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crew energy inc . CREW ENERGY INC . ANNOUNCES THIRD QUARTER 2021 RESULTS HIGHLIGHTED BY STRONG FINANCIAL AND OPERATING PERFORMANCE Calgary , Alberta – November 4 , 2021 - Crew Energy Inc. ( TSX : CR , OTCQB : CWEGF ) ( " Crew " or the " Company " ) , a growth - oriented natural gas weighted producer operating exclusively in the world - class Montney play in northeast British Columbia , is pleased to announce our operating and financial results for the three and nine month periods ended September 30 , 2021. Crew's Financial Statements and Notes , as well as Management's Discussion and Analysis ( " MD & A " ) are available on Crew's website and filed on SEDAR at www.sedar.com . " Crew benefitted from positive market developments in the third quarter as commodity prices reached levels unseen in recent history , enabling the Company to capture value from our world - class resource to generate meaningful adjusted funds flow¹ ( " AFF " ) , " said Dale Shwed , President and CEO of Crew . " Crew exceeded previously announced quarterly production guidance by 13 % at the midpoint , due largely to the successful execution of our capital program . In addition , we are now a pure - play Montney producer with an improved environmental profile after the sale of our Lloydminster heavy crude oil operations . We are excited to advance our two - year plan to create sustainable value for shareholders by increasing production into a strengthening commodity price environment , while also reducing per unit costs to expand margins . ” Q3 2021 HIGHLIGHTS • 23,659 boe per day¹ ( 142.0 mmcfe per day ) of average production in Q3 / 21 , a 17 % increase over Q3 / 20 and 13 % above the midpoint of production guidance range of 20,000 to 22,000 boe per day¹ , a result of the successful execution of our capital program highlighted by production from the new 1-8 pad and the quick turnaround of the West Septimus gas plant in 7.5 days . For the first nine months of 2021 , volumes averaged 25,532 boe per day¹ ( 153.2 mmcfe per day ) , a 16 % increase over the same period in 2020 . • $ 26.5 million of AFF² ( $ 0.17 per fully diluted share ) was generated in the quarter , a 210 % increase over Q3 / 20 , with year - over - year growth being bolstered by higher production , lower cash costs and significantly improved commodity prices . AFF¹ in the first nine months of 2021 totaled $ 86.0 million ( $ 0.55 per share ) , 236 % higher than the same period in 2020 . • $ 176.2 million of net income ( $ 1.12 per fully diluted share ) compared to a net loss of $ 21.1 million ( $ 0.14 per fully diluted share ) in the comparable period of 2020 , with the increase due primarily to the reversal of a previous impairment charge of $ 228.5 million , net of depletion . • 11 % reduction in net operating costs² per unit in Q3 / 21 , totaling $ 5.11 per boe compared to $ 5.74 per boe in Q3 / 20 , reflecting lower average net operating costs from new production at West Septimus and improved operational efficiencies , supporting an 86 % year - over - year increase in operating netback² to $ 16.07 per boe . The previously announced disposition of our Lloydminster heavy crude oil operations on September 24 , 2021 , is expected to reduce operating costs by approximately $ 0.70 per boe going forward . • $ 56.5 million of net capital expenditures² in Q3 / 21 , below our previously forecast range of $ 60 to $ 70 million due to the recently announced disposition of the Company's Lloydminster heavy crude oil operations offsetting total exploration and development spending of $ 64.3 million . The majority of expenditures were directed towards continued development at Septimus and West Septimus ( " Greater Septimus ” ) . • • Three new Groundbirch wells were completed in Q3 / 21 , achieving a combined restricted rate of 32 mmcf per day at the end of an 18 - day flowback period in October , establishing a promising new development area with over 70,000 acres of contiguous land . Achieved record throughput of 115 mmcf per day of sales gas at the West Septimus gas plant at its peak in October , leading to record high natural gas production levels of 149 mmcf per day . 1 See table in the Advisories for production breakdown by product type as defined in NI 51-101 . 2 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 .