Razor Energy Corp. provide a summary of its 2021 year-end reserves evaluation and an updated operational outlook. The highlights and reserves summary Razor's gross reserves at December 31, 2021, as evaluated by Sproule Associates Limited (“Sproule”), qualified reserves evaluators, in an independent report dated February 17, 2022 (the “Sproule Report”).

Razor experienced significant year-over-year reserves volume and value growth. The increases are primarily attributable to the acquisition of additional working interest in the Company's existing non-operated position in Swan Hills Unit No. 1 announced August 12, 2021.

This acquisition augmented holdings in the greater Swan Hills area which exhibit low decline, light oil production. Other primary factors which positively affected reserve volume and values included the reinvigoration of operated and non-operated well and pipeline reactivations and improving West Texas Intermediate (“WTI”) oil price throughout 2021. Razor's Proved Developed reserve base, defined as Proved Developed Producing (“PDP”) plus Proved Developed Non-Producing (“PDNP”), has before tax NPV10 of $157.1 million from a volume of 14,472MBoe and is comprised of 67% light 410 API oil, 6% medium 250 API oil, 20% natural gas liquids and 7% natural gas.

On a cumulative basis, this equates to 93% oil and liquids. Future DevelopmentCapital of $10.0 million is required to reactivate the PDNP, or “behind-pipe” production and reserves, in existing wells and convert them to PDP reserves. Razor's corporate annual base decline remains at 11%.

The Company's Reserve Life Index1 is 6.2 years for PDP, 12.2 years for Total Proved and 13.4 years for Total Proved plus Probable reserves based on 2021 Fourth Quarter field-reported production of 4,307 boepd. The Greater Swan Hills Area accounts for 68% of Razor's PDP reserves with the greater Kaybob and South District areas at 21% and 11% respectively. Sproule carried out an independent reserves evaluation effective December 31, 2021, which was prepared in accordance with definitions, standards and procedures contained in the COGEH and in NI 51-101.

The reserves evaluation was based on Sproule forecast pricing and foreign exchange rates at December 31, 2021. The future development costs are estimates of capital expenditures required in the future for Razor to convert proved developed and undeveloped non-producing plus probable reserves to PDP reserves. The undiscounted future development costs are $47.4 million for proved reserves and $63.9 million for proved plus probable reserves, in each case based on forecast prices and costs.