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Pieridae Releases Q4 and 2021 Results

Press Release

Upstream Focused Company with a Viable LNG Option
New President & COO and CFO Promotions Announced

Key Highlights:

  • Generated $57.7 million Adjusted Funds Flow from Operations1 (“AFFO”) in 2021 an increase of
    115% year over year from $26.9 million in 2020 to $57.7 million
  • Generated $84.1 million Net Operating Income1
    (“NOI”) in 2021, an increase of 66% year over
    year, from $50.7 million in 2020
  • Increased petroleum and natural gas revenue to $334.7 million in 2021 up 41% from $238.1
    million in 2020
  • Production averaged 40,562 barrels of oil equivalent per day (“boe/d”) in 2021 , a marginal
    decrease from 42,000 boe/d in 2020 in the midst of two planned facility turnarounds or planned
    maintenance shutdowns
  • The proved developed producing (“PDP”) base decline rate of the corporation is now at ~ 10%
    (based on 2022 PDP forecasts), one of the lowest in the industry
  • Maintained safe, reliable operations during the pandemic with historical low recordable injuries
    and without any material loss of productivity during the fourth quarter and year ended December
    31, 2021

CALGARY, ALBERTA – March 24, 2022 – Pieridae Energy Limited (“Pieridae” or the “Company”)
(PEA.TO) released its 2021 financial and operating results today, highlighted by year-over-year growth in
Adjusted Funds Flow From Operations (up 115% to $57.7 million) and a 66% increase in Net Operating
income to $84.1 million.

“We have transformed as a company in the past year following the completion of ourstrategic review and
the suspension of the Goldboro LNG Project,” said Pieridae’s Chief Executive Officer, Alfred Sorensen.
“Pieridae has adjusted its strategy to one of focusing on building the upstream side of our business, while
maintaining optionality for an LNG Project. We believe there is great value in developing our Foothills
assets, holding one of the largest land bases in the area, and we will work to demonstrate that it is an
economic place to drill. The potential start of our 2022 drilling program, projected for the second half of
the year, would bring on new production, help fill up our gas plants, lower per-unit operating costs and
increase revenue. We also know we must lower debt financing costs and develop and execute a carbon
management plan which is aligned to our environmental, social and governance (“ESG”) vision.

[1] NOI and AFFO are non-GAAP measures. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Refer to the “non-GAAP measures” section on page 20 of the Company’s most recent MD&A.

“While we continue to believe that an LNG project at our Goldboro site could be an economically compelling and nation building opportunity, what Pieridae needs in order to continue development of the project is a commitment of support from the Government of Canada that this initiative is a national priority. If it is deemed to be, then pipeline capacity to transport the gas to the East Coast would need to be worked out. We must find an investment partner and also hope the Mi’kmaq remain involved as partners so that they might share in the benefits of a future project,” concluded Sorensen.

Financial and operational information is set out below and should be read in conjunction with Pieridae’s 2021 Annual Report which includes the Corporation’s audited annual consolidated financial statements and the related management’s discussion and analysis (“MD&A”). In addition, the Corporation today announces the filing of its Annual Information Form (“AIF”) for the year ended December 31, 2021 that contains the Corporation’s reserves and other oil and natural gas information, as required under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The AIF, Annual Report, audited consolidated financial statements and MD&A are available for review at and on the Company’s website.

New President & COO and CFO Named
We are pleased to announce a pair of important promotions within the Company at the Senior Leadership Team level. Darcy Reding becomes President & Chief Operating Officer (“COO”), after serving as the Company’s COO since Joining Pieridae in April 2021. As well, interim Chief Financial Officer (“CFO”) Adam Gray is no longer fulfilling the role on an interim basis and is promoted to CFO.

“Both Darcy and Adam have played significant roles during a challenging year at Pieridae to influence the operations side of our business, moving us toward our goal of being a successful Foothills producer and increasing returns to our shareholders,” said Pieridae’s Chief Executive Officer, Alfred Sorensen. “We congratulate them both on their promotions and look forward to what they will accomplish in the months and years ahead.”

Financial Performance
During 2021, the Company generated cashflow from operations of $51.1 million, and AFFO of $57.7 million, an increase of 115% compared to the same period in 2020. Higher realized prices for natural gas, NGLs and condensate contributed significantly to higher cashflows, offset by lower production, increased operating costs and royalties largely driven by the increase in commodity prices, and first-half costs associated with the Goldboro LNG Project.

Trends in petroleum and natural gas revenue are primarily associated with fluctuations in the total volume produced and prices the Company receives for its production. We were able to mitigate our production decline to 3% during 2021; increases in realized prices during the year was the primary driver of the 41% increase in petroleum and natural gas revenue from $238.1 million in 2020 to $334.7 million in 2021. That said, fixed price physical forward sales contracts in place during the year did not allow us to take full advantage of the increase in commodity prices.

2021 was a year of change for Pieridae, with challenges faced on a number of fronts as we have discussed. Events highlighted earlier in this release impacted our business, operations, cash flows and net income (loss) during the past four quarters. Throughout these events Pieridae remained committed to and impressed by the operational resilience of our assets and our team.

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