SPARTAN DELTA CORP. ANNOUNCES SECOND QUARTER 2026 RESULTS, INCREASED 2026 GUIDANCE, AND OPERATIONS UPDATE

CALGARY, AB, July 29, 2026 /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, 2026, and an increase to its 2026 guidance.

Selected financial and operational information is set out below and should be read in conjunction with Spartan's unaudited interim financial statements and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2026, and 2025, 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".

SECOND QUARTER 2026 FINANCIAL & OPERATIONAL HIGHLIGHTS

• In the second quarter, the Company reported production of 52,818 BOE/d (42% liquids), a 37% increase from the second quarter of 2025.
  • Crude oil production increased by 161% and total liquids production increased by 62% compared to the second quarter of 2025.
• Executed a second quarter capital program of $143.1 million, of which approximately 72% was spent on drilling, completing, equipping, and tie-ins.
  • In the Duvernay, Spartan drilled 10 (9.3 net) wells, completed 8 (6.8 net) wells, and brought on-stream 5 (3.8 net) wells.
  • In the Deep Basin, Spartan drilled 1 (1.0 net) well.
  • In addition, Spartan continued to strategically expand its Duvernay acreage to approximately 555,000 net acres (859 sections).
• Second quarter oil and gas sales totaled $183.7 million, a 127% increase from the second quarter of 2025.
• Generated second quarter Adjusted Funds Flow of $92.6 million ($0.45 per share, basic and $0.43 per share, diluted), a 93% increase from the second quarter of 2025.
• Operating Netback, before hedging, averaged $24.93/BOE during the second quarter of 2026, an 83% increase from the second quarter of 2025.
• Exited the second quarter with Net Debt of $300.4 million, resulting in a conservative Net Debt to Annualized Adjusted Funds Flow Ratio of 0.8x.
  • During the quarter, the Company increased its total credit capacity from $450.0 million to $700.0 million.
• Closed the acquisition of a 52 MMcf/d licensed gas processing plant (100% WI), pipelines, and compression facilities in the Duvernay for $12.7 million.

FINANCIAL & OPERATING HIGHLIGHTS

	Three months ended June 30			Six months ended June 30
(CA$ thousands, unless otherwise indicated)	2026	2025	%	2026	2025	%
FINANCIAL HIGHLIGHTS
Oil and gas sales	183,698	81,004	127	330,808	172,245	92
Net income and comprehensive income	42,437	33,531	27	28,800	28,362	2
$ per share, basic ^(1)	0.21	0.17	24	0.14	0.14	-
$ per share, diluted ^(1)	0.20	0.17	18	0.14	0.14	-
Cash provided by operating activities	112,779	43,627	159	201,907	99,895	102
Adjusted Funds Flow ^(2)	92,590	47,949	93	173,955	93,514	86
$ per share, basic ^(1)(2)	0.45	0.24	88	0.86	0.48	79
$ per share, diluted ^(1)(2)	0.43	0.23	87	0.82	0.46	78
Free Funds Flow (deficit) ^(2)	(50,476)	(35,581)	42	(91,502)	(62,769)	46
Cash used in investing activities	142,109	84,393	68	244,987	134,576	82
Capital Expenditures before A&D ^(2)	143,066	83,530	71	265,457	156,283	70
Adjusted Net Capital A&D ^(2)	15,571	6,067	157	27,812	6,020	362
Total assets	1,407,901	1,037,524	36	1,407,901	1,037,524	36
Debt	207,418	66,476	212	207,418	66,476	212
Net Debt ^(2)	300,369	123,739	143	300,369	123,739	143
Shareholders' equity	729,811	600,077	22	729,811	600,077	22
Common shares outstanding, end of period (000s) ^(1)	205,147	200,060	3	205,147	200,060	3
OPERATING HIGHLIGHTS
Average daily production
Crude oil (bbls/d)	6,475	2,485	161	6,739	2,349	187
Condensate (bbls/d) ^(3)	3,818	2,056	86	2,957	2,021	46
NGLs (bbls/d) ^(3)	12,087	9,304	30	12,506	9,460	32
Natural gas (mcf/d)	182,627	148,010	23	181,669	147,549	23
BOE/d	52,818	38,513	37	52,480	38,422	37
Average realized prices, before financial instruments
Crude oil ($/bbl)	129.61	87.33	48	111.12	90.63	23
Condensate ($/bbl) ^(3)	130.07	86.61	50	119.48	92.31	29
NGLs ($/bbl) ^(3)	32.40	23.78	36	29.70	27.17	9
Natural gas ($/mcf)	1.59	1.85	(14)	1.95	2.00	(3)
Combined average ($/BOE)	38.22	23.11	65	34.83	24.77	41
Operating Netbacks ($/BOE) ^(2)
Oil and gas sales	38.22	23.11	65	34.83	24.77	41
Processing and other revenue	0.33	1.19	(72)	0.31	0.77	(60)
Net commodities purchased margin	0.02	0.09	(78)	0.04	0.04	-
Royalties	(5.30)	(2.98)	78	(4.29)	(3.38)	27
Operating expenses	(6.42)	(6.02)	7	(6.18)	(6.26)	(1)
Transportation expenses	(1.92)	(1.73)	11	(1.94)	(1.73)	12
Operating Netback, before hedging ($/BOE) ^(2)	24.93	13.66	83	22.77	14.21	60
Operating Netback, after hedging ($/BOE) ^(2)	21.53	14.70	46	20.62	15.14	36
Adjusted Funds Flow Netback ($/BOE) ^(2)	19.26	13.68	41	18.31	13.45	36

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

2026 UPDATED BUDGET AND GUIDANCE

Spartan delivered strong operational results in the Duvernay during the first half of 2026, prompting an increase to the Company's financial and operating guidance for 2026. The updated guidance includes increasing its capital program to $525 - $575 million (previously $475 - $525 million) to accelerate Duvernay development and advance strategic infrastructure investments, delivering increased annualized production of 53,500 - 54,500 BOE/d and 45% liquids (previously 52,000 - 54,000 BOE/d and 45% liquids). Continued execution and repeatable results have enabled Spartan to accelerate its capital program with the potential to achieve its 2030 Duvernay production target of 50,000 BOE/d ahead of schedule.

Spartan is allocating $385 - $415 million on drilling, completion, equipping and tie-ins (previously $360 - $390 million), and is allocating $105 - $125 million of capital to further accelerate the building out of major infrastructure (previously $80 - $100 million), and $35 million to corporate and other.

The $50 million of incremental capital funds the drilling of an additional 9 (6.3 net) Duvernay wells, along with the construction and procurement of supporting infrastructure. The additional wells provide operational optionality, positioning the Company for an accelerated and versatile completions program in the future. The infrastructure investments secure long-term egress, mitigate production curtailments, and decrease operating and transportation costs through the reduction of third-party processing and transportation fees.

Spartan now anticipates drilling 35 Duvernay wells in 2026; in contrast, the Company drilled 19 Duvernay wells prior to 2026, underscoring the step-change in development pace driving significant crude oil growth.

UPDATED 2026 GUIDANCE

ANNUAL GUIDANCE ^(1)	Updated	Previous	Variance
	Guidance	Guidance	Amount	%
Average Production (BOE/d)	53,500 – 54,500	52,000 – 54,000	1,000	2
% Liquids	45 %	45 %	-	-
Natural gas (mmcf/d)	178	173	5	3
NGLs (bbls/d)	12,200	12,200	-	-
Crude oil and condensate (bbls/d)	12,200	12,000	200	2
Benchmark Average Commodity Prices
WTI crude oil price (US$/bbl)	80.00	80.00	-	-
AECO 7A natural gas price ($/GJ)	1.90	1.75	0.15	9
Average exchange rate (US$/CA$)	1.39	1.36	0.03	2
Operating Netback, before hedging ($/BOE) ^(2)	24.47	23.64	0.83	4
Adjusted Funds Flow ($MM) ^(2)	400	380	20	5
Adjusted Funds Flow per share ($/sh) ^(2)	1.95	1.87	0.08	4
Capital Expenditures, before A&D ($MM) ^(2)	525 – 575	475 – 525	50	10
Net Debt, end of year ($MM) ^(2)	368	351	17	5
Common shares outstanding, end of year (MM)	205	203	2	1

(1)	The financial performance measures included in the Company's updated and previous guidance for 2026 are based on the midpoint of the average production forecast.
(2)	"Operating Netback", "Adjusted Funds Flow", "Capital Expenditures, before A&D", and "Net Debt" do not have standardized meanings under IFRS Accounting Standards, see "Reader Advisories – Non-GAAP Measures and Ratios".

OPERATIONS UPDATE

In the first half of 2026, the Company drilled 19 (17.1 net) wells, completed 10 (8.8 net) wells, and brought on-stream 8 (6.8 net) wells in the Duvernay. In the Deep Basin, Spartan drilled, completed, and brought on-stream 6 (6.0 net) wells. Corporately, Spartan brought on-stream 14 (12.8 net) wells during the first half of 2026.

In the second half of 2026, Spartan's program focuses on accelerating Duvernay development, drilling 16 (12.5 net) wells, completing 17 (15.2 net) wells, and bringing on-stream 21 (19.2 net) wells, nearly tripling first half on-stream activity. In the Deep Basin, the Company anticipates drilling 5 (5.0 net) wells, and completing and bringing on-stream 6 (6.0 net) wells. Corporately, Spartan anticipates bringing on-stream 27 (25.2 net) wells during the second half of 2026.

DUVERNAY

Spartan is executing its 50,000 BOE/d Duvernay growth strategy through disciplined delineation in Willesden Green and Pembina, accelerated development in Gilby, and continued advancement of infrastructure projects.

WILLESDEN GREEN DUVERNAY

• 01-09-043-06W5 2-Well Pad (100% WI): Inaugural Willesden Green wells averaging IP30 of approximately 1,930 BOE/d and 59% liquids per well (980 BBL/d of condensate, 160 BBL/d of NGLs, and 4.7 MMcf/d of natural gas) and IP90 of approximately 1,570 BOE/d and 53% liquids per well (720 BBL/d of condensate, 120 BBL/d of NGLs, and 4.4 MMcf/d of natural gas).
• 16-18-042-06W5 3-Well Pad (100% WI): Second delineation pad in Willesden Green after successful initial results. Currently drilling and to be completed in the fourth quarter.

Following successful delineation results, Spartan is committing capital to build out integrated infrastructure supporting continued development and production growth in Willesden Green. Near-term infrastructure investments include battery and satellite buildouts, upgrades to inter-pad pipeline connections, procurement of pipelines, and a water disposal well, totaling approximately $25 million in 2026.

In addition, the Company has sanctioned the construction of a 32-kilometer pipeline connecting Willesden Green production to Spartan's operated 230 MMcf/d O'Chiese 10-09 deep cut gas processing plant, alongside a 50 MMcf/d compressor station. The total project cost is estimated at approximately $75 million, with approximately $10 million spent in 2026 and anticipated in-service in the third quarter of 2027.

GILBY DUVERNAY

• 13-25-043-04W5 (100% WI): Is an acreage continuation well drilled in the fourth quarter of 2025. Production results are averaging IP30 rates of approximately 910 BOE/d and 77% liquids (620 BBL/d of condensate, 80 BBL/d of NGLs, and 1.2 MMcf/d of natural gas) and IP90 rates of approximately 850 BOE/d and 74% liquids (540 BBL/d of condensate, 85 BBL/d of NGLs, and 1.3 MMcf/d of natural gas), with the well rate restricted due to third-party capacity constraints.
• 06-04-043-03W5 7-Well Pad (70% WI): Following the successful results from the initial 3 (2.1 net) wells, Spartan brought an additional 4 (2.8 net) wells on-stream. Production results from the 4 (2.8 net) wells are averaging IP30 rates of approximately 1,115 BOE/d and 84% liquids per well (855 BBL/d of crude oil, 80 BBL/d of NGLs, and 1.1 MMcf/d of natural gas). Production results from the 7 (4.9 net) wells averaged IP30 rates of approximately 1,178 BOE/d and 85% liquids per well (935 BBL/d of crude oil, 67 BBL/d of NGLs, and 1.0 MMcf/d of natural gas).
• 05-12-041-04W5 5-Well Pad (100% WI): Brought on-stream 5 (5.0 net) wells in July 2026 with encouraging initial results.
• 04-20-041-03W5 8-Well Pad (96% WI): Following the successful results from the initial 3 (3.0 net) wells, Spartan is currently completing an additional 5 (4.7 net) wells.
• 14-34-039-04W5 3-Well Pad (100% WI): Drilled 3 (3.0 net) wells, and to be completed in the third quarter.
• 01-19-043-03W5 5-Well Pad (70% WI): Currently drilling 4 (2.8 net) wells, with 5 (3.5 net) wells to be completed in the fourth quarter.
• 02-22-042-04W5 8-Well Pad (70% WI): Following the successful results from the initial 4 (2.8 net) wells, Spartan is currently drilling 4 (2.8 net) wells anticipated to be on-stream in 2027.

In Gilby, Spartan continues to advance development supported by integrated infrastructure. The Company's recently acquired 52 MMcf/d gas processing plant in southern Gilby is anticipated to be tied into 13 Duvernay producing wells by the fourth quarter of 2026. In addition, Spartan is constructing a 30 MMcf/d compressor station (in-service in the third quarter of 2026), approximately 17 kilometers of gathering and inter-pad connection pipelines, and water infrastructure, including permanent water lines to reservoirs and the construction of two water dams. Total infrastructure costs are estimated at approximately $85 million in Gilby.

DEEP BASIN

In the Deep Basin, Spartan continues to shift focus from prolific natural gas to developing liquids-rich and oil formations with recent successful results delineating newly acquired oil acreage. As a result, the Company achieved record oil and condensate production in the Deep Basin during the first half of 2026.

• 16-19-042-06W5 (100% WI): Mannville production results exceeded internal expectations, IP90 rates of approximately 675 BOE/d and 79% liquids (490 BBL/d of crude oil, 45 BBL/d of NGLs, and 0.9 MMcf/d of natural gas).
• 15-23-042-06W5 (100% WI): Mannville well brought on-stream during the third quarter with encouraging initial oil production.

In the second half of 2026, the Company anticipates drilling and completing an additional 4 (4.0 net) Mannville delineation oil wells and a follow-up well targeting the Rock Creek formation. Spartan's inaugural Rock Creek well at 08-04-046-12W5 which was brought on-stream in January, continued to perform strongly, averaging 1,670 BOE/d and 33% liquids (366 BBL/d crude oil and condensate) during the month of July.

ABOUT SPARTAN DELTA CORP.

Spartan Delta Corp. is a Calgary-based oil and gas company focused on delivering sustainable oil-weighted production growth. The Company has established one of the largest acreage positions in the Duvernay and operates a substantial Deep Basin asset, providing multi-decade inventory depth across its portfolio of assets. Spartan's Duvernay asset represents a scalable light-oil growth platform, while the Deep Basin provides stable free funds flow and liquids-rich natural gas development optionality. The Company is committed to operational excellence, capital discipline, and responsible development in relation to the environment and communities in which it operates.

Spartan's corporate presentation, as of July 29, 2026, 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 most recent MD&A, 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 and net commodities purchased margin, less operating and transportation expenses. "Operating Income, after hedging" is calculated by adjusting Operating Income for realized gains or losses on derivative financial instruments. 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 (if applicable), 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 restructuring following significant acquisitions or divestitures 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 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 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, debt, and share consideration 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 long-term debt under Spartan's revolving credit 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, marketable securities, 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.

Net Debt to Adjusted Funds Flow Ratio

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

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" relate to conventional natural gas.

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

The Company has disclosed condensate as combined with crude oil and/or separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this crude oil and condensate presentation provides a more accurate description of its operations and results.

ASSUMPTIONS FOR 2026 GUIDANCE

The significant assumptions used in the forecast of Operating Netbacks and Adjusted Funds Flow for 2026 are summarized below. These key performance measures expressed per BOE are based on the calendar year average production guidance for 2026 of approximately 54,000 BOE/d.

2026 FINANCIAL GUIDANCE ($/BOE)			Guidance
Oil and gas sales			37.21
Processing and other revenue			0.31
Royalties			(4.71)
Operating expenses			(6.45)
Transportation expenses			(1.89)
Operating Netback, before hedging			24.47
Settlements on Commodity Derivative Contracts			(1.75)
Operating Netback, after hedging			22.72
General and administrative expenses			(1.00)
Cash financing expenses			(0.86)
Settlements of decommissioning obligations			(0.11)
Lease payments			(0.54)
Other			0.02
Adjusted Funds Flow			20.23

Changes in forecast commodity prices, exchange rates, differences in the amount and 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. Holding all other assumptions constant, a US$5/bbl increase (decrease) in the forecasted average WTI crude oil price for the remainder of 2026 would increase Adjusted Funds Flow by approximately $8 million (decrease by $8 million). An increase (decrease) of CA$0.25/GJ in the forecasted average AECO natural gas price for the remainder of 2026, holding the NYMEX-AECO basis differential and all other assumptions constant, would increase Adjusted Funds Flow by approximately $4 million (decrease by $4 million). Holding U.S. dollar benchmark commodity prices and all other assumptions constant, an increase (decrease) of $0.05 in the US$/CA$ exchange rate for the remainder of 2026 would increase Adjusted Funds Flow by approximately $5 million (decrease by $5 million). 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).

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 $12.20 for the three months ended June 30, 2026 ($3.12 per share for the three months ended June 30, 2025). Spartan's closing share price was $11.45 on June 30, 2026, compared to $3.81 on June 30, 2025.

As of June 30, 2026, there were 205.1 million common shares outstanding (200.1 million as at June 30, 2025). There are no preferred shares or special preferred shares outstanding.

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)	2026	2025	%	2026	2025	%
WA Shares outstanding, basic	204,013	200,052	2	202,627	195,669	4
Dilutive effect of outstanding securities	7,447	2,064	261	7,148	2,358	203
WA Shares, diluted – for EPS	211,460	202,116	5	209,775	198,027	6
Incremental dilution for AFF ^(1)	1,551	3,949	(61)	1,641	3,744	(56)
WA Shares, diluted – for AFF ^(1)	213,011	206,065	3	211,416	201,771	5

(1)	AFF per share does not have a standardized meaning under IFRS Accounting Standards, refer to "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", "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 (or grammatical variations or negatives thereof). 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 execution of the Company's organic drilling program across its portfolio; the pursuit of optimization in the Deep Basin; the participation in consolidation of the Duvernay and Deep Basin fairways; the growth and development of its Duvernay asset; the Company's increased 2026 capital program; the anticipated benefits of recently acquired infrastructure; the anticipated timing of bringing wells on-stream and the expected performance of future wells; and the expected delivery of competitive economics through reduced costs and optimized completion designs.

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 application of drilling, completion and seismic technology, the Company's ability to secure sufficient amounts of water, 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 (including pursuant to hedging arrangements), 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 and volatility in commodity prices; changes in industry regulations and legislation (including, but not limited to, tax laws, royalties, and environmental regulations); the risk that the U.S. administration (i) maintains tariffs on Canadian goods, including crude oil and natural gas, (ii) increases the rate or scope of previously announced tariffs, or (iii) imposes new tariffs on the import of goods from Canada; the risk that the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including crude oil and natural gas, and that such tariffs or other measures (and/or the Canadian government's response to such tariffs or other measures) adversely affect the Canadian, U.S., and global economies, and by extension the Canadian oil and natural gas industry and the Company, including demand and/or market price for the Company's products and/or otherwise adversely affect the Company; changes in the political landscape both domestically and abroad, wars (including ongoing military actions in the Middle East and between Russia and Ukraine), 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 most recent MD&A and annual information form 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 2026 updated capital program, budget and guidance, including prospective results of operations and production, Operating Netback, before hedging, Adjusted Funds Flow, Adjusted Funds Flow per share, Free Funds Flow, Capital Expenditures, before A&D, Net Debt, operating costs, 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 increased 2026 capital program and guidance. The Company's actual results may differ materially from these estimates.

References in this press release to peak rates, peak sales production, initial production rates, IP30s, IP90s, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Spartan. The Company cautions that such results should be considered preliminary. Peak rates are the highest average daily sales production rate for each well excluding clean-up and downtime.

ABBREVIATIONS

A&D	acquisitions and dispositions
bbl	barrel
bbls/d	barrels per day
BOE/d	barrels of oil equivalent per day
CA$ or CAD	Canadian dollar
GJ	gigajoule
GJ/d	gigajoule per day
IP	Initial production
mcf	thousand cubic feet
mcf/d	thousand cubic feet per day

SOURCE Spartan Delta Corp.

FOR ADDITIONAL INFORMATION PLEASE CONTACT: Fotis Kalantzis, President and Chief Executive Officer, Spartan Delta Corp. 1400, 350 - 7th Avenue SW, Calgary, Alberta, Canada T2P 3N9, Email: [email protected], www.spartandeltacorp.com