Highwood Asset Management Ltd. announced that it has commenced the second half 2024 drilling program, spudding the 100/03-11-048-14W5 well (the "3-11 Well") on June 25, 2024. As previously stated, the Company anticipates drilling six wells (5.95 net), including the 3-11 Well, during the remainder of 2024. Highwood remains dedicated to growing its Free Cash Flow profile, on a per share basis, while using prudent leverage to provide it maximum flexibility for organic growth and /or other strategic M&A opportunities, with a longer-term goal to provide shareholders with a significant return of capital.

Highwood reiterates its 2024 average & exit production guidance of 5,500­5,700 boe/d and 6,400­6,500 boe/d, respectively, while continuing to maintain the same target 2024 net debt /2024 exit EBITDA ratio of approximately 0.8x1. Over the 12 month period ended December 2024, Highwood expects to grow production per share by over +50%, while still reducing debt by approximately 25%. Additional free cash flow that may result due to higher oil prices in 2H2024 will be primarily allocated to further reduce outstanding indebtedness.