Advisories

General

We have taken care to ensure the information in this document is accurate. However, the data presented includes aspirational goals, approximations and estimates, which will differ from actual results, and is for informational purposes only. We disclaim any liability whatsoever for errors or omissions. Further, some information in this document may have been disclosed previously in other Crew public disclosure, and such disclosure is not intended in any way to be qualified, amended, modified or supplemented by information herein.

“Material” may be used within this report to describe issues for voluntary sustainability reporting that are considered to have the potential to significantly affect sustainability performance in our view and may be important in the eyes of internal or external stakeholders. However, material for the purposes of this document should not be read as equating to any use of the word in other Crew public reporting or filings.

With this document, we hope to increase your knowledge of Crew and our operations. However, this document does not provide investment advice, and readers are responsible for making their own financial and investment decisions.

There is no single standard system that applies across companies for compiling and calculating the quantity of greenhouse gas (“GHG”) emissions and other sustainability metrics attributable to our operations. Accordingly, such information may not be comparable with similar information reported by other companies. Our GHG emissions are derived from various internal reporting systems that are generally different from those applicable to the financial information presented in our consolidated financial statements and are, in particular, subject to less sophisticated internal documentation as well as preparation and review requirements, including the general internal control environment. We may change our policies for calculating these GHG emissions in the future without prior notice.

Forward Looking Information and Statements

This report contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” “forecast” and similar expressions are intended to identify forward-looking information or statements. Forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside of our control. These statements are only predictions. Actual results or outcomes may differ from those expressed in such statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on our behalf, in this report.

In particular, but without limiting the foregoing, this report contains forward-looking information and statements pertaining to the following:  corporate strategy, plans and focus; the impact of CO2 limits on our operations and proposed GHG regulations; all of our ESG goals and targets as established from time to time and as outlined in this report; our plans to reduce power costs, improve operating efficiencies and reduce overall emissions; our future reclamation plans; our plans to strengthen our relationships with stakeholders; our intentions to apply best practices in indigenous relations for consultation in the future; our future sustainability goals, plans and reporting; well abandonment plans; future results from operations and operating and leverage metrics; the potential impact of COVID-19 as well as government programs associated with COVID-19; world supply and demand projections and anticipated reductions in industry spending as a result, and long-term impact on pricing; future development, exploration, acquisition and disposition activities (including drilling and completion plans, anticipated on-stream dates and associated timing and cost estimates); infrastructure investment plans; the successful implementation of our ESG initiatives; the implementation of a Waste Heat Recovery system; achieving our ESG goals and targets as outlined; future abandonment and reclamation activities; meeting or exceeding regulatory requirements; and anticipated improvement in our long-term sustainability including the expected positive attributes discussed herein attributable to our two-year development plan.

These forward-looking statements are subject to numerous risks and uncertainties, most of which are beyond our control, including the impact of general economic conditions; industry conditions; liabilities inherent in crude oil and natural gas operations; environmental risks; hazards such as fire, explosion, blowouts, cratering, and spills, any of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury. Our Management’s Discussion and Analysis for the second quarter of 2022 dated August 8, 2022, and our Annual Information Form, and other documents we file from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available on our profile on SEDAR at www.sedar.com.

The forward-looking information included in this report is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks; uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: Crew’s ability to develop, access or implement some or all of the technology necessary to efficiently and effectively operate assets and achieve expected future results, including in respect of GHG emissions, methane emissions and freshwater use reduction targets; the development and execution of implementing strategies to meet Crew’s targets; impediments generally to Crew’s operations in respect of Crew meeting its targets and commitments as they relate to its ESG focus areas; changes, including future decline, in commodity prices; changes in realized prices for Crew’s products; changes in the demand for or supply of Crew’s products; unanticipated operating results, results from Crew’s capital spending activities or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans by Crew or by third party operators of Crew’s properties; increased debt levels or debt service requirements; changes in estimates of Crew’s oil and gas reserves and resources volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; reliance on industry partners; failure to complete any anticipated acquisitions or divestitures; and certain other risks detailed from time to time in Crew’s public disclosure documents (including, without limitation, those risks identified in its most recent quarterly MD&A and Financial Statements and its most recent annual filings, including the Annual Information Form and MD&A in respect of the year ended December 31, 2021). Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Crew disclaims any intention or obligation to update or revise any forward-looking statements in this report as a result of new information or future events, except as may be required under applicable Canadian securities legislation.

Non-IFRS Measures

Certain financial measures referred to in this report, such as adjusted funds flow or AFF, net capital expenditures, and net operating costs, and are not prescribed by IFRS. Crew uses these measures to help evaluate its financial and operating performance as well as its liquidity and leverage. These non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers.

• “Adjusted funds flow” or “AFF”, presented herein is equivalent to funds from operations before decommissioning obligations settled. The Company considers this metric as a key measure that demonstrate the ability of the Company’s continuing operations to generate the cash flow necessary to maintain production at current levels and fund future growth through capital investment and to service and repay debt. Crew also presents AFF per share in this presentation whereby per share amounts are calculated using fully diluted shares outstanding.
• “Net Operating Costs” equals operating costs net of processing revenue.
• “Net Capital Expenditures” equals exploration and development expenditures plus property acquisitions or less property dispositions.

Please refer to Crew’s most recently filed MD&A for additional information relating to Non-IFRS measures including a reconciliation of AFF to its most closely related IFRS measure. The MD&A can be accessed either on Crew’s website at www.crewenergy.com or under the Company’s profile on www.sedar.com.

BOE, MMCFE and TCFE Conversions

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of 6:1, utilizing the 6:1 conversion ratio may be misleading as an indication of value.

TCFe of gas is defined as Trillion Cubic Feet Equivalent, and MMCFe of gas is defined as Million Cubic Feet Equivalent. Both terms have been applied using the oil equivalent conversion ratio of six thousand cubic feet of natural gas (6 mcf) to one barrel of oil (1 bbl). TCFe and MMCFe amounts may be misleading, particularly if used in isolation.