SPARTAN DELTA CORP. ANNOUNCES YEAR-END 2021 RESERVES, PROVIDES OPERATIONAL AND CORPORATE UPDATE AND UPDATES 2022 GUIDANCE

CALGARY, AB, Feb. 15, 2022 /CNW/ - Spartan Delta Corp. ("Spartan" or the "Company") (TSX: SDE) is pleased to announce certain unaudited financial and operating highlights for the fourth quarter and year-end 2021, updated guidance for 2022, and select highlights of Spartan's independent oil and gas reserves evaluation prepared by McDaniel & Associates Consultants Ltd. as of December 31, 2021 (the "McDaniel Report").

Fotis Kalantzis, President and Chief Executive Officer of Spartan, commented, "We are pleased to report Spartan's 2021 highlights, showcasing efficient and highly economic organic development alongside expanding our operations and opportunity set with almost one billion dollars of targeted acquisitions. We established a significant Montney core area that repositioned the Company with oil weighted production and development opportunities which provide further commodity diversification to the Spartan portfolio, complimenting the Company's liquids-rich natural gas properties in the central Alberta Deep Basin.  Both core areas enable our strategy in generating long term sustainable free funds flow and organic growth. Through the effective integration of our people and assets and the successful execution of the Company's Montney and Deep Basin drilling programs, Spartan delivered strong financial and operating results for 2021 which exceeded full year guidance and built an extensive reserve book with over fifteen years of inventory to develop in each of our two core areas."

FOURTH QUARTER AND YEAR-END 2021 RESULTS

The Company anticipates announcing its fourth quarter and audited year-end financial results and filing of its Annual Information Form ("AIF") for the year-ended December 31, 2021 on or around March 8, 2022.  The following are unaudited highlights which should be read in conjunction with the Reader Advisories in this press release:

• Spartan achieved record average production for the fourth quarter of 72,428 BOE per day⁽¹⁾, a 56% increase from the third quarter and 17% higher than the midpoint of guidance for the quarter, driving full year average production of 47,674 BOE per day⁽²⁾ which exceeded annual guidance for 2021 by 6%
• The Company's fourth quarter production significantly outpaced previous estimates due to earlier than forecasted on-stream dates for several wells through successful execution of its Montney and Deep Basin drilling campaigns and acceleration of certain projects
• Through a series of targeted acquisitions and continued development of its new Montney core assets, Spartan has diversified its production mix and materially increased the crude oil weighting of the Company's reserves and sales revenue, contributing to higher operating netbacks in 2021
• Crude oil and condensate represented 19% of total production in the fourth quarter, up from 14% in the third quarter of 2021 and compared to 5% of total production in 2020
• Spartan's Operating Netback⁽³⁾ before hedging was $30.00/BOE in the fourth quarter and averaged $23.05/BOE for the year ended December 31, 2021
• Capital Expenditures, before acquisitions and dispositions ("A&D")⁽³⁾, were $189 million in 2021, of which $116 million was spent in the fourth quarter inclusive of a $10 million land acquisition which was incremental to Spartan's previously announced 2021 capital expenditure budget of $175 million
• Spartan generated record Adjusted Funds Flow⁽³⁾ of $137 million in the fourth quarter ($0.80 per share, diluted)⁽⁴⁾ and $294 million ($2.18 per share, diluted)⁽⁴⁾ for the year which exceeded 2021 guidance of $251 million by 17%. The outperformance was primarily driven by fourth quarter production in conjunction with strong oil prices. Fourth quarter annualized Adjusted Funds Flow⁽³⁾ was $3.20 per share, diluted⁽⁵⁾
• Spartan's Free Funds Flow⁽³⁾ was $21 million for the fourth quarter and $105 million for the year, after deducting Capital Expenditures before A&D⁽³⁾ from Adjusted Funds Flow⁽³⁾. Free Funds Flow⁽³⁾ for 2021 exceeded guidance of $76 million by 38%
• Reduced indebtedness by $23 million during the fourth quarter and exited the year with $458 million of Net Debt⁽³⁾
• During 2021, the Company drilled and brought 22 net wells on production in the Deep Basin. Spartan drilled 10 net wells in the Montney, of which 7 wells were brought on production during the fourth quarter and 3 wells will be completed in the first quarter of 2022. Additionally, 7 net Montney wells previously drilled by Velvet Energy Ltd. ("Velvet") were brought on production

The table below summarizes Spartan's unaudited results for the year ended December 31, 2021, compared to the Company's financial and operating guidance published in the press release dated August 31, 2021 ("2021 Guidance"):

UNAUDITED HIGHLIGHTS	2021	2021	Variance ^(a)
Year ended December 31, 2021	Results	Guidance	Amount	%
Average Production (BOE/d) ^(a)	47,674	44,000 – 46,000	2,674	6
% Oil and NGLs	33%	33%	-	-
Benchmark Average Commodity Prices
WTI oil price (US$/bbl)	67.91	66.45	1.46	2
AECO 5A natural gas price ($/GJ)	3.44	3.45	(0.01)	-
Average exchange rate (CA$/US$)	1.25	1.25	-	-
Operating Netback, before hedging ($/BOE) ^(b)	23.05	21.43	1.62	8
Operating Netback, after hedging ($/BOE) ^(b)	19.40	18.05	1.35	7
Settlements on Commodity Derivative Contracts ^(b)	(61)	(56)	(5)	9
Adjusted Funds Flow ($MM) ^(b)	294	251	43	17
Capital Expenditures, before A&D ($MM) ^(b)	189	175	14	8
Free Funds Flow ($MM) ^(b)	105	76	29	38
Acquisitions, net of dispositions ($MM) ^(b)(c)	424	424	-	-
Net Debt, end of year ($MM) ^(b)	458	483	(25)	(5)
Common shares outstanding, end of year (MM) ^(d)	153	147	6	4

a)	The financial performance measures included in the Company's 2021 Guidance were based on the midpoint of the average production forecast of 45,000 BOE/d.
b)	"Operating Netback", "Settlements on Commodity Derivative Contracts", "Adjusted Funds Flow", "Capital Expenditures, before A&D", "Free Funds Flow", "Acquisitions, net of dispositions" and "Net Debt" do not have standardized meanings under IFRS, see "Non-GAAP Measures and Ratios".
c)	Includes cash consideration for the acquisitions, net of $0.5 million of proceeds from minor dispositions. Total consideration for the acquisitions was approximately $957 million inclusive of approximately $387 million of estimated Net Debt assumed on corporate acquisitions. See also, "Non-GAAP Measures and Ratios – Adjusted Net Capital Acquisitions".
d)	Basic common shares outstanding as at December 31, 2021 does not include common shares potentially issuable in respect of dilutive securities (see also, "Share Capital"). The variance from prior guidance reflects the previously announced conversion of a $50 million convertible promissory note which resulted in the issuance of 5.9 million common shares on September 29, 2021.

UPDATES TO CORPORATE GUIDANCE FOR 2022

With the strong outlook for commodity prices, Spartan is pleased to update its financial and operating guidance for 2022.  

Based on forecast average production of between 68,500 to 72,500 BOE/d and commodity price assumptions of US$80/bbl for WTI crude oil and $3.75/GJ for AECO natural gas, Spartan expects to generate $589 million of Adjusted Funds Flow⁽³⁾ in 2022 (previously $434 million). Free Funds Flow⁽³⁾ is now forecast to be $259 million, an increase of 93% from previous guidance on an expanded capital expenditure budget of $330 million (previously $300 million).

As part of the Company's revised 2022 capital budget of $330 million, Spartan plans to complete three Montney wells drilled in the fourth quarter of 2021, drill an additional 19 net wells in the Montney focused in the oil-weighted areas of Gold Creek and Karr and 18.5 net wells targeting both light oil and liquids-rich gas in the Spirit River and Cardium horizons within the Deep Basin. The addition of $30 million of capital to the budget for 2022 compared to prior guidance of $300 million will be used primarily for facility preparation ahead of the 2023 program and the drilling of two wells at Simonette, which are expected to demonstrate the property's unrecognized value through an improved development strategy and will produce to Spartan owned infrastructure with excess capacity.

In addition to the positive effects of higher commodity prices, the revised budget also reflects rising operating and capital costs due to inflationary pressures (actual and anticipated) impacting both the global economy and oil and gas industry specifically, which have resulted in supply shortages and longer lead times in conjunction with higher activity levels. Notwithstanding these challenges, Spartan's updated guidance reflects Adjusted Funds Flow per share⁽³⁾ growth of 28%⁽⁶⁾ from Q4 2021 to Q4 2022.

Spartan's updated 2022 guidance is summarized below along with a comparison to previous guidance published as of August 31, 2021:

	Updated	Previous	Variance ^(a)
Year ending December 31, 2022	2022 Guidance	2022 Guidance	Amount	%
Average Production (BOE/d) ^(a)(c)	68,500 – 72,500	67,500 – 72,500	500	1
% Oil and NGLs	40%	41%	(1%)	(2)
Benchmark Average Commodity Prices
WTI oil price (US$/bbl)	80.00	60.00	20.00	33
AECO 5A natural gas price ($/GJ)	3.75	3.25	0.50	15
Average exchange rate (CA$/US$)	1.26	1.28	(0.02)	(2)
Operating Netback, before hedging ($/BOE) ^(b)(c)	27.73	21.68	6.05	28
Operating Netback, after hedging ($/BOE) ^(b)(c)	25.58	19.94	5.64	28
Settlements on Commodity Derivative Contracts ($MM) ^(b)	(55)	(45)	(10)	22
Adjusted Funds Flow ($MM) ^(b)(c)	589	434	155	36
Capital Expenditures, before A&D ($MM) ^(b)	330	300	30	10
Free Funds Flow ($MM) ^(b)	259	134	125	93
Acquisitions, net of dispositions ($MM) ^(b)	-	-	-	-
Net Debt, end of year ($MM) ^(b)(d)	199	349	(150)	(43)
Common shares outstanding, end of year (MM) ^(e)	154	147	7	5

a)	The financial performance measures included in the Company's updated guidance for 2022 is based on the midpoint of the average production forecast of 70,500 BOE/d (previously 70,000 BOE/d).
b)	"Operating Netback", "Settlements on Commodity Derivative Contracts", "Adjusted Funds Flow", "Capital Expenditures, before A&D", "Free Funds Flow", "Acquisitions, net of dispositions" and "Net Debt" do not have standardized meanings under IFRS, see "Non-GAAP Measures and Ratios".
c)	Additional information regarding the assumptions used in the forecasted Average Production, Operating Netbacks and Adjusted Funds Flow for 2022 are provided in the Reader Advisories section of this press release.
d)	The change in forecast Net Debt at December 31, 2022 reflects the increase in forecasted Free Funds Flow for 2022 plus the decrease in estimated opening Net Debt as at December 31, 2021 compared to previous guidance.
e)	The forecast of common shares outstanding at the end of 2022 includes restricted share awards expected to be released upon vesting but does not include common shares potentially issuable in respect of stock options and warrants for which the exercise is discretionary on behalf of the holder (refer to "Share Capital" for additional information regarding dilutive securities).

2021 RESERVE EVALUATION HIGHLIGHTS

Spartan is pleased to provide select highlights from the McDaniel Report on the Company's proved developed producing ("PDP"), total proved ("TP"), and total proved plus probable ("TPP") reserves as at December 31, 2021:

• Relative to year-end 2020, Spartan increased PDP reserves 85% to 124 MMBOE, TP reserves 118% to 294 MMBOE, and TPP reserves 164% to 546 MMBOE at year-end 2021. Based on Q4 2021 annualized production of 72,428 BOE/d⁽¹⁾, Spartan's TP Reserve Life Index ("RLI") is 11.1 years with a TPP RLI of 20.6 years⁽¹¹⁾
• Excluding the impact of acquisitions, Spartan replaced production and grew proved reserves organically 10% and proved plus probable reserves by 9%
• Spartan's before-tax net present value ("NPV") of reserves, discounted at 10%, is $1.2 billion for PDP reserves, $2.4 billion for TP reserves, and $4.0 billion for TPP reserves as at December 31, 2021
• On a debt adjusted per share basis, Spartan's PDP reserves result in a Net Asset Value ("NAV") per share⁽³⁾⁽⁷⁾ of $4.13, TP of $11.12 per share and TPP reserves of $20.23 per share
• The commodity prices used for the calculation of NPV is the three-consultant average pricing(⁸⁾; the 10-year average for WTI is US$71.46/bbl and $3.12/GJ for AECO
• The future development costs ("FDC") are $1.6 billion for TP reserves and $3.0 billion for TPP reserves; the average annual FDC is $319 million per year for TP reserves(⁹⁾ and $304 million per year for TPP reserves(⁹⁾, which is approximately consistent with Spartan's stated capital budget
• There are 278 net booked undeveloped Montney locations (of >1000 Company identified Montney drilling locations) and 121 net booked undeveloped locations in the Deep Basin (of the >450 Company identified Deep Basin drilling locations)⁽¹⁰⁾
• The Company increased the crude oil weighting of its TPP reserves to 20% through a series of Montney acquisitions, up from 2% at year-end 2020
• Spartan's finding and development ("F&D") costs⁽¹¹⁾, inclusive of changes to FDC, were $4.04/BOE, $6.93/BOE and $6.69/BOE for PDP, TP and TPP reserves, respectively, resulting in a TPP F&D Recycle Ratio of 3.4x based on the 2021 average Operating Netback before hedging⁽³⁾ of $23.05/BOE or 4.5x based on fourth quarter Operating Netback before hedging⁽³⁾ of $30.00/BOE
• Finding, development and acquisition ("FD&A") costs⁽¹¹⁾, including FDC, averaged $15.84/BOE for PDP reserves, $14.05/BOE for TP reserves and $10.58/BOE from the addition of 356 MMBOE of TPP reserves in 2021 through development and acquisitions
• Spartan achieved an FD&A Recycle Ratio⁽¹¹⁾ of 1.9x, 2.1x and 2.8x for PDP, TP and TPP reserves, respectively, based on its fourth quarter Operating Netback before hedging⁽³⁾ of $30.00/BOE which included a full quarter of results from the Velvet acquisition
  

2021 INDEPENDENT QUALIFIED RESERVE EVALUATION

The following tables highlight the findings of the McDaniel Report, which has been prepared in accordance with the definitions, standards and procedures contained in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the most recent publication of the Canadian Oil and Gas Evaluation Handbook ("COGEH"). The McDaniel Report was based on the average forecast pricing of McDaniel, GLJ Ltd. and Sproule Associates Limited. See "Reader Advisories – Oil and Gas Advisories" for more information. Additional reserves information as required under NI 51-101 will be included in Spartan's AIF, which will be filed on SEDAR on or before March 8, 2022. The numbers in the tables below may not add due to rounding.

Summary of Reserves Volumes as at December 31, 2021

The Company's reserves volumes and undiscounted future development capital costs are summarized below as at December 31, 2021:

SUMMARY OF RESERVE VOLUMES^(a)	Crude Oil (Mbbls)	NGL (Mbbls)	Natural Gas (MMcf)	Combined (MBOE)	FDC Costs ($MM)
Proved developed producing	11,720	32,675	479,486	124,309	33
Proved developed non-producing	165	711	8,628	2,314	2
Proved undeveloped	39,628	35,158	554,036	167,126	1,561
Total Proved	51,513	68,545	1,042,150	293,749	1,596
Probable	57,230	47,339	884,491	251,984	1,446
Total Proved plus Probable	108,743	115,884	1,926,641	545,734	3,042

a) Gross working interest reserves before royalty deductions. Crude oil is the combination of Light & Medium Oil and Tight Oil. Natural gas liquids include condensate volumes.

The following table outlines the change in Spartan's reserves and reserve life index as at December 31, 2021 compared to December 31, 2020:

CHANGE IN RESERVES AND RESERVE LIFE INDEX		2021	2020	% Change
Reserves (MBOE)
Proved Developed Producing		124,309	67,289	85%
Total Proved		293,749	134,977	118%
Total Proved plus Probable		545,734	206,942	164%
PDP as % of TPP		23%	33%	(10%)
TP as % of TPP		54%	65%	(11%)
Reserve Life Index^(a) (years)
Proved Developed Producing		4.7	7.1	(34%)
Total Proved		11.1	14.2	(22%)
Total Proved plus Probable		20.6	21.8	(6%)
a) The Reserve life index ("RLI") as at December 31, 2021 is calculated as total Company Share reserves divided by the annualized actual production of 72,428 BOE/d for the fourth quarter of 2021. See "Reader advisories - Oil and Gas Advisories".

Spartan's total TPP reserves increased by 164% to 546 million BOE resulting in a TPP reserve life index of 20.6 years based on annualized fourth quarter production of 72,428 BOE/d. Spartans 2021 development program and acquisition strategy has resulted in an 85% increase in PDP reserves to over 124 million BOE. The crude oil and natural gas liquids weighting of the Company's reserves is approximately 36%, 41% and 41% on a PDP, TP, and TPP basis, respectively, representing the focus on Montney development which will continue to increase the corporate liquids weighting in future years.

Net Present Value of Future Net Revenue as at December 31, 2021

The following table summarizes the net present value of the Company's reserves (before-tax) as at December 31, 2021. The reserves value on a $/BOE basis, discounted at 10% per year, is also summarized for each category.

NET PRESENT VALUE BEFORE-TAX	0%	10%	20%	Unit Value ^(a)Before Tax Discounted at 10%/Year ($/BOE)
	($MM)	($MM)	($MM)
Developed Producing	1,421	1,152	949	10.61
Developed Non-Producing	43	31	25	15.18
Undeveloped	2,323	1,194	694	8.09
Total Proved	3,787	2,377	1,668	9.21
Probable	4,106	1,596	824	7.37
Total Proved plus Probable	7,893	3,973	2,493	8.37
a) Unit values are based on net reserves. Net reserves are the Company's working interest reserves after deduction of royalties, plus its royalty interests in reserves.

Reserves Reconciliation

The following table sets out the reconciliation of Spartan's gross reserves based on forecast prices and costs by principal product type as at December 31, 2021 relative to December 31, 2020. The majority of TPP reserves increases, year over year, came from acquisitions in the Montney. Spartan was able to replace 2021 drilled locations and add an additional 28 net locations to the Deep Basin, for positive revisions attributed to extension and improved recovery which more than offset the decrease due to minor technical revisions for the year.

RESERVES^(a) RECONCILIATION (MBOE)	PDP Reserves	TP Reserves	Probable	TPP Reserves
December 31, 2020	67,289	134,977	71,964	206,942
Extensions & Improved Recovery	745	33,758	14,174	47,931
Technical Revisions ^(b)	22,199	(2,423)	(9,930)	(12,353)
Discoveries	-	-	-	-
Acquisitions	48,988	142,356	175,051	317,408
Dispositions	(79)	(79)	(17)	(96)
Economic Factors	2,567	2,561	741	3,303
Production ^(c)	(17,401)	(17,401)	-	(17,401)
December 31, 2021	124,309	293,749	251,984	545,734
a) Gross working interest reserves before royalty deductions. b) Technical revisions also include changes in reserves associated with changes in operating costs, capital costs and commodity price offsets. c) Produced volumes for the year ended December 31, 2021 are internally estimated.

Key Performance Measures

The table below highlights Spartan's "F&D costs" and total "FD&A costs" based on capital expenditures incurred in the period inclusive of the change in FDC required to develop reserves. While NI 51-101 requires that the effect of acquisitions and dispositions be excluded from the calculation of finding and development costs, Spartan has presented both measures because acquisitions are a significant component of the Company's total reserve replacement costs.  Spartan also uses "Recycle Ratio" as a measure for evaluating the efficiency of its capital investment program by comparing the Company's average Operating Netback⁽³⁾ to its F&D and FD&A costs per BOE.

F&D, FD&A, and Recycle Ratios ^(11)	2021			Two-Year Average ^(d)
	PDP	TP	TPP	PDP	TP	TPP
F&D Costs, including FDC ($/BOE) ^(a)(b)	4.04	6.93	6.69	3.54	5.94	5.89
Acquisition costs, net including FDC ($/BOE) ^(c)	22.00	15.75	11.06	10.21	9.45	7.71
FD&A Costs, including FDC ($/BOE) ^(a)(c)	15.84	14.05	10.58	8.89	9.04	7.57
Operating Netback, before hedging ($/BOE) ^(a)	23.05	23.05	23.05	19.52	19.52	19.52
F&D Recycle Ratio ^(a)	5.7 x	3.3 x	3.4 x	5.5 x	3.3 x	3.3 x
FD&A Recycle Ratio ^(a)	1.5 x	1.6 x	2.2 x	2.2 x	2.2 x	2.6 x
Q4 2021 Operating Netback, before hedging ($/BOE) ^(a)	30.00	30.00	30.00
F&D Recycle Ratio – pro forma Q4 2021 ^(a)	7.4 x	4.3 x	4.5 x
FD&A Recycle Ratio – pro forma Q4 2021 ^(a)	1.9 x	2.1 x	2.8 x

a)	"F&D cost", "FD&A cost", "Recycle Ratio" and "Operating Netback" do not have standardized meanings under IFRS or NI-51-101.  Readers are cautioned that these amounts may not be directly comparable to other companies. Refer to additional information under the heading "Reader Advisories – Oil and Gas Measures".
b)	The aggregate of capital expenditures incurred in the year, comprised of exploration and development costs and the change in estimated FDC generally will not reflect total F&D costs related to reserves additions in the year.
c)	Calculations use Company Gross Reserves which exclude royalty volumes.
d)	The two-year average reflects cumulative results for the years ended December 31, 2021 and December 31, 2020. Prior to the June 1, 2020 acquisition of assets in the Deep Basin for total consideration of $109 million, the Company did not have significant assets or operations.

During 2021, Spartan's exploration and development capital expenditures were $189 million and total consideration for the acquisitions was approximately $957 million inclusive of net debt assumed on corporate transactions. Approximately 80% of the acquisition cost was incurred for the Velvet acquisition which materially increased the crude oil weighting of the Company's production and reserves, in addition to adding an extensive undeveloped land position comprised of high-working interest prospective Montney acreage.  Spartan highlights its FD&A Recycle Ratio of 2.1x for proved reserves and 2.8x for total proved plus probable reserves based on its Operating Netback⁽³⁾ for the fourth quarter of 2021, as operations from the Velvet assets are only reflected in Spartan's results for the period following closing of the acquisition.

Spartan has positioned itself to achieve efficiencies in production additions and finding and development costs over the upcoming years as the Company continues to develop its asset base through pad drilling and utilization of excess capacity of owned infrastructure.

ABOUT SPARTAN DELTA CORP.

Spartan is committed to creating a modern energy company, focused on sustainability both in operations and financial performance. The Company's ESG-focused culture is centered on generating sustainable 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 Montney. Spartan is focused on the execution of the Company's organic drilling program, 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 immediate production optimization, responsible future growth with organic drilling, opportunistic acquisitions and the delivery of Free Funds Flow. Further detail is available in Spartan's investor presentation, which can be accessed on its website at www.spartandeltacorp.com.

Spartan's corporate presentation as of February 2022 can be accessed on the Company's website at www.spartandeltacorp.com.

READER ADVISORIES

Notes to the Press Release:

1. Production for Q4 2021 consists of approximately 16% crude oil, 3% condensate, 19% NGLs and 62% natural gas. See "Average Daily Production" table below.
2. Production for YE 2021 consists of approximately 10% crude oil, 4% condensate, 19% NGLs and 67% natural gas. See "Average Daily Production" table below.
3. See "Non-GAAP Measures and Ratios".
4. Adjusted Funds Flow is a non-GAAP financial measure and Adjusted Funds Flow per share is a non-GAAP financial ratio, both of which do not have standardized meanings under IFRS.  The most directly comparable GAAP measure to Adjusted Funds Flow is cash provided by operating activities which was $148.0 million for the fourth quarter and $279.8 million for the year ended December 31, 2021.  Refer to additional information under the heading "Non-GAAP Measures and Ratios" for a reconciliation of Adjusted Funds Flow and calculation of Adjusted Funds Flow per share.
5. Fourth quarter Adjusted Funds Flow of $0.80 per share, diluted, is annualized by multiplying by a factor of 4, resulting in fourth quarter annualized Adjusted Funds Flow of $3.20 per share, diluted.
6. 28% growth based on forecast Adjusted Funds Flow of $1.02 per diluted share in the fourth quarter of 2022 compared to $0.80 per share reported for the fourth quarter of 2021.
7. NAV per share is a non-GAAP financial ratio calculated as the before-tax NPV for each of PDP, TP and TPP reserves discounted at a 10%, less $458 million of Net Debt, plus $30 million of proceeds from option and warrant exercise divided by the fully diluted common shares outstanding of 175 million as at December 31, 2021.  Refer to details of calculation under the heading "Oil and Gas Advisories – Net Asset Value per share".
8. Average price forecasts as at December 31, 2021 of Sproule Associates Ltd., GLJ Ltd. and McDaniel & Associates Consultants Ltd.
9. Details of forecast annual FDC expenditures per the McDaniel Report are provided under the heading "Reserves Disclosure"
10. Of the 278 net booked Montney locations, 136 are proven locations and 142 are probable locations; this count excludes 4 net booked probable Charlie Lake locations in the Montney region.  Of the 121 net booked Deep Basin locations, 87 are proven locations and 34 are probable locations.
11. "Reserve life index", "F&D cost", "FD&A cost", and "Recycle Ratio" are non-GAAP financial ratios which do not have standardized meanings under IFRS or NI-51-101.  Readers are cautioned that these amounts may not be directly comparable to other companies. Refer to additional information under the heading "Oil and Gas Measures".

	Three months ended December 31			Year ended December 31
Average daily production	2021	2020	%	2021	2020	%
Crude oil (bbls/d)	11,450	332	3,349	4,697	196	2,296
Condensate (bbls/d)	2,373	1,131	110	1,924	655	194
NGLs (bbls/d)	13,576	6,728	102	9,120	3,965	130
Natural gas (mcf/d)	270,176	106,912	153	191,596	63,625	201
Combined average (BOE/d)	72,428	26,010	178	47,674	15,421	209
% Oil and NGLs	38%	31%		33%	31%

Unaudited Financial Information

This preliminary financial information is not a comprehensive statement of our financial results for the fourth quarter and year ended December 31, 2021. Our actual results may differ materially from these estimates due to the completion of our financial closing procedures, final adjustments, and other developments that may arise between now and the time the closing procedures for the year ended December 31, 2021 are completed.

The Company's audited financial results for the year ended December 31, 2021, are expected to be released on or around March 8, 2022 and will be in full compliance with National Instrument 52-112.

Non-GAAP Measures and Ratios

This press release contains certain financial measures and ratios, as described below, which do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS") 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 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.

Capital Expenditures, before A&D

Spartan uses "Capital Expenditures, before A&D" to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic drilling program, excluding acquisitions or dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. The following table details the composition of capital expenditures and its reconciliation to cash flow used in investing activities:

UNAUDITED	Three months ended December 31		Year ended December 31
(CA$ thousands)	2021	2020	2021	2020
Exploration and evaluation assets	10,434	151	18,140	1,302
Property, plant and equipment	105,248	13,852	170,835	15,518
Capital Expenditures, before A&D	115,682	14,003	188,975	16,820
Acquisitions	253	431	423,972	109,213
Dispositions	-	(88)	(453)	(164)
Total cash capital expenditures	115,935	14,346	612,494	125,869
Corporate acquisitions, repayment of debt	-	-	352,488	-
Corporate acquisitions, cash acquired	(1,570)	-	(24,634)	-
Change in non-cash investing working capital	(16,140)	(8,125)	(14,635)	(12,769)
Cash used in investing activities	98,225	6,221	925,713	113,100

Adjusted Net Capital Acquisitions

"Adjusted Net Capital Acquisitions" is a non-GAAP financial measure used in the determination of FD&A costs, which is a non-GAAP financial ratio. Adjusted net capital acquisitions is useful as it provides a measure of cash, debt, and share consideration used to acquire crude oil and natural gas assets during the period, net of cash provided by the disposal of any crude oil and natural gas assets during the period.

The most directly comparable GAAP measure to adjusted net capital acquisitions is acquisition of crude oil and natural gas assets. The following table details the calculation of adjusted net capital acquisitions and its reconciliation to acquisition of crude oil and natural gas assets.

UNAUDITED	Three months ended December 31		Year ended December 31
(CA$ thousands)	2021	2020	2021	2020
Acquisitions	253	431	423,972	109,213
Add non-cash consideration:
Common share consideration	-	-	120,494	-
Convertible promissory note	-	-	25,293	-
Net Debt assumed on corporate acquisitions	(1,691)	-	387,456	-
Total consideration including Net Debt	(1,438)	431	957,215	109,213
Less: Dispositions	-	(88)	(453)	(164)
Adjusted Net Capital Acquisitions	(1,438)	343	956,762	109,049

Adjusted Funds Flow and Free Funds Flow

"Funds from Operations" is calculated as cash provided by operating activities before changes in non-cash working capital. "Adjusted Funds Flow" is calculated as Fund from Operations, adjusted to add back transaction costs on acquisitions and to deduct cash lease payments. Spartan believes Adjusted Funds Flow is an appropriate metric to compare relative to Net Debt (Surplus) because it reflects the net cash flow generated from routine business operations and because Spartan does not include lease liabilities in its definition of Net Debt (Surplus). Transaction costs are added back to Adjusted Funds Flow because the Company's definition of Free Funds Flow excludes acquisitions.

"Free Funds Flow" is calculated as Adjusted Funds Flow less Capital Expenditures, before A&D (both of which are non-GAAP financial measures). Spartan believes Free Funds Flow provides an indication to investors and Spartan shareholders of the amount of funds the Company has available for future capital allocation decisions such as to repay debt, reinvest in the business or return capital to shareholders.

The following table reconciles cash provided by operating activities, as determined in accordance with IFRS, to Adjusted Funds Flow and Free Funds Flow:

UNAUDITED	Three months ended December 31			Year ended December 31
(CA$ thousands, except as otherwise noted)	2021	2020	%	2021	2020	%
Cash provided by operating activities	147,975	16,064	821	279,766	32,209	769
Change in non-cash operating working capital	(8,509)	2,175	(491)	18,078	1,385	1,205
Funds from Operations	139,466	18,239	665	297,844	33,594	787
Add back: transaction costs	(71)	7	nm	4,002	2,285	75
Deduct: lease payments	(2,369)	(1,450)	63	(7,860)	(3,392)	132
Adjusted Funds Flow	137,026	16,796	716	293,986	32,487	805
Deduct: Capital Expenditures, before A&D	(115,682)	(14,003)	726	(188,975)	(16,820)	1,024
Free Funds Flow	21,344	2,793	664	105,011	15,667	570

Adjusted Funds Flow per share

Adjusted Funds Flow ("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 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. For periods in which the convertible promissory note was outstanding, it was always dilutive to AFF per share but could be antidilutive to EPS because of the non-cash change in fair value recognized through net income (see also, "Share Capital").

UNAUDITED	Three months ended December 31			Year ended December 31
(CA$ thousands, except as otherwise noted)	2021	2020	%	2021	2020	%
Adjusted Funds Flow	137,026	16,796	716	293,986	32,487	805
WA Shares outstanding (000s) – basic	153,128	58,220	163	115,555	44,848	158
WA Shares outstanding (000s) – diluted AFF	170,220	68,859	147	134,787	55,403	143
AFF per share
Basic ($ per common share)	0.89	0.29	207	2.54	0.72	253
Diluted ($ per common share)	0.80	0.24	233	2.18	0.59	269

Net Debt (Surplus)

"Net Debt (Surplus)" includes long-term debt under Spartan's five-year term facility and revolving credit facility, net of Adjusted Working Capital.  "Adjusted Working Capital" is calculated as current assets less current liabilities, excluding derivative financial instrument assets and liabilities and lease liabilities. As at December 31, 2021 and at December 31, 2020, the Adjusted Working Capital deficit (surplus) includes cash and cash equivalents, accounts receivable, prepaid expenses and deposits, other current assets, accounts payable and accrued liabilities and the current portion of decommissioning obligations.

Spartan uses "Net Debt (Surplus)" as a measure of the Company's financial position and liquidity, however it is not intended to be viewed as an alternative to other measures calculated in accordance with IFRS.

NET DEBT RECONCILIATION – UNAUDITED (Assets) Liabilities – CA$ thousands	December 31, 2021	December 31, 2020
Cash	(1,245)	(2,686)
Accounts receivable	(96,741)	(20,475)
Prepaid expenses and deposits	(5,104)	(1,529)
Other current assets	(6,800)	-
Accounts payable and accrued liabilities	176,971	34,149
Current portion of decommissioning obligations	3,614	2,833
Adjusted Working Capital deficit	70,695	12,292
Long-term debt	387,564	-
Net Debt	458,259	12,292

In addition, Spartan has various lease contracts in place for compression equipment, facilities, office buildings and vehicles.  The Company's total lease liability is $54.8 million (unaudited) as at December 31, 2021 (2020 – $49.8 million), of which $10.2 million is expected to be settled within the next twelve months. The Company's reported "Adjusted Funds Flow" is net of cash lease payments in the period.

Operating Income and Operating Netback

"Operating Income, before hedging" is calculated 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: (i) realized gains or losses on derivative financial instruments including settlements on acquired derivative financial instrument liabilities (together "Settlements on Commodity Derivative Contracts"), and (ii) pipeline transportation revenue, net of pipeline transportation expense (the "Net Pipeline Transportation Margin").

The components of Spartan's Operating Income for the fourth quarter and years ended December 31, 2021 and 2020 are summarized below:

UNAUDITED	Three months ended December 31				Year ended December 31
(CA$ thousands)		2021	2020	%	2021	2020	%
Oil and gas sales		296,425	45,206	556	608,142	96,324	531
Processing and other revenue		2,405	1,578	52	9,317	3,389	175
Royalties		(32,738)	(4,809)	581	(66,639)	(8,874)	651
Operating expenses		(50,125)	(13,583)	269	(115,011)	(34,476)	234
Transportation expenses		(16,081)	(3,288)	389	(34,738)	(7,665)	353
Operating Income, before hedging		199,886	25,104	696	401,071	48,698	724
Settlements on Commodity Derivative Contracts		(42,551)	(2,164)	1,866	(61,376)	(958)	6,307
Net Pipeline Transportation Margin		(1,685)	-	-	(2,083)	-	-
Operating Income, after hedging		155,650	22,940	579	337,612	47,740	607

The Company refers to Operating Income expressed per unit of production as an "Operating Netback" and reports the Operating Netback before and after hedging. The components of Spartan's Operating Netbacks for the fourth quarter and years ended December 31, 2021 and 2020 are summarized below:

UNAUDITED	Three months ended December 31				Year ended December 31
($ per BOE)		2021	2020	%	2021	2020	%
Oil and gas sales		44.48	18.89	135	34.95	17.07	105
Processing and other revenue		0.36	0.66	(45)	0.54	0.60	(10)
Royalties		(4.91)	(2.01)	144	(3.83)	(1.57)	144
Operating expenses		(7.52)	(5.68)	32	(6.61)	(6.11)	8
Transportation expenses		(2.41)	(1.37)	76	(2.00)	(1.36)	47
Operating Netback, before hedging		30.00	10.49	186	23.05	8.63	167
Settlements on Commodity Derivative Contracts		(6.39)	(0.90)	610	(3.53)	(0.17)	1,976
Net Pipeline Transportation Margin		(0.25)	-	-	(0.12)	-	-
Operating Netback, after hedging		23.36	9.59	144	19.40	8.46	129

Assumptions for 2022 Guidance

The significant assumptions used in the forecast of Operating Netbacks and Adjusted Funds Flow for 2022 are summarized below. These key performance measures expressed per BOE are based on the midpoint of average production guidance for 2022 of 70,500 BOE/d (previously 70,000 BOE/d).

2022 production Guidance	Updated Guidance	Previous Guidance	% Change
Crude oil (bbls/d)	12,700	13,500	(6)
Condensate (bbls/d)	2,200	1,400	57
Crude oil and condensate (bbls/d)	14,900	14,900	-
NGLs (bbls/d)	13,200	13,500	(2)
Natural gas (mcf/d)	254,400	249,600	2
Combined average (BOE/d)	70,500	70,000	1
% Oil and NGLs	40%	41%	(2)

2022 financial Guidance ($/BOE)	Updated Guidance	Previous Guidance	% Change
Oil and gas sales	43.17	33.67	28
Processing and other revenue	0.32	0.24	33
Royalties	(5.17)	(3.34)	55
Operating expenses	(7.91)	(6.47)	22
Transportation expenses	(2.68)	(2.42)	11
Operating Netback, before hedging	27.73	21.68	28
Settlements on Commodity Derivative Contracts	(2.13)	(1.74)	22
Net Pipeline Transportation Margin	(0.02)	-	-
Operating Netback, after hedging	25.58	19.94	28
General and administrative expenses	(1.09)	(1.12)	(3)
Cash financing expenses	(0.92)	(1.20)	(23)
Settlements of decommissioning obligations	(0.14)	(0.14)	-
Lease payments	(0.47)	(0.50)	(6)
Adjusted Funds Flow	22.96	16.98	35

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 for Spartan's shares was $6.04 and $5.02 per common share for the three months and year ended December 31, 2021, respectively. Spartan's closing share price was $5.97 on December 31, 2021 compared to $2.98 on December 31, 2020. 

As of the date hereof, there are 153.3 million common shares outstanding (153.2 million as at December 31, 2021). There are no preferred shares or special shares outstanding. The following securities are outstanding as of the date hereof: 15.8 million common share purchase warrants with an exercise price of $1.00 per common share; 2.0 million restricted share awards; and 4.3 million stock options outstanding with an average exercise price of $3.36 per common share and average remaining term of 3.5 years.

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, cost model and strategy of Spartan, including commodity diversification and oil weighted production; Spartan's 2022 budget and financial/operational guidance, Spartan's anticipated operational results for 2022 including, but not limited to, estimated or anticipated production levels, capital expenditures and drilling plans, Spartan plans to deliver strong operational performance and to generate long term sustainable Free Funds Flow and organic growth; Spartan's cost-cutting measures and the results thereof; expected future drilling inventory; capital requirements; management's ability to replicate past performance; the ability of Spartan to optimize production; future consolidation opportunities and acquisition targets; future cash flows; expectations regarding the Montney and Deep Basin formations, expectations regarding the reduction of the Company's Net Debt (Surplus) using Free Funds Flow; Spartan's planned ESG initiatives; other aspects of the Company's future financial operations and performance; the Company's outlook for commodity prices; future commodities prices and exchange rates; and the performance and other characteristics of the Company's oil and natural gas properties and expected results from its assets. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future.

The forward-looking statements and information are based on certain key expectations and assumptions made by Spartan, including expectations and assumptions concerning the business plan of Spartan, 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 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, price differentials and the actual prices received for the Company's products, 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 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, changes in industry regulations and political landscape both domestically and abroad, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), stock market volatility, impacts of the current COVID-19 pandemic and the retention of key management and employees. Please refer to Spartan's Annual Information Form for the year ended December 31, 2020 and MD&A for the period ended September 30, 2021 for additional risk factors relating to Spartan, which can be accessed either on Spartan's website at www.spartandeltacorp.com or under Spartan's profile on www.sedar.com. 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.

Future Oriented Financial Information

Any financial outlook or future oriented financial information in this press release, as defined by applicable Canadian securities legislation, has been approved by management of Spartan. Readers are cautioned that any such future-oriented financial information contained herein, including (but not limited to) references to prospective results of operations and funds from operations, operating costs, capital expenditures, Adjusted Funds Flow, Free Funds Flow, Net Debt (Surplus), Operating Netbacks, and Spartan's corporate outlook and guidance for 2022, generally, are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs and should not be used for purposes other than those for which it is disclosed herein. Spartan and its management believe that the prospective financial information 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, Spartan's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future activities or results. Spartan disclaims any intention or obligation to update or revise any prospective financial information contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law.

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.

The following table provides a sensitivity of Spartan's forecasted Adjusted Funds Flow, holding all other assumptions constant, to changes in the forecasted benchmark oil and gas prices. Assuming capital expenditures are unchanged, the impact on Free Funds Flow would be equivalent to the increase or decrease in Adjusted Funds Flow. An increase (decrease) in Free Funds Flow will result in an equivalent decrease (increase) in the forecasted Net Debt (Surplus) in a given calendar year period and would accumulate in subsequent periods.

	Impact on Forecasted Adjusted Funds Flow (CA$ millions)
	Increase WTI	Increase AECO	Decrease WTI	Decrease AECO
Year	US$10.00/bbl	CA$0.50/GJ	US$10.00/bbl	CA$0.50/GJ
2022	70	44	(69)	(42)

Oil and Gas Measures

This press release contains metrics commonly used in the oil and natural gas industry which have been prepared by management, such as "development capital", "F&D costs", "FD&A costs", "Operating Netback", and "Recycle Ratio". These terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.

"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" Spartan 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" Spartan calculates FD&A costs, including FDC, as the sum of "Capital Expenditures, before A&D" and "Adjusted Net Capital Acquisitions" (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, 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.

The following table summarizes the calculations of F&D and FD&A costs and the associated change in reserves used in the calculations of F&D and FD&A costs per BOE disclosed in this press release for the year ended December 31, 2021 and the two-year average of 2020 and 2021. Prior thereto, Spartan did not have significant assets or operations.

F&D and FD&A Costs	2021			2020 and 2021 - Total
($M, except as otherwise noted)	PDP	TP	TPP	PDP	TP	TPP
Capital Expenditures, before A&D^(3)	188,975	188,975	188,975	205,795	205,795	205,795
Less: development expenditures on acquired assets	(103,280)	(103,280)	(103,280)	(119,724)	(119,724)	(119,724)
Change in FDC costs required to develop reserves	17,404	149,070	174,451	17,404	130,494	166,009
F&D costs, including FDC	103,099	234,765	260,146	103,475	216,565	252,080
Adjusted Net Capital Acquisitions^(3)	956,762	956,762	956,762	1,065,811	1,065,811	1,065,811
Development expenditures on acquired assets	103,280	103,280	103,280	119,724	119,724	119,724
FDC related to acquired assets	15,800	1,180,378	2,450,078	15,800	1,446,978	2,843,978
Acquisition costs, net including FDC	1,075,842	2,240,420	3,510,120	1,201,335	2,632,513	4,029,513
FD&A costs, including FDC	1,178,941	2,475,185	3,770,266	1,304,810	2,849,078	4,281,593
Reserve additions, including revisions (MBOE)	25,512	33,896	38,881	29,230	36,449	42,792
Acquisitions, net of dispositions (MBOE)	48,909	142,277	317,312	117,617	278,675	522,673
Total FD&A reserves (MBOE)	74,421	176,173	356,193	146,847	315,124	565,465

"Operating Netback" see "Reader Advisories – Non-GAAP Measures and Ratios".

"Recycle Ratio" is measured by dividing the Operating Netback, before hedging, by the F&D cost per BOE or FD&A cost per BOE for the year.

"Net Present Value 'NPV'" is the difference between the present value of cash inflows and the present value of cash outflows over time. The present value calculated by discounting the cashflows of future periods by a defined percentage per year and used to determine today's value of a future stream of income.

"Net Asset Value 'NAV', per share" is calculated by adjusting the NPV of petroleum and natural gas reserves discounted at 10% before-tax, by the Company's Net Debt (as defined under "Non-GAAP Measures") and cash proceeds from in-the-money stock options and warrants, and dividing by the fully diluted number of common shares outstanding.

The components of Spartan's net asset value calculation are set-forth in the table below. The reader is cautioned that these amounts may not be directly comparable to other companies, as the term "net asset value" does not have a standardized meaning under GAAP or NI 51-101.

NET ASSET VALUE	As at December 31, 2021
(CA$ thousands, except for share amounts)	PDP	TP	TPP
NPV of reserves, discounted at 10% before tax	1,152,248	2,377,008	3,973,191
Net Debt ^(a)	(458,259)	(458,259)	(458,259)
Proceeds from exercise of in-the-money stock options and warrants ^(b)	29,828	29,828	29,828
Net asset value ^(d)	723,817	1,948,577	3,544,760
Fully diluted common shares outstanding (000s) ^(b)(c)	175,245	175,245	175,245
Net asset value ($ per common share) ^(d)	$   4.13	$   11.12	$   20.23

a) Net Debt does not have a standardized meaning under IFRS, refer to reconciliation under "Non-GAAP Measures and Ratios".

b) The calculation of proceeds from exercise of stock options and the fully diluted number of common shares outstanding only includes stock options and warrants that are "in-the-money" based on the closing price of Spartan common shares of $5.97 as at December 31, 2021.

c) For purposes of the net asset value calculation, the Company does not apply the treasury stock-method. Rather, the fully diluted number of common shares outstanding is determined by adding to the number of common shares outstanding at the calculation date of 153.2 million: (i) the total number of outstanding share awards of 2.0 million; (ii) "in-the-money" stock options of 4.3 million; and (iii) outstanding warrants of 15.8 million.

d) There may be differences due to rounding the table however the net asset value per share is calculated based on unrounded numbers.

"Reserve Life Index or RLI" means the number of years obtained by dividing the quantity of a particular category of reserves by the annualized amount of total production for a period, used to estimate the years it would take to produce those reserves at the given production rate.

Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare our operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.

Reserves Disclosure

Spartan's Statement of Reserves Data and Other Oil and Gas Information on Form 51-101F1 dated effective as at December 31, 2021, which will include further disclosure of Spartan'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 8, 2022.

All reserves values, future net revenue and ancillary information contained in this press release are derived from the McDaniel 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 McDaniel in evaluating Spartan's reserves will be attained and variances could be material. All reserves assigned in the McDaniel 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 Spartan'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, probable, possible) 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 three categories: (a) proved locations; (b) probable locations; and (c) unbooked/potential locations. Proved locations and probable locations are derived from the McDaniel Report and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on the prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources.

Spartan Year-End Reserves Update

• Of the 403 net total booked drilling locations identified herein, 223 are net proved locations and 180 are net probable locations.

Unbooked locations have been identified by management as an estimation of Spartan's multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Spartan will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations considered for future development will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.

Future Development Capital Costs

The following table outlines estimated annual future development capital expenditures required to bring total proved and total proved plus probable reserves on production per the McDaniel Report:

FUTURE DEVELOPMENT CAPITAL	TP Reserves ($MM)	TPP Reserves ($MM)
2022	270.3	270.3
2023	302.5	302.5
2024	323.6	323.6
2025	328.1	328.1
2026	339.7	341.3
Thereafter	31.8	1,476.1
Total FDC, undiscounted	1,595.9	3,041.8
Total FDC, discounted at 10%	1,253.3	1,986.6

Forecast Prices Used in Estimates

The following table outlines forecasted future prices that McDaniel has used in their evaluation of the Company's reserves at December 31, 2021, which are based on a three-consultant average price forecast.  The forecast cost and price assumptions assume increases in wellhead selling prices and consider inflation with respect to future operating and capital costs.

FUTURE COMMODITY PRICE FORECAST	WTI Cushing	Edm. Light Crude	NYMEX	AECO-C	USD/CAD
	US$/bbl	CA$/bbl	US$/MMBtu	CA$/GJ	CA$/US$
2022	72.83	86.82	3.85	3.37	1.255
2023	68.78	80.73	3.44	3.04	1.255
2024	66.76	78.01	3.17	2.89	1.255
2025	68.09	79.57	3.24	2.94	1.255
2026	69.45	81.16	3.30	3.00	1.255
2027	70.84	82.78	3.37	3.06	1.255
2028	72.26	84.44	3.44	3.12	1.255
2029	73.70	86.13	3.50	3.19	1.255
2030	75.18	87.85	3.58	3.25	1.255
2031	76.68	89.61	3.65	3.32	1.255
Ten year average ^(a)	71.46	83.71	3.45	3.12	1.255
(a) Prices and costs escalate at 2.0% thereafter

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. Such abbreviation may be misleading, particularly if used in isolation.

References to "oil" in this press release include light crude oil and medium crude oil, combined. NI 51-101 includes condensate within the product type of "natural gas liquids". References to "natural gas liquids" or "NGLs" include pentane, butane, propane, ethane and condensate. References to "gas" or "natural gas" relates to conventional natural gas.

Abbreviations

AECO	Alberta Energy Company "C" Meter Station of the NOVA Pipeline System
bbl	barrels of oil
BOE	barrels of oil equivalent
BOE/d	barrels of oil equivalent per day
ESG	Environment, Social and Governance
FDC	Future Development Cost
GJ	gigajoule
$MM	millions of Canadian dollars
MM	millions
MBOE	thousand barrels of oil equivalent
MMBOE	million barrels of oil equivalent
MMbbl	million barrels of oil
MMcf	million cubic feet
MMcf/d	million cubic feet per day
NGL	natural gas liquids
WTI	West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for crude oil of standard grade

SOURCE Spartan Delta Corp.

PLEASE CONTACT: Fotis Kalantzis, President and Chief Executive Officer; Richard F. McHardy, Executive Chairman, Spartan Delta Corp., 1500, 308 - 4th Avenue SW, Calgary, Alberta T2P 0H7, Canada, Email: [email protected], www.spartandeltacorp.com