Page 1

BIRCHCLIFF ENERGY BIRCHCLIFF ENERGY LTD . ANNOUNCES Q1 2021 FINANCIAL AND OPERATIONAL RESULTS AND INCREASES ITS 2021 PRODUCTION , ADJUSTED FUNDS FLOW AND FREE FUNDS FLOW GUIDANCE Calgary , Alberta ( May 12 , 2021 ) - Birchcliff Energy Ltd. ( " Birchcliff " or the " Corporation " ) ( TSX : BIR ) is proud to announce its strong financial and operational results for the three months ended March 31 , 2021. Birchcliff is also pleased to announce that it is maintaining its 2021 F & D capital expenditures guidance and increasing its 2021 production , adjusted funds flow and free funds flow guidance . " Birchcliff had a strong first quarter in 2021 , highlighted by excellent drilling results . The performance of new wells and the execution by our team helped us achieve an average production rate of 75,065 boe / d , which represents an increase of 2 % over Q1 2020. This production , together with improved commodity prices , resulted in substantially higher adjusted funds flow of $ 87.8 million in the quarter , a 138 % increase from Q1 2020. As a result of our strong new well performance and our improved outlook for commodity prices , we are increasing our 2021 guidance for production , adjusted funds flow and free funds flow . We are now targeting annual average production of 79,000 to 81,000 boe / d , up from 78,000 to 80,000 boe / d , and adjusted funds flow of $ 400 million , up from $ 360 million . Notwithstanding our increased outlook for adjusted funds flow , we remain committed to capital discipline and are maintaining our F & D capital expenditures guidance at $ 210 million to $ 230 million , which results in free funds flow of $ 170 million to $ 190 million and puts us in an excellent position to significantly reduce our total debt during the second half of 2021 , " commented Jeff Tonken , President and Chief Executive Officer of Birchcliff . " We are excited about the early results from the 7 - well pad ( 04-04 ) that we brought on production in Pouce Coupe in March . The performance of these wells has exceeded our expectations , with very strong natural gas and condensate production rates . As a result , we have followed up with an 8 - well pad immediately offsetting the 04-04 pad , which we expect to be brought on production in Q3 2021. " Birchcliff's unaudited interim condensed financial statements for the three months ended March 31 , 2021 and related management's discussion and analysis ( the " MD & A " ) will be available on its website at www.birchcliffenergy.com and on SEDAR at www.sedar.com . Q1 2021 HIGHLIGHTS • Achieved quarterly average production of 75,065 boe / d , a 2 % increase from Q1 2020 . • Liquids accounted for approximately 23 % of Birchcliff's total production in Q1 2021 , as compared to approximately 22 % in Q1 2020 , with total liquids production increasing by 7 % from Q1 2020 . • Delivered $ 87.8 million of adjusted funds flow , or $ 0.33 per basic common share , a 138 % increase and a 136 % increase , respectively , from Q1 2020 . • • Recorded net income to common shareholders of $ 22.2 million , or $ 0.08 per basic common share , as compared to a net loss to common shareholders of $ 45.2 million and $ 0.17 per basic common share in Q1 2020 . Achieved operating expense of $ 3.18 / boe , a 1 % increase from Q1 2020 . • Realized an operating netback of $ 17.05 / boe , an 83 % increase from Q1 2020 . • F & D capital expenditures of $ 95.8 million . During the quarter , Birchcliff drilled 19 ( 19.0 net ) wells and brought 7 ( 7.0 net ) wells on production as part of the Corporation's 2021 capital program ( the " 2021 Capital Program " ) . This press release contains forward - looking statements within the meaning of applicable securities laws . For further information regarding the forward - looking statements contained herein , see " Advisories - Forward - Looking Statements " . In addition , this press release uses the terms " adjusted funds flow " , " adjusted funds flow per basic common share " , " free funds flow " , " transportation and other expense " , " operating netback " , " adjusted funds flow netback " , " total cash costs " and " total debt " , which do not have standardized meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies . For further information regarding these non - GAAP measures , see " Non - GAAP Measures " . With respect to the disclosure of Birchcliff's production contained in this press release , see " Advisories - Production " .