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ASPENLEAF ENERGY LIMITED ANNOUNCES COMPLETION OF ACQUISITION OF NEP CANADA

Visit here for a PDF version of the acquisition announcement

Calgary, Alberta, Canada, July 31, 2018 – Aspenleaf Energy Limited (“Aspenleaf” or the “Company”) is pleased to announce the completion of the acquisition of NEP Canada ULC (“NEP Canada”), a private, light oil producer with operations focused in the Leduc/Woodbend region. This acquisition combines two central Alberta based assets that are both geographically and geologically complementary to create an opportunity rich, high netback, light oil based entity.

Aspenleaf’s combined current production now exceeds 16,000 boe/d (85% oil and liquids), and the Company has material growth potential in both its two long-life, core areas of development: Nisku light oil at Leduc/Woodbend and Beaverhill Lake light oil at Swan Hills. Aspenleaf has identified a significant number of highly economic new well locations and has a seven-year drilling inventory across its two core areas. The Company sees continued production improvement, reserve growth and low corporate decline rates from the expansion of its waterflood operations in Swan Hills and plans to implement waterflood support to the Leduc/Woodbend assets.

Aspenleaf enjoys top decile operating netbacks (over $42/boe based on $80/bbl Edmonton mixed sweet blend oil price) which provide for sustainable, self-funded future development. The Company operates materially all of its production and has an average working interest of over 90% across its properties. Proforma, the Company’s Alberta Energy Regulator’s Liability Management Rating for July 2018 would be greater than seven.

Aspenleaf financed the majority of the NEP Canada acquisition with equity, comprised of previously committed equity and additional equity financing from its existing shareholders. Post-close, Aspenleaf maintains a strong balance sheet and is focused on ensuring conservative financial leverage.

“Aspenleaf is excited about the suite of opportunities in both of its two core areas and will continue to grow its production and reserve base through low risk development drilling, combined with directed waterflood implementation and expansion,” said Aspenleaf CEO Bryan Gould.

National Bank Financial Inc. acted as exclusive financial advisor to Aspenleaf with respect to this acquisition. Osler, Hoskin & Harcourt LLP acted as legal counsel to Aspenleaf. Tudor, Pickering, Holt & Co. Securities – Canada, ULC acted as exclusive financial advisor to NEP Canada. Bennett Jones LLP acted as legal counsel for NEP Canada.

About Aspenleaf Energy Limited

Aspenleaf is a private oil and gas company that is focused on the acquisition and exploitation of light oil assets in Western Canada. Aspenleaf is managed by a highly experienced team, with combined industry experience of over 150 years. Aspenleaf is backed by ARC Financial Corp, a Canadian energy-focused private equity manager, and Ontario Teachers’ Pension Plan, Canada’s largest single-profession pension plan, with $189.5 billion in net assets as of December 31, 2017.

Reader Advisory

This press release contains forward-looking statements, including statements with respect to Aspenleaf’sfuture plans and growth opportunities. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Aspenleaf. Although Aspenleaf 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 Aspenleaf cannot give any 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; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures). The forward-looking statements contained in this document are made as of the date hereof and Aspenleaf undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one boe (6 mcf/bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this press release are derived from converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

For further information, please contact either:

Bryan Gould
President and Chief Executive Officer bryan.gould@aspenleafenergy.com

Lee Girardo
Vice President, Corporate Development lee.girardo@aspenleafenergy.com

Keith Pomedli
Vice President, Finance and Chief Financial Officer keith.pomedli@aspenleafenergy.co

Aspenleaf Energy Limited
Suite 2100 – 240 4th Avenue SW Calgary, AB T2P 4H4 Telephone (403) 262-0321

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