Razor Energy Corp. Announces Consolidation Acquisition in the Kaybob Area of West Central Alberta and Increased Term Loan Facility

CALGARY, ALBERTA--(Marketwired - Jan. 15, 2018) - Razor Energy Corp. ("Razor" or the "Company") (TSX VENTURE:RZE) (www.razor-energy.com) is pleased to announce that it has completed the acquisition of certain non-operated working interest positions to consolidate its existing Kaybob Triassic Units 1 and 2 from an arm's length company (the "Kaybob Assets") for cash consideration of $4.9 million, subject to customary adjustments (the "Acquisition"). The Kaybob Assets are characterized by low decline, light oil focused production with abundant infrastructure that directly complement Razor's existing asset portfolio. The Acquisition has been funded with Razor's existing cash reserves.

THE ACQUISITION

The Acquisition increases Razor's operated working interest position in:

• Kaybob Triassic Unit #1 from 52.95% to 93.48%; and
• Kaybob Triassic Unit #2 from 73.25% to 100.00%.

On a pro forma basis including this acquisition, using field production estimates, the Company expects January 2018 production to exceed 4,900 boe/d, of which 85% is light oil and natural gas liquids.

The Acquisition consolidates and enhances Razor's existing asset base with reactivation and re-entry opportunities, in addition to future drilling upside with proven deliverability of light oil from the Montney formation.

The Acquisition has an effective date of November 1, 2017.

ASSET SUMMARY

Total purchase price(1)	$4.9 million
Current production (November 2017)	260 boe/d
Annual decline rate	15%
Run rate cash flow(2)	$1.9 million

ACQUISITION METRICS

Current production (November 2017)	$18,850 per boe/d
Run rate cash flow(2)	2.54x

(1)	Subject to normal adjustments for a transaction of this nature and adjustments related to the exercise of ROFRs.
(2)	Run rate cash flow does not have any standard meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities. Refer to "Non-IFRS measures". Run rate cash flow is based on annualized current production of 260 boe/d multiplied by the operating netback for the Kaybob Assets of $20.62/boe.

Razor continually strives to deliver on its commitment to shareholders to acquire, consolidate or otherwise add, organically or inorganically, complementary assets to further strengthen its value proposition.