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crew energy inc . CREW ENERGY INC . ANNOUNCES FIRST QUARTER 2021 FINANCIAL AND OPERATING RESULTS HIGHLIGHTED BY A 174 % INCREASE IN ADJUSTED FUNDS FLOW Calgary , Alberta - May 6 , 2021 - Crew Energy Inc. ( TSX : CR ) ( " Crew " or the " Company " ) today announced our operating and financial results for the three - month period ended March 31 , 2021. Crew's Financial Statements and Notes , as well as Management's Discussion and Analysis ( " MD & A ” ) for the three - month period ended March 31 , 2021 are available on Crew's website at www.crewenergy.com and filed on SEDAR at www.sedar.com . " Crew entered 2021 primed to capitalize on structural improvements in crude oil and natural gas pricing with a pivotal two - year plan which is designed to increase the pace of development of our world - class Montney resource , while optimizing production and infrastructure utilization . This is expected to enhance margins , improve leverage metrics and generate shareholder value , " said Dale Shwed , President and CEO of Crew . " In Q1 2021 , we saw the initial benefits of our two - year plan , with meaningful growth across an array of financial and operating metrics both year - over - year and quarter - over - quarter , including a 124 % increase in revenue , 174 % increase in Adjusted Funds Flow¹ ( " AFF " ) and a 10 % increase in production volumes compared to Q1 2020. " Q1 2021 OPERATING & FINANCIAL HIGHLIGHTS • 26,258 boe per day² ( 157.5 mmcfe per day ) average production in Q1 / 21 , a 10 % increase over Q1 / 20 and a 21 % increase from the preceding quarter , reflecting the operational success of Crew's drilling and completions program . • $ 34.0 million of AFF¹ ( $ 0.22 per fully diluted share ) generated in the quarter , a 174 % increase over Q1 / 20 and 118 % higher than the preceding quarter , due largely to increased production , lower costs and stronger commodity pricing , particularly for natural gas . • $ 4.65 per boe net operating costs¹ in Q1 / 21 , representing a 19 % reduction compared to Q1 / 20 , and a 12 % reduction from the prior quarter , reflecting higher production leading to operational efficiencies . Q1 / 21 general and administrative ( " G & A ” ) costs of $ 0.93 per boe declined 19 % and 28 % compared to Q1 / 20 and Q4 / 20 , respectively . • $ 50.1 million of net capital expenditures¹ in Q1 / 21 , at the low end of the previously announced guidance range of $ 50 to $ 53 million , as drilling and completion efficiencies improved in the quarter . The majority of expenditures were directed towards the continued development of our world - class Montney resource play , with $ 42.3 million invested in drilling and completions activities , $ 5.6 million directed to equipment and pipelines , and $ 2.2 million on land , seismic , recompletions and other miscellaneous amounts . • 11 natural gas wells were drilled in Q1 / 21 , while six natural gas wells were completed , and seven previously completed natural gas wells were tied in through permanent facilities . In Q1 / 21 , Crew drilled two wells over 6,200 meters in total length , the longest wells drilled in the Company's history . 4 ultra - condensate rich wells were completed on Crew's 3-32 pad with encouraging initial first month average per well sales rates of 497 bbls per day of condensate , 2.2 mmcf per day of conventional natural gas and 99 bbls per day of ngl . These wells had an average condensate to gas ratio of 226 bbls per mmcf over the first month of production . • $ 375.7 million of net debt¹ at March 31 , 2021 , with no near - term maturities or repayment requirements on the $ 300 million of senior notes termed out until 2024 , and 38 % drawn on our $ 150 million credit facility . 1 Non - IFRS measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards , and therefore , may not be comparable with the calculations of similar measures for other entities . See " Advisories - Non - IFRS Measures " contained within this press release . 2 See table in the Advisories for production breakdown by product type as defined in NI 51-101 .