycle ratios of 2.2 and 3.0 respectively for proven reserves; and 2.6 and 3.5 respectively for proven plus probable reserves.

• Realized attractive F&D and FD&A recycle ratios of 2.6 and 3.3 respectively for proved, developed, producing reserves.  

• Reported PDP reserve addition FD&A costs per BOE of $9.56 for 2022 and $7.73 over the past 3 years.

• In 2022, Journey's PDP reserve additions replaced 544% of the annual production.

• The $276 million of total future development cost (FDC) in Journey's reserve report generates $303 million in future net present value at 10%. The development wedge generates returns of over 95% with a finding and development cost of approximately $9.50/boe, a cost consistent with Journey's historical averages.

Unaudited Financial Information
The preliminary 2022 financial information contained in this press release is not a comprehensive statement of the financial results for the fourth quarter and year ended December 31, 2022. Journey's actual results may differ materially from these estimates due to the currently ongoing finalization of our financial statements.  The Company's audited financial results for the year ended December 31, 2022, are expected to be released on March 8, 2023.

COMPANY GROSS WORKING INTEREST OIL AND GAS RESERVES AND NET PRESENT VALUES

The following table provides summary information presented in the GLJ Petroleum Consultants Limited ("GLJ") independent reserves assessment and evaluation effective December 31, 2022, (the "GLJ Report").  GLJ evaluated 100% of Journey's crude oil, natural gas liquids and natural gas reserves.  The evaluation of all of its oil and gas properties was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101").  

The 2022 GLJ reserve report includes the abandonment and reclamation liability associated with all active and inactive wells, facilities, pipelines and gathering systems as recommended in the COGE Handbook.       

Detailed reserve information will be presented in the Company's upcoming Statement of Reserves Data and Other Oil and Gas Information section of the Company's Annual Information Form scheduled to be filed on SEDAR on or before March 31, 2023.

Company Gross Reserves
Based on Three Consultants Average Price and Costs as at December 31, 2022

	Light/Med. Oil	Tight Oil	Heavy Oil	Solution Gas	Residue Gas	Shale Gas	Coal Bed Methane	NGLs	Total^(2)
Reserves Category	(Mbbl)	(Mbbl)	(Mbbl)	(MMcf)	(MMcf)	(MMcf)	(MMcf)	(Mbbl)	(Mboe)
Proved
Producing	7,369	129	10,431	30,144	59,682	443	15,642	4,250	39,831
Developed non-producing	187	-	5	451	2,470	-	106	138	835
Undeveloped	2,790	-	2,578	9,145	13,393	-	-	1,023	10,148
Total proved	10,346	129	13,014	39,740	75,545	443	15,747	5,411	50,813
Probable	7,190	32	5,350	40,762	30,141	120	6,683	4,636	30,159
Total proved plus probable	17,536	161	18,364	80,502	105,686	563	22,430	10,047	80,972
Included in Above
Proved plus probable producing	9,752	161	12,877	39,760	75,895	563	22,291	5,330	51,205

Notes:
^(1)	Company Gross Reserves consist of Journey's working interest (operated and non-operated) share of reserves before deduction of royalties payable and without including royalties receivable by the Company.
^(2)	In the case of natural gas volumes, boes are derived by converting natural gas to oil using the ratio of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf:1 bbl).
^(3)	Total values may not add due to rounding.

Net Present Values of Future Net Revenue (Based on Three Consultants Average Forecast Prices and Costs)

	Before Tax Net Present Value^(1) ($000's)
Reserves category	0 %	5 %	10 %	15 %	20 %
Proved
Producing	499,344	559,118	484,602	417,169	365,656
Developed non-producing	18,132	13,282	10,268	8,258	6,842
Undeveloped	257,535	163,278	110,021	77,330	55,872
Total proved	775,010	735,678	604,891	502,757	428,369
Probable	807,066	449,487	290,037	203,760	151,187
Total proved plus probable	1,582,076	1,185,164	894,929	706,518	579,556
Included in Above
Proved plus probable producing	811,538	716,948	581,113	483,521	414,878

Notes:
^(1)	The net present values presented in the above table do not include any value associated with Journey's power business.
^(2)	Forecast pricing used is the average of the published price forecasts for GLJ Petroleum Consultants Ltd., Sproule Associates Ltd. and McDaniel & Associates Ltd. as at December 31, 2022.
^(3)	It should not be assumed that the net present values of future net revenues estimated by GLJ represent fair market value of the reserves. There is no assurance that the forecast price and cost assumptions will be attained and variances could be material.
^(4)	Total values may not add due to rounding.

The forecast prices and foreign exchange rates used in the GLJ Report are as follows:

	WTI Cushing Oklahoma ($US/bbl)	Edmonton 40 API ($CDN/bbl)	WCS Crude Oil Stream ($CDN/bbl)	Alberta AECO-spot ($CDN/Mmbtu)	NYMEX Henry Hub ($US/Mmbtu)	Foreign Exchange ($US/$CDN)
2023	80.33	103.77	76.54	4.23	4.74	0.7450
2024	78.50	97.74	77.75	4.40	4.50	0.7650
2025	76.95	95.27	77.54	4.21	4.31	0.7683
2026	77.61	95.58	80.07	4.27	4.40	0.7717
2027	79.16	97.07	81.89	4.34	4.49	0.7750
2028	80.75	99.01	84.02	4.43	4.58	0.7750
2029	82.36	100.99	85.73	4.51	4.67	0.7750
2030	84.01	103.01	87.44	4.60	4.76	0.7750
2031	85.69	105.07	89.20	4.69	4.86	0.7750
2032	87.40	106.69	91.11	4.79	4.95	0.7750
2033	89.15	108.83	92.93	4.89	5.05	0.7750
2034	90.93	111.00	94.79	4.98	5.15	0.7750
2035	92.75	113.22	96.68	5.08	5.26	0.7750
2036	94.60	115.49	98.62	5.18	5.36	0.7750
2037	96.50	117.80	100.59	5.29	5.47	0.7750
Thereafter	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr

Reserves Reconciliation

The following table sets out the reconciliation of Journey's total gross reserves based on forecast prices and costs by principal product type as at December 31, 2022 relative to December 31, 2021.

	Proved (Mboe)	Probable (Mboe)	TPP^1 (Mboe)
December 31, 2021	33,204	21,583	54,788
Discoveries	-	-	-
Extensions	573	3,239	3,812
Infill Drilling	-	-	-
Improved Recovery	12	29	40
Technical Revisions	1,938	(1,106)	832
Acquisitions	17,542	6,260	23,802
Dispositions	-	-	-
Economic Factors	1,113	154	1,267
Production	(3,569)	-	(3,569)
December 21, 2022	50,813	30,159	80,972

Note:
1.	TPP means total proved plus probable reserves.

FINDING, DEVELOPMENT AND ACQUISITION COSTS

Journey's finding and development ("F&D") and finding, development and acquisition ("FD&A") costs for 2022, 2021 and the three-year average are presented in the tables below.  The capital costs used in the calculations are those costs related to: land acquisition and retention, seismic, drilling, completions, tangible well site, tie-ins, and facilities, plus the change in estimated future development costs ("FDC") as per the independent evaluator's reserve report.  Net acquisition costs are the cash outlays in respect of acquisitions; minus the proceeds from the disposition of properties during the year.  Due to the timing of capital costs and the subjectivity in the estimation of future costs, the aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated FDC's generally will not necessarily reflect total FDC's related to reserve additions for that year.  The reserves used in this calculation are working interest reserve additions, including technical revisions and changes due to economic factors.  The 2022 and the three-year average capital expenditures are currently unaudited as the 2022 financial results are in the process of being finalized. However, see the reconciliation of the capital expenditures below which are as of the date of this press release.

Proved Developed Producing Finding, Development & Acquisition Costs	2022	2021	3 Year
Capital expenditures (including A&D) ($000's)	178,029	10,712	190,005
Change in future capital ($000's)	7,493	3,652	11,112
Total capital for FD&A ($000's)	185,522	14,364	201,117
Reserve additions, including A&D (Mboe)	19,409	6,961	26,034
Proved Developed Producing FD&A costs – including changes in future capital ($/boe)	9.56	2.06	7.73
Proved Developed Producing FD&A costs – excluding changes in future capital ($/boe)	9.17	1.54	7.30
Recycle ratio^(1)
Including changes in future capital	3.3	9.2	2.6

Proved Finding, Development & Acquisition Costs	2022	2021	3 Year
Capital expenditures (including A&D) ($000's)	178,029	10,712	190,005
Change in future capital ($000's)	44,714	7,465	12,378
Total capital for FD&A (000's)	222,743	18,177	202,383
Reserve additions, including A&D (Mboe)	21,178	6,923	26,930
Proved FD&A costs – including changes in future capital ($/boe)	10.52	2.63	7.52
Proved FD&A costs – excluding changes in future capital ($/boe)	8.41	1.55	7.06
Recycle ratio^(1)
Including changes in future capital	3.0	7.2	2.6

Proved plus Probable Finding, Development & Acquisition Costs	2022	2021	3 Year
Capital expenditures (including A&D) ($000's)	178,029	10,712	190,005
Change in future capital ($000's)	90,257	14,806	37,307
Total capital for FD&A ($000's)	268,286	25,518	227,312
Reserve additions, including A&D (Mboe)	29,753	7,698	32,966
Proved plus Probable FD&A costs – including changes in future capital ($/boe)	9.02	3.31	6.90
Proved plus Probable FD&A costs – excluding changes in future capital ($/boe)	5.98	1.39	5.76
Recycle ratio^(1)
Including changes in future capital	3.5	5.7	2.9

Proved Developed Producing Finding & Development Costs	2022	2021	3 Year
Capital expenditures (excluding A&D) ($000's)	41,576	2,990	45,867
Change in future capital ($000's)	7,493	3,652	11,112
Total capital for F&D ($000's)	49,069	6,642	56,979
Reserve additions, excluding A&D (Mboe)	4,054	4,814	8,532
Proved Developed Producing F&D costs – including changes in future capital ($/boe)	12.10	1.38	6.68
Proved Developed Producing F&D costs – excluding changes in future capital ($/boe)	10.26	0.62	5.38
Recycle ratio^(1)
Including changes in future capital	2.6	13.7	3.0

Proved Finding & Development Costs	2022	2021	3 Year
Capital expenditures (excluding A&D) ($000's)	41,576	2,990	45,867
Change in future capital ($000's)	11,433	6,969	(21,399)
Total capital for F&D ($000's)	53,009	9,959	24,468
Reserve additions, excluding A&D (Mboe)	3,636	4,736	7,201
Proved F&D costs – including changes in future capital ($/boe)	14.58	2.10	3.40
Proved F&D costs – excluding changes in future capital ($/boe)	11.43	0.63	6.37
Recycle ratio^(1)
Including changes in future capital	2.2	9.0	5.9

Proved plus Probable Finding & Development Costs	2022	2021	3 Year
Capital expenditures (excluding A&D) ($000's)	41,576	2,990	45,867
Change in future capital ($000's)	31,654	14,210	(21,892)
Total capital for F&D ($000's)	73,230	17,200	23,975
Reserve additions, excluding A&D (Mboe)	5,951	5,054	6,520
Proved plus Probable F&D costs – including changes in future capital ($/boe)	12.31	3.40	3.68
Proved plus Probable F&D costs – excluding changes in future capital ($/boe)	6.99	0.59	7.03
Recycle ratio^(1)
Including changes in future capital	2.6	5.6	5.4

Notes:
^(1)	Recycle ratio is calculated as the operating netback per boe divided by F&D or FD&A costs per boe as applicable. The operating netbacks used in the respective years are as follows: 2022 (unaudited) - $31.88/boe; 2021 - $18.89/boe and the three-year average is $19.90/boe (see full reconciliation in the "Advisories" section).
^(2)	Future Development Costs have been adjusted for the effects of reserves categorized as acquisitions and dispositions.

FUTURE DEVELOPMENT COSTS

The following table provides the breakdown of future development costs deducted in the estimation of the future net revenue attributable to the proved and proved plus probable reserve categories noted below:

($000's)	Proved	Proved plus Probable
2023	22,767	33,404
2024	51,287	81,929
2025	29,426	84,839
2026	27,926	58,334
2027	2,700	23,464
Remaining	8,225	11,045
Total (undiscounted)	142,331	293,015

RESERVE LIFE INDEX

The Company's reserve life index ("RLI") is calculated by taking the Company Gross Reserves from the GLJ Report and dividing them by the projected 2023 production as estimated in the GLJ Report.

	Company Gross Reserves	2022 Company Gross Production	RLI
Reserves Category	(Mboe)	(Mboe)	(Years)
Proved, developed, producing	39,831	4,774	8.3
Total proved	50,813	5,034	10.1
Proved plus probable producing	51,205	4,898	10.5
Proved plus probable	80,972	5,450	14.9

NET ASSET VALUE

The following table provides a calculation of Journey's estimated net asset value ("NAV") and net asset value per share ("NAVPS") as at December 31, 2022 based on the estimated future net revenues associated with Journey's reserves as presented in the GLJ Report. NAV does not include any provision for Journey's undeveloped land or seismic database, both of which increased materially in 2022, through our A&D program.  However, NAV in the table below includes the value of Journey's Countess Power Project ("CPP") and future value of Journey's Gilby Power Project ("GPP") based upon an economic run completed by GLJ and using their pricing assumptions.

	Net Asset Value ($000's)			Net Asset Value ($/share)
Category	2022	2021	%	2022	2021	%
PDP plus CPP (developed)	392,085	136,784	187	6.77	2.85	138
TP plus CPP & GPP (developed + undeveloped)	540,829	215,082	151	9.34	4.48	108
PPDP plus CPP (developed)	488,596	185,434	163	8.44	3.86	119
TPP plus CPP & GPP (developed + undeveloped)	830,867	393,470	111	14.35	8.19	75

Notes:
^(1)	Aggregate NAV is calculated by taking the future net revenues per the GLJ report, on a before tax basis, discounted at 10% and subtracting net debt at December 31, 2022 of approximately $98,767 thousand (unaudited); (December 31, 2021 - $57,021 thousand). The 2022 NAV has been adjusted to include the value of power generation at Countess and Gilby. Countess was commissioned on September 29, 2020 (10% NPV: $6,250 thousand). Gilby power generation is expected to start power generation in the first quarter of 2024 (10% NPV: $28,455 thousand) as evaluated by GLJ effective January 1, 2023
^(2)	Year-end NAVPS is calculated by taking the NAV and dividing it by the basic shares outstanding as at December 31, 2022 of 57,882 thousand shares (December 31, 2021 – 48,060 thousand). All share counts have been rounded to the nearest 1,000 shares.

This is the second time in as many years where Journey's capital program has produced significant growth in NAVPS. In aggregate Journey has increased its producing net asset value per share by over 100% on an annualized basis over the past two years. Journey has achieved this milestone while continuing to reduce ARO relative to PDP, while improving corporate sustainability.

About the Company

Journey is a Canadian exploration and production company focused on oil-weighted operations in western Canada.  Journey's strategy is to grow its production base by drilling on its existing core lands, implementing waterflood projects, and by executing on accretive acquisitions.  Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods.

Journey Energy Inc.
700, 517 – 10^th Avenue SW
Calgary, AB T2R 0A8
403.294.1635
www.journeyenergy.ca

ADVISORIES

Forward looking information

This press release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding decline rates, anticipated netbacks, drilling inventory, estimated average drill, complete and equip and tie-in costs, anticipated potential of the Assets including, but not limited to, EOR performance and opportunities, capacity of infrastructure, potential reduction in operating costs, production guidance, total payout ratio, capital program and allocation thereof, future production, decline rates, funds flow, net debt, net debt to funds flow, exchange rates, reserve life, development and drilling plans, well economics, future cost reductions, potential growth, and the source of funding our capital spending. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.

The forward-looking information is based on certain key expectations and assumptions made by our management, including expectations and assumptions concerning prevailing commodity prices and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions, including the Acquisition, the ability to market oil and natural gas successfully and our ability to access capital. Although management  believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Journey can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. Aactual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that will be derived therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on  future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).These forward looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Future oriented financial information
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Journeys prospective results of operations, funds flow, netbacks, debt, payout ratio well economics and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for providing further information about Journey's anticipated future business operations. Journey disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, which involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Journey, including, without limitation, those listed under "Risk Factors" and "Forward Looking Statements" in the Annual Information Form filed on www.SEDAR.com on March 23, 2022. Forward-looking information may relate to the Company's future outlook and anticipated events or results and may include statements regarding the business strategy and plans and objectives. Particularly, forward-looking information in this press release includes, but is not limited to, information concerning Journey's drilling and other operational plans, production rates, and long-term objectives. Journey cautions investors in Journey's securities about important factors that could cause Journey's actual results to differ materially from those projected in any forward-looking statements included in this press release. Information in this press release about Journey's prospective funds flows and financial position is based on assumptions about future events, including economic conditions and courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that information regarding Journey's financial outlook should not be used for purposes other than those disclosed herein. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which management believe are reasonable as of the current date.  No assurance can be given that the expectations set out in the Prospectus or herein will prove to be correct and accordingly, you should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it is under no obligation and do not undertake to update this information at any particular time except as required by applicable securities law.

Non-IFRS Measures

The Company uses the following non-IFRS measures in evaluating corporate performance. These terms do not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculation of similar measures by other companies.

1) "Adjusted Funds Flow" is calculated by taking "cash flow provided by operating activities" from the financial statements and adding or deducting: changes in non-cash working capital; non-recurring "other" income; transaction costs; and decommissioning costs.  Adjusted Funds Flow per share is calculated as Adjusted Funds Flow divided by the weighted-average number of shares outstanding in the period. Because Adjusted Funds Flow and Adjusted Funds Flow per share are not impacted by fluctuations in non-cash working capital balances, management believe these measures are more indicative of performance than the GAAP measured "cash flow generated from operating activities".  In addition, Journey excludes transaction costs from the definition of Adjusted Funds Flow, as these expenses are generally in respect of capital acquisition transactions.  The Company considers Adjusted Funds Flow a key performance measure as it demonstrates the Company's ability to generate funds necessary to repay debt and to fund future growth through capital investment.  Journey's determination of Adjusted Funds Flow may not be comparable to that reported by other companies. Journey also presents "Adjusted Funds Flow per basic share" where per share amounts are calculated using the weighted average shares outstanding consistent with the calculation of net income (loss) per share, which per share amount is calculated under IFRS and is more fully described in the notes to the audited, year-end consolidated financial statements.

2) "Netback(s)".  The Company uses netbacks to help evaluate its performance, leverage, and liquidity; comparisons with peers; as well as to assess potential acquisitions.  Management considers netbacks as a key performance measure as it demonstrates the Company's profitability relative to current commodity prices.  Management also uses them in operational and capital allocation decisions.  Journey uses netbacks to assess its own performance and performance in relation to its peers. These netbacks are operating, Funds Flow and net income (loss).  "Operating netback" is calculated as the average sales price of the commodities sold (excluding financial hedging gains and losses), less royalties, transportation costs and operating expenses. There is no GAAP measure that is reasonably comparable to netbacks. Below is the reconciliation of the Operating Netback for Journey for 2022, 2021 and the three year average:

	$000's			$/boe
	2022	2021	3 Year	2022	2021	3 Year
Revenues	235,583	123,843	427,338	66.01	42.39	44.71
Royalties	(46,976)	(19,210)	(73,097)	(13.16)	(6.58)	(7.65)
Operating expenses	(72,356)	(48,064)	(158,685)	(20.27)	(16.45)	(16.60)
Transportation	(2,485)	(1,385)	(5,349)	(0.70)	(0.47)	(0.56)
Operating netback	113,766	55,184	190,207	31.88	18.89	19.90

3) "Net debt" is calculated by taking current assets and then subtracting accounts payable and accrued liabilities; the principal amount of term debt; and the carrying value of the other liability. Net debt is used to assess the capital efficiency, liquidity and general financial strength of the Company. In addition, it is used as a comparison tool to assess financial strength in relation to Journey's peers. Net Debt is calculated as follows:

($000's)	December 31, 2022	December 31, 2021
Principal amount of term debt	67,580	67,580
Principal amount of vendor-take-back debt	43,000	-
Accounts payable and accrued liabilities	45,495	20,441
Principal amount of contingent bank debt	5,000	5,750
Other loans	419	156
Deduct:
Cash in bank	(31,400)	(15,677)
Accounts receivable	(29,677)	(20,180)
Prepaid expenses	(1,650)	(1,049)
Net debt	98,767	57,021

4) Journey uses "Capital Expenditures (excluding A&D)" and "Capital Expenditures (including A&D)" to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic capital program, excluding acquisitions or dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. Journey then adjusts its capital expenditures for A&D activity to give a more complete analysis for its capital spending used for FD&A purposes. The capital spending for A&D proposes has been adjusted to reflect the non-cash component of the consideration paid (i.e. shares issued). The following table details the composition of capital expenditures and its reconciliation to cash flow used in investing activities:

(000's)			Year ended December 31
			2022	2021
Land and lease rentals			919	616
Geological and geophysical			63	-
Recompletions			31,260	456
Well equipment and facilities			9,334	1,918
Capital Expenditures (excluding A&D)			41,576	2,990
Corporate acquisition (cash paid and working capital assumed)			8,226	2,530
Corporate acquisition – share consideration issued			10,920	3,643
Asset acquisitions			120,307	1,589
Asset dispositions			(3,000)	(40)
Capital Expenditures (including A&D)			178,029	10,712
Other capital – power generation			2,996	189

Measurements

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

Where amounts are expressed in a barrel of oil equivalent ("boe"), or barrel of oil equivalent per day ("boe/d"), natural gas volumes have been converted to barrels of oil equivalent at nine (6) thousand cubic feet ("Mcf") to one (1) barrel. Use of the term boe may be misleading particularly if used in isolation. The boe conversion ratio of 6 Mcf to 1 barrel ("Bbl") of oil or natural gas liquids is based on an energy equivalency conversion methodology primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.

Reserves Disclosure

Journey's Statement of Reserves Data and Other Oil and Gas Information on Form 51-101F1 dated effective as at December 31, 2022, which will include further disclosure of Journey's oil and gas reserves and other oil and gas information in accordance with NI 51-101 and COGEH forming the basis of this press release, will be included in the AIF, which will be available on SEDAR at www.sedar.com on or near March 31, 2023.

All reserves values, future net revenue and ancillary information contained in this press release are derived from the GLJ Report unless otherwise noted. All reserve references in this press release are "Company gross reserves". Company gross reserves are the Company's total working interest reserves before the deduction of any royalties payable by the Company. Estimates of reserves and future net revenue for individual properties may not reflect the same level of confidence as estimates of reserves and future net revenue for all properties, due to the effect of aggregation. There is no assurance that the forecast price and cost assumptions applied by GLJ in evaluating Journey's reserves will be attained and variances could be material. All reserves assigned in the GLJ Report are located in the Province of Alberta and presented on a consolidated basis.

All evaluations and summaries of future net revenue are stated prior to the provision for interest, debt service charges or general and administrative expenses and after deduction of royalties, operating costs, estimated well abandonment and reclamation costs and estimated future capital expenditures. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. The recovery and reserve estimates of Journey's oil, NGLs and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual oil, natural gas and NGL reserves may be greater than or less than the estimates provided herein. There are numerous uncertainties inherent in estimating quantities of crude oil, reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth herein are estimates only.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Proved developed producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g., when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves category (proved or probable) to which they are assigned. Certain terms used in this press release but not defined are defined in NI 51-101, CSA Staff Notice 51-324 – Revised Glossary to NI 51-101, Revised Glossary to NI 51-101, Standards of Disclosure for Oil and Gas Activities ("CSA Staff Notice 51-324") and/or the COGEH and, unless the context otherwise requires, shall have the same meanings herein as in NI 51-101, CSA Staff Notice 51-324 and the COGEH, as the case may be.

Drilling Locations
This press release discloses drilling inventory in two categories: (a) proved locations; and (b) probable locations. Proved locations and probable locations are derived from the GLJ Report and account for drilling locations that have associated proved and/or probable reserves, as applicable.

Of the 102 net total booked drilling locations identified herein, 48 are net proved locations and 54 are net probable locations.

 "Development capital" means the aggregate exploration and development costs incurred in the financial year on reserves that are categorized as development. Development capital excludes capitalized administration costs.

"FDC" Future development costs are the future capital cost estimated for each respective category in year- end reserves attributed with realizing those reserves and associated future net revenue.

"Finding and development costs" Journey calculates F&D costs, including FDC, as the sum of "Capital Expenditures, before A&D" (as defined under "Non-GAAP Measures") and the change in FDC required to bring the reserves on production, divided by the change in reserves within the applicable reserves category. Management uses F&D costs as a measure of capital efficiency for organic reserves development.

"F&D Cost per BOE" are the F&D costs divided by the change in gross company interest reserves volumes that are characterized as exploration or development, excluding volumes associated with acquisitions, for the period.

"Finding, development and acquisition costs" Journey calculates FD&A costs, including FDC, as the sum of "Capital Expenditures, excluding A&D" and "Capital Expenditures, including A&D" (as defined under "Non-IFRS Measures"), and the change in FDC required to bring the reserves on production, divided by the change in reserves within the applicable reserves category, inclusive of changes due to acquisitions and dispositions. Management uses FD&A costs as a measure of capital efficiency for organic and acquired reserves development.

"FD&A Cost per BOE" is the FD&A cost divided by the change in gross company interest reserves volumes, including changes in volumes characterized as acquisitions or divestitures, in the current period.

Readers are cautioned that the aggregate of capital expenditures incurred in the year, comprised of exploration and development costs and acquisition costs, and the change in estimated FDC generally will not reflect total F&D or FD&A costs related to reserves additions in the year.

Abbreviations

The following abbreviations are used throughout these MD&A and have the ascribed meanings:

A&D	acquisition and divestiture of petroleum and natural gas assets
bbl	barrel
bbls	barrels
boe	barrels of oil equivalent (see conversion statement below)
boe/d	barrels of oil equivalent per day
gj	gigajoules
GAAP	Generally Accepted Accounting Principles
IFRS	International Financial Reporting Standards
Mbbls	thousand barrels
MMBtu	million British thermal units
Mboe	thousand boe
Mcf	thousand cubic feet
Mmcf	million cubic feet
Mmcf/d	million cubic feet per day
MSW	Mixed sweet Alberta benchmark oil price
NGL's	natural gas liquids (ethane, propane, butane and condensate)
WCS	Western Canada Select benchmark oil price
WTI	West Texas Intermediate benchmark Oil price

All volumes in this press release refer to the sales volumes of crude oil, natural gas and associated by-products measured at the point of sale to third-party purchasers. For natural gas, this occurs after the removal of natural gas liquids.

No securities regulatory authority has either approved or disapproved of the contents of this press release.

SOURCE Journey Energy Inc.

Alex G. Verge, President and Chief Executive Officer, 403.303.3232, [email protected]; Gerry Gilewicz, Chief Financial Officer, 403.303.3238, [email protected]