SPARTAN DELTA CORP. ANNOUNCES SECOND QUARTER 2024 RESULTS

CALGARY, AB, Aug. 7, 2024 /CNW/ - Spartan Delta Corp. ("Spartan" or the "Company") (TSX: SDE) is pleased to report its unaudited financial and operating results for the three and six months ended June 30, 2024.

Selected financial and operational information is set out below and should be read in conjunction with Spartan's unaudited consolidated interim financial statements and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2024, and June 30, 2023, which are filed on SEDAR+ at www.sedarplus.ca and are available on the Company's website at www.spartandeltacorp.com. The highlights reported in this press release include certain non-GAAP financial measures and ratios which have been identified using capital letters. The reader is cautioned that these measures may not be directly comparable to other issuers; please refer to additional information under the heading "Reader Advisories – Non-GAAP Measures and Ratios".

MESSAGE TO SHAREHOLDERS

Spartan has established core areas in the Deep Basin and the West Shale Basin Duvernay (the "Duvernay"). The Deep Basin is a liquids-rich natural gas asset that provides significant torque to natural gas prices and possesses a large multi-horizon inventory of liquids-rich targets, while the Duvernay asset is an oil and condensate rich resource play that supports significant production and value growth. The Company intends to continue leveraging its technical expertise in the Deep Basin to further optimize the asset and pursue opportunistic acquisitions while allocating its Free Funds Flow to fund the development and growth of its Duvernay asset. Spartan believes its portfolio of assets is poised to offer repeatable and economic results presenting the opportunity to generate significant shareholder returns.

In the Deep Basin, Spartan is optimizing operations and maintaining flat production as it continues to develop liquids-rich targets. In the second quarter, the Company prudently shut-in a recently completed well due to the depressed price of natural gas and anticipates bringing the production online in the fourth quarter. Spartan continues to boast a strong inventory of Deep Basin drilling locations primed to capture the contango forward curve in natural gas prices.

To date, Spartan has established one of the largest positions in the Duvernay at a low cost of entry, with a focus in the oil and condensate rich Willesden Green fairway. The Company intends to significantly grow oil and liquids production, improve well costs and productivity by optimizing well designs and completions through the application of modern drilling techniques and technologies, while leveraging underutilized infrastructure in the region.

SECOND QUARTER 2024 HIGHLIGHTS

• Spartan reported production of 38,583 BOE/d (32% liquids) during the second quarter of 2024, flat from 38,533 (32% liquids) in the first quarter of 2024, despite multiple production impediments.
  • Spartan achieved a 33% increase in crude oil production and 4% increase in condensate production as compared to the first quarter of 2024.
  • During the quarter, the Company experienced a loss of approximately 800 BOE/d of production as a result of a third-party natural gas liquid force majeure. The force majeure has since been rescinded.
  • The Company's second quarter volumes were also impacted by the voluntary shut-in of a recently completed well due to depressed natural gas prices resulting in a reduction of approximately 1,200 BOE/d of production during the quarter.
  • Additionally, Spartan successfully and safely completed multiple facility turnarounds on budget and on time.
• Second quarter 2024 oil and gas sales totaled $73.5 million, generating Adjusted Funds Flow of $37.2 million ($0.21 per share, diluted).
• The Company successfully executed a $22.6 million capital program in the second quarter of 2024, continuing to focus on developing liquids-rich targets in the Deep Basin.
  • In the Deep Basin, Spartan drilled 2.0 net wells, completed 3.8 net wells, and brought 4.6 net wells on production.
  • The Company elected to defer the drilling of 1.0 net well in the quarter due to depressed natural gas prices.
• Despite challenging commodity prices, Spartan continued to generate positive Free Funds Flow in the second quarter of 2024, exiting the quarter with Net Debt of $132.4 million.
• Spartan successfully completed a strategic acquisition in the Duvernay (the "Willesden Green North Acquisition") on May 1, 2024, for total consideration of approximately $49.8 million in cash. The acquisition included 38,000 net acres (59.5 net sections) of Duvernay rights and approximately 1,600 BOE/d (70% liquids) of production and associated infrastructure.
• As at June 30, 2024, Spartan had $699 million in tax pools, of which $370 million are non-capital losses.

The following table summarizes the Company's financial and operating results for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, and the six months ended June 30, 2024, and June 30, 2023. As a result of the 2023 Montney divestitures, certain metrics in the reported three and six months ended financials may not be comparable year over year.

	Three months ended			Six months ended
(CA$ thousands, unless otherwise indicated)	June 30, 2024	March 31, 2024	June 30, 2023		June 30, 2024	June 30, 2023
FINANCIAL HIGHLIGHTS
Oil and gas sales	73,451	84,148	168,847		157,599	485,059
Net income and comprehensive income	14,371	11,195	457,069		25,566	543,518
$ per share, basic ^(1)	0.09	0.06	2.65		0.15	3.16
$ per share, diluted ^(1)	0.09	0.06	2.64		0.15	3.14
Cash provided by operating activities	44,674	48,151	146,482		92,825	361,200
Adjusted Funds Flow ^(2)	37,177	45,673	123,300		82,850	305,576
$ per share, basic ^(1)(2)	0.22	0.26	0.72		0.48	1.78
$ per share, diluted ^(1)(2)	0.21	0.26	0.71		0.47	1.76
Free Funds Flow ^(2)	14,623	638	27,507		15,261	69,950
Cash used in (provided by) investing activities	101,377	51,136	(1,563,240)		152,513	(1,435,888)
Capital Expenditures before A&D ^(2)	22,554	45,035	95,793		67,589	235,626
Adjusted Net Capital A&D ^(2)	54,401	18,067	(1,704,464)		72,468	(1,703,695)
Total assets	884,244	833,574	2,500,443		884,244	2,500,443
Long Term Debt	109,040	49,571	146,981		109,040	146,981
Net Debt ^(2)	132,449	92,668	96,673		132,449	96,673
Net Debt to Annualized AFF Ratio ^(2)	0.9X	0.5X	0.4X		0.9X	0.4X
Shareholders' equity	458,802	442,249	308,825		458,802	308,825
Common shares outstanding, end of period (000s) ^(1)	173,201	173,201	173,201		173,201	173,201

	Three months ended			Six months ended
(CA$ thousands, unless otherwise indicated)	June 30, 2024	March 31, 2024	June 30, 2023		June 30, 2024	June 30, 2023
OPERATING HIGHLIGHTS
Average daily production
Crude oil (bbls/d)	992	748	7,489		870	11,241
Condensate (bbls/d) ^(3)	2,198	2,111	2,269		2,154	2,629
NGLs (bbls/d) ^(3)	9,084	9,442	11,161		9,263	12,176
Natural gas (mcf/d)	157,853	157,393	222,320		157,623	257,874
BOE/d	38,583	38,533	57,972		38,558	69,025
Average realized prices, before financial instruments
Crude oil ($/bbl)	102.04	92.29	99.64		97.85	99.84
Condensate ($/bbl) ^(3)	100.29	96.09	94.59		98.23	100.28
NGLs ($/bbl) ^(3)	29.96	31.04	30.04		30.51	36.44
Natural gas ($/mcf)	1.35	2.29	2.52		1.82	3.30
Combined average ($/BOE)	20.92	24.00	32.01		22.46	38.83
Operating Netbacks ($/BOE)^(2)
Oil and gas sales	20.92	24.00	32.01		22.46	38.83
Processing and other revenue	0.52	0.45	0.48		0.48	0.47
Royalties	(2.89)	(3.30)	(2.84)		(3.09)	(3.89)
Operating expenses	(6.38)	(5.65)	(7.73)		(6.01)	(8.04)
Transportation expenses	(1.50)	(1.58)	(2.56)		(1.54)	(2.72)
Operating Netback, before hedging ($/BOE)^(2)	10.67	13.92	19.36		12.30	24.65
Operating Netback, after hedging ($/BOE)^(2)	12.91	14.37	24.72		13.64	26.13
Adjusted Funds Flow Netback ($/BOE)^(2)	10.59	13.03	23.37		11.81	24.46

(1)	Refer to "Share Capital" section of this press release.
(2)	"Adjusted Funds Flow", "Free Funds Flow", "Capital Expenditures before A&D", "Adjusted Net Capital A&D", "Net Debt", "Net Debt to Annualized AFF Ratio" and "Operating Netbacks" do not have standardized meanings under IFRS Accounting Standards, refer to "Reader Advisories – Non-GAAP Measures and Ratios" section of this press release.
(3)	Condensate is a natural gas liquid as defined by NI 51-101 (defined herein). See "Other Measurements".

CAPITAL ACTIVITY UPDATE

In the Deep Basin, Spartan is reducing drilling activity in the third quarter due to depressed natural gas prices, with the remainder of the Deep Basin drilling program focused on the development of liquids-rich Cardium targets. Additionally, Spartan has shut-in approximately 2,000 BOE/d of natural gas production and plans to bring these volumes onstream in the fourth quarter of 2024 to coincide with higher anticipated natural gas prices. Furthermore, the Company is reallocating capital from the Deep Basin to further accelerate its 2024 Duvernay drilling program.

In the second half of 2024, Spartan anticipates accelerating development in the Duvernay by deploying up to approximately $65.0 million of capital to drill and complete three horizontal wells, complete a previously drilled and uncompleted well ("DUC"), drill a vertical stratigraphic well, and drill an additional two DUCs in 2024. The accelerated capital will also be allocated to secure additional water infrastructure for its 2025 program. The Company has begun its drilling campaign in the Duvernay and anticipates initial well results in the fourth quarter of 2024.

Additionally, Spartan continues to allocate capital to acquiring acreage in the Duvernay, with a focus in the Willesden Green fairway. To date, Spartan has accumulated approximately 240,000 net acres in the Duvernay for $106.6 million, at an average cost of $444 per acre inclusive of approximately 2,000 BOE/d of production (68% liquids) and associated infrastructure. In Willesden Green, the Company has established a position of 200,000 gross acres / 177,000 net acres, an increase of 7.5% and 9.3% respectively since May 2024. Based on compelling technical attributes and thorough technical analysis, Spartan believes that the majority of its acreage is in the tier one oil and condensate rich Duvernay fairway, which has the potential to unlock significant value as the asset is developed.

ABOUT SPARTAN DELTA CORP.

Spartan is committed to creating value for its shareholders, focused on sustainability both in operations and financial performance. The Company's culture is centered on generating Free Funds Flow through responsible oil and gas exploration and development. The Company has established a portfolio of high-quality production and development opportunities in the Deep Basin and the Duvernay. Spartan will continue to focus on the execution of the Company's organic drilling program in the Deep Basin, delivering operational synergies in a respectful and responsible manner to the environment and communities it operates in. The Company is well positioned to continue pursuing optimization in the Deep Basin, participate in the consolidation of the Deep Basin fairway, and continue growing and developing its Duvernay asset by leveraging Spartan's balance sheet and Free Funds Flow.

Spartan's corporate presentation as of August 7, 2024, can be accessed on the Company's website at www.spartandeltacorp.com. 

READER ADVISORIES

Non-GAAP Measures and Ratios

This press release contains certain financial measures and ratios which do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS Accounting Standards") or Generally Accepted Accounting Principles ("GAAP"). As these non-GAAP financial measures and ratios are commonly used in the oil and gas industry, Spartan believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.

The non-GAAP measures and ratios used in this press release, represented by the capitalized and defined terms outlined below, are used by Spartan as key measures of financial performance, and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS Accounting Standards.

The definitions below should be read in conjunction with the "Non-GAAP Measures and Ratios" section of the Company's MD&A dated August 7, 2024, which includes discussion of the purpose and composition of the specified financial measures and detailed reconciliations to the most directly comparable GAAP financial measures.

Operating Income and Operating Netback

Operating Income, a non-GAAP financial measure, is a useful supplemental measure that provides an indication of the Company's ability to generate cash from field operations, prior to administrative overhead, financing, and other business expenses. "Operating Income, before hedging" is calculated by Spartan as oil and gas sales, net of royalties, plus processing and other revenue, less operating and transportation expenses. "Operating Income, after hedging" is calculated by adjusting Operating Income for realized gains or losses on derivative financial instruments including settlements on acquired derivative financial instrument liabilities (together a non-GAAP financial measure "Settlements on Commodity Derivative Contracts"). The Company refers to Operating Income expressed per unit of production as an "Operating Netback" and reports the Operating Netback before and after hedging, both of which are non-GAAP financial ratios. Spartan considers Operating Netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices.

Adjusted Funds Flow and Free Funds Flow

Cash provided by operating activities is the most directly comparable measure to Adjusted Funds Flow. "Adjusted Funds Flow" is a non-GAAP financial measure reconciled to cash provided by operating activities by excluding changes in non-cash working capital, adding back transaction costs on acquisitions and dispositions, and deducting the principal portion of lease payments. Spartan utilizes Adjusted Funds Flow as a key performance measure in the Company's annual financial forecasts and public guidance. Transaction costs, which primarily include legal and financial advisory fees, regulatory and other expenses directly attributable to execution of acquisitions and dispositions, are added back because the Company's definition of Free Funds Flow excludes capital expenditures related to acquisitions and dispositions. For greater clarity, incremental overhead expenses related to ongoing integration and restructuring post-acquisition are not adjusted and are included in Spartan's general and administrative expenses. Lease liabilities are not included in Spartan's definition of Net Debt therefore lease payments are deducted in the period incurred to determine Adjusted Funds Flow.

The Company refers to Adjusted Funds Flow expressed per unit of production as an "Adjusted Funds Flow Netback".

"Free Funds Flow" is a non-GAAP financial measure calculated by Spartan as Adjusted Funds Flow less Capital Expenditures before A&D. Spartan believes Free Funds Flow provides an indication of the amount of funds the Company has available for future capital allocation decisions such as to repay current and long-term debt, reinvest in the business or return capital to shareholders.

Adjusted Funds Flow per share

Adjusted Funds Flow ("AFF") per share is a non-GAAP financial ratio used by the Company as a key performance indicator. AFF per share is calculated using the same methodology as net income per share ("EPS"), however the diluted weighted average common shares ("WA Shares") outstanding for AFF may differ from the diluted weighted average determined in accordance with IFRS Accounting Standards for purposes of calculating EPS due to non-cash items that impact net income only. The dilutive impact of stock options and share awards is more dilutive to AFF than EPS because the number of shares deemed to be repurchased under the treasury stock method is not adjusted for unrecognized share based compensation expense as it is non-cash (see also, "Share Capital").

Capital Expenditures, before A&D

"Capital Expenditures before A&D" is a non-GAAP financial measure used by Spartan to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic drilling program. It includes capital expenditures on exploration and evaluation assets and property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to Capital Expenditures before A&D is cash used in investing activities.  

Adjusted Net Capital A&D

"Adjusted Net Capital A&D" is a supplemental measure disclosed by Spartan which aggregates the total amount of cash and debt used to acquire crude oil and natural gas assets during the period, net of cash proceeds received on dispositions. The Company believes this is useful information because it is more representative of the total transaction value than the cash acquisition costs or total cash used in investing activities, determined in accordance with IFRS Accounting Standards. The most directly comparable GAAP measures are acquisition costs and disposition proceeds included as components of cash used in investing activities.

Net Debt and Adjusted Working Capital

References to "Net Debt" includes current and long-term debt under Spartan's revolving credit facility and second lien term facility, net of Adjusted Working Capital. Net Debt and Adjusted Working Capital are both non-GAAP financial measures. "Adjusted Working Capital" is calculated as current assets less current liabilities, excluding derivative financial instrument assets and liabilities, lease liabilities, and current debt (if applicable). The Adjusted Working Capital deficit includes cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and deposits, other current assets, accounts payable and accrued liabilities, dividends payable, and the current portion of decommissioning obligations.

Spartan uses Net Debt as a key performance measure to manage the Company's targeted debt levels. The Company believes its presentation of Adjusted Working Capital and Net Debt are useful as supplemental measures because lease liabilities and derivative financial instrument assets and liabilities relate to contractual obligations for future production periods. Lease payments and cash receipts or settlements on derivative financial instruments are included in Spartan's reported Adjusted Funds Flow in the production month to which the obligation relates.

References to "Cash Financing Expenses" includes interest and fees on current and long-term debt, net of interest income, and excludes financing costs related to lease liabilities and accretion of decommissioning obligations. Cash Financing Expenses is a non-GAAP financial measure used by Spartan in its budget and guidance as it corresponds to the Company's definition of Net Debt, however it should not be viewed as an alternative to total financing expenses presented in accordance with IFRS Accounting Standards.

Net Debt to Annualized AFF Ratio

The Company monitors its capital structure using a "Net Debt to Annualized AFF Ratio", which is a non-GAAP financial ratio calculated as the ratio of the Company's Net Debt to its "Annualized Adjusted Funds Flow" which is calculated by multiplying Adjusted Funds Flow for the most recent quarter, normalized for significant non-recurring items, by a factor of four (4).  

OTHER MEASUREMENTS

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

This press release contains various references to the abbreviation "BOE" which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (Mcf) per barrel (bbl). The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices.

References to "oil" in this press release include light crude oil and medium crude oil, combined. National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") includes condensate within the product type of "natural gas liquids". References to "natural gas liquids" or "NGLs" include pentane, butane, propane, and ethane. References to "gas" or "natural gas" relates to conventional natural gas.

References to "liquids" includes crude oil, condensate and NGLs.

SHARE CAPITAL

Spartan's common shares are listed on the Toronto Stock Exchange ("TSX") and trade under the symbol "SDE". The volume weighted average trading price of Spartan's common shares on the TSX was $4.06 for the three months ended June 30, 2024. Spartan's closing share price was $4.03 on June 30, 2024, compared to $2.98 on December 31, 2023.

As at June 30, 2024, and as of the date hereof, there are 173.2 million common shares outstanding. There are no preferred shares or special preferred shares outstanding. The following securities are outstanding as of the date of this press release: 3.8 million restricted share awards; and 1.4 million stock options outstanding with an average exercise price of $3.25 per common share and average remaining term of 4.6 years.

The table below summarizes the weighted average number of common shares outstanding (000s) used in the calculation of diluted EPS and diluted AFF per share:

	Three months ended June 30			Six months ended June 30
(000s)	2024	2023	%	2024	2023	%
WA Shares outstanding, basic	173,201	172,265	1	173,201	171,845	1
Dilutive effect of outstanding securities	1,765	936	89	1,537	1,356	13
WA Shares, diluted – for EPS	174,966	173,201	1	174,738	173,201	1
Incremental dilution for AFF ^(1)	2,339	-	nm	2,465	-	nm
WA Shares, diluted – for AFF ^(1)	177,305	173,201	2	177,203	173,201	2

(1)	AFF per share does not have a standardized meaning under IFRS Accounting Standards, refer to "Reader Advisories – Non-GAAP Measures and Ratios".

FORWARD-LOOKING AND CAUTIONARY STATEMENTS

Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions. Spartan believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the business plan, objectives, cost model and strategy of Spartan, including commodity diversification, oil weighted production, continued optimization of its Deep Basin asset, participation in the consolidation of the Deep Basin fairway and advancing its Duvernay strategy; the Company's drilling strategy in the Deep Basin; the reallocation of capital to the Company's Duvernay drilling program from its Deep Basin program and anticipated benefits therefrom; expected drilling and completions in the Duvernay, the Company's capital program; Spartan's strategies to deliver strong operational performance and to generate long term sustainable Free Funds Flow, organic growth and enhanced returns, and offer repeatable and economic results in the Duvernay to provide significant shareholder returns; the ability of the Company to achieve drilling success consistent with management's expectations; the estimated amount of available tax pools; being well positioned to take advantage of opportunities in the current business environment; Spartan's ability to leverage its balance sheet and Free Funds Flow to progress its Duvernay strategy, to continue pursuing immediate production optimization and responsible future growth with organic drilling, to continue to execute on building an extensive position in the Duvernay; and opportunistic acquisitions.

The forward-looking statements and information are based on certain key expectations and assumptions made by Spartan, including, but not limited to, expectations and assumptions concerning the business plan of Spartan, the timing of and success of future drilling, development and completion activities, the growth opportunities of Spartan's Duvernay acreage, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Spartan's properties, the successful integration of the recently acquired assets into Spartan's operations, the successful application of drilling, completion and seismic technology, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, future commodity prices, price differentials and the actual prices received for the Company's products, anticipated fluctuations in foreign exchange and interest rates, impact of inflation on costs, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners, general economic conditions, and the ability to source and complete acquisitions.

Although Spartan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Spartan can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations in commodity prices, unforeseen difficulties in integrating the assets acquired pursuant to the Willesden Green North Acquisition into the Company's operations; changes in industry regulations and political landscape both domestically and abroad, wars (including Russia's military actions in Ukraine and the Israel-Hamas conflict in Gaza), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), risks associated with the oil and gas industry in general, stock market and financial system volatility, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to inclement and severe weather events and natural disasters, including fire, drought, and flooding, including in respect of safety, asset integrity and shutting-in production.

Please refer to Spartan's MD&A for the period ended June 30, 2024, and annual information form for the year ended December 31, 2023, for discussion of additional risk factors relating to the Company, which can be accessed either on Spartan's website at www.spartandeltacorp.com or under Spartan's SEDAR+ profile on www.sedarplus.ca. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Spartan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Spartan's prospective results of operations and production, Free Funds Flow, Adjusted Funds Flow, operating costs, Capital Expenditures before A&D, Operating Netback, Net Debt, Net Debt to Annualized AFF ratio, production, annualized production, organic growth, capital efficiency improvements 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 document was approved by management as of the date of this document and was provided for the purpose of providing further information about Spartan's future business operations. Spartan and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Spartan disclaims any intention or obligation to update or revise any FOFI contained in this document, 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 document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Spartan's guidance. The Company's actual results may differ materially from these estimates.

ABBREVIATIONS

A&D	acquisitions and dispositions
bbl	barrel
bbls/d	barrels per day
BOE	barrels of oil equivalent
BOE/d	barrels of oil equivalent per day
CA$ or CAD	Canadian dollar
GJ	gigajoule
mcf	one thousand cubic feet
mcf/d	one thousand cubic feet per day
Mbbls	thousand barrels
MBOE	thousand barrels of oil equivalent
MMbtu	one million British thermal units
MMcf	one million cubic feet
MM	millions
$MM	millions of dollars
US$ or USD	United States dollar

SOURCE Spartan Delta Corp.

FOR ADDITIONAL INFORMATION PLEASE CONTACT: Fotis Kalantzis, Spartan Delta Corp., President and Chief Executive Officer, 1600, 308 - 4th Avenue SW, Calgary, Alberta, Canada T2P 0H7, Email: [email protected], www.spartandeltacorp.com