JOY Journey Energy Inc

Journey Energy Inc. (JOY – TSX) (“Journey” or the “Company”) is pleased to report its year-end 2023 oil and gas reserves evaluation.

2023 Reserve Report Highlights:

• Proved developed producing reserves decreased 7% to 36.9 MMboe, with a corresponding decrease of 25% in NPV@10% to $361.9 million ($368.4 million including the Countess Power Project (“CPP”)). The PDP reserve life index increased to 8.4 years from 8.3 years.
• Proved reserves decreased 2% to 50.0 MMboe, with a corresponding decrease of 17% in NPV@10% to $504.1 million ($581.5 million including the CPP, Gilby Power Project “GPP”) and Mazeppa power project (“MPP”).
• Proved plus Probable Developed Producing reserves decreased 5% to 48.6 MMboe, with a corresponding decrease of 22% in NPV@10% to $450.5 million ($457.0 million including the CPP). The Proved plus Probable Developed Producing reserve life index increased to 10.8 years from 10.5 years.
• Proved plus Probable reserves decreased 1% to 80.4 MMboe, with a corresponding decrease of 14% in NPV@10% to $772.2 million ($849.6 million including the CPP, GPP and MPP projects).
• Proved developed producing and proved plus probable developed producing reserve life index of 8.4 and 10.8 years respectively, are testaments to Journey’s low decline asset base, and the YoY increase in reserve life index demonstrates Journey’s ability to grow our base production base while simultaneously reducing our corporate decline rate.
• Realized attractive F&D and FD&A recycle ratios of 2.4 and 2.5 respectively for proven reserves; and 8.9 and 8.5 respectively for proven plus probable reserves.
• The $247 million of total proved plus probable undeveloped future development cost (“FDC”) in Journey’s reserve report generates $299 million in future NPV @ 10%. The development wedge generates development cost of approximately $8.25/boe, a cost which is consistent with Journey’s historical averages.

Unaudited Financial Information and 2023 Update Guidance

The preliminary financial information contained in this press release is not a comprehensive statement of our financial results for the fourth quarter and year ended December 31, 2023. Journey’s actual results may differ materially from these estimates due to the currently ongoing finalization of our financial statements. The Company’s audited financial results for the year ended December 31, 2023, are expected to be released on March 12, 2024. Journey will be providing an update on its 2024 guidance and capital program at that time.

COMPANY GROSS WORKING INTEREST OIL AND GAS RESERVES AND NET PRESENT VALUES

The following table provides summary information presented in the GLJ Petroleum Consultants Limited (“GLJ”) independent reserves assessment and evaluation effective December 31, 2023, (the “GLJ Report”). GLJ evaluated 100% of Journey’s crude oil, natural gas liquids and natural gas reserves. The evaluation of all of its oil and gas properties was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities (“NI 51-101”).

The 2023 GLJ reserve report includes the abandonment and reclamation liability associated with all active and inactive wells, facilities, pipelines and gathering systems.

Detailed reserve information will be presented in the Company’s upcoming Statement of Reserves Data and Other Oil and Gas Information section of the Company’s Annual Information Form scheduled to be filed on SEDAR on or before March 31, 2024.

Company Gross ReservesBased on Three Consultants Average Price and Costs as at December 31, 2023

	Light/Medium Oil	TightOil	HeavyOil	NaturalGas	NGL’s	Total(2)
Reserves Category	(Mbbl)	(Mbbl)	(Mbbl)	(MMcf)	(Mbbl)	(Mboe)
Proved
Producing	7,822	116	9,254	95,517	3,835	36,947
Developed non-producing	263	-	521	2,914	106	1,376
Undeveloped	2,865	-	3,098	26,590	1,257	11,652
Total proved	10,951	116	12,873	125,021	5,198	49,975
Probable	7,191	34	5,535	78,695	4,525	30,402
Total proved plus probable	18,142	151	18,408	203,716	9,724	80,377
Included in Above
Proved plus probable producing	10,515	151	11,502	128,858	4,999	48,643

Notes:(1) Company Gross Reserves consists of Journey’s working interest (operated and non-operated) share of reserves before deduction of royalties payable and without including royalties receivable by the Company.(2) In the case of natural gas volumes, boes are derived by converting natural gas to oil using the ratio of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf:1 bbl).(3) Total values may not add due to rounding.Net Present Values of Future Net Revenue (Based on Three Consultants Average Forecast Prices and Costs)

	Before Tax Net Present Value(1)($000’s)
Reserves category	0%	5%	10%	15%	20%
Proved
Producing	295,958	403,659	361,865	313,670	274,349
Developed non-producing	29,316	22,091	17,405	14,190	11,881
Undeveloped	279,788	182,574	124,838	88,668	64,765
Total proved	605,061	608,325	504,108	416,528	350,995
Probable	698,808	409,299	268,051	189,444	141,187
Total proved plus probable	1,303,869	1,017,623	772,160	605,973	492,182
Included in Above
Proved plus probable producing	562,812	546,891	450,543	374,276	318,755

Notes:(1) The net present values presented in the above table do not include any value associated with the Power Projects.(2) Forecast pricing used is the average of the published price forecasts for GLJ Petroleum Consultants Ltd., Sproule Associates Ltd. and McDaniel & Associates Ltd. as at December 31, 2023.(3) It should not be assumed that the net present values of future net revenues estimated by GLJ represent fair market value of the reserves. There is no assurance that the forecast price and cost assumptions will be attained and variances could be material.(4) Total values may not add due to rounding.

The forecast prices and foreign exchange rates used in the GLJ Report are as follows:

	WTI CushingOklahoma($US/bbl)	Edmonton40 API($CDN/bbl)	WCS CrudeOil Stream($CDN/bbl)	AlbertaAECO-spot($CDN/Mmbtu)	NYMEXHenry Hub($US/Mmbtu)	ForeignExchange($US/$CDN)
2024	73.67	92.91	76.74	2.20	2.75	0.752
2025	74.98	95.04	79.77	3.37	3.64	0.752
2026	76.14	96.07	81.12	4.05	4.02	0.755
2027	77.66	97.99	82.88	4.13	4.10	0.755
2028	79.22	99.95	85.04	4.21	4.18	0.755
2029	80.80	101.95	86.74	4.30	4.27	0.755
2030	82.42	103.98	88.48	4.38	4.35	0.755
2031	84.06	106.07	90.24	4.47	4.44	0.755
2032	85.75	108.18	92.04	4.56	4.53	0.755
2033	87.46	110.35	93.89	4.65	4.62	0.755
2034	89.21	112.56	95.77	4.74	4.71	0.755
2035	90.99	114.81	97.68	4.84	4.80	0.755
2036	92.82	117.10	99.63	4.94	4.90	0.755
2037	94.67	119.44	101.63	5.03	5.00	0.755
2038	96.56	121.83	103.66	5.13	5.10	0.755
Thereafter	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr

Reserves Reconciliation

The following table sets out the reconciliation of Journey’s total gross reserves based on forecast prices and costs by principal product type as at December 31, 2023 relative to December 31, 2022.

	Proved (Mboe)	Probable (Mboe)	TPP (Mboe)
December 31, 2022	50,813	30,159	80,972
Discoveries	-	-	-
Extensions	1,608	99	1,707
Infill drilling	-	-	-
Improved recovery	1,634	959	2,594
Technical revisions	254	(882)	(628)
Acquisitions	197	79	276
Dispositions	(22)	(5)	(27)
Economic factors	(46)	(9)	(55)
Production	(4,463)	-	(4,463)
December 31, 2023	49,975	30,402	80,377

FINDING, DEVELOPMENT AND ACQUISITION COSTS

Journey’s finding and development (“F&D”) and finding, development and acquisition (“FD&A”) costs for 2023, 2022 and the three-year average are presented in the tables below. The capital costs used in the calculations are those costs related to: land acquisition and retention, seismic, drilling, completions, tangible well site, tie-ins, and facilities, plus the change in estimated future development costs (“FDC”) as per the independent evaluator’s reserve report. Net acquisition costs are the cash outlays in respect of acquisitions; minus the proceeds from the disposition of properties during the year. Due to the timing of capital costs and the subjectivity in the estimation of future costs, the aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated FDC’s generally will not necessarily reflect total FDC’s related to reserve additions for that year. The reserves used in this calculation are working interest reserve additions, including technical revisions and changes due to economic factors. The 2023 and the three-year average capital expenditures are currently unaudited as the 2023 financial results are in the process of being finalized. For the unaudited information see the reconciliation of the capital expenditures below which are as of the date of this press release.

Proved Finding, Development & Acquisition Costs	2023	2022	3 Year
Capital expenditures (including A&D) ($000’s)	26,400	178,030	215,142
Change in future capital ($000’s)	15	44,714	52,194
Total capital for FD&A (000’s)	26,415	222,744	267,336
Reserve additions, including A&D (Mboe)	3,625	21,178	31,726
Proved FD&A costs – including changes in future capital ($/boe)	7.29	10.52	8.43
Proved FD&A costs – excluding changes in future capital ($/boe)	7.28	8.41	6.78
Recycle ratio(1)
Including changes in future capital	2.5	3.0	2.7

Proved plus Probable Finding, Development & Acquisition Costs	2023	2022	3 Year
Capital expenditures (including A&D) ($000’s)	26,400	178,030	215,142
Change in future capital ($000’s)	(18,203)	90,257	86,860
Total capital for FD&A ($000’s)	8,197	268,287	302,002
Reserve additions, including A&D (Mboe)	3,867	29,753	41,318
Proved FD&A costs – including changes in future capital ($/boe)	2.12	9.02	7.31
Proved FD&A costs – excluding changes in future capital ($/boe)	6.83	5.98	5.21
Recycle ratio(1)
Including changes in future capital	8.5	3.5	3.1

Proved Finding & Development Costs	2023	2022	3 Year
Capital expenditures (excluding A&D) ($000’s)	25,469	41,577	70,036
Change in future capital ($000’s)	(23)	11,433	18,379
Total capital for F&D (000’s)	25,446	53,010	88,415
Reserve additions, excluding A&D (Mboe)	3,428	3,636	11,800
Proved F&D costs – including changes in future capital ($/boe)	7.42	14.58	7.49
Proved F&D costs – excluding changes in future capital ($/boe)	7.43	11.43	5.94
Recycle ratio(1)
Including changes in future capital	2.4	2.2	3.0

Proved plus Probable Finding & Development Costs	2023	2022	3 Year
Capital expenditures (excluding A&D) ($000’s)	25,469	41,577	70,036
Change in future capital ($000’s)	(18,241)	31,654	27,623
Total capital for F&D (000’s)	7,228	73,231	97,659
Reserve additions, excluding A&D (Mboe)	3,591	5,951	14,596
Proved F&D costs – including changes in future capital ($/boe)	2.01	12.31	6.69
Proved F&D costs – excluding changes in future capital ($/boe)	7.09	6.99	4.80
Recycle ratio(1)
Including changes in future capital	8.9	2.6	3.4

Notes:(1) Recycle ratio is calculated as the operating netback per boe divided by F&D or FD&A costs per boe as applicable. The operating netbacks used in the respective years are as follows: 2023 (unaudited) - $17.98/boe; 2022 - $31.88/boe and the three-year average is $22.72/boe (see full reconciliation in the “Advisories” section).(2) Future Development Costs have been adjusted for the effects of reserves categorized as acquisitions and dispositions.

FUTURE DEVELOPMENT COSTS

The following table provides the breakdown of future development costs deducted in the estimation of the future net revenue attributable to the proved and proved plus probable reserve categories noted below:

($000’s)	Proved	Proved plusProbable
2024	13,920	16,058
2025	48,068	75,879
2026	36,399	88,272
2027	20,727	41,551
2028	14,143	29,987
Remaining	9,089	23,065
Total (Undiscounted)	142,346	274,812

RESERVE LIFE INDEX

The Company’s reserve life index (“RLI”) is calculated by taking the Company Gross Reserves from the GLJ Report and dividing them by the projected 2024 production as estimated in the GLJ Report.

	Company GrossReserves	2024 CompanyGross Production	RLI
Reserves Category	(Mboe)	(Mboe)	(Years)
Proved, developed, producing	36,947	4,395	8.4
Total proved	49,975	4,544	11.0
Proved plus probable producing	48,643	4,514	10.8
Proved plus probable	80,377	4,707	17.1

NET ASSET VALUEThe following table provides a calculation of Journey’s estimated net asset value (“NAV”) and net asset value per share (“NAVPS”) as at December 31, 2023 based on the estimated future net revenues associated with Journey’s reserves as presented in the GLJ Report. NAV does not include any provision for Journey’s undeveloped land or seismic database. However, NAV in the table below includes the future discounted cash flows of Journey’s Countess Power Project, Gilby Power Project, and Mazeppa Power Projects based upon an economic run completed by GLJ and using their pricing assumptions.

	Net Asset Value ($000’s)				Net Asset Value ($/share)
Category	2023	2022	%		2023	2022	%
PDP plus CPP (developed)	306,698	392,085	(22)		5.00	6.77	(26	)
TP plus CPP, GPP & MPP (developed + undeveloped)	519,819	540,829	(4)		8.47	9.34	(9	)
P+P DP plus CPP (developed)	395,298	488,596	(19)		6.44	8.44	(24	)
TPP plus CPP, GPP & MPP (developed + undeveloped)	787,919	830,867	(5)		12.84	14.35	(11	)

Notes: (1) Aggregate NAV is calculated by taking the future net revenues per the GLJ report, on a before tax basis, discounted at 10% and subtracting net debt at December 31, 2023 of approximately $61,676 thousand (unaudited); (December 31, 2022 - $98,767 thousand). The 2023 NAV has been adjusted to include the value of power generation at Countess, Gilby and Mazeppa. Countess was commissioned on September 29, 2020 (10% NPV: $6,474 thousand). Gilby power generation is expected to start power generation in late 2024 (10% NPV: $30,555 thousand), Mazeppa power generation is expected to start power generation in late 2024 (10% NPV: $40,366 thousands), as evaluated by GLJ effective January 1, 2024. (2) Year-end NAVPS is calculated by taking the NAV and dividing it by the basic shares outstanding as at December 31, 2023 of 61,350 thousand shares (December 31, 2022 – 57,882 thousand). All share counts have been rounded to the nearest 1,000 shares.

OPERATIONS UPDATEJourney is happy to report that it has now completed expenditures and obligations in association with the March 2023 flow through share issuance. Journey’s exploration and development program costs were well under the originally forecast amount, thereby allowing the Company to expand its drilling program. During the fourth quarter of 2023 and to date in 2024, Journey has drilled 16.0 wells (13.1 net) in 4 of its core areas. 12.0 wells (10.3 net) are now on-production. 4.0 wells (2.9 net) were drilled in 2024 to date in Medicine Hat and are currently forecast to be producing by mid-March. The net capital expenditures for this drilling program were approximately $25 million. Current sales volumes (net to Journey) from the new wells that are currently producing is approximately 1,100 boe/d (79% crude oil and NGL’s).

About the Company Journey is a Canadian exploration and production company focused on oil-weighted operations in western Canada. Journey’s strategy is to grow its production base by drilling on its existing core lands, implementing waterflood projects, and by executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods.

For further information contact:

Alex G. Verge	or	Gerry Gilewicz
President and Chief Executive Officer		Chief Financial Officer
403.303.3232		403.303.3238
alex.verge@journeyenergy.ca		gerry.gilewicz@journeyenergy.ca
Journey Energy Inc.
700, 517 – 10thAvenue SW
Calgary, AB T2R 0A8
403.294.1635
www.journeyenergy.ca

ADVISORIES

This press release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws relating to the Company’s plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding decline rates, anticipated netbacks, drilling inventory, estimated average drill, complete and equip and tie-in costs, anticipated potential of the Assets including, but not limited to, EOR performance and opportunities, capacity of infrastructure, potential reduction in operating costs, production guidance, total payout ratio, capital program and allocation thereof, future production, decline rates, funds flow, net debt, net debt to funds flow, exchange rates, reserve life, development and drilling plans, well economics, future cost reductions, potential growth, and the source of funding our capital spending. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.

The forward-looking information is based on certain key expectations and assumptions made by our management, including expectations and assumptions concerning prevailing commodity prices and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions, including the Acquisition, the ability to market oil and natural gas successfully and our ability to access capital. Although we believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Journey can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. Our actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on our future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).These forward looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Journeys prospective results of operations, funds flow, netbacks, debt, payout ratio well economics 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 press release was made as of the date of this press release and was provided for providing further information about Journey’s anticipated future business operations. Journey disclaims any intention or obligation to update or revise any FOFI contained in this press release, 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 press release should not be used for purposes other than for which it is disclosed herein. Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, which involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Journey, including, without limitation, those listed under “Risk Factors” and “Forward Looking Statements” in the Annual Information Form filed on www.SEDAR.com on March 31, 2023. Forward-looking information may relate to our future outlook and anticipated events or results and may include statements regarding the business strategy and plans and objectives. Particularly, forward-looking information in this press release includes, but is not limited to, information concerning Journey’s drilling and other operational plans, production rates, and long-term objectives. Journey cautions investors in Journey’s securities about important factors that could cause Journey’s actual results to differ materially from those projected in any forward-looking statements included in this press release. Information in this press release about Journey’s prospective funds flows and financial position is based on assumptions about future events, including economic conditions and courses of action, based on management’s assessment of the relevant information currently available. Readers are cautioned that information regarding Journey’s financial outlook should not be used for purposes other than those disclosed herein. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. No assurance can be given that the expectations set out in the Prospectus or herein will prove to be correct and accordingly, you should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as required by applicable securities law.

Non-IFRS Measures

The Company uses the following non-IFRS measures in evaluating corporate performance. These terms do not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculation of similar measures by other companies.

1) “Netback(s)”. The Company uses netbacks to help evaluate its performance, leverage, and liquidity; comparisons with peers; as well as to assess potential acquisitions. Management considers netbacks as a key performance measure as it demonstrates the Company’s profitability relative to current commodity prices. Management also uses them in operational and capital allocation decisions. Journey uses netbacks to assess its own performance and performance in relation to its peers. These netbacks are operating, Funds Flow and net income (loss). “Operating netback” is calculated as the average sales price of the commodities sold (excluding financial hedging gains and losses), less royalties, transportation costs and operating expenses. There is no GAAP measure that is reasonably comparable to netbacks. Below is the reconciliation of the Operating Netback for Journey for 2023, 2022 and the three year average:

	$000’s						$/boe
	2023		2022		3 Year		2023		2022		3 Year
Revenues	224,353		235,583		583,779		49.50		66.01		52.96
Royalties	(46,980)		(46,976)		(113,166)		(10.37)		(13.16)		(10.27)
Operating expenses	(91,577)		(72,356)		(211,977)		(20.20)		(20.27)		(19.23)
Transportation	(4,325)		(2,485)		(8,195)		(0.95)		(0.70)		(0.74)
Operating netback	81,491		113,766		250,451		17.98		31.88		22.72

2) “Net debt” is calculated by taking current assets and then subtracting accounts payable and accrued liabilities; the principal amount of term debt; and the carrying value of the other liability. Net debt is used to assess the capital efficiency, liquidity and general financial strength of the Company. In addition, it is used as a comparison tool to assess financial strength in relation to Journey’s peers.

Net Debt Reconciliation ($000’s)	2023		2022
Principal amount of term debt	43,763		67,580
Principal amount of vendor-take-back debt	17,000		43,000
Accounts payable and accrued liabilities	47,214		45,495
Principal amount of contingent bank debt	-		5,000
Other loans	419		419
Deduct:
Cash in bank	(17,715)		(31,400)
Accounts receivable	(24,734)		(29,677)
Prepaid expenses	(4,271)		(1,650)
Net debt	61,676		98,767

3) Journey uses “Capital Expenditures (excluding A&D)” and “Capital Expenditures (including A&D)” to measure its capital investment level compared to the Company’s annual budgeted capital expenditures for its organic capital program, excluding acquisitions or dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. Journey then adjusts its capital expenditures for A&D activity to give a more complete analysis for its capital spending used for FD&A purposes. The capital spending for A&D proposes has been adjusted to reflect the non-cash component of the consideration paid (i.e. shares issued). The following table details the composition of capital expenditures and its reconciliation to cash flow used in investing activities:

(000’s)	Year endedDecember 31
	2023	2022
Land and lease rentals	1,740	919
Geological and geophysical	351	63
Drilling and completions	15,620	31,260
Well equipment and facilities	7,758	9,335
Capital Expenditures (excluding A&D)	25,469	41,577
Corporate acquisition (cash less working capital assumed)	-	8,226
Corporate acquisition - shares	-	10,920
Asset acquisitions – cash	6,467	120,307
Asset dispositions - cash	(5,536)	(3,000)
Capital Expenditures (including A&D )	26,400	178,030
Other capital – power generation	14,456	2,996

Measurements

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

Where amounts are expressed in a barrel of oil equivalent (“boe”), or barrel of oil equivalent per day (“boe/d”), natural gas volumes have been converted to barrels of oil equivalent at nine (6) thousand cubic feet (“Mcf”) to one (1) barrel. Use of the term boe may be misleading particularly if used in isolation. The boe conversion ratio of 6 Mcf to 1 barrel (“Bbl”) of oil or natural gas liquids is based on an energy equivalency conversion methodology primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. This conversion conforms to the Canadian Securities Regulators’ National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.

Reserves Disclosure

Journey’s Statement of Reserves Data and Other Oil and Gas Information on Form 51-101F1 dated effective as at December 31, 2023, which will include further disclosure of Journey’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 31, 2024.

All reserves values, future net revenue and ancillary information contained in this press release are derived from the GLJ 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 GLJ in evaluating Journey’s reserves will be attained and variances could be material. All reserves assigned in the GLJ 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 Journey’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 or probable) 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 LocationsThis press release discloses drilling inventory in two categories: (a) proved locations; and (b) probable locations. Proved locations and probable locations are derived from the GLJ Report and account for drilling locations that have associated proved and/or probable reserves, as applicable.

Of the 99 net total booked drilling locations identified herein, 47 are net proved locations and 52 are net probable locations.

“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” Journey 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” Journey calculates FD&A costs, including FDC, as the sum of “Capital Expenditures, excluding A&D” and “Capital Expenditures, including A&D” (as defined under “Non-IFRS 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.

Abbreviations

The following abbreviations are used throughout these MD&A and have the ascribed meanings:

A&D	acquisition and divestiture of petroleum and natural gas assets
API	American Petroleum Institute
bbl	Barrel
bbls	Barrels
boe	barrels of oil equivalent (see conversion statement below)
boe/d	barrels of oil equivalent per day
gj	Gigajoules
GAAP	Generally Accepted Accounting Principles
IFRS	International Financial Reporting Standards
Mbbls	thousand barrels
Mboe	thousand boe
Mcf	thousand cubic feet
Mmcf	million cubic feet
Mmcf/d	million cubic feet per day
MSW	Mixed sweet Alberta benchmark oil price at Edmonton Alberta
MW	One million watts of power
NGL’s	natural gas liquids (ethane, propane, butane and condensate)
WCS	Western Canada Select benchmark oil price. This crude oil is heavy/sour with API gravity of 19-22 degrees and sulphur content of 1.8-3.2%.
WTI	West Texas Intermediate benchmark Oil price. This crude oil is light/sweet with API gravity of 39.6 degrees and sulfur content of 0.24%.

All volumes in this press release refer to the sales volumes of crude oil, natural gas and associated by-products measured at the point of sale to third-party purchasers. For natural gas, this occurs after the removal of natural gas liquids.

No securities regulatory authority has either approved or disapproved of the contents of this press release.