Calgary, Alberta--(Newsfile Corp. - September 19, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) ("Saturn" or the "Company") is pleased to provide results to date from its 2022 drilling program, its new re-drill program to enhance production of existing low to non-producing horizontal wells, and the results of the annual general and special meeting of shareholders. The 2022 drilling program has been focused on Saturn's two operational areas, the Oxbow Asset in Southeast Saskatchewan, and the Viking Asset in West-central Saskatchewan, and includes:

• The first 23 horizontal wells drilled, adding incremental aggregate production of 1,615 bbls/d, based on initial 30 days of production ("IP30") data;
• An additional 16 horizontal wells, with less than 30 days of production data, have been drilled and recently put onto production, or are awaiting near term tie-in, for a total of 39 completed horizontal wells to date; and
• The final 21 horizontal wells of the 2022 drilling program are expected to be completed by November 2022.

Oxbow Drilling Update

Saturn has completed drilling 16 Oxbow horizontal wells in 2022, with 15 wells having average IP30 production of approximately 71.2 bbls/d, which is in-line with Saturn's guidance type cure expectations. The average incurred capital cost of each Oxbow horizontal well has been within the budgeted $1.0 million per location. The implied capital efficiency of new production additions is at an attractive rate of approximately $14,230 /bbl/d. Saturn expects to drill an additional 10 Oxbow horizontal wells for the remainder of 2022 for a total of 26 new Oxbow wells for the year.

Oxbow Re-Drill Opportunity

The Company has identified several existing horizontal wells at the Oxbow Asset, drilled in previous years, that have none or very little oil production, as candidates for re-drill operations. Re-drill operations involve entering an existing wellbore and drilling out a new horizontal leg into a prospective light oil formation, not previously accessed by the original drilling operation. With the cost savings of utilizing the vertical portion of an existing wellbore, a re-drill operation is expected to have approximately 60% of the costs of drilling a new horizontal well. Based on results to date, the four completed re-drill operations have produced oil at rates approximately 75% the average rate of a new Oxbow horizontal well. Given the initial superior economic results, with an average capital efficiency of $11,260 /bbl/d, the Company plans to execute up to two additional re-drills in 2022 and include up to 20 re-drills in the 2023 capital expenditure budget. Saturn estimates there are up to 200 existing horizontal wells, with limited current oil production, that are candidates for re-drill operations and significantly adds to the Company's deep inventory of growth capital projects.

Viking Drilling Update

Saturn continues to have great success with its Viking horizontal drill program having drilled and completed 21 Viking wells since June 2022, with the initial four wells having average IP30 rates of 83.6 bbls/d, which is 21% above Saturn's guidance type cure expectations. The average capital cost per Viking location was $1.4 million. The capital cost and IP30 production rates were higher then projected partially due to extending the wellbores past the originally programmed 1.0 mile length (up to 1.5 miles), leading to additional completion costs. The realized average capital efficiency was an attractive $17,045 /bbl/d. The Company plans to drill an additional nine Viking wells in the remainder of 2022.

"We are very excited with the drilling success in 2022, which includes the production optimization activities surrounding the pilot project re-drills at the Oxbow asset. The positive results associated with re-drills has opened up the potential to add hundreds of new, highly economic locations for sustainable production growth," commented Justin Kaufmann, Saturn's Chief Development Officer. "We expect re-drills to become an increasing important part of our capital expenditure program going forward, with the focus on turning near-term abandonment liabilities, into very economic development opportunities."

Organic Growth Outlook

Saturn remains on track to meet its stated 2022 production guidance for annual average oil and gas production in the range of 9,750 boe/d to 10,350 boe/d and for Q4 2022 average oil and gas production to be in the range of 12,300 boe/d and 12,700 boe/d. Achieving the Company's 2022 production targets will lay the foundation for Saturn to pursue it's stated guidance of 2023 average oil and gas production between 13,100 boe/d and 13,700 boe/d and the targeted Q4 2023 average oil and gas production in the range of 13,950 boe/d to 14,550 boe/d.

For the most recent 23 new horizontal and re-drilled wells executed to date, with 30 days of production data, the Company has incurred approximately $23.3 million in capital expenditures. The incremental aggregate oil production of 1,615 bbls/d from theses 23 wells is expected to produce approximately 1.2 million barrels of light oil and approximately $82.0 million in net operating income (undiscounted) over the economic life of the wells, based on Saturn's stated 2023 guidance of a $66.70/bbl net operating netback, assuming a USD 90 WTI flat price assumption, implying a 3.5x recycle ratio.

Results of Annual General and Special Meeting Of Shareholders

Saturn is pleased to announce the results of voting at its 2022 Annual General and Special Meeting of Shareholders (the "AGM") held on September 15, 2021. A total of 19,801,568 common shares were voted at the AGM, representing 33.2% of the outstanding common shares of the Company. Shareholders voted in favour of the election of all director nominees as follows:

All other items of business before the AGM were voted in favour, including:

• Appointment of KPMG LLP as auditors (92.22% proxy votes in favour);
• Approval of stock option plan (87.04% proxy votes in favour);
• Restricted Share Unit and Deferred Share Unit Plan (72.42% proxy votes in favour); and
• Restricted Share Unit Grants (75.21% proxies votes in favour).

The full text of each resolution and description of the director nominees is set forth in the management information circular of the Company dated August 15, 2022 and available at www.sedar.com.

Executive Promotions and Board Nominations

Saturn is pleased to announce the following promotions:

• Mr. Justin Kaufmann has been promoted to the position of Chief Development Officer. Mr. Kaufmann has been instrumental to Saturn's growth and success as Vice President Exploration since the Company's recapitalization and management change in 2017. Mr. Kaufmann has over 15 years of industry experience, is a graduate from the University of Saskatchewan and a registered Professional Geologists with APEGS. Mr. Kaufmann will continue to coordinate the Company's capital expenditure program, business development opportunities and technical growth projects.
• Mr. Tyler Cheetham has been promoted to Vice President Land from his former role as Land Manager. Mr. Cheetham joined Saturn in March 2021 and has been instrumental to the integration of new acquisitions and coordination with the over 2,500 land owners the Company engages. Mr. Cheetham has 20 years of mineral land experience including senior roles with Husky Energy Inc. and Crescent Point Energy Corp., and has extensive knowledge of commercial negotiations, acquisitions, divestures and business development. Mr. Cheetham has a Business degree from the University of Lethbridge and is an active member of the Canadian Association of Land and Energy Professionals.
• Mr. Jordan Meyer has been promoted to the role of Vice President Engineering from his formal role of Exploitation Manager since joining the Saturn in July 2021. Mr. Meyer has been instrumental in leading the technical team in execution of Saturn's growing capital program. Mr. Meyer has over 10 years experience as a professional engineer in the energy industry in both Canada's Western Canadian Sedimentary Basin and in Continental Europe. Mr. Meyer has held senior roles with Vermilion Energy Inc. and Crescent Point Energy Corp., holds a Bachelor of Science with Distinction in Chemical Engineering with a minor in Petroleum Engineering and is a member of APEGA.

About Saturn Oil & Gas Inc.

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

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

Saturn Oil & Gas Investor & Media Contacts:
John Jeffrey, MBA - Chief Executive Officer
Tel: +1 (587) 392-7902
www.saturnoil.com

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

Reader Advisory

NON-GAAP FINANCIAL MEASURES AND RATIOS

This news release includes non-GAAP financial measures and ratios as further described herein. These non-GAAP financial measures and ratios do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures by other companies. Management believes that the presentation of these non-GAAP financial measures and ratios provides useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.

FORWARD-LOOKING INFORMATION AND STATEMENTS.

Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "scheduled", "will" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, the drilling of development wells, workover program, re-drill candidates, production targets, and the maintenance of base production and the business plan, cost model and strategy of the Company.

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

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

Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although Saturn believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Saturn can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things, the availability of services, ability to spend the increased planned capital expenditures and the effect of higher oil prices on the Company's business. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

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

BOE PRESENTATION

Boe means barrel of oil equivalent. All boe conversions in this news release are derived by converting gas to oil at the ratio of six thousand cubic feet ("Mcf") of natural gas to one barrel ("Bbl") of oil. Boe may be misleading, particularly if used in isolation. A Boe conversion rate of 1 Bbl : 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 Bbl : 6 Mcf, utilizing a conversion ratio of 1 Bbl : 6 Mcf may be misleading as an indication of value.

ABREVIATIONS AND FREQUENTLY REOCCURING TERMS

Saturn uses the following abbreviations and frequently recurring terms in this press release: "WTI" refers to West Texas Intermediate, a grade of light sweet crude oil used as benchmark pricing in the United States; "MSW" refers to the mixed sweet blend that is the benchmark price for conventionally produced light sweet crude oil in Western Canada; "AECO" refers to Alberta Energy Company, a grade or heating content of natural gas used as benchmark pricing in Alberta, Canada; "bbl" refers to barrel; "bbl/d" refers to barrels per day; "GJ" refers to gigajoule; "NGL" refers to Natural Gas Liquids; "Mcf" refers to thousand cubic feet.

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

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

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