Kelt Exploration Ltd. ('Kelt' or the 'Company') is providing an operations update with respect to the potential impact that current weak AECO and Station 2 spot gas prices may have to its 2022 operating and financial results.

Production Downtime

Commencing during the third week of August 2022, daily AECO and Station 2 spot prices dropped significantly as a result of pipeline maintenance on the NGTL and T-South systems, an unplanned compressor failure in Alberta and restrictions to gas storage injections. Given the short-term nature of these low daily index prices, Kelt believed it would be prudent to temporarily shut-in certain drier gas wells in anticipation of a short turnaround price recovery. As a result, the Company shut-in significant gas volumes on certain days in both Alberta and British Columbia. Subsequently, current AECO prices have rebounded, however, AECO prices could remain volatile through September and October as further maintenance on the NGTL system is completed. Based on published maintenance upgrades on the T-South natural gas transmission system, it is expected that Station 2 prices should recover after maintenance is expected to be completed by September 16, 2022. On September 2, 2022, the TWM Pipestone Plant where Kelt processes approximately 33.0 MMcf per day of raw gas was shut-in as it conducts plant turnaround maintenance operations. The plant is expected to be shut-in for approximately three weeks.

2022 Guidance

Kelt is reducing its production guidance to be in a range from 28,500 to 29,500 BOE per day (previously forecasted to be in the range from 30,000 to 31,000 BOE per day). At current future strip pricing for both oil and gas and after adjusting for shut-in production outlined above, Kelt expects its estimated 2022 adjusted funds from operations to be within 3% of its previous forecast of $350.0 million. The following table summarizes average commodity prices during the first eight months of 2022 and future strip pricing used by Kelt for the remainder of the year:

Forward-looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words 'expect', 'anticipate', 'continue', 'estimate', 'execute', 'ongoing', 'may', 'will', 'project', 'should', 'believe', 'plans', 'intends', 'forecasted' and similar expressions are intended to identify forward-looking information or statements. In particular, this press release contains forwardlooking statements pertaining to the following: the expected timing of the drilling and completion of wells, the expected timing of wells being brought on-production, the expected timing of facility expenditures, the expected timing of facility start-up dates, the expected length and timing of facility downtime, timing and approval of permit applications in British Columbia, the expected cost and productivity of capital projects and the estimated future rates of return; and the Company's expected future financial position and operating results. Although Kelt believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Kelt cannot give any assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general, operational risks in development, exploration and production; risks associated with the COVID-19 pandemic; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production including the estimated timing and completion of maintenance on the NGTL and T-South pipeline systems the uncertainty of the completion of the turnaround maintenance at third party gas plants; the volatility of natural gas prices and the potential of future shut-in production caused by low prices;; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; as well as general economic conditions, stock market volatility; and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive. In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements contained herein are made as of the date hereof and the Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws. Certain information set out herein may be considered as 'financial outlook' within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Kelt's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes

Contact:

KELT EXPLORATION LTD.

Suite 300, 311 - 6th Avenue SW, Calgary

Alberta, Canada T2P 3H2

DAVID J. WILSON

President and Chief Executive Officer

T: (403) 201-5340

SADIQ H. LALANI

Vice President and Chief Financial Officer

T: (403) 215-5310

Website: www.keltexploration.com

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