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Pieridae Announces 2024 Guidance

Press Release

CALGARY, ALBERTA – Pieridae Energy Limited (“Pieridae” or the “Company”) (TSX: PEA) is pleased to provide 2024 guidance including scope of the 2024 capital program along with production and net operating income projections.

Pieridae’s specific priorities for 2024 are:

  • Maximize processing facility reliability to meet production targets;
  • Reduce operating and G&A expenses to improve corporate netback; and
  • Reduce long term debt to further de-risk the balance sheet.

Pieridae has hedged approximately 65% of its expected 2024 natural gas production at approximately $3.50/Mcf, and approximately 59% of its expected 2024 condensate production using swaps and an $80.00 x $90.75 CAD WTI collar. The unrealized gain on the Company’s hedge portfolio is approximately $62 million, using the forward strip as of December 6, 2023.

Pieridae’s 2024 production guidance of 33,000 to 34,500 boe/d reflects the Company’s low 8% base decline rate mitigated by low-cost optimization initiatives and an expectation of less facility downtime than was experienced in 2023. The Company’s current onstream production capability and 2023 exit rate is approximately 37,500 boe/d.

Pieridae’s $28-$33 million 2024 capital budget is highlighted by the second and final phase of the maintenance turnaround at the Company’s Waterton deep-cut, sour gas processing facility, which is scheduled for the third quarter. Pieridae owns and operates three major gas processing facilities which each require periodic maintenance turnarounds on a five-to-six-year cycle. The Company successfully completed phase 1 of the Waterton turnaround from August to October of 2023.

Due to the current outlook for North American natural gas prices, Pieridae is not currently planning to resume drilling operations during 2024. The Company is instead directing its available capital towards certain low-risk, short-payout production and facility optimization projects to mitigate production decline. Pieridae plans to continue to exploit its portfolio of high impact conventional Foothills drilling opportunities once the Company has achieved its deleveraging target, natural gas prices recover, and risked project economics improve.

For further information please contact:

Darcy Reding, President & Chief Executive Officer
Telephone: (403) 261‐5900

Adam Gray, Chief Financial Officer
Telephone: (403) 261‐5900

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